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Most agency owners I speak to (in VC marketing circles) charge minimum $8k a month, not $2k. $2k a month is like an overseas sweatshop.
by cm2012 3y ago
Most agency owners I speak to (in VC marketing circles) charge minimum $8k a month, not $2k. $2k a month is like an overseas sweatshop.
- datadrivenangel 3y agothe secret to making 300k mrr is to operate just like the 50k mrr business but charge 12k instead of 2k.
- tptacek 3y agoI mean, yes? Yes, there is something to this.
- quickthrower2 3y agoRemember, 50k mmr is what some Googler make slinging code.
- tptacek 3y agoLike, I think the most important difference between someone who charges $2500/mo to their customers and someone who charges $15,000/mo is that the latter person asks for more money. There are other differences, but they follow distantly behind, not closely. I don't think this is a cynical observation. I think some of the same kinds of dynamics this post talks about are at play in selecting the types of organizations that make those asks; the causality is important though, because it starts with asking for more money, it doesn't end up there.
- tonyedgecombe 3y agoThe funny thing is the guy charging $15K a month will get treated a lot better than his cheaper peers. People really do value things by how much they pay rather than some objective worth. My last employer pulled out of a services business so I left and started contracting for the same customers. The only distinction was I charged three times as much as my employer had been. Not only were they happy to pay but their whole attitude towards me noticeably improved.
- fallingknife 3y agoIn that case the real secret is how to convince your clients they are getting 6x the service level of a 2k customer while really giving them the same thing.
- yCombLinks 3y agoMost corporate math I've seen doesn't work like that. If you can sell a product to a corporation for $2k a month, you probably can sell it to about 95% as many customers for 3k a month. Usually the person that is agreeing to the price doesn't directly use the service or isn't able to judge actual usefulness of the product.
- fallingknife 3y agoFor a 2k price level it probably is actually the user making the decision. Maybe that's the solution here! If you charge 20k, now you move into the corporate BS tier where there is no accountability to the user and you can just manage the relationship with the decision maker
- satvikpendem 3y agoThat is why paradoxically the higher the price the easier the sell, and conversely the lower the price the more nitpicking the customer will do.
- tonyedgecombe 3y agoI always assume the bottom 10% of any market is a cesspit that is best avoided whether you are a customer or supplier. I suspect the top 10% is the same but I have little experience of that.