Getting Paid What You’re Worth

The economy is going through some tough times, and for many consultants the “trickle down” effect is really impacting the bottom line. Yet there is a select group of consultants who are still asking and getting top dollar and keeping the business pipeline full.

How do they do it? What do they know that you might be missing?

The Three Things Rule

Successful consultants are masters of the “Three Things Rule.” They are focused on their clients and the needs of both clients and prospects. A key element of being focused is to limit the scope of your services to the three things that offer the greatest return on your investment of time, money, and training. That means giving up the temptation to try and be “all things to all people.”

How does the Three Things Rule work? Simple—identify the top three coaching services that you want to focus on. Leave the other areas to other coaches. Fine-tune these services to position yourself as the expert. Don’t let yourself get sidetracked or distracted by all the business opportunities you might be passing up.

Getting Top Dollar

To set and get the highest possible rates you need to have three things:

• A clearly articulated value (or business) proposition that your prospects, clients, and centers of influence can understand
• A methodology to separate “suspects” from true prospects
• A rigorous and ongoing approach applying the 80/20 rule

Without a value proposition it is difficult to measure and document your success. It is your easy-to-understand value proposition—closely tracking the your “Three Things”—that enables others to see your value and market for you. Success breeds success and specialization lets you set and get higher rates.

The lack of a clear value proposition leaves you open to “chasing” suspects—people who will likely never become clients or referral sources.

Once a year it is essential to cull your list of clients, prospects, suspects, and referral sources. It may be trite but it is still true: 80% of your revenue and referrals come from 20% of your clients, prospects, and referral sources. These are the clients and referral sources who value your skills and services.

 Sooner or later you need to discuss the topic of fees with clients and prospects. There are many ways to charge; some are more “intimidating” than others. Often, an hourly rate is perceived as a “license to steal.” There are better ways to approach rates…

• Offer a “package deal” that provides a bevy of benefits in addition to a number of hours of coaching
• Offer part of your services as “interactive group sessions;” clients pay less on an individual basis but you get more on a collective basis (and it’s a great way to get clients thinking about referrals!)
• Offer discounts for longer-term arrangements or referrals

Your time is valuable. Much of your efforts are spent marketing and managing—activities that are not billable. Unless you plan to work 60- to 80-hour weeks you’ve got to cover your costs and make a decent living in 20-25 hours of billed time each week. If you apply the tips in this article you’ll be able to charge what you’re worth…and that’s what it’s all about.