The Desert of Arizona
Clear 48 Degrees – 6:34 a.m.
Today, I’m sending a message you can file away for when you’re ready to deal with it. Breaking almost every “expert’s” rule about how much people will read, this clocks in at about 4,000 words. Most people won’t read it. Some will. That’s about right!
(If you read nothing else, scroll down far enough to find the quote from Epictetus. It might accidentally transform your life and business!)
How to Stop Stealing From Yourself
I still remember the breakfast meeting like it was yesterday. It was my first time attending a BNI (Business Networking International) meeting in Chicago. I don’t even remember how I found out about it, but there I was.
I had just opened up a new business upon my arrival in town. I called it “Computer Super Guy.” My friend came up with that name. As you can probably tell, I wasn’t really too “with it” back then when it came to marketing myself. Certainly not in the “how to name a business for success” department. And it got worse from there!
If you’ve never been to a BNI meeting, the format is pretty straightforward. There’s usually one member that does an extended presentation during the second half of the meeting. The first half of the meeting is a quick “round robin” thing where each member takes a turn standing up and giving a 30 second to 1 minute elevator speech.
I wasn’t in a complicated business back then. I knew my way around computers, computer networks and other geeky stuff AND I was actually able to relate to human beings. These two things alone put me in a class by myself in terms of tech consultants.
I basically had to stand up and mention the word “computer” and everyone who had computer issues knew I was their guy. So connecting with qualified prospects in a group of business people wasn’t difficult.
I was sitting beside this older gentleman who turned to me at some point during the meeting and asked me what I charged per hour. I turned to him and said, “$40…”
I don’t remember how I came up with that number. My last “job” before I moved to Chicago was selling cars, so I really had no precedent for setting an hourly rate. Maybe I just guessed. I really don’t know.
At this point, I’m going to turn off any “save face” filter I’ve got running and I’m going to be honest here in an effort to help you. I still remember the nod the guy gave me as he said, “Now that’s reasonable…”
Let me clarify, when I say I remember the nod it’s because I distinctly remember the feeling it generated. I felt accepted. I felt agreed with. I felt like I had passed a test.
Notice what this was about. This wasn’t about price, this wasn’t about value… to me at the time, this was… all about validation.
I should have ended up with far more to show for my work by the end of that year. I had what it took to earn it, but I wasn’t able to collect it. Why? As it turns out, there was a thief in my business. Want to hear the really bad news?
That Thief Was Me!
And as it turns out, my contention is that this thief is you as well. No one is responsible for stealing more from you than you are yourself. It’s just how we’re wired by the system. Weak, lacking confidence, looking for validation, programmed to please.
It’s easy to steal from yourself when programs like that are running unchecked in your super computer brain.
Just think about it…
If you put all your annoying clients together that you’ve ever dealt with, plus all the times you’ve been left unpaid or whatever, plus all the times you’ve had people say they were going to do things without following through… if you put those all together, I can guarantee you they won’t hold a candle to the amount of money that you’ve stolen from yourself over the years.
So if I may be so bold as to point my finger at the guilty thief, my finger would point squarely at you and squarely at me.
We do it to ourselves!
The purpose of this message is to help you see the “error of your ways” and put your “life of crime” far behind you. 🙂 Everyone can be rehabilitated. Everyone deserves a second chance. And if I can do it… you can do it!
So let’s start off with something that will hit you right between the eyes. As it turns out, a lot of folks had this “how to navigate the human plane” thing figured out a long time ago. Generally, those people are silenced at every available opportunity. The powers that be just can’t have people going around knowing the truth about anything. It really messes with the control they (think they) have over people.
So here’s a little tip from our Stoic philosopher friend Epictetus:
“Remember that you must behave in life as at a dinner party. Is anything brought around to you? Put out your hand and take your share with moderation. Does it pass by you? Don’t stop it. Is it not yet come? Don’t stretch your desire towards it, but wait till it reaches you. Do this with regard to children, to a wife, to public posts, to riches, and you will eventually be a worthy partner of the feasts of the gods. And if you don’t even take the things which are set before you, but are able even to reject them, then you will not only be a partner at the feasts of the gods, but also of their empire.”
