#145 · Watch me send Upwork apps & generate leads (real Loom vids)

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How do I calculate and estimate running costs for an AS solution I'm selling?

Start by separating fixed and variable costs. Fixed costs are recurring subscriptions (software, mailboxes, etc.)—list them and sum. Variable costs depend on usage: OpenAI API tokens, Apify scraping, etc., which fluctuate month to month. Estimate variable costs based on expected usage, acknowledging they're outside direct control. Total cost = fixed sum + variable range (error bars). Example: fixed ~$177/month, variable ±$55/month. Avoid absorbing these costs yourself; the high value you deliver justifies fees, and if clients balk at a small percentage, reconsider the fit.

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Related answers

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How should I price a cold email system that costs $1,500 for setup and $400 per month to maintain? Should I charge $1,500 upfront and $550 monthly?

Look at it from the customer’s perspective. If you’re delivering, say, $4,500 worth of value each month, you can charge a multiple of that amount. In B2B you typically charge a percentage of the revenue you generate for the client—about 30 % of top‑line revenue and, for bottom‑line improvements, up to 50 % of the margin you save them. In your specific case the $400 a month is a cost you’re passing on, so I recommend not adding extra liabilities. Have the client pay for the ongoing costs directly—charge a setup fee for the cold‑email domains and let the client cover the monthly expense. You can then charge a monthly retainer, a percentage of revenue, or any other model you prefer. For more detail on the many pricing models, check out my previous video where I break down about 80 different ways to price a service.

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How should I price my lead‑gen system for one‑time and recurring payments – should I just suggest a price and see the conversion rate?

No problem, the info should be free. The key is to think about different pricing models. You can charge a one‑time setup fee (for example $2,000). You can also charge a monthly management or operational fee, maybe around $1,000 per month. Pay‑per‑result is another option – for example $200 for each booked appointment or a percentage of revenue (e.g., 15%). You can combine these: a setup fee plus a monthly fee, or a setup fee plus monthly plus pay‑per‑result, etc. Other variations include pay‑per‑usage for software platforms, similar to how OpenAI bills by token usage. The idea is to pick a structure that matches the value you deliver and test it.

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youtube ↗Lead Generation

Should I add paid ads to my lead conversion system for mortgage brokers, or focus only on lead conversion?

If you're good at lead generation with ads, add it to your stack. Create packages: a full managed service (higher price), ads‑only, and lead nurturing for clients with existing ad funnels. This gives product differentiation, lets you anchor prices, and serves different budgets. Explain fixed vs. variable costs: fixed costs like software subscriptions (e.g., $40/month for Pandadoc, $97 for Instantly, $40 for Zapmail) total about $177/month; variable costs like OpenAI API usage ($5–$50/month) and Apify usage ($30–$300/month). Total cost with error bars: $177 ± ~$55/month. Emphasize that the high value you deliver justifies fees; clients unwilling to pay a small percentage likely aren’t a good fit.

lead generationpaid adspricing packages
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Should the client be charged for the variable cost of tools like Ampify, or should I cover it?

I understand your point about even if I handled all the costs, what use case would require me to handle $30 to $300 for something like Amplify? If I'm using it for myself, the scraped data would mainly be used by me, so it would be worth paying. I can't visualize a situation where my business would need to handle such costs. To clarify, there's Appify for personal use where you pay and scrape your own leads, and Appify set up for a client where the client pays for it all. When I say I set it up for a client, I mean the client sets it up, and I guide them through the process on a kickoff call. Hopefully that helps.

variable costclient billingampify