#262 · how to package a $3,500/m service

youtube ↗Offers

How would you make an offer for an ecom email marketing agency without mentioning price in the email, and what do you think of my current packaging and pricing?

First, don't mention price in the initial email—it filters out interested prospects before you can qualify them. Instead, wait until the call to discuss pricing; many will happily pay $4,500 once they see your value. Second, simplify your offer: it's currently too complex. Instead of technical details, state clearly what you deliver and the outcome. For example: 'I'll manage your entire email and SMS channel and guarantee you an extra $15,000 per month in the first 90 days, or I'll work for free until we achieve that.' Target businesses making at least $60,000/month so the $3,500 fee is reasonable. This makes the offer easy to understand and focuses on your ability to drive revenue, not on a list of features.

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Related answers

youtube ↗Offers

How can I create a compelling offer to sell an email categorization system to business owners?

He advises framing the email‑categorization tool as a revenue‑ or savings‑focused offer rather than an academic feature. Quantify the benefit—for example, saving a founder 30 minutes a day equals 15 hours a month; at a $400‑per‑hour founder rate that’s $6,000 of saved time. Position it as a total inbox manager, AI VA, or email assistant that directly ties to booking meetings or other revenue‑generating activities. Then package that quantified value into a simple, email‑friendly pitch that highlights the time‑ or money‑saving outcome.

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youtube ↗Pricing

Hey Nick, thanks so much for these valuable pieces of content. I'm able to run cold email effectively and generate leads with a reply rate of 5%. Hell yeah, my brother. The only problem I'm facing is to make the business profitable. For instance, if I charge a few dollars for my client, build a system that saves time for them, maybe generates revenue for them, but I'm not able to make enough money as I'm only charging a few bucks from them. Let me know I should plan my AI business to hit $50 to $100,000 a month. Keep doing the great work. Cheers.

You need to charge more, proportional to the value you provide. If you solve a $10,000-per-month money need, you can reasonably charge 30%–50% of that, i.e., $3,000–$5,000 per month. From the business owner's perspective, this is a simple ROI: hiring you should yield about a 3x return, acknowledging some uncertainty between the $3,000 fee and the $10,000 value. You can charge a proportion of the value delivered. Focus on profitability by charging significantly more for your services. On the expense side, avoid accruing unnecessary liabilities. Many who sell cold email or lead generation merely wrap a cold email product with minor added value and then bundle in unnecessary costs like email inboxes, platform fees, and domains. Instead, have the client pay for some of those costs so you're not left liable if you don't deliver results or fulfill guarantees. For example, one consulting client guaranteed a client $10,000 but only sought payment after delivering that amount; due to a long sales cycle, the client didn't receive the $10,000 for four or five months, while the consultant's ongoing email costs were $600–$700 per month, totaling $2,400–$2,800 over that period, yielding a 76% margin after COGS. Don't put yourself in that situation.

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youtube ↗Pricing

On a sales call, how do I explain the cost of running an automation like a lead-gen system without it seeming expensive? My setup fee quote is $700, but if they want to send 20,000 emails a month, how do I frame the extra ~$500-600 in tools/API costs so it doesn't feel like a lot?

First, check your math — 20,000 emails a month shouldn't cost $600. Using something like Amplify credits at roughly $1 per 1,000 leads, that's $20; a HyperGrowth-tier sending plan is about $97, so $117 there; for 20,000 emails over ~26 sending days at 700/day, you need about 25 mailboxes at roughly $4 each, so about $100. All in, that's more like $200-300/month including personalization/icebreakers — not as much as you think. Second, and more importantly: don't sell the cost, sell the expected ROI. Walk the client through it live: 'How much is an average client worth to you?' — say $2,000. 'How many refer another client?' — say 1 in 2. 'Do you upsell anything afterward?' 'How many months do they typically stay?' — say 3 months. That's a $6,000 lifetime value per customer; if half refer someone of similar value, multiply by 1.5 to get $9,000; add in any upsells and you land around $10,000 in total lifetime value per customer this system could add — at that point the $200-300/month in tooling cost looks trivial next to the value being generated.

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youtube ↗Pricing

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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