What do you think…?
I’m thinking about taking my copywriting price per letter DOWN from $5k per letter to five letters a month at $997 or $1997 per letter.
I have a few reasons for this:
1. It only takes me 4-5 hours to write a 13+ page letter (and I get damn good conversions if I do say so myself. :)).
2. I’m cutting out all Internet Marketing letters. They don’t feel right to me. I’m completely set in this position, but I know it’ll dwindle my customer base.
3. I really don’t NEED to do copy… but I recently realized I love it. I love the psychology behind it, I love learning about new things, and I love getting into forums and really digging deep into people’s thoughts. Making the price more affordable allows me to write for more people.
(And I know I could make my own products, but I already have 30 or so spread out in different niches and if I’m going to seriously work on traffic gen, marketing, etc… I’d rather it be on yayFOOD.
And honestly, business development has gotten boring for me. It’s weird but I have no doubt I could easily run a multi-million dollar business if I cared enough… but I don’t.)
I guess I’m just not sure for a few reasons:
1. I wonder if the lower price makes me seem like a less stellar copywriter?
2. People in my masterminds have said that I’d be devaluing myself if I were to slash my prices when my conversion rates could/should justify even more?
I’d love to hear YOUR thoughts!
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11 comments
Harris Fellman on September 4, 2008 at 2:54 pm
Well, my first instinct was “why not do 5 letters a month for $5k???”
You could also mix and match your pricing scheme.
Maybe do ‘most industries’ for $2k and IM for $5k.
And I totally “get” not wanting to ‘run a multi-million industry’.
Anyway, here’s what I think about offering your services for $1k instead of $5k. *YES* you devalue your work — but that’s kind of obvious — to which I say “so what! that’s the price you’re charging”.
So, I think the biggest reason to not do it is that you’re going to get a different level of clientele. The ‘work’ won’t be as interesting to you.
I would recommend finding a balance.
o Your “normal rate” is $5,000
o You’re running a special for the next 5 clients @ $997, $1497, or $1997
I would say go for $2,000 as your ‘next 5 clients’ (and you can always say ‘ya know what - just for you, I’ll do $1k)
Too bad you’re out of IM though - I need a rewrite of Peelawayads.
I just went to yayFOODS for the first time - didn’t know you were a bit zoftig growing up. You know I’m a happily married man - but lemme tell you Rachel - you are *very* sexy now. Great body, always smiling, smart marketer, and a geek at heart.
Where were you when I was in my 20’s? (oh yeah, probably in diapers!)
Enjoy your journey,
Harris Fellman
http://twitter.com/harrisfellman
[Reply To This Comment]
Rob on September 4, 2008 at 3:00 pm
Just a few thoughts:
If you change models From up front payment to monthly billables, you will certainly have to deal will cancellation/drop off issues. You’ll attract some people who are trying to float month to month and hoping they can convert well on month 1 to pay for month 2…not a good position to be in. Too many headaches.
If you lower your price to $1997 - you very well may sell more…but that means you have to write more…you’ll have to increase production over 100% to match your current revenue.
My suggestion: Stay at $5k. If someone truly wants your service, but can’t afford it, refer them to your “protege” - a guy names Jeffery Gitomer does this with his sales training…he charges $25k for a day long session (a day is about 5 hours)…if someone can’t afford it, he refers them to his protege for $7k. He gets a cut.
In your position, (not sure how ethical this is) you could refer them to your protege who only charges $1997 - and then write is yourself anyway.
Best,
Rob
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Jason Moffatt on September 4, 2008 at 3:41 pm
Sounds like you are doing everything you can to create a “JOB” for yourself. I know you say you can write fast, but the last thing I’d ever want to have hanging over my shoulders is knowing that I had to write 5 letters.
No way I’d lower prices like that.
I’ve never seen too much good come out of lowering prices except creating a bunch more work for yourself.
I’d say raise your prices, write less letters, and spend more money on yourself!
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Micheal Savoie on September 4, 2008 at 4:35 pm
Rachel,
Being on the low budget side of the market (temporarily), I can identify with your potential customer’s joy at being more likely to be able to afford you! But, being in the situation where a copywriter is the last thing you can afford, I think you are probably better to keep your prices at a premium, because as you stated, you are worth the extra because of your conversions.
I look forward to taking advantage of your services in a very short period of time (not staying in the low budget world for long - October 31 is my retirement date come heck or high water).
You are worth every penny and don’t you forget it!
Micheal Savoie
http://michealsavoie.com
http://twitter.com/michealsavoie
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Dan Kelly on September 4, 2008 at 5:06 pm
Hey Rach,
I agree with Harris on *every* point.
Keep your “normal rate” at $5k, and run a special for NO LESS than $2k for the next 5 people. You can do that every 3 month’s or so to get yourself more work, but you don’t devalue what you’re really worth.
And, I also agree with Ja Mo.
Even things you like can become a JOB. Keep your prices high so you attract a better level of client.
Who’d you rather write for
a) a newbie who struggles to come up with the $1000, complains and questions your work, and then don’t do anything with the letter once it’s written or
b) an experienced marketer who knows the value of good copy, is willing to pay for it, is also willing to test your methods and/or may even teach you something about copywriting, and has the resources to implement the hard work you’ve done.
