Great post and excellent information. This is very true, I have personally experienced this over the years and have realized that it takes many years to build up your business and credibility in order to charge what a service is worth. Regarding giving away for free this makes perfect sense and it often a new service provider rookie mistake. Once a company realizes how getting the revenue in is important, but profitability and long term relationships are even more important, then they realize that they can no longer give it all away…

Yes, I’ve seen companies use 100% gurantees with great success. In the right situations it can be a great risk reduction strategy to help someone get over the hump of working with you for the first time. A question firms have to answer, however is whether or not they highlight the guarantee in their marketing, whether they use it on a campaign by campaign basis, or whether they only bring it up in the sales process.

I’ve also seen consutling firms work exclusively based on contingent fees paid out as the company achieves certain results, but doing this make sense in some areas and not others.

Best regards,

Mike

Interesting post. Often, heavy discounting or giving away services seems like the easiest way to eliminate hesitation on the buyers side. A seemingly quick way to get in the door… You rightly point out the slippery slope this can be.

To reduce buyer risk/fear, have you seen firms lead with 100% guarantees with success? Get buyers to commit to the fees but promise they’ll deliver value.

Regards,

Patrick