hey Nick here I made over $100,000 this month using automation andm make.com as we all know automation has a ton of moving parts and the biggest and hardest one for me to figure out personally was pricing so what I want to do in this video is I want to break down how to price Automation Services effectively I'm going to give you guys a simple step-by-step way that you can do so and I'm going to show you eight distinct and exhaustive pricing methods that I and many other people in my communities use to price their projects
if that sounds good to you then stay tuned and let's get into it I hope you guys got a pen and paper cuz we are breaking out the spreadsheet for this one as per always just a little Preamble this is my own process and my own thinking it got me to $72,000 a month with my own automation agency but I'm not trying to say that this is the only way that you can do things if I were you I would take what works leave the rest another little disclaimer uh is naturally that there are many
ways to price uh one thing that I will let you guys know right off the bat is that no pricing methods are perfect like there is no pricing method that is perfect in every way shape or form all of them actually have drawbacks and not a lot of people that are talking about this are going to tell you um the reality is some are better than others for different circumstances different offers and different services that you're selling so I'm going to try and get pretty nuanced with it uh I don't want to just give you
guys a simple price this way that way and that way answer because I don't really feel like that's fair to the concept of pricing in general so you don't actually need to use all of the pricing methods I'm going to talk about um a good example of one is you know you would not charge a percentage of revenue for something not in your control for instance I'm I'm going to talk about um how to do percentage based pricing in a minute but that's just a good example of how you know some methods are going to
work better for specific circumstances than others you probably also would charge different types of companies differently so you wouldn't charge a small to midsize business at about 10 staff members the same way that you charge an Enterprise company to a thousand staff members odds are they also probably have their own rules and regulations and you know internal policies that dictate how they price or how they uh uh uh work with vendors so you know you're going to have to work around that I'll mention that a little bit later on in the video another thing I'll
say is that some methods work better for different stages of your business hourly pricing is super popular especially on jobs platforms like upwork and stuff like that it's very simple to get started with I actually recommend people that have never made money on the internet to start with it but note that it becomes super limiting as you grow and as you scale your business I'm going to cover that uh and really just to Loop it all together the best agencies constantly re-evaluate the best ways to price to maximize their value so if you want to
be one of those aformentioned best agencies you should probably do that too okay great let's dive into method number one we are going to start with hourly just because hourly is by far the most popular I'm going to zoom in a little bit here and I think I'm going to put my face in the top right hand corner this time just to be a little spicy so here's a quick example of what hourly pricing might look like you get a client on upwork they want you to build a simple automation from the ground up that's
custom to automate some repetitive data entry task maybe you are grabbing data from Source pasting it into a spreadsheet something like that you think that it's it's going to take maybe four or five hours so you tell the client and then they say great they accept the offer you guys do all this fun stuff together on the platform and then the billing begins at $100 per hour until the project is complete uh if the client adjusts the scope or wants something new you're just going to continue billing them at that rate this is how the
vast majority of hourly gigs go typically this works best for very small projects uh Discovery phases with high uncertainty in scope that means that you know the client doesn't really know what they don't know so just to hedge their bets they don't want to pay somebody 10,000 or $100,000 uh for something they're not really entirely sure that they want automation agencies and Freelancers that are at the start line of their business tend to choose this as well um and there's also some good and some bad so the good between the good involved in pricing on
an hourly basis is that it's super easy to start right if you think about it hourly pricing is the default everybody on planet Earth after the age of five sort of understands how this work how this works the calendar sorry the calendar good God the clock goes by one hour and every time that that happens you receive a certain amount of money in your pocket um or on your time sheet it's very well defined it's supported by all major freelancing platforms just where a lot of newbies get started on it's something that just sort of
transends you having to explain it and it also appears from the client perspective very low risk so these are all the good points in hourly pricing this is the main reason why somebody might want to uh start with hourly pricing just because it minimizes friction let's see get up and running let's you get your first a couple jobs out of the way you'll notice that the bad is a lot longer than the good here and the reason why is because if you think about it logically the time that you spend building a system does not