-Epictetus
The part where he mentions the getting of the riches is particularly instructive. Is that how you approach charging for your services in your business? Do you carry that same feeling when you do it?
I can confidently say that I was the anti-Epictetus for a very long time. In other words, I basically did the exact opposite of what he’s suggesting in that quote.
What do you say to such wisdom like that? I’ll tell you what I might have said as the “old” Jason. “That sounds great Epictetus… but it’s EASIER SAID THAN DONE!”
Of course that’s how just about anything of value is. Easier said than done.
So let’s talk about getting it done.
Here’s a question for you:
What Would Happen to Your Fee Levels If You Stopped Caring About Whether or Not The Prospect Said “Yes” or “No?”
Really give that some thought. Why are your fees set at the point they’re set at? Is that what the market will bear? Is that what someone else charges? Or is that just what you feel you can get?
I’m going to venture a guess that your fees are where they’re at in part because that’s what you feel you can get from the clients you have. If you thought you could get more, why wouldn’t you charge more, right? Common sense.
So the real question, then, becomes: Who led you to believe that was “what you could get?” Here’s where things get really, really messy. Because to answer that question, you have to be honest with the most cynical, skeptical, critical and nit picky individual you know. YOU!
Let’s cut to the chase because I already know the answer. The answer is that you won’t be able to come up with a logical and rational answer for why you set your fees where you do. You might try to rationalize it, but here’s something fun you might want to try that will cause you to reconsider.
Playing the “That’s Total B.S” Game
With Someone You Love!
Go to your significant other, or a family member who really cares about you and knows you well. Sit them down and say, this is what I charge for my services and, in the next 10 minutes, I’m going to explain to you why I don’t charge double for this. Smack me in the face whenever you call B.S. on one of the reasons I give you.
I challenge you to try this. But please don’t hold me responsible for any damage to your face 🙂 You’ve been warned.
I have someone like this in my life… she’s my wife. She does this without even trying. Over the years, I’ve learned to recognize “the look.” That’s when she starts looking at me with that “Oh my goodness, I married a man with the emotional IQ of a child who can’t help but shortchange himself over and over again” look as I try to explain why I made a particular decision with a client.
“He said that if that worked out, there’d be a lot more business in the future…”
“He said that, despite his billions in the bank, he only budgeted $X for this project… I believe him. He seems trustworthy…”
“He said the check would be here next week, even though he said that last week about this week.”
“I really don’t want to risk losing the business. So if this first project goes well, then I’ll start to raise my fees…”
I could go on…
What’s the Problem Here?
What is the reason we do these stupid things? Here’s my hunch:
The self-imposed downward pressure on your fees is because your emotional center is more interested in you getting the money (acceptance) than it is in you charging an appropriate amount (strength).
It is looking for the endorphin hit that comes from acceptance more earnestly than it is looking for anything else. It could care less about your progress, it only cares about protecting the little emotional child that’s inside all of us.
Just to be clear. Your inner child gets no soft, warm and fuzzy feelings from you standing out there like a warrior asking the world for what you want. There’s nothing of value that comes from that for the side of us that needs acceptance.
The way you deal with that little child part isn’t to get angry at it, or to fight it, or to ignore it through the sheer strength of your will. YOU INTEGRATE that part of you. You accept it as part of you. But you no longer allow that part of you to run the show.
Turning the Corner Back into the Real World
So let’s start getting a little more practical now and focusing our attention on taking this understanding out for a spin in the real world.
I think it’s probably time for you to give yourself a raise.
Hopefully, I already made it clear that I feel you’re your own worst enemy. Same goes for me. So what happens if the next time you’re about to quote a fee for a client, you picture yourself playing the little “B.S. game” from a moment ago with that person who cares about you. Check in with them in your mind and see what the response is.
After a while, you won’t need this crutch, but at the beginning, it can be helpful.
You really only need to do this once per client. Why?
The Most Important Fee You Ever Quote For a Client
The most important fee you ever quote for a client is the very first one.
You can be the most centered, enlightened, confident person on the planet, but if your fee for the second time you work with a client is 100 times what it was the first time, you’re going to lose them. It just won’t make sense based on the CONTEXT that you have set. So that first fee pretty much sets the tone for your entire relationship with a client.
