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Anyone pricing their own services?

I have been working a bit as a jack of all trades and realized I'm having a hard time finding the right pricing for my services. Particularly, I made a deal I'm already afraid I'll regret that is based on bringing in prospects and getting a % of revenue, which I'm realizing my work won't get a return until 3 months minimum, realistically 4-6 months. The return could be way more than I would have charged, but my gigs aren't lining up so I'm adequately covered in the meantime. It's hard to say no to anything when I'm just starting and it's hard to figure out what you are worth.


Any advice from other sales leaders turned entrepreneurs?

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6
paddy
Arsonist
+9
Account Executive
Have you looked into what your competitors' (if any) pricing is?
Incognito
Arsonist
+9
Master of Disaster
I have always charged a minimum per hour for my services (around $175), and an upfront % of commission due immediately for sales.ย 

If you're just bringing in prospects, I'd do an up front fee for an introduction, then perhaps a smaller % of revenue earned as it is paid?ย 
Telehealth_2the_Moon
Notable Contributor
+12
Director of Business Development
It can certainly be hard to say no when youโ€™re getting started on your own, but there is some benefits in the selling process when youre a small, self-made and self-run shop. Buyers like to support stuff like that, of course that only takes you so far, but that bit of wiggle room could let you have some open conversations that other companies might not get to have. Specifically, there might be a way to explain your side further to them. If your pricing is based on bringing in prospects that become customers you can approach it with the idea of a math problem. For example, if you come up with an โ€œOTEโ€ for a contract, then you can pull a percentage of that total and find a way to work that in earlier jn the process, such as when you first bring a prospect in. If you know their average close rate you can use that too so the number is stretched out across all the prospects tiure bringing it Being a small operation has plenty of challenges but being able to be real with your customers is something you might be able to lean into to make Sure youโ€™re not screwed as soon as youve signed a contract with a customer
Justatitle
Politicker
+7
Senior AE
Is this a consulting role that you are taking on? If yes Iโ€™d recommend asking for a draw that would be repaid to cover the 3 months it will take for things to get going. Obviously it would be repaid and youโ€™d hopefully in 3 months be starting to have the commission incentives roll inย 
JJASBE
Catalyst
+6
Sr. AE
Following:ย  I've definitely priced services wrongly and regretted the consulting arrangement because of it.ย  Really interested in what this thread will yield by way of advice.
GDO
Politicker
+6
BDM
We do this at our company. And we have 2 structures.ย 

The first one there is only a payout when a deal comes in.

The second one there is an introduction fee (very low) when the prospect goes past a certain stage in the sales cycle (something that would be called a POC in SaaS-sales) and a lower capped fee when there is a deal.

We do not pay hourly rates or other non-result-driven fees. Also the prospects should be exclusive, they can not offer them to an other party (although there is no way of knowing this)
2
Costs and Pricing
Discussion
11
How are your sale prices decided ?
+22
verbalzzzzzz , ย  TheRealTommyCallahan , ย  sam ย  and 22 people voted
2
SaaS Pricing tool?
Question
6
How do you view your pricing?
+25
verbalzzzzzz , ย  BCD , ย  Salespreuner ย  and 25 people voted
4
What is your preferred tool/way to reach out to customer in B2B Services sales?
Question
15