Price or Purpose

You know that moment when a prospective client or partner sees the value in what you bring but just isn’t ready to match it with dollars? We’ve all been there - that pivotal crossroads where you’re tempted to either give your value away at a discount (a move that risks devaluing your entire offering) or walk away, hoping the next opportunity comes with an appropriate price tag.

When this happens, I teach a principle I like to call “Price or Purpose.” It’s a mindset I turn to whenever I’m on the fence about an opportunity where monetary compensation falls short. Instead of hastily accepting a deal or abandoning it altogether, I stop and ask myself:?

“What is the price difference, and how do I recoup that monetary value with purpose value?”

Think about it - no one asks for your trash, right? The simple fact that someone is asking for your goods, services, time, or connections means there is inherent value in what you provide. So, the simple act of someone asking for your value should trigger the “price or purpose” moment in your brain.

I encourage people to mentally set up a “barter table” for these situations. First, assess the monetary value of what you’re offering. Next, determine what discount is being asked of you. Finally, identify what value—beyond dollars—this person or organization could provide that would balance out the difference.

[editor’s note: after proofreading my article, I want to put a disclaimer in here that I’m not protesting the idea of doing favors for someone. ?Charity, pro bono support, helping a friend - that’s not what I’m talking about here. ?Those have intrinsic value for society and your soul - keep doing that stuff! ?This article is focused more on your professional growth and negotiation. OK, where was I?]

Let me share a real-world example (and yes, this might show a bit too much behind the scenes, but whatever, you know I’m an open book). For a standard 45-60 minute keynote, my speaking fee falls between $5,000 and $10,000, depending on the event specifics, travel, and customization. Recently, a friend asked me to speak at an industry conference, only to find their budget couldn’t quite meet my typical fee.

Cue the “price or purpose” decision. Could I align the compensation package so that both ‘P’s’—price and purpose—created full value? Here’s what I considered:

This conference is run by a massive organization, boasting participants who are chief executives at large companies. How much would it cost me to get my keynote seen by an audience filled with key execs in Fortune 500 companies who are always on the lookout for great speakers? ?The marketing expense for that kind of exposure in my target industry would run into the thousands, if it’s even feasible at all. So although the full monetary value wasn't there, I had to request and appreciate the value of free targeted marketing.

So, price check on Aisle Hand!

What was the outcome?

- Price check? Slightly below.

- Purpose check? Significantly high.

End result? No, I wasn’t ‘discounted.’ The combined price + purpose made this a more valuable event for my business than most.

So how do you know what purpose value drivers to add to your barter table? I've got you.

Creating Your Barter Table

Step 1

Here's a list of some of the purpose value drivers that you can use in your next negotiation discussions. Grab the ones that best apply to you and meet at Step 2.

1. Exposure to Target Audiences: Speaking opportunities, guest blog contributions, or podcast features that put you in front of your ideal audience.
2. High-Profile Testimonials: Securing a written or video testimonial from a respected leader or organization.
3. Referrals and Introductions: Gaining referrals or introductions to potential clients or influential industry contacts.
4. Access to Proprietary Data: Receiving valuable industry insights or exclusive data to use for future projects or research.
5. Portfolio Building: Adding high-profile projects or partnerships to your resume or case studies.
6. Cross-Promotional Opportunities: Including your brand in their newsletters, social media shout-outs, or event materials.
7. Bartered Services: Trading services or products straight-up that can help grow your business (e.g., marketing support, consulting hours). I know many people that create barter partnerships to save money and build trust on both sides.
8. Media Coverage: Securing press mentions, interviews, or features in reputable industry publications.
9. Event Attendance: Access to networking events, conferences, or industry summits that they host/sponsor where you can expand your connections.
10. Strategic Partnerships: Forming alliances that can lead to long-term collaborations or co-branded projects.
11. Trial or Pilot Program: The chance to run a trial or pilot of your service/product with influential clients to gather feedback and build credibility.
12. Marketing Material Rights: Permission to use event recordings, presentations, or other deliverables for your own marketing and promotion.
13. Market Research Participation: Involving your brand in focus groups or surveys that help gather insights and expand influence.
14. Future Project Commitments: Agreements for future, better-compensated work or preferred vendor status.
15. Access to Exclusive Networks: Invitations to closed business groups, mastermind sessions, or alumni networks.
16. Leadership Opportunities: Being named an advisory board member or getting a board seat that elevates your profile.
17. Intellectual Property Rights: Gaining rights to use custom solutions, templates, or products created during the project.
18. In-Kind Benefits: Travel vouchers, accommodations, or other perks that offset expenses and provide added value.
19. Company Insights: Access to insider knowledge or mentorship from top leaders in an organization.
20. Joint Branding: Featuring your logo and links on event or collaboration material, boosting visibility.

Step 2

Now that you have the purpose value drivers that best apply to you, time to ascribe each them a dollar value. Here's a snapshot of my price + purpose calculator for my keynotes. You'll note that I've segmented each purpose into 3 separate values (low, medium, and high) based on my perceived value of each.

In cell B10, I'll add the price being offered, then below I'll do a simple formula adding the price and any of the purpose values that apply.

Right now, I'm searching for more media coverage to add to my marketing material, so if I hypothetically had an offer to speak at an event that would be covered by a major news outlet with a 15 second spot, I'd take that into my price + purpose consideration.

There's one important caveat here: My chart almost never looks like this. If I truly had nothing going on that month, things were slow, and I was focusing on building - my chart would look like this. Now that I'm fortunately busy and have enough work to keep the lights on at home (except for my son's travel baseball costs - don't get me started on that), most of these purpose values are in the low hundreds or 0. My point here is that your purpose values are fluid and can fluctuate based on many factors, so keep it fresh.

Walking Away

Sometimes, no matter how hard I try, I still have to walk away from a inquiries that were not in my price range with no opportunity for purpose equivalents.

In those situations, here’s a good tip: Don’t just walk away!

I explain in those situations that it doesn’t seem like the price AND purpose fit my offering at this time BUT here are one or two people that I think could help.

Your time is also valuable. You may have spent a couple hours talking with these individuals who'd like to hire you, meeting other team members, gathering background, and scoping. ?Get your purpose value on that time investment by making an intro to a start-up that is looking to book more pro bono opportunities to bolster their references or develop a new market. Don't forget, there's always a start-up out there whose purpose value table looks different from yours. ?That referral could pay off for you down the road when the startup brings-in a project that’s too big and needs your help.

What About You?

Now, what about your world? Price concessions will always be part of the game, but do you have clear purpose metrics? And are you being strategic and assertive enough to bake these metrics into your contract discussions?

Think about the value you bring - whether to your employer, clients, or network:

- What price are you expecting?

- Are you receiving that price?

- If not, what purpose levers can you pull to return to your value range?

Remember, decreases in price without increases in purpose undermine your value. ?Price and purpose presented as a joint compensation however, strengthen your value in the market.

Reflect on it - your next “price or purpose” moment could redefine the way you approach business.

About the Author

Sean is the author of That Was Awkward: 7 Secrets of an Awkward Networker, founder of Awkward Networker, and founder and CEO of a business development consulting firm, Selling By Hand, where he helps organizations harness the power of relationship development to exceed their most ambitious sales goals.

If you'd like to learn more about how you can bring some high-energy relationship development trainings, keynotes, and coaching to your organization email Sean at [email protected] or DM for more info.