accurately reflect the value that you bring to an organization especially nowadays with templated systems and solutions like make.com Zapp or no code it's the time that you spent and invested learning how to build those things and maybe building out those templates that actually matters that's what actually reflects the value you bring to an organization so the point I'm making is if you're really really good you're going to work much faster than other people and you're going to make less money because of it so why would you want to commit to hourly pricing uh if it's
not just your first few gigs and if it's not just this crutch because it penalizes you for doing good work fast it's silly I should also note that this actually can be less appealing to clients sometimes especially in larger projects because from their perspective you know cost can escalate there's no fixed uh cap to it they don't really know when costs are going to end things typically in the contractor world go over budget and over schedule as well and you know a lot of clients are are cognizant of that so the reason why I talk
about hourly here is just to show you guys that this is a viable way to Price It's especially powerful if you're just getting off the ground I definitely took a lot of hourly gigs when I got started in automation um even in content writing before that um even in like webdev freelancing before that and it's it's totally cool because you know it allows you to figure out how to do client management it allows you to figure out a lot of the things that um you won't know until you actually find yourself in some sort of
contract but the second that you have a couple of hourly gigs it's best to uh offramp and switch to one of the subsequent models that I'm going to talk about in a minute so now we get away from hourly and now we're moving into higher value ways of pricing calling these value based methods they're all fixed price that just means that instead of you being buildt or instead of you billing the customer or client based off time you actually just give them like a fixed amount of money and then based off that fixed amount of
money you can build them maybe half UPF front half after the Project's completed if it's like a big Enterprise company a lot of the time they'll want to work um based off what are called Milestones or tranches which is where uh you know maybe it's like 25% at the beginning and then 25% after some Milestone is completed 25% after another one's completed then another 25% at the end any that part isn't super important just understand the broader concept here here's how this first way of value based pricing works it's called cost saving so example A
friend of yours runs a Consulting business right now it costs this Consulting business $50,000 a year to pay a staff member whose sole job it is is to generate reports they do analyses graphs spreadsheets package them in a PDF send them off to customers this is extraordinarily common there are a lot of Consulting businesses that pay people you know between 50 to 100 ,000 a year just to do like this now you being a proficient automation engineer that has watched all of my YouTube videos you are confident that you can automate this completely and save
that company $50,000 annually so the way that you would do cost saving based pricing in this manner would be to charge them 25% of the savings so somewhere between 10 and $155,000 why didn't I just write $12,500 I don't know I guess it was a little bit sleepy uh the point that I'm making is what you do is you figure out how much money you're saving the company with the system and then you charge some percentage of that money you can only do this if you obviously talk to the customer if you consult with them
if you figure out their pain points and how much money uh this lack of a solution is is impacting in terms of their bottom line but once you know that you have a ton of Leverage in negotiations uh and you can charge some percentage of that to help their business out so this is the first method there's another method in a second Revenue uplift which I'll talk about but this works really really well as an off-ramp or a transition from Pure hourly based price typically this works best with automations that directly reduce operating expense or
they streamline some sort of very resource heavy task that contractor or consultant that costs $50,000 a year is a good example larger companies with high revenues but poor margins or inefficient operations are great targets here because let's think about it if a company makes $100 million a year and if you can improve their margins by 1% you are making that company a million dollars a year right so they can justify spending a lot of money on you it doesn't really work as well in the other way around like if a company's making $10,000 a month
let's say hypothetically and you can shave 1% off their margins while uh what is that like a hundred extra dollars a month you can't really justify too much from there but I think you guys kind of get my point it does take a few clients before you can intuitively scope projects like this a lot of the time uh one thing that I see in my community specifically my beginner Community maker school is people really struggle with talking about about money about dollars with customers or prospects uh at the time I should say you know they
just feel like it's this elephant in the room that's kind of staring them down but they just can't really get down to Brass tax and okay so how much money is this costing you oh you don't know well let's figure it out right now together so if you're just at the very start line of your automation business your agency and you haven't really figured out how best to talk about stuff like that you may find this difficult you may also screw up a little bit you might quote either way too much money or way uh