One of the big clues that you are nowhere near where you should be when it comes to your fee levels is what I call the “Oh crap, I got the business…” response. That’s that odd and very ungrateful sounding situation where you get a new client and immediately can’t believe that you’re going to have to do the work you promised for the amount of money you’re charging.
You could have done things differently, but you didn’t. And now you’re stuck with it. That’s what generates the “Oh crap…” feeling.
Set that first fee with a client with the future in mind. You are in charge of setting the frame. So if you willingly screw this up for yourself, you know who to blame.
Just a word of warning about why you should be setting fees that make you uncomfortable.
The longer you work with a client, the more normal you are going to be perceived. The superhero halo that you have over your head at the beginning is going to fade. Familiarity just does that. I wouldn’t bother fighting it, I’d just accept it and plan around it.
You need to compensate for that.
So let’s talk about a very straightforward way to raise your fees right now without necessarily having to grow a spine that holds up in the heat of the moment.
Can’t Spit Out Big Numbers in the Spotlight? “Productization”
to the Rescue!
In the consulting business like I’m in, pretty much every project is unique. You have a unique client, in a unique situation, trying to achieve a unique goal. Often times, that situation means you end up doing unique work.
If you allow it, this setup can get you deep in the muck and mire of fee setting. How do you know how much to charge?
There are two ways to deal with this. The first way is to develop the guts required to ask for what you want and completely disregard what anyone thinks about that. If you have a Platform that’s delivering qualified prospects to you on a regular basis, this is a goal worth pursuing. It might take a little while to develop the confidence to do this, but that’s ok. This is a process towards getting better, not a contest in perfection.
The other way to deal with this is to “productize” your services. You can do this 100% or you can do this in part. Either way, you’ll make progress over where you’re at… especially if you’re making it all up as you go with each client.
If you’ve been a Rainmaker Letter reader for any length of time, you already know how valuable I think “process” is in our world. It is the closest thing to salvation I’ve ever experienced in business.
Process allows you to emotionally detach from having to make smart decisions in the heat of the moment. Think of the “productization” of your service offerings as a way to apply an emotionally detached process to your fee setting.
Process Gets Your Mind OFF Pursuing an Outcome and Puts Your Mind ON What You Actually Control, the Process!
When you do that, you exude confidence and power. You detach yourself from “needing” a certain outcome. If you’ve never tried it, hold onto your hat. You’ll be amazed!
When you productize a service, your fee setting is done in advance. Your “service” is given a specific structure and is given a specific fee. The whole thing is set up on the “shelf” in your store and prospects come along and say I WANT THAT!
Wait, how could you possibly figure out the fee in advance? What if they want me to do all this extra work? How am I going to get paid for that Mr. Client Wizard?
When you “productize” a service, you need to keep your mind open. There are a limitless number of ways that you can structure this. You can’t productize a service that puts you on the hook for a fixed fee and leaves the door open for a growing list of deliverables.
Don’t do that to yourself.
So let’s talk about the benefits here…
First, there’s no proposal. The “project” is out there sitting on the shelf waiting for a buyer.
Second, there’s no negotiation. It’s a very polite, “take it or leave it” proposition.
Third, there’s very little need for discussion prior to the sale happening. If the buyer is coming from my platform, The Incomparable Expert Daily Journal, there’s often NO discussion required. And as you know, I don’t really “sell” these. People attract themselves TO THEM.
OK, let’s move on to something I’d like to address if you’re reading this, seeing the error of your ways, and are finally going to start charging the fees you want to get.
Jason, You Always Say You Should Be a “Good Deal” For Your Clients. How Do You Do That and Still Charge High Fees?
So let’s answer the “good deal” question head on. I do believe that if you’re not a good deal for your clients, they will eventually leave.
But I think it’s easy to confuse “good deal” with “cheap deal.” I’m not talking about cheap anything. This has nothing to do with it.
Year’s ago, I entered into a retainer agreement with a client for $15,000 per month. All I was there to do was to write copy. That’s it. For most businesses, I simply would NOT have qualified as a good deal. But I was considered a good deal for this client.
