Archive for August 19th, 2015

I Can’t Work for Pennies, How Are You Making This Work?

I Can't Work for Pennies, How Are You Making This Work?

I am still trying to lock down clients. Any suggestions as to how to obtain clients? I have been using Fiverr for sample gigs (decent income for small projects). I am reaching out to people on Linkedin as well as my previous employer (we have a great relationship so it’s no fluff, but no clients need me yet), but once I move to the pricing for everyone else, they are no longer interested. I feel my price point is comparable, but I can’t work for pennies on the hour. How are you guys making it work? —RB

Fiverr might be good for pocket change if that’s all your needing out of it. But you’re never going to find real clients there (i.e., the kind that pay the kind of money you can actually live on), much less retainer clients who pay a monthly upfront fee for across-the-board administrative support.

“Decent income” is relative. What does it mean to you? Have you done any cost and pricing analysis on what it takes to run your business, earn an income (yes, they are two separate things) and earn a profit? (Profit is yet a third category of earning; you don’t have a business unless you are earning above and beyond your operational and income needs.)

It’s important to understand that there’s a big difference between the economics of employment and the economics of business. That is a huge area of education for a lot of people who are new in business. They often don’t initially understand that $12/hour employee wage will not begin to earn them a living as a business.

You’re also looking at things from the wrong angle and going about the process too generally. Because it’s not about the price point.

(Don’t worry. Everyone goes through this thinking when they’re new in business—it’s a process of education, and I’m here to  help you with that). 

Getting clients begins and ends with WHO your target market is. Have you done that work yet?

RB: I have my target market (insurance), I guess it’s that I am not known maybe? Yeah, I love Fiverr for some quick cash, but trying to convert the folks I am talking to is what I am having trouble with (none from Fiverr). Maybe I need to reevaluate.

You’re not going to be able to convert those people because they aren’t the right audience, and it’s the wrong process/intention on the wrong platform. You’re trying to fish in an empty pond basically.

It’s not about being known. You don’t have to be known. Prospective clients don’t even need to have ever heard about our industry whatsoever.

It’s about YOU understanding THEM (your target market), their business, their industry, how their business is run and how you can support them, a
nd you understanding what they gain and how they benefit from this solution (this is how you will articulate your value to them).

And, of course, choosing the right market.

“Insurance” is pretty broad/generic. What does that mean? What kind of insurance specifically? Who in the “insurance” field are you focusing on?

Because insurance “companies” don’t need what we do. When a company is large enough that the workload inherently requires in-house staff, and has their own staff, you are barking up the wrong tree.

You want to target solo/boutique business owners. They are the ones who have the highest/greatest need for the solution we’re in business to offer, value it more, and are thus more interested and willing to pay for it.

Once you get clearer about all of these things, that is going to tell you where you should be focusing your efforts for more fruitful results.

And the smarter you get about that, you’ll find that you won’t want or need to waste your time in places like Fiverr. 😉

Here’s what I recommend:

1. Get my free ACA Income & Pricing Calculator and go through those exercises. It’s important to get very clear about your numbers and know your pricing baseline.

2. Download my free guide on How to Choose Your Target Market and go through those exercises. This is a necessary part of the process of getting clients. If you don’t know and specifically define who you are talking to, how can you ever find them much less know how to support them administratively? 😉 Once you get clearer about who it is you are seeking, that will inform all your next steps and answer all the questions you have about how to find them, where to find them, how to support them, how to craft your solution and speak their language. This is such a vital step that will make finding clients so much easier.

There’s a lot more to it than this, of course, but these two exercises are the best place to start.

You CAN do this! It’s work, but it’s legwork that must be done first if you’re going to start seeing results. The alternative is to keep plodding along for years on end as many people do.

SEE ALSO:

Dear Danielle: What Do You Think of Odesk and Elance?

Dear Danielle: Should I Market on Craigslist?