Eric Siu explains value-based pricing: ask prospects what their goal is worth in dollars, then propose taking a percentage of that value. If someone wants a $2M outcome, 10% of that is $200k. Adjust down for risk and offer tiered options like $100k, $50k, or $25k.
Here's why you're not making what you deserve. Most people don't think about value-based pricing, which allows you to capture the most value when you're trying to win a deal. So when you go to a prospect, ask them what their goals are. But not only that, ask them what the value is of attaining that goal. And they might say $2 million. And so you say, Ms. Prospect, if we help you achieve the $2 million, we can guarantee that outcome. Would it be fair to pay us 10% of that, which is $200,000? They would say, absolutely, if you can guarantee it. Then you go to the drawing board and you have worked it out in your head that the realistic outcome is you can achieve maybe 50% of that. That's the likelihood. So that's $100,000, 'cause 50% times $200,000 is $100,000. Now you can go back with the pricing. Here's the $100,000, here's the $50,000 option, and here's a $25,000 option, and you are now making a lot more money.