too little money a few times that's all right this is all just part of a learning experience um at least now you know what this is so the real benefits here is that cost-saving based pricing is not tied to your time it is way more scalable than something like hourly which we talked about a moment ago it also lets you template out your work it aligns incentives between you and the client what I mean by aligning incentives is instead of you being penalized for doing a faster job better if you do a faster job better
you're rewarded because you just did the same job and made the same amount of money in a fraction of the time you can make 10,000 bucks in a few hours if you build it right there are a lot of systems out there that do stuff like what I just talked about generate reports and assets and PDFs that can literally eliminate a staff member like Terminator T2 style um I'll be back that you know you can build in just a few hours and you can charge 5 10 15 $20,000 for it right and note that you
know I'm charging them 25% of the savings here or in this hypothetical we're doing this on an annual rate so uh you know in this case it's probably be like a onetime build plus some sort of like low monthly maintenance I'll get into retainers and subscriptions in a moment but uh yeah you can make a ton of money in a few hours if you if you build this right the bad here and there is always bad as I mention no pricing method is perfect is it's harder to justify saving money in practice than it is
to making more money uh the gap between the money that you save them and the money you charge for them is also there will always be a gap you will never be able to charge like $50,000 for a system that saves somebody $50,000 the reason why is because you got to think of it from the client perspective they have a solution right now that cost them 50 Grand and it works right it does the thing that it's supposed to do your solution might cost $10,000 but there's uncertainty you don't know if it's going to work
there's a risk on behalf of the client they aren't entirely sure if you're the professional that maybe you seem to be there's risk on behalf of the Technologies they don't know if these technologies have 100% uptime they don't know if there might potentially be some issues with them there's costs for the technology there's costs for your time that might be hidden right the point of making is you can never actually charge the amount of money that you save you can only ever charge a fraction of that in context you can usually do up to about
half or so I mean this is like a a loose rule of thumb that I'm just giving you guys from my own experience here I have only ever charged up to about half of the savings and that was when the client was extraordinarily confident in me very risk tolerant we had basically no maintenance cost we had basically no infrastructural cost so yeah that's the bad is you guys can tell this is still way better than hourly pricing but no pricing method is perfect let's move on to the Third the third major method is called Revenue
uplift or rather I just decided I would call it Revenue uplift so now we're all calling it Revenue uplift the example here is you're working with an agency uh you build them a cold email system that you project will net them $10,000 a month in sales about 120k a year so what you do is you charge them a one-time fee of $3,000 for this system which is 30% of rev and that's just to set up the the system to I don't know connect the mailbox to do whatever hyinks you need to do in the background
along with a monthly man cost of $2,000 20% of Revenue why did I break it up like this well I broke it up like this just to show you guys that at the end of the day this is your business this is your freelancing operation you could do whatever the hell you want you could charge an upfront amount for a certain thing and then a monthly amount for another thing um I I'm just trying to show you guys you guys can be flexible in the way you do these pricing uh you know the these proposals
I want you guys to know that there are a variety of options here and you can also mix and match them however you like so typically how does this work um typically this works best with sales and marketing automations that have clear attributable Revenue impact what I mean by Revenue impact is I mean like you know it's a sales system it's a growth system it does something on the front end it DMS people on LinkedIn or it cold emails people uh by scraping their their leads from Apollo or something right it's it's something involved an
Outreach something involveed at the front end of a business and because it's involved at the front end of the business you can typically actually take uh you can typically actually make a lot more money with stuff like this right you can only ever save 100% of your Revenue but you can make an infinite percentage more of your menue so what I find in practice is beginners also find this difficult just because again they don't really know how to talk about money they don't really know how to conceptualize what the customer lifetime value is if a
business uh I don't know every 10 meetings they close one client and the client is worth $10,000 you can kind of think of it as that meaning in and of itself is worth $1,000 to that business right well you can continue reverse engineering from there to figure out how much a lead is worth how much money that the company would need to spend to acquire an equivalent thing you you can do a bun of ma a bunch of math but a lot of the time I find that you know beginners just they just can't because
