There comes a time in your career, your business, when you feel it’s time to increase your fees for your services.
How do you increase your fees without losing your current clients while gaining new ones?
One of the best ways a professional can get a substantial increase while removing the risk from the client is by offering your services on a pay for performance rate.
This is a great strategy to increase your fees while keeping your current clients and gaining new ones.
What is Pay For Performance Service?
When you’re getting started approaching businesses with your services, the traditional approach would be to initially approach the client and just offer your service for a particular fee.
If the customer turns down your offer it will be for one of the following reasons are a combination of:
- Your fees are too high.
- There is too much risk involved with hiring you at your asking rate.
- The customer is unsure of how proficient you are at your craft.
- You’re not established enough and don’t have a proven track record.
However, if you offer your service on a Pay For Performance basis, you stand a better chance of working with the client and quite possibly commanding a higher fee.
You see, when you offer your services on as a Pay For Performance, all the risk is on you and not the client.
How to offer Pay For Performance Service and Command a Higher Rate
Let’s say you’re a copywriter. Here’s how you would offer your services on a pay for performance basis.
Offer to write the client a brand new sales letter from scratch, and the client pays you only if your copy converts.
When you offer your services in that manner, there’s two great things that can happen:
- Number one is that the client is going to be three times more willing to give you a chance.
- Number two, you can actually get paid two times, three times, four times more money than if you asked to be paid up front.
If you’re confident and skilled this is a great strategy because if your work doesn’t pay off, you’re not going to get paid. But again, you want to be the one taking the risk. It goes back to the irresistible offer. Do the risk removal and there’s no better way to do risk removal than pay for performance.
Want to learn more about how to increase your fees without losing customers?? Find out from these ten successful entrepreneurs how they go about breaking the news of price increases to their most loyal customers in this article written by the YOUNG ENTREPRENEUR COUNCIL.