The First Subscription Service Your Accounting Firm Should Offer

When I sign up for Netflix, I don’t ask them to prorate my monthly subscription based on the portion of their programs that I actually want. Sounds ridiculous, right? I am paying for everything in their entire library of content, even though most of it I have no interest in and will never consume.

This is what “pricing the portfolio” means. And that is what I want to talk about today.

If you are familiar with what Value Pricing really means (and many have this wrong), then you can already see the distinction between value pricing and a subscription model. Go back and re-read that first paragraph if you need to, with this additional context in mind.

Value pricing is not just about charging a flat rate. It’s about attaching value to the outputs and not the inputs (time) that most firms do.

Subscription pricing is without a doubt the “next level up” from value pricing, and it may well be the final frontier. I can’t imagine where else you could go from here.?

So, you take everything you can offer clients, roll it up into one plan, and price that entire portfolio of services. Some clients will use as much of it as they can. Others much less. And at first you will have difficulty wrapping your head around that client who is taking advantage of you!...?

But they’re not. They are that rare Netflix subscriber who will consume much more content than most subscribers. Who cares? Let them. You’ve priced your entire portfolio of services which includes all of this. Besides once the novelty wears off, they will probably realize they have better uses of their time.

And you can offer some additional services at a higher tier so your clients can slide up and down your pricing model as needed.?

So, your base bookkeeping services subscription would include everything you can offer there. From downloading and coding every bank and credit card feed and reconciling those statements each month, to managing everything else on each client’s balance sheet and profit and loss.?

Slide up 1 tier and you have the advisory component included. Now you add on deeper review and analysis and weekly meetings with your clients to make sure everyone understands everything. And you can build and analyze forecasts or cash flow projections with clients.?

If a client comes in and only wants what’s in the higher tier it doesn’t matter. The rate is still the same no matter how much of the portfolio they utilize.

This is what the subscription model looks like and I am just scratching the surface here.?

Now where do you start to figure out how to evolve into this model? Especially if you’ve had a different model for so long!

I have a suggestion for exactly what you can and should do here. It is something I am doing myself right now, and if you are an accountant or bookkeeper you might want to take advantage of this, first to see exactly what this looks like, and second to get my direct guidance on how to implement this in your firm.?

Now my clients are different from yours. The business model works exactly the same even though it’s for a different client base.

Here’s the kicker! What I am about to suggest is based on something I would bet you $97 you are already doing and not getting paid for.?

All I am about to ask you to do is put some structure on what you are already doing unstructured and put a price tag on it. I know you will agree with me when I say the value is already there.

Answering Questions

How many emails and LinkedIn messages and others come in the form of questions about accounting, bookkeeping, and tax come in each day / week / month? And you probably answer them out of the goodness of your heart and figuring and hoping that this will attract them to become clients when the time is right.?

Let’s make them clients NOW and give them something of value.

Look at this page from my website:

Nerd’s Galaxy Support Community

This is the same subscription model you can offer.

Subscription: $97/month.

The Model:

Unlimited structured Q&A. You set up channels based on topics and create what you need as you go. Promise 1 business day turnaround on answering questions. You can use your keyboard, Loom and Snagit to provide this service seamlessly.?

Delivery mechanism:

Pumble

This is like Slack but a whole lot better than Slack (stay tuned for an article on this). You can sign up for their business plan and pay $3.99/month/seat. Even the Business Plan (which is what I am using) is $6.99/user/month billed annually.?

ProTip: Pay for the seats annually to save money. Then if someone cancels, you can reuse their seat without having to pay any extra.?

Now when someone reaches out to you and asks you a question do this:

Answer the question and then add something like the following:

“...I hope this helps, and by the way, we have an unlimited accounting support plan, where you can ask these kinds of questions 24/7 and I or one of our staff will get back to you with an answer within 1 business day. We might even answer your questions on a holiday or weekend, but we don’t want to promise that in case we’re spending quality time with family and friends!

Click here to learn more about it [provide the link to your page that explains all of this].”

Also add it to your email signature. And then share about it anywhere anytime you find yourself answering questions. If you’re in someone else’s Facebook group you might want to hold off, but everywhere else is fair game.

Now maybe you’re thinking you don’t get THAT many questions, so this seems like overkill!

Is it?

Here’s what the model looks like if you have just 20 clients signed up:

Your First Subscription Model

Not bad for something you were already doing for free, right?

This is the first tier (after 'free') of a funnel or value ladder. As you grow your subscribers at this level, that is where you focus to encourage them to slide up your value ladder. They will start out as a curious member of your ideal client base and convert to a paying client in your community because you gave them a reliable resource to get questions answered while they are still doing it themselves. Once they realize their time is better spent doing what they do best, which is likely not accounting and bookkeeping, they will slide up to your next tier which you have time to figure out while you are building this first one.

That’s all folks! If you haven’t worked out how to start moving to a subscription model, and you want to get started doing that, follow the model I proposed above.?

And if you want more help, plus a chance to experience this from the other side to get ideas and more direct help with this from me, let’s have the conversation over there. Join Nerd’s Galaxy Support Community and let’s get started!