#147 · Generating 7 real leads for AI agency services in 2hrs of work
Price the system using value‑based pricing: calculate the client’s saved labor (3 hrs/client × $30/hr ≈ $100/mo) plus the opportunity cost of them signing an extra client ($5k/mo). That yields a total value of ~$5,400/mo; you can charge about a third, roughly $1,800‑$2,000/mo.
Separate variable (scaling) cost that rises with what the client pays you from fixed cost (onboarding, check-ins, platform risk) that's the same per client. With 20 clients at $1,250 each you'd gross $25k but also incur 20× the fixed cost—feasible if you account for both. Price via value-based: ask the client what they currently spend on the problem and what they'd gain with your solution, total that value, then charge roughly 30% of it (e.g., if they spend $5k/mo on a setter and you add another $5k, total $10k → $3k/mo).
I’m honest: $500 for a reasonable business isn’t too much. The challenge is that younger entrepreneurs, like 15‑year‑olds, may struggle because clients question their experience. The key isn’t just the system itself but building perceived value. Identify the client’s exact pain point, press on it, understand their problems, and then pitch your solution as a fix. Show the real value versus a low quote, and charge based on the value you deliver, not just the mechanics of the system.
Revenue share means you only get paid when the client closes a deal, e.g., 7 % of a $100k deal = $7k. It works well when you trust the client and they close high‑ticket deals, and you can tolerate variability. Pay‑per‑lead or pay‑per‑meeting shifts the risk to you: you get paid for each booked meeting, so your income depends on your ability to generate meetings and keep show‑up rates high. To price it, estimate the client’s customer lifetime value (CLV), calculate the value of a meeting (e.g., if a client needs 10 meetings to close a $10k deal, each meeting is worth about $1k), then charge a percentage of that—typically around 20‑30 %, so $200 per meeting in this example. You could also use a flat revenue‑share rate, like 10 % of all revenue generated, but the pay‑per‑meeting model reduces risk for you while giving the client predictable costs.
He explains that the best pricing models are nuanced and combine multiple elements: an upfront setup fee, a monthly retainer, pay-per-meeting, and possibly a revenue share. He describes his former business partner Grender, who uses all three—setup fee, monthly retainer (around $5,000 per month), and either pay-per-meeting or revenue share—on annual contracts. He prefers month-to-month arrangements to avoid being tied down, charging per meeting and differentiating fees based on client value—for example, higher compensation for meetings that lead to larger deals (e.g., $15,000 versus $5,000). He cites a community member who introduced a lead that resulted in a $700,000 deal, noting a 5% revenue share would yield $35,000. He concludes by thanking viewers for joining his journey to 300,000 subscribers and looks forward to reaching 1 million.