Eight out of ten agency owners I speak with are making the same fatal mistake when pitching their services to prospects.
That’s a full eighty-percent!
Even more concerning is the misstep is so easily correctible.
Once freelancers, consultants, and agencies realize how to fix this, they experience larger contracts, longer retainers, and higher close rate.
Who wouldn’t want those things!?
So what do so many agencies do that cause them to lose the sale?
They show the value for themselves, not the prospect.
It sounds simple, yet nearly every agency I work with makes this mistake.
Instead of presenting a proposal with a price — which the client views as an expense; show the value of the contract in terms the client really cares about.
“Mr. Client, based on your sales team’s close rate of 35%, and the average lifetime value of your customer of $2000, I am confident that my solution will net you $1,540,240 in new revenue. The cost of my solution is $50,000 per year.“
See, without presenting the value, the client would view $50,000 as a hit to their bottom line. Whereas when you position the value of the contract ($1,540,240) to the cost of your solution ($50,000), the client sees your fee as an investment.
Simple: $50,000 in, $1,540,240 out.
Sign me up.
Take a serious look. Are your sales proposals based on what your prospect gains? Or what you gain?