Why? Because he didn’t want to do it. He COULD do it, but it was holding him back from doing other things. I could write in a way that he didn’t have to edit.
So let’s get to the heart of this good deal question so you can use it to make smarter choices going forward. Especially once you make the decision to give yourself a raise!
You want to be a “good deal…” That’s not in dispute.
The magic question is this:
For WHOM Are You Going to Be a Good Deal?
And right there is what changes everything. This is the spot on which you direct a lot of thinking. It’s an important decision. Choose the right “WHO” and you win. Choose the wrong “WHO” and you work way too hard for too little.
While you probably can’t convert your current “WHO” into the new version of the “WHO” you’re going to attract going forward, at least you know now. Once a client puts you in a box regarding fee levels, you’re kind of stuck there. It’s best just to ride it out or end the relationship if you don’t need the revenue.
The good news is that you can start TODAY attracting the folks for whom YOU are going to be the “good deal” at your new fee levels. They are out there. They’re far more common than you think. There’s a TON of money in this world.
Building the Shell That Insulates You From the Opinions of Others
I have to tell you, I really like products from Apple®. I’ve owned a bunch of them over the years. MacBooks, iPhones®, iPods, you name it. The iPhone®, in particular, is a pretty sweet device.
A ton of people think they are way overpriced.
A ton of people would never buy one unless they were deeply discounted.
Does the price of the iPhone® get cut in half because of those people? Of course not. The price for whom the iPhone® is a good deal does not get slashed simply to please the people for whom the iPhone® is not a good deal.
Choosing your clients intelligently will do more for the success of your business than how well you perform your service. That’s just the truth. As much as we wish it wasn’t the truth, as much as the system has led us to believe that “merit” has anything to do with success, it just doesn’t appear to be so.
The Quickest Way to Become Like the iPhone®
So how do you assume the same kind of position in your market that the iPhone® has secured in the mobile market?
My best advice is to choose a marketplace and then make a point to assume a leadership role in that space. You don’t have to be “the best” to be the leader. You simply have to pick an area, a single thing, where you CAN be the leader.
While it might take some time to be perceived as the leader, acting like the leader is something you can start doing immediately.
Don’t wait to be picked, earn it. Earn it by showing up in the lives of the people you can help and by figuring out a way to become extremely valuable to them in advance.
There’s another much more valuable benefit to engaging in the behavior of a leader, even well before the market recognizes you as such.
Leaders Don’t “Need” Anything or Anyone
I don’t mean that leaders are emotionless robots. I don’t mean they don’t want things. But they don’t need them. There’s a huge difference.
So let me just lay out a very simple recipe for doing this. As you might guess, it’s all built on a very powerful device we refer to as the Platform.
The Platform produces the behavior of a leader that you can begin with right away. That gets you DOING before anything else. That helps you develop the habit that leaders have… they provide enormous value to the people who choose to follow them.
You figure out how to earn a spot in the life of your prospective client…
You keep showing up and you take permanent ownership of that position in your prospect’s life.
From there, you make it clear that you are assuming a leadership role in the market. You take personal responsibility for helping your prospects (even before they are clients!) reach their goals.
You are giving without want, for lack of a better word.
This allows you to FEEL what it feels like to be a leader. This allows you to get that energy of “not wanting” flowing through your body on a very regular basis. When you get used to this feeling, it’s not difficult to carry it over into your dealings with clients.
This feeling change will cause your behavior to change.
This feeling will help you stop shortchanging yourself when it comes to setting fees and getting paid for the value you provide.
Next, you move on to the productization of some of your service offerings. Stretch yourself when it comes to your fees. Go through the “B.S Game” with someone you care about so they can set you straight about how valuable what you do actually is.
As you build up the confidence that this actually works, then you’ll be ready to start increasing the fees you quote to clients. Actually, if you do all of this work, you’ll look back on the “old you” and wonder just what the hell was going on back then.
I know I do that in my own life.
Some days, you move forward by an inch, other days it’s a mile.
Time doesn’t really have anything to do with it. It’s the depth of understanding and conviction and clarity that makes all the difference. And that’s what’s so exciting. Because on those days where it all “clicks,” you can fly forward a thousand miles in just the blink of an eye.
It’s an amazing ride…