So, you have fewer clients but better clients… fewer clients but exponentially fewer headaches.
And, Rob is right, you can always ‘farm out’ the jobs you don’t want to do at a reduced rate.
To OUR Success,
Dan
http://Twitter.com/thedankelly
[Reply To This Comment]
Angela Chen Shui on September 4, 2008 at 6:05 pm
Rachel,
Firstly, I’d like to thank you for thinking about, sharing and considering actually doing this.
Secondly, I don’t feel you should lower your prices but do understand your motivation.
I like Harris Fellman’s suggestion:
“I would recommend finding a balance.
o Your “normal rate” is $5,000
o You’re running a special for the next 5 clients @ $997, $1497, or $1997
I would say go for $2,000 as your ‘next 5 clients’ (and you can always say ‘ya know what - just for you, I’ll do $1k) ”
You could always offer the ‘next 5 clients’ special every three months or so.
The other thing is that you could also either assist or set up your own personal ’cause’ and promote that as a way to use your talents to help people who would never otherwise have the opportunity to be blessed by you.
I sense that you’ve reached a place where you are personally comfortable and want to now contribute to collective evolution on Earth.
An example of such a program would be Dr. Mani’s 24-hr blogging for heart patients needing surgery. I don’t know what cause calls to you heart-wise but I feel that your serving in this way would provide a lot of personal fulfillment….
Many blessings, Rachel,
Angela
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Tajwar Alexander on September 4, 2008 at 6:35 pm
Hey Rach,
I think that it would devaule your percieved value. Kind of like when I sent you that email with the warrior that was all of a sudden lowering his prices from like 1400 to 197 (I know it’s not the same thing) but it starts to raise eyebrows.
I think clients will begin to think there is a reason you are charging less (not so stellar work).
Put simply, most people associate value with cost.
I know you have good intentions behind dropping your prices but most people (especially business people) don’t believe people like you exist. Most people will not believe that there is a $5,000+ copywriter who is charging less and willing to do more work, just because she has a FANTASTIC heart, wants to serve more people, and enjoys copywriting.
I really think this can do more damage than good.
Another interesting question to pose to yourself as well…
how long do you think you will be able to sustain $5,000+ copy quality when you are being paid $997? Do you think that you will feel the same pressure/responsibility when charging less? Or do you think over time you would subconciously begin to feel it’s ok for your work to be a little lazier because you aren’t charging as much?
Not saying that’s what will happen…cuz, I mean, your RACHEL ROFE!…but maybe it would to the average person
Taj
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andrew wee on September 4, 2008 at 11:57 pm
Hey Rach,
From your time calculation, it sounds like you’re thinking in a “selling time for money” mode, rather than “selling expertise for money”.
A plumber sticks a piece of chewing gum and charges you $50 for it, based on experience. Not the 2 minutes he spent looking at yr pipe and sticking something there.
I’d charge based on ROI (return on investment) for the potential client.
If you pay a crap price, you’d expect a crap product/service.
Charge what is “fair” to yourself and the client.
If you don’t like BizOp/Internet Marketing, you can state that on your services page.
That doesn’t mean that other niches don’t pay top dollar for great sales letters/copy.
[Reply To This Comment]
Rebecca Dean on September 5, 2008 at 7:18 pm
Hi Rachel,
Definitely check out this post by Michel Fortin on pricing. http://www.michelfortin.com/the-key-to-getting-the-fees-you-deserve/
It talks about the relationship between pricing and your service’s perceived value among other things like three tiered pricing plans and such.
[Reply To This Comment]
Vegas Vince on September 6, 2008 at 1:53 am
Miss Rachel….
If U you want an honest answer from Vegas Vince….I expect you to ask me an honest question.
Because you would fail miserably at poker…..and you are certainly not the first person who has faced a midlife, crossroad crisis… in her mid 20’s.
It’s not a bad thing…it’s called life.
You’re asking a question you already have the answer to…..and U know it.
Rather then asking why…or looking for third party validation…perhaps you should do what you’ve always done and follow your own heart and conscience.
So I’ll answer the question you really wanted to ask but didn’t……
Follow your heart, Rachel.
Where ever it takes you.
As for your so-called copy question….?
I’d tell you…when in doubt…RAISE YOUR PRICES.
I’d bump it to $7500…and go up from there.
Because to do otherwise….indicates to me you either don’t value your own talent anymore….or maybe it’s time for you to do something else.
And if that’s the case…..you owe it to yourself…to go out an do something else. Cuz I aint buyin’ a word of your OP here, Rach.
Cuz Vinnie thinks Rachel Rofe…..is probably ready to take a new road less traveled….one that might not even have anything to do with IM marketing at all.
So fuck it…you start over with a bag of clothes and a car….and a journey. That’s so cool. And that’s living…which is more then most sheep do.
It’s not like you haven’t done it before, Rach, right?
Peace, xxx Vegas Vince
[Reply To This Comment]
Jose Delgado on September 7, 2008 at 10:06 am
Why Not Keep it at 5k, write 3 letters per month?
Why are you trying to lower your prices?!
You might as well go to mcdonalds and get paid 5 dollars an hour.
One more thing, if you love writing so much,
maybe you could write me a letter for FREE.
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