Discounting your consulting fees is something most coaches and consultants face as they build their practice. If you have prospects asking you for discounts, you’re in good company.
Many people want a deal. And sometimes they’ll try to negotiate just to see if they can drive your price down, even if they can afford your standard rates.
What’s the best way to deal with this?
Should you discount your consulting fees?
Table of Contents
First Verify If the Prospect is Qualified
A prospect contacted me after seeing my SEO presentation. He wanted to buy my time.
His words:
“Thanks for these incredible ideas! Very actionable. What’s your discount on consulting fees for small startups?”
My first thought:
- Why is he asking for a discount before I mentioned my rate?
My second thought:
- He’s not a qualified prospect (yet).
After a few clarifying questions, my hunch was right.
Alternatives to Discounting Your Consulting Fees
I believe strongly in helping as many people as I can so I’ve created options for several price points.
Free:
- Social $0
- Videos $0
- Articles $0
- Newsletter $0
Low entry:
- SEO Course $$
- SEO Product $$
SEO coaching/consulting:
- My time $$$
Do Not Discount Your Time
Time is my most precious asset.
- It’s my rate or equity
- No discounts
It’s very tempting to offer a discount on your consulting rates in the hopes of landing a client. But discounting can be a slippery slope where your client expects discounts going forward and it affects your revenue goals. A rare exception would be if you need to land a client to build your portfolio.
If you’ve got the depth of experience to back up your rates, my recommendation is to hold steady. My rates, for example, are in line with top tier experts. I don’t view bottom feeders as competitors. If a prospect compares my rates to ultra-cheap prices, I know immediately that they are not a qualified prospect – and they won’t get the value I have a reputation of delivering.
You can use lines like these in response:
- “Let’s make sure we’re comparing apples to apples. Are you comparing my rates to others with the same degree of experience and ability?”
- “An hourly rate isn’t really an indicator of your total cost. I’ve seen others go with someone with a lower hourly rate only to pay a lot more because that consultant took so much more time.”
- “I might not be a fit for you right now, but I do have several options that are more in line with your budget.” (point them to your other assets like articles, videos, etc)
Not Everyone Is Qualified to Buy Your Time
I’m not alone.
Most seasoned experts do not discount their rates.
My prospect appreciated being able to learn SEO at a rate he can afford through my free resources and low-cost on-demand course. And I’ll stay top-of-mind via my newsletter and livestreams. When he’s ready, we can reconnect.
→ I constantly get clients this way.
Not everyone is qualified to buy your time.
↳ And that’s okay.
↳ Leave room for those who are.
Author: Raj Khera is a 3x CEO, and publisher of MoreBusiness.com.
