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.

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Author: Matt Gallant

Matt Gallant is known as the Chief Marketing Wizard at Balboa Media. Matt has built over 39 profitable websites, and his companies have sold over $10,000,000 online. He’s called by his peers “The Mad Marketing Scientist” since he’s constantly testing new, radical ideas inside his companies.

2 Responses to "Increase Your Fees with Pay For Performance"

  1. Jose Maria
    Jose Maria Posted on September 18, 2015 at 9:08 pm

    Hey, guys!
    I just fuckin’ love everything you share, I’m getting into this “I get so excited for learning” either new things or reinforcing old stuff.
    Talking about the subject I’m exploring 2 perspectives to get 1 big ass result
    1. Charging for a %, cuz yeah, you gotta overcome this lack of credibility that the marketplace generates with this “give me your money and fuck the value” mentality that has been going for so long, I’ve notice that in the particular case of consulting this is a major difficulty cuz you have to overcome that and in a nutshell telling people “I’m gonna teach you to do shit right in your biz” that a damn hard pill to swallow. So I tell people how much value has for their biz what I offer in terms of their particular goals, then I talk about the price if I didn’t start there cuz I like to be clear with that stuff, and then I go with the option of doing it by a REALLY low price and a percentage of the income generated by the campaing or consulting that is to be done, the % depends on how much of the development of the campaing my team will do.
    2. I try to focus my copy in generating value in my market place for free, so you get stuff from me only by investing time -wich for some weird reason people percibes as cheaper than investing money-
    Every piece of value I deliver it’s framed on the “I’m a big ass expert/success/celebrity” to create a frame around the figure of my business that it’s an authority brand, you know using diverse NLP and consumer psychology stuff, or at least as much as I can use with the resources that I have at the moment.
    Anyway, I’m starting and woorking really hard on this and I’m pretty sure it’ll come out great. I’m also gonna implement the option of pay me once you see the results and the amount will be proportional to the benefits aproach that you talk about in the video.
    Thanks for everything, guys.
    Cheers!

  2. Kimberly Bohannon
    Kimberly Bohannon Posted on September 20, 2015 at 9:17 pm

    Thanks, Jose… keep rocking it!!