2 builders who never spoke to each other

Work backwards from income to the shape of the offer

Start from the money you want out of the launch, divide by a defensible number of buyers, and the price falls out along with the model it implies. Services run low volume at a high price and digital products the reverse, so the arithmetic also decides whether you should be selling hours at all. Run the same sum on a group session against one to one calls and the per seat version usually wins for both sides.

The method

1. 01

   Set the price by starting from the revenue you want and dividing by a defensible number of buyers, rather than pricing first and hoping.

2. 02

   Work out which business you are in and price for it: services tend to be low volume at a high price, while SaaS and digital products are high volume at a low price.

3. 03

   Work the arithmetic backwards from a target income to decide between hourly one-to-one work and per-seat group sessions.

4. 04

   If you are selling around a day job, run group sessions instead of one-to-one calls: one slot serves many buyers and each seat costs the buyer less.

What it returned

• $10,000

  Justin's worked example for a $10,000 launch: 100 buyers at $100, 250 buyers at $40, or 400 buyers at $25.

• $150

  Welsh's worked figures: at $150 an hour, two calls weekly is $1,300 a month and three is $1,950, while $250 an hour three times weekly is $3,250. One weekly group session at $75 a head returns $1,625, $3,250 or $4,875 a month with 5, 10 or 15 attendees.

• 20

  Natoli takes more than 20 people at a time in a single group session.

Sources

• How I price productsJustin Jackson · justinjackson.ca · How I price products · undated
• How many units can you sell?Justin Jackson · justinjackson.ca · Number of units sold x profit margin · undated
• How Anthony built a $100,000 side business (in just 12 months)Justin Welsh · justinwelsh.me · Interesting possibilities: · 2023-04-08