Fees As Part of Your Strategy

Fees need to be a part of your strategy.

Charging low fees, for the wrong reason, stop you from growing, scaling & succeeding.

Many of us start out with low fees because we feel we don’t have enough experience or a big enough reputation to charge high ones. We are afraid that no one will pay what we ask if it is too high, or if we are desperate for business.

And these are all the wrong reasons to charge low fees. These are tactical, not strategic.

Here is the problem with non-purposeful low fees:

1. Low Fees attract the wrong clients – the ones who don’t implement & then complain about the lack of results. Who complain & take up more time than is warranted.
2. Low-fee clients are no easier to engage with than premium-fee ones.
3. Higher fees attract premium clients – who will value what you offer & implement it, so they get results.
4. Premium clients are more likely to tell others about how you helped them; low-fee clients have that “I can’t let anyone know I had help!” mentality & rarely refer you.
5. Your pricing is your positioning. Low fees don’t lend themselves to much confidence in outcomes.
6. There will always be someone cheaper than you, or more expensive. So what – you set your value; you’re not a supermarket & have to sell at a shelf price.

Sometimes though you can choose to charge low fees to help someone out, to do some ‘Good Karma’ work, or just to Beta test a new service or product. In these cases, it is a strategic decision- not a tactical one, a conscious choice borne of purpose, not fear.

How are your fees? Strategic or tactical? From confidence or fear?