Higher Paying Clients does NOT Mean More Profit

One of the fine people on my email list recently got in touch with me to ask about their niche.

They’re tired of seeing websites with no clear benefit to the business that paid good money for them and that’s where they want to specialise. Redoing sites so they actually provide a return on investment. No new sites, just fixing old ones.

Positioned right, this can be a great niche so that’s not what I’m going to talk about today. I want to key in on one sentence in the email.

Should I go for it? How common/uncommon you think this speciality is and do you think this has a shot to attract higher paying clients?

Specifically, I want to key in on ‘higher paying clients’.

I know I tell you to raise your rates, but higher paying clients don’t automatically equal more profit. It might equal more revenue, but more revenue doesn’t equal profit. Just look at Twitter.

In a niche like the one above, if it can’t be profitable in the $800 – $1200 range then I don’t think you can make it profitable at $5k.

In fact, I think it’s a requirement to make it profitable at the lower price point before you scale it up. If you can put the processes in place to make it profitable in the lower ranges, then when you increase your pricing you’ll be directly increasing your profits.

Listen to today’s podcast to here me talk a bit more about the faulty thinking of equating higher paying clients with revenue.

Your Word is all You Have

While listening to Game of Thrones I got to thinking about your word. Not the words you use, and at the same time all about the words you use.

All you have is your word. It’s your reputation. When you tell a client you’ll finish a project, you need to finish it. If you can’t do that, then your word is worthless.

Today I talk more about what your word looks like to your clients.

Kim Doyal talks about how your business brings you space

Kim and I talk about how after the death of her husband, she found a business that brought her the space needed to be a single parent.

You can find Kim at The WP Chick.

Links

Do you have a secret life like Walter Mitty?

There is a great movie called The Secret Life of Walter Mitty. It has dreams that weren’t met and adventure.

It’s a great analogy for where many business owners are.

They dreamed of an amazing business, but then life started happening and they’ve been carried along to something that’s good. Good is…okay, but that’s not what they were striving for.

Today I talk about Walter’s life and how it is an example for business owners that Hope is not a Strategy.

How do you 2x your results in half the time?

How do you get 2 times the results in half the effort? – Profit First

Today I talk about this thought experiment found in Profit First. Spending time on these thoughts can help you transform your business because they require huge changes in how you run your business.

Are you ready to make huge changes?

Are you listening, or waiting to speak?

I’ve come back to this topic a few times…are you listening or are you waiting for your turn to speak? Today I talk about what listening sounds like (hint you don’t talk) and give you a few resources to improve your listening skills

Links

Read to Lead Episode #170
My series on effective questioning

What is your business in service of?

It started as a bit of a throw away comment on a run as I saw the mountains. I don’t run the roads or do hill repeats just to be a faster runner. I don’t do it to ‘win’ the ultramarathon I’ve got on the calendar.

I do it so I can move fast in the mountains and see so much more. The other stuff is in service of that goal.

What is your business in service of?

How Brent Weaver uses a 35 hour a week constraint to grow his business

Today we talk to Brent Weaver from ugurus.com about how he runs a business.

We talk about his 35 hour rule and how that shows itself in his business and how he uses the constraint of 35 hours to help grow the capacity of his business.

The show ends with some banter at the beginning where we talk about how Brent and his partner review their finances regularly to make sure that spending is on track.

Links

Get a Grip
Traction
Essentialism
ugurus.com

Email brent@ugurus.com to get the web course he talks about at the end of the show.