they don't have the experience they don't have like the business knowledge so yeah this is definitely a little bit harder um it's harder than uh hourly but uh maybe it's about on the same level as cost savings okay so the good is again this isn't tied to your time it's much more scalable it lets you template out your work and it aligns incentives between you and the client you can also make 10,000 bucks in a few hours if you build this right the bad is the gap between the money that you think that you're going
to make them and the money that you actually charge for the system is again a product of these three things and in practice I find that you can charge a lower fraction of the money for Revenue uplift than you can for cost savings so what I what do I mean by this well you know in the previous example we saved a company $50,000 and then I said the maximum that I've realistically charged about half and you know I've worked on a ton of projects here so I don't really think this is just my own lack
of confidence I think that there is some theoretical limit here and it's about half um you know you wouldn't be able to charge half of the equivalent value that you bring to a company Revenue wise that would just be crazy companies also have like operational costs to acquire sorry operational uh cost to like uh fulfill the deal right they have a lot of Revenue uncertainty um they have like operational uncertainty they have debts a lot of the time right so if you were to charge them 50% of every dollar that you made them um most
of them wouldn't be able to survive in practice I find 30% is like that theoretical limit um most of the time it's less most of the time it's like 10 15 20% uh but you know obviously you could still make a ton of money on this and I'm going to show you a few alternative Revenue uplift models in a moment that frame this just so that it's not like a onetime fee it's sort of like a distributed recurring fee based off of performance okay speaking of performance this one is the per outcome model now I
say EG meetings booked just because that's the simplest way for me to conceptualize this because I sell a ton of cold email here's a quick example you're working with an agency you build them a cold email system and you project just based off of I don't know the volumes that you guys are going on the math that you've done done based off similar offers and all that stuff that you're going to book them about 20 meetings per month so maybe one every business day or so now historically they close a quarter of those so they
close 20 divided by four five right and the customer lifetime value of that is $2,000 so if you do the math basically what I'm trying to show you is this is equivalent to this right it's about the same thing 10,000 bucks a month over here 10,000 bucks a month over here so what you do is you pitch them that first thing and they say you know man I don't really like this I don't really think that this is feas or possible uh I don't have the money to spend up front why don't you only pay
me uh or you know I'll only pay you on on results or something so what you do instead is you pivot and you charge them a per meeting rate of $150 each instead so instead of you getting that money upfront sort of guaranteed what you do is you say hey I completely understand I'm going to charge you based off of the outcome because that's how confident I am that I'm going to crush it so if you do the math on this 20 meetings times 150 bucks well that's 3,000 bucks a month that's actually a little
bit more than what we were charging before and in reality um you can make a lot more money with per outcome and revenue based uh Revenue percentage based splits which I'll talk about too than you can with like a fixed price thing simply because these things scale with performance and if you're a really high performer you can make a ton of money for other businesses okay so typically you do this with projects that have quantifiable outcomes that you are super confident you can deliver this is going to be stuff like meetings booked maybe you do
some recruiting automation that's going to be candidates placed the unfortunate part is beginners are going to find this very difficult to do in practice because they're just not going to know enough in order to land these deals consistently or get these booked meetings or get these candidates the kind of terrible irony is unfortunately it's usually beginners that take these projects on disproportionately because a lot of the time cheap clients will respond just like they did in my example they'll say no work unless uh you don't charge me anything UPF front only on Deal sign or
something of that nature so a lot of the time you will sort of be forced to do this as a beginner especially if you have no real experience under your belt and you just want to get a case study through the uh through the gate um which I find just hilarious I mean I did a couple of these as well when I was first starting out I I had a couple of them that worked the vast majority of them did not just to be completely clear with you I've also had a few people that I
work with now that charge per outcome and they make a boatload of money because they're pros at it we're talking 3040 $50,000 a month so you know it's usually like a highrisk high reward thing that you only take on if you're good okay speaking of good the good is that it's a lot easier to conceptualize on the client perspective than an upfront cost in instead of the client spending $3,000 on you basically mentally they're saying well I'm going to spend $150 on him and then he's going to generate or I will wait for him to
generate results and then I'm only going to have to spend $150 on them right so you're tying it to a performance metric technically there's unbanded upside you can make as much money as you want and since book meetings are probably entirely in your control in this example you are mostly responsible for how much money you make like if you're not delivering well that's not really on them right that's on you so you could just become better at what you do you could find a more effective method to squeeze all the value out of these colde
