Instead of a pool of hours pulled as needed, it is a fixed pool by month/quarter/year which is often a ‘use it or lose it’ situation. The benefit of a recurring model is ongoing billing which can greatly improve cash flow given consistency. The drawback is that customers often have higher expectations given the constant amount they pay on a regular basis. The key to using the recurring model is to continue to demonstrate value to the customer so that they are excited to keep that retainer going. 4. Flat rate Sometimes it can be easier to cover a larger number of requests together and offer a flat fee model to address support. This works well if clients are willing to let requests “pile up” in the queue or if the requests they have are of a larger nature.
The benefit of a flat rate model is that it guarantees a fixed cost to the client while allowing you to potentially increase your margins on a project. The downside is that you’ll need to make sure clients don’t surreptitiously submit change requests outside of the Mayotte Email List originally agreed-upon work. The key to using a flat fee model is to be very detailed in the scope of the project you put together and how you manage that scope during the engagement. 5. Based on performance A final model worth considering is a performance-based pricing structure. Instead of charging clients by the hour or a flat rate, you would agree to the “value” associated with the work you will perform.
Don’t Overlook the Impact
The benefit of a performance-based model is that clients. Only pay for the results they produce. And you have the opportunity to share in the benefits of any results your efforts. The drawback is that any failed job will go uncompensated. The key to using a performance-based model is to be clear. About what metric you’re trying to improve for the customer. And exactly how the payment structure will work. Additional sources of income One last consideration to keep in mind. In your upselling strategy is the introduction of third-party partners. And vendors with whom you could earn a referral fee. Shopify, along with many app developers, offer affiliate referral. Payments based on their software recommendation. This can be a great way to add recurring income with minimal work. Simply identify a few of your preferred solutions and determine. If an affiliate/referral relationship opportunity exists.
Once set up, you could start seeing a few hundred, or even thousands. Of extra dollars a year per customer in referral fees. Customer release Now that we’ve explored the value of selling based on metrics. The various types of support services, and billing models, it’s important to examine when and how we should offer these services. In general, we find that customers fall into one of two main buckets. They start out as a ‘project customer’, such as building their initial store or running a major marketing campaign, or they come right in as a ‘support customer’, someone simply looking for support on their existing website. ‘Support customers’ are relatively easy as they specifically come to you looking for a support offer.
Jeffrey Zeldman Shares His Advice
‘Project clients’ are a bit more difficult, as they might be thinking that their one-time investment in the website should be enough to last them a while. When it comes to selling ‘project clients’ with additional support, there are two ways you might consider offering your services. 1. The insurance model The first is the ‘insurance’ model. Any good product, whether it’s a car, a computer, or a refrigerator, comes with optional “extended warranties.” These are all pieces of technology that are subject to problems due to use over time. There is no difference to your website as technology evolves and mistakes happen. Offering support services either before the start of a project or immediately afterward as a “guarantee” of their investment can often be very helpful to clients.