This key is on pricing. If you do your sums then you will not reap a million dollar business with average pricing (do the sums and you’ll see how hard that is).
There are three things to consider here:
- The 80/20 rule which says that 80% of your income will come from around 20% of your clients. And 20% of your income will come from 80% of your clients (and be much harder work too).If you re-apply the 80/20 rule to the top 20% of your market then this means that the top 4% will be paying you up to 10 times what the others will. All successful businesses know how to work this out and consequently will market to attract their top income generating clients. This makes total sense as this frees you up to really deliver a top-notch service to these clients.
- The second thing to consider is that people don’t actually buy on price (although many people think they do). People buy on ‘value’ based on what it will do for them.
- Finally, everyone I know who concentrates on top fee paying clients find that they really appreciate your help a whole lot more than many people who only want to pay bargain bucket prices and then don’t implement the knowledge or appreciate the expertise shared with them. That can be a whole of lot of agro.
So take a look at your current customer base and work out your 80/20 to find out your top 4% of fee paying clients. Aim to market to these people.