Instagram Questions - Billing, Closing the Deal and Positioning
Posted by , Last modified by on 24 May 2016 11:51 AM
(1) Lets say after I run a test and the client is convinced and I ask them for their advertising budget and they maybe say $2000, do I have to break down how I intend to spend the $2000 by telling them how much each page will charge me for a shout out and then give them my own service charge lets say $500 per month?
*** I think you need to feel this out and determine what the real costs are. At the end of the day you want to be make at least 30% mark up for your services, so if the add spend for say 10 shoutouts to generate X amount of followers = $1000, you want to make at least $300 on that deal by pricing your services at $1500 per month (account for any hidden costs).
As for telling clients HOW you make the magic happen, that's YOUR trade secret, and clients do not need to know all the details. ***
(2) Do I even need to explain what a shout out is to my client to help them understand how their money is being spent, If yes won't that make them go out and try to write to these pages asking for a shout out themselves?
*** You should be transparent about the costs, but you do not need to tell them $X were spent on @instagramshoutoutA and $Y were spent on @instagramshoutoutB, etc. I would simply say: Ad 1 cost $X and got these results, Ad 2 cost $Y and got these results ... You can still easily show them the ROI for ad spend, but the actual methodology should not be part of what you share with them (FYI - even if they did know it though, most businesses are not going to have the time to implement it anyway - still you want to be cautious here as you've invested in the training to get this competitive edge). ***
(3) Do I just collect the $2000 then take $1,500, just go off and start sending shout out on a daily base to them without going into any form of details while they watch their page like grow plus likes and comments. Please what is the best way to offer your client a payment plan to work with them after they tell you their budget for IG advertising? Please, how do I close the deal, how do I word the pricing?
*** When you are just starting out I would keep things simple and scale up as you work out this methodology. First things first, I would create a test account and invest $50 to $200 or so to go through the process of gaining followers through shoutouts. This serves two purposes: (1) It provides you with experience in successfully generating the traffic using the shoutout method, and (2) It can be part of your "portfolio" in closing deals - once you've gotten results you can say to a client "I put up this test page and invested a small sum in advertising, which had X, Y, Z results in just [TIMEFRAME]." Your confidence will be higher from doing this, and you will be in a better position to understand how pricing should work, how many hours it will take you to get results, etc.
Once you've done that you need to see what your market will bear. $2000 consulting works for some markets but would completely shut the door to others. You might even want to try something simple like offering a $250 introductory price, which includes 1 campaign over a 2 week period to get them more followers and traffic. If you budget about $150 for shoutouts (go to smaller pages, between 100K and 1M) and try to spend just $50 per page - doing 3 shoutouts total. The key to success here will be matching the right audiences to the client's Instagram page. You then get to pocket $100 for the intro work, and set yourself up for more work with the client, scaling up the prices and services as you go.
Another thing to consider is that many clients will need you to also advise them on how to run a good Instagram page - that can be an add on services. Look for those opportunities, using the Instafy system to open the door.
Closing the deal and wording pricing should be handled like I described above. Always remember that you are an EXPERT offering to help them succeed better - it's all about positioning, and just by virtue of being a Really Successful member you can honestly say that you are among the top Instagram marketing professionals in the world (saying "among" is 100% true since Roger and many of our members fit that description + you are "among" us).
Again: closing deals is all about positioning - you are going to earn their business by delivering results.