leads and you'll make more money the bad is it's not stable it's not guaranteed there's no upfront Revenue though you may feel confident there will still be some circumstances that are definitely outside of your control um you also have no deposit you have no way of paying off startup costs if you think about this specific system which is cold email system you are going to have some startup costs you're going to have to buy some domains buy some mailboxes you're going to have to I don't know maybe pay somebody to set all of this stuff
up for you if you don't have something to offset those initial startup cost you will basically always be operating at a loss until some inflection point theoretically I also find just anecdotally if a client doesn't pay you something like to start a project to kick off a project they tend not to be as locked in to that project and they tend to I don't really know what it is maybe the lack of like confirmation bias or cognitive dissonance or something they tend not to believe it in as much of they haven't paid for it which
is funny cuz it's like well shouldn't you believe in it more because I'm doing it all without even charging you anything but clients are funny more generally humans are funny and that's sort of how we do things the last thing I'll mention here is payment schedules can suck too this is contingent on how you set up the payments I recommend setting up your payment schedules as shortly as possible in as small interval as you can so most of the time we'll build people monthly right well if you're doing some type of per outcome based thing
don't build them monthly build them weekly um send an invoice every 7 days or something of that nature that counts up the number of meetings booked and then charges them better yet put them on autopay and you actually just decide how much it is and then build them obviously it takes some time to get to the point where you're confident enough to do these sorts of Arrangements but I think you guys get my point minimize the intervals all right another pricing method here is called the hourly retainer I think that's probably the most obvious uh
you know way to transition from doing something purely hourly to getting some sort of Mr here here's a quick example let's say you've been working with a law firm for the last few months you've been creating simple systems that streamline their their I don't know uh patient patient they're uh uh man what the hell is that called patient client intake good God on average you Bill around 20 hours at $120 an hour next month you approach them with an offer you say hey Mr whatever instead of you paying me $2,400 at the end of the
month why don't you prepay me 20 hours at A reduced rate of $100 an hour at the beginning of the month AKA instead of paying me 2,400 bucks at the end why don't you pay me $2,000 at the beginning you're going to get guaranteed sorry you're going to get cheaper uh hourly rate for me and you know that you're going to use and and exhaust my hours anyway and then I'm going to get guaranteed work so I'm going to be able to go to sleep at night without tearing my hair out so it becomes a
win-win for both of you basically and this is one of the simplest ways to go from working entirely on a project basis to working on a consistent mrr or some sort of monthly recurring basis instead I took a ton of these when I started out hourly retainers were still hourly of course but they were also monthly and it was that monthly Revenue that gave me a ton of financial certainty that calmed me down quite a bit and enabled me to look a little bit further than just like the next day ahead you know I was
able to start making longer term plans for weeks months years in advance so typically what this looks like is some sort of ongoing automation maintenance some incremental Improvement to systems um if a client hires you consistently every couple of weeks or something like that then pitch them on an hourly retainer instead save them a little bit of money save you a little bit of that variability the benefit there is that it's the simplest and easiest transition to a monthly payment model it's also great for beginners I highly recommend do hourly like if I could go
back in time and tell myself I would do hourly and then I would try and transition at least one client to an hourly retainer and the second that I have that I'd be like okay I'm probably good enough to now start charging on a value basis instead you can also put your clients on autopay you can effectively buy yourself that Mr with the $400 differential which a lot of the time is worth it the bad is obviously it's still hourly your value is not being ideally represented because it's not really in the amount of time
it took you to build that system right it's the amount of time energy and and resources that You' built up over your lifetime in this career still not too bad if I do say so myself uh the sixth is deliverable based retainers so quick example here and let me explain why this differs a lot from the previous retainer the example is let's say you've been working with a marketing agency for the last couple of months every few weeks this marketing agency will ask you for a consultation in that consultation you guys will discuss a system
that you guys are building together and up until now the way that you've been pricing these systems is using the cost saving and revenue uplift models that we talked about earlier but you really like these clients you love them they love you and you want to turn your currently oneof Revenue into monthly recurring Revenue instead so here's what you do you approach them with a deliverable based retainer you say hey Dr Peter Dr Peter for $5,200 a month you'll get a weekly strategy call with me it's 45 minutes you'll get a monthly priority plan where
