Let’s talk about how a premium pricing strategy works for online business owners.
You deserve to be paid well for your expertise. Period. Full stop.
If you’re not there (yet), there’s a good chance you’re undervaluing the work you do.
Why does this happen to people in midlife? In the 9-5 world, people can expect to be well-paid for their expertise. Why would any highly-skilled professional pay themselves too little?
I believe it’s because they haven’t made the connection between their work and its true, lifelong impact.
Don’t fall into that trap, my friend.
Consider carefully what your work truly does for your customers.
Think of this as the “true transformation” you deliver.
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Your premium pricing strategy focuses on value
When you haven’t fully appreciated how your offer changes lives, you undervalue and underprice it.
You fall for those gurus who say, “create a low-priced offer first and work your way up to charging higher prices.”
Who’s got time for that?
Besides — why would you offer a partial solution when you could create a full solution and charge accordingly?
Let’s unpack this once and for all so you can develop your own premium pricing strategy that compensates you for your hard-earned expertise.
Pick your online offer category
To get in touch with the true transformation your offer delivers, I want you to look at it from lots of angles. Turn it over, examine it, and think about it today AND in the future.
Most online offers fall into one of three categories:
In other words, the easiest offers to sell online give people:
- Better health
- More wealth
- Richer relationships
You’ve probably heard that before. But there is SO much more to it!
Each of these categories contains a universe of subtle variations which can transform someone’s life. And people will pay for this level of transformation.
That’s where your premium pricing strategy comes in. Your price rises to the level of the transformation you deliver.
Think your offer doesn’t fall into one of the categories above? Maybe it doesn’t, on the surface.
But if you want to communicate the transformation you deliver in a way that helps your prospects see why your work is worth a premium price, you have to take an extra step and find a way to make your offer resonate in at least one of those categories.
Let’s look at three examples.
Example 1: How a pet-focused business makes relationships better
Let’s use a favorite example from my former colleague Sonia Simone. Let’s say you host a membership community of naked mole rat owners.
It’s the only membership community of its kind (I know, shocking, right?)
How can Naked Mole Rat Owners (NMRO) ever fit into the health, wealth, or relationship categories?
Well, it turns out NMRO members have healthier pets because of their community. And they have richer relationships because they are connected to other NMROs all around the world.
You position NMRO as “The #1 Community for Friendly Naked Mole Rat Owners Who Love Their Pets.”
Categories: Health and Relationship.
Example 2: A yoga business course is about more than wealth
Here’s another example.
You have a course that shows yoga teachers how to open a studio.
Too easy, right? It’s clearly in the wealth category.
Except in this case, it’s also in the relationships category, because members of the program have an opportunity to network and form supportive friendships with other yoga teachers.
You position your course as a place to “Grow Your Yoga Studio with Full Support.”
Categories: Wealth and Relationship.
Example 3: A service that goes beyond improved health
One more example:
Let’s say you have a service-based business. You’re a copywriter who specializes in writing email newsletters for health-based businesses.
You might be tempted to position yourself as an expert copywriter in the health industry. But that’s not what you really do.
Dig a little deeper, and you can find your answer.
You position your service as a copywriter who has a specialty: “Spread Good Health, One Valuable Email At a Time.”
Categories: Wealth and Health.
Focus on your client — what is your offer really about?
When you look at your offer to see where it fits within the three main categories, don’t stop at the obvious answer.
People are happy to invest in high-quality results. A premium pricing strategy aligns with those results.
- A pet-focused site that helps members make worldwide connections
- A course for yoga studio owners that builds wealth and a professional community
- A writing business that improves health
When you think about your offer, consider the lasting benefits to your client. That’s the business you’re really in.
Want a simple formula to go with your premium pricing strategy? Watch this video to get a simple formula — and how to defeat the mindset gremlins that pop up when it’s time to set your prices.
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Position your offer with the transformation you deliver
Here’s the thing: When you position your offer so the true transformation you deliver — in ALL its facets — is crystal clear, you can get paid very, very well for your offer.
This is one important step toward developing a premium pricing strategy for your online offer.
Surprisingly, this important work can be done in a single sit-down session.
This positioning exercise is one important step toward developing a premium pricing strategy for your online offer. Place your offer into at least one of these major categories and it will be easier to sell.
Here’s something else that will help you to feel great about charging high-ticket premium pricing for your offer: Think about how the transformation you offer doesn’t just impact people today.
Think about how it changes their futures.
Think about the lifetime value of your offer.
Your premium pricing strategy includes lifetime value
Going back to our yoga teacher example, let’s say that she opens a studio with our help. This business allows her to live a very satisfying and fulfilled life that is financially comfortable for 10 years.
If she has a family, the whole family is materially more comfortable. She’s able to offer employment to four yoga teachers in her community, which in turn impacts their families.
Ten years from now, she’ll be ready to do something else, and because the business is successful, she’s able to sell it — which gives another business owner the same benefits she’s enjoyed.
What’s the lifetime value for our email copywriter?
Let’s say our email copywriter creates an autoresponder sequence for a client that emails new subscribers automatically.
This writer’s work allows their client to earn more from their business. It gives the client back time that they were spending writing emails.
The client’s business flourishes, not just this year, but for years to come.
This is what I want you to keep in mind as you’re pricing your offer.
Don’t let the online gurus talk you into creating a low-priced offer. Use a premium pricing strategy so you can build an offer price that allows you to make a great living.
Fit your offer into one of these categories: health, wealth, or relationships. Think about the additional ways that you can describe your offer in any of those three categories too.
Don’t just charge for the fire you’re putting out right now. Price your offer to reflect the lifetime value of what you create.
You deserve to be paid well for your expertise, period, full stop.
Ready to take your online business to the next level?
If you have an audience and you want to develop or optimize a high-value offer, apply for my Offer Accelerator (OA) program.
Creating a premium pricing strategy is one of the main topics we tackle in order to develop online offers that generate consistent revenue.
Learn more and apply here: TheOfferAccelerator.com