Day 37 — How to Sell Candy to a Baby (Writing Winning Proposals)
This is a LIVE case study where I am documenting my journey to becoming a highly paid marketing consultant by blogging everyday for 50 consecutive days. It’s called “50 Days to Freedom: My Journey to 5 Figures in 50 Days“. At the end of the post, you will find links to all the previous posts.
Writing proposals is something just about every consultant/service provider I speak with dreads.
In today’s post, I am going to share with you a shockingly simple way to position your proposals so that you can demand higher fees, and close more deals.
Today, I prepared two action plans (this is what I call proposals) today. This is something I spend way too much time on because I over analyze every little detail. This was a problem years ago as well.
Another reason I only like offering just a couple services and work within a specific niche, as you can create a template that is pretty “plug & play”.
Two questions I always every prospect when on the phone are….
- On average, what does each pay per month?
- What is your average retention rate? (how many months do they stay as members?)
You multiply these two numbers and you get their LTV (Lifetime Value) of each member. For example, lets say this number is $1,500.
If I can deliver 6 new members each month, at $1,500/ea = $9,000 in additional revenue each month. These are numbers they gave me, I didn’t come up with them. I just did the math.
So today, I spent time putting together a spreadsheet, making it shockingly simple for them to plug in the numbers to calculate their own LTV.
When putting together my action plan, I typically offer 3 levels of investment they can chose from, depending on their revenue goals. For each tier, I estimate a range (ex: 4–6 new members) of new members we aim to generate. Next to that number I include the estimated revenue. Below that is the investment (my fee), which seems very reasonable compared to the numbers above.
If I can show them I am going to generate $9,000 in new revenue, my $2,000 fee looks like a damn good deal.
Of course, there is an advertising budget that is not included in here, but would be in the $1,000 range. So $2,000 + $1,000 = $3,000 for a return of $9,000.
So, they can expect a 300% ROI each & every month with these numbers.
I am basically selling them a dollar for $0.30. When you position it like the above, it’s like selling candy to a baby.
Day #37 Numbers
Emails Sent: 39
Sales Calls: 1
Facebook Posts: 0
Leads Generated: 0
Action Plans/Proposals Sent Out: 2
Revenue Generated: $500/mo
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