George Kao argues service providers should offer multiple pricing tiers (low, mid, high) to build client relationships gradually using a dating analogy: start with low-priced (under $100) offerings like workshops, proceed to mid-priced group coaching ($100–$150/month examples), and reserve high-priced multi-thousand-dollar programs for clients who have progressed. This reduces rejection, tests fit, and benefits both client and provider.
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If you're a service provider, I recommend creating multiple tiers of offerings. Have something that's low price, middle priced and then high priced. And you may have multiple offerings at each stage. But let's just keep it simple for now and do three tiers, low, medium and high. Now the reason for this is that it's kind of like imagine someone wanted to get married and they had the choice of just going up to a bunch of casual acquaintances and saying, will you marry me? You seem kind of interesting. We might be a good match. In other words, they're saying, go right from a free webinar to buying my high priced offering, or right from a free exploratory call to buying a $10,000 or $5,000, $4,000 package. Eventually you might get somebody to say yes, but it certainly is not the most pleasant way of running your business. And you are missing a lot of opportunity to build better relationship with all the others who are saying no. So first of all, it's hard on the rejection for you. And it's also missing an opportunity to build a better relationship with those who could be great clients for you. But they need to step into it. So this is why I now recommend low, medium and high priced offerings. So it's better to, instead of going up to a bunch of casual acquaintances, will you marry me? It's better to go out on a date with different people, you know, and if the date goes well. So a date would be the low priced offering and the low price here, what I mean is something that's under $100. So my low priced offering, for example, is my monthly $25 online workshop. It's very doable for people. It's relatively, it's low investment for them. It's relatively low investment for me because I, you know, I don't have to serve any one person tremendously well. I served the group well, I served the class well. But for any one person, it's rather low investment. Makes sense both ways. And then the date goes well and the dates go well, you go on a couple dates and then next step, okay, maybe you go out on a weekend together, spend the weekend together, and that's kind of like your mid priced offerings. And so for example, my mid price offering would be go ahead and join my group coaching program. You've come to several of my workshops, you've really enjoyed it. If you like that same kind of experience, but now in a community that continues to grow with that body of knowledge and actually implements it together, then join my group coaching program. Right now I have one that's $100 a month, another one's $150 a month for a smaller group. But that's the idea is the mid priced offering. And then if the weekend together goes well, you go on several weekends together, then maybe it's time to take the relationship to the next step, right? And do the higher priced and some people have higher priced offerings that are, you know, $10,000 for a year or several thousand dollars for a whole year together or for six months or whatever it may be that you, that you decide works best for you. But that's my main message here in this video is to think about the dating analogy and not go directly from a free webinar to a multi thousand dollar program that you're trying to sell people because you might get one person to say yes, but but then again you'll face a lot of rejection from everybody else and it's not a good way to start that relationship. Does that make sense? So it's better to start with of course free content is always welcome, especially if it's relevant to them and you feel authentic in making it. And then you do low priced offering, middle price, high price. Now somebody might say, you know what, I've really experienced enough of your low price. I want to go directly jump to the high priced. But I always recommend that it's good for both parties. It's not just for the client to not get intimidated and scared away by suddenly being approached with a high price, but it's also good for you because it's important for you to be working with the right people at higher and higher levels. And so it's good for you to test out, well, is this person, might this person really get my framework and really connect with my style? Let's start with the low priced offerings first. So it's really I think a win win all around. And so anyway, that's all for this little video until the next one. My name is George Cowell. Always open to your questions and your comments and I wish you.