we lay out the next four weeks of operational priorities you'll get daily slack availability where you can contact me within 15 minutes between 12:00 to 2 p.m. anybody on your team can I'll be your QA guy I'll help train them speaking of training I'll give you one 2hour team training session maybe if they're in your city you even go to their office and do this in person on top of that I'll also give you unlimited maintenance on Old projects you never have to pay me a one-off amount to fix up an old system or something
I got you for life and in addition you know how you've been gushing over my YouTube videos that I've been posting and you love that system and that system and that system I will give you one of those systems every single month and install it in your business myself um you get to pick at the beginning of the month and then by the end of the month you'll you'll have it doesn't matter what system it is however complicated it is I'll do that for you all right so as you guys see we've shifted the value
prop right previously the value prop was I will spend X hours with you or working for you and now the value prop is you will get X deliverable as a result of working with me aka the $5,200 a month that you spend will net you some sort of return on your investment right so typically this works best with clients that value your systems routinely consult with you uh it's also great for longer term growth oriented Partnerships I mention inbound clients here as well cuz this has been great for me as I've started growing my YouTube
channel I've signed a lot more of these because people just instinctively like and trust you um I think they probably also listen to my logic around hourly pricing they're like yeah that's right let me just pay nick uh deliverable based instead so the good here is you have super high leverage okay you have control over all of your deliverables meaning you get to pick how you want to construct your retainer you don't have to construct it like did this is just how I personally do mine you guys can Str it however the hell you want
so you could build it out in a way that's like hyper leverag that takes you as the service provider like two hours a month to do right and that means that you can feasibly make a lot of freaking money you can feasibly make like $500 an hour or more consistently over a long period of time and you can also just like before put your clients in autopay and then grow your Mr the thing is it's also and I mentioned I put this in the good for some reason it's very good that this is hard for
beginners because we don't want any of them taking our money uh but it's very hard for beginners to do because they have to constantly justify their cost if their systems do not deliver an Roi they will be let go eventually and that's something that you just have to know so if you're charging some sort of hourly rate or or whatever uh it's personally a lot easier to justify this right because they can just cut you off at any time on the hourly on the hourly basis and also it's your time uh that they're they're paying
for not necessarily your Roi but in this case it is strictly framed as like hey if you're paying me $5,200 I want to make you some multiple on that the only thing that you deliver are deliverables obviously so this calculation of does Nick generate me more than 5.2k a month uh I just find that it tends to happen substantially more often on a structure like this than it did on a structure like this so again it's just kind of a highrisk high reward thing you can make a lot more money in this method uh if
you're a little better and more mature I want to say with your business processes it's just sort of what you got to do all right now I want to talk about two alternative actually one alternative pricing B based method and then I'll cover the last one which is pretty contentious which is uh percentage of Revenue but this is a very interesting pricing method and I've seen it happen a lot more in my community as of late specifically with people that are building SAS companies using no code tools what do I mean by this I mean
you know SAS companies the capital s in there stands for software you're offering software as a service right well what you can do with a lot of no code tools is you can actually build out the infrastructure for a SAS company just in your no code editor in make.com or zapier or na10 or something like that you don't actually need to do all of that programming you could have a function that you know you have some website on the front end that people log into and then they put in some uh website brief and they
say I want a website that looks like this it looks like that it looks like that and then you could send that request to your make scenario that could generate you a bunch of HTML and then you could spit it back at them and then voila you basically have your own SAS it's just your SAS is through your no code platform instead of code right so per asset based pricing I find in practice tents work really well um for that and a lot of people are using that um I have done per asset pricing myself
just a couple of times I personally did not find it super valuable I ran a Content editing SAS um that actually worked specifically like basically exactly like how I just told you you just put in your content then it would sort of edit it for you um and then I charge per asset there but let me give you an example here because why the hell else did I write all this stuff the example is you create a Content production system that's light years ahead of what most other agencies are doing you start selling it to
