DOVC – #026 – How to Attract Leads On Autopilot With This Underused Value-based Pricing Tactic

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How to Attract Leads On Autopilot With This Underused Value-based Pricing Tactic

As a business owner, nothing limits your earning potential more than trading time for money.

Charging hourly rates puts a cap on your income tied to the number of hours you can work.

What if you could base your rates on the value you provide instead?

In this article, I'll explain the fatal flaw behind charging by the hour and reveal a better value-based pricing model focused on your client's objectives. 

Just this subtle shift can help you earn exponentially more without working more hours.

Here’s what I’ll cover:

  • The hidden danger of pricing your time instead of value
  • How hourly rates limit what you can potentially make
  • Basing your fees on your client's goals not hours
  • Transitioning to value-based pricing in 3 steps
  • How this freed me from the hourly hamster wheel
  • Why it enables serving fewer clients for higher earnings
  • Getting paid what you deserve without chasing hours

The Snake That's Slowly Strangling Your Income

Like most service professionals starting out, I relied on hourly rates when I first launched my business. 

It provides clarity on what you'll earn per project based on time invested. 

But this approach contains an invisible poison that will kill your income growth if you don't address it.

The more hours you work, the more you earn. Right? 

Seems simple. 

But you only have 24 hours in a day. 

There's a hard cap on how many billable hours you can feasibly deliver.

How many potential working hours do you really have if you subtract sleep, meals, family time, etc.? 

Realistically, maybe 10 hours per day optimistically. At $50/hour, that's $500 per day max. 

But no one can sustain that pace indefinitely. 

You'll quickly burn out trying to chase hours. 

And even if you can endure it temporarily, you eventually hit your hours limit.

So, if you price based on time, you indirectly impose a low ceiling on your earnings. 

One determined by how many hours are in a day, not the immense value you provide.


Click Here To Listen On Apple Podcast ↘️

Escape The Hourly Hamster Wheel

I knew basing my rates on hours was suffocating my potential income growth, keeping me stuck on the hourly hamster wheel.

The fix? 

Shift from pricing my time to pricing the transformation I can create for my clients. 

Instead of starting with hours, I start by understanding exactly their desired outcome.

For example, say a client needs a website generating $500k in new revenue. 

My goal becomes getting them that $500k result, not just building a site.

So I might propose a $50k flat project fee not tied to hours. 

This helps them rapidly earn 10X that amount back. 

My pricing reflects immense value, not limited time.

Three Steps To Making The Switch

Transitioning from hourly to value pricing isn't instant, but here are 3 steps to get started:

  1. Identify clients’ desired outcomes, not just operational needs. Get clear on the end goals.
  2. Propose fees based on enabling those outcomes, not labor hours. Quote fixed-priced projects.
  3. Offer payment terms aligned to client success. Charge partially upfront and partially upon results.

This shift instantly lifted my income potential because it broke the dependence on hours. 

Just watch your client satisfaction rise when you make their success the priority!


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Now I Earn More Serving Less

Previously, I was scrambling to fill hours and serve more and more clients. 

But by pricing based on value, I can earn exponentially more, serving fewer clients aligned with my strengths.

This has given me freedom and flexibility while also increasing my earnings. 

No longer a slave to chasing billable hours and burning myself out!

It did take courage and conviction in my ability to deliver transformative results. 

But staying fixated on hours would have killed my growth and potential.

Key Takeaways: Value-based Pricing

  • Hourly billing imposes invisible income limits tied to hours available
  • Pricing based on your client's transformed outcome breaks dependence on time
  • Ask about their ultimate objectives, don't just focus on immediate needs
  • Quote value-driven project fees not tied to labor hours
  • Get paid for full value delivered, not just time invested
  • Serving fewer clients at higher value pricing raises income dramatically
  • This approach enabled me to earn more serving less while retaining freedom

The shift to value-based pricing has completely changed my business and life. 

No more chasing hours! 

Let me know if you have any other questions.

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