content and SEO agencies on a per asset cost that means that instead of selling the system itself you sell the deliverable which is an article and then you just charge a certain amount per deliverable right so if I generate 20 articles a month as a user of your system and everyone costs 20 bucks well then I'm paying you 400 bucks you can implement this in a variety of ways you could have this be instantaneous pricing where every time you do it you need to pay although I don't really recommend that there's a reason why a
lot of companies is like this credit based stuff because when you spend money that isn't like money you tend to spend a lot more of it if you've ever wondered that's one of the main reasons it's also easier to deal with on your end obviously uh so a lot of the time in practice people do is you'll pay a certain amount of money for a certain number of credits and then it's like well great now you have those credits what are you going to do not spend them obviously you know you got to buy a
100 articles in order to make it into our thing um you know you're going to find a way to spend that other 99 so typically this works best for modular saslik products where each deliverable can be separately priced and implemented this works for contents so articles blogs books um assets like PDFs white papers you can do proposal generators this way uh legal so contracts reports like I was talking about in that first or second example way back when right if instead of you charging them some cost savings based thing you in said just charge with
50 bucks flat per report that might actually make sense for people now the good here is that it's super easy to productize the initial upfront cost on the customer side of things is usually really low as well so um your deliverable costs usually a lot less than whatever the customer is doing before meaning that like as a company you can fix your costs and you can just make your your fee is a multiple of whatever it costs you internally to run your no code tool so if uh I don't know you're paying 5,000 bucks a
month for software and then you generate a 100 articles it's sort of like $50 a month per in every individual article well if you charge a $100 per article you know that you're making 50 bucks on that right pretty straightforward that's kind of a example because you're probably never going to get to a point where you're spending $50 an article especially in our uh you know enlightened AI age so yeah it's the most software likee way to price it's definitely the most scalable now the downside is despite the fact that it's super scalable it takes
a long time to make like good money here if you think about it the cost saving method that I talked about there you could charge $122,500 for a system that saves $50,000 you could make $122,500 today if you wanted to scale the $122,500 with a par asset based system well you need to sell 600 and something um articles right that might take you a lot longer to do so so it's a lot more scalable just like SAS companies but it takes a lot longer to grow um you're probably going to start from zero bucks every
month unless you have some recurring model as well and the detriment is you also have to build infrastructure to track outputs which can be an ordeal in and of itself you're basically building like a whole other SAS app there not to mention no deposit unless you ask for one no way of paying off your startup costs and then the lack of lock in on the client usually reduces perceived value it hits your ability to like get that nice 10 15 $20,000 White Glove project price so I don't really do this to like make my money
I've done and experimented with this a couple times but I'm bringing this up because I've seen it in my communities and there are a few people that are doing quite well all things considered all right now we make it to the daddy of pricing models uh this is the percentage of Revenue quick example you build this amazing LinkedIn DM plus voicemail drop system and it reaches out to people it leaves customized messages based on their profile you then hire a closer and install a closer in your business this is a salesperson that you know closes
the deal your system takes very little setup time it's mostly templated and you're hyper confident that it works because maybe that's what you're doing for your own business that's how you're getting your own customers now you know of this old business acquaintance Dr Peter Who currently needs leads and who could use a system like this to scale up his business so you offer him a deal uh Hey Dr Peter I'm going to generate nurture qualify and close all of the leads using this system and all you have to do is fulfill them okay so you
are a marketing company or maybe you you sell ads PPC I will generate you the clients and then all you have to do is just fulfill the clients in exchange all you're going to do is pay me 25% of the gross revenue of each deal maybe this is more money than you were paying before to get your own clients but it's consistent as hell and you know exactly how much money you're going to pay for it every time right benefits for you you can make an insane amount of money doing this you can make a
crazy amount of money but you have to be really good at what you do and set things up so typically Revenue generating automations where there's a clear correlation between Automation and income work so this is almost always going to be something on the front end it's going to be sales right because we're doing a percentage of Revenue the good here is that you have super high earnings potential technically they're unbounded Partnerships like these are how you make the multi6 figure revenues I think if you look at anybody that's like between my Revenue range and maybe
like a million and a half a month or something they basically all have some sort of partnership based thing going on where they will produce some insane uh leverage on the front end and then just take some cut on the back end you can kind of think of this like this is what a lot of affiliate people do as well they take a percentage of the sale attributed to the lead that they generate um and so on and so forth if your systems are good and you trust the people you partner with you can print
money you can also use very strong offers in this way to sell clients for your own company because you handle everything and the customer pays zero I mean think about the offer right I think Alex porosi talks about the perfect offer and it's like we'll do everything for you it'll cost you $ Z we'll take like a certain percentage and if it doesn't work and you don't make this much will even pay you right it's like the perfect offer well you actually get to use the perfect offer um logically speaking you would have to be
very silly to say no to something like that at face value it's like hey I only make money when I make you money therefore there's zero risk why the hell not that said you do have to make sure you trust the people so you should have a strong venting process if you do this now here's the bad the bad is you may not always have total control over the outcome here so you also don't get paid anything upfront right unless you structure it in a way where you do and some people do right like the
growth partner model who was popularized by this one guy that I used to follow on Twitter somebody in the comments will know uh does this where like you I don't know pay 10 or 15 or 20 grand up front or something like that and you get like 7% of the revenue as well so you can offset this but you know just speaking percentage of Revenue you don't get paid anything up front which could impact your ability to deliver this at scale especially if it has high costs and again you have to be very good at
your in order to make this work if you're not good at your your your service if you're not confident that you can deliver what it is that you're promising you're not going to make any money and it's just going to be all cost for you similarly to what I talked about before with the per outcome model unfortunately I find a lot of beginners get stuck here because they pitch some offer to somebody and then they say I don't want to do it that way I only want to do it if uh when I make money
you make money so let's do it that way if you're that confident about your service you might as well right which I understand the idea but obviously that doesn't really help you get your agency off the ground if you're a total newbie right so again I ially it's a lot of newbies that try this stuff fail and then are like I'm never doing percentage of Revenue again but it's it's just a time and a place thing you just have to be skilled enough you have to be um obviously you have to have like this good
uh a good Network in order to make this stuff work and you have to trust the people uh that you you partner with so obviously the big question is now which one is best typically my rule of thumb and you can do this if you believe in the stuff that I've been telling you guys about over the course of the last few months and if you don't you don't have to but typically my rule of thumb is if you're a total newbie the fastest way to go from that total newbie to that expert that I
talked about earlier is to go hourly it is well established it's a very easy transition from a 9 to5 it's the way that the vast majority of the corporate world works so it's not going to be uncomfortable for you it's not going to be uncomfortable for the client all you're looking to do at that first stage is to make your first few bucks in the internet we minimizing friction just go hourly it's super straightforward after you get your first few clients and maybe one of those clients is an hourly retainer or something begin charging based
on value remember I talked about two value based methods there was cost savings or Revenue uplift cost savings is going to be better if you're working with large businesses with small margins and then uh Revenue uplift is going to be better for small businesses with large margins tend to be a lot hungrier let's combine this with some type of retainer or subscription based pricing for added leverage so that you're not restarting from zero every month maybe this is like clients 1 to three maybe this is like clients 3 to 10 or 3 to 15 or
something and then if you become a professional and you become confident your ability to start experimenting with per outcome or per percentage based um sales methods also combining with retainers or subscription based pricing for leverage and this is how I know assuming you've found that Golden Goose sling henling golden eggs or some like that whatever the saying go this is where you can start scaling up your Revenue extraordinarily quickly you'll eventually find some button on the internet that you press and every time you press you make dollar you'll just start spamming that button like crazy
with a model like this um and you know you'll you'll start making a lot more money awesome I really appreciate you guys' time if you guys have any questions about any of the pricing models that I mentioned just drop them down below I'm on a YouTube comment binge right now and I'm responding to as many of these puppies as I possibly can otherwise if you do me a big favor like subscribe please I think that there's a big chunk of y'all for whatever reason that aren't maybe it's just cuz uh I'm blowing up a little
bit right now or something like that and a bunch of new people are seeing my content but if you like me then just make sure right now to scroll down and click that button and I'll see you on the next video thanks so much have a CH to day
