GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101:
DON’T BE A COMMODITY
GEOFF MYERS PRESENTS

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
BEFORE WE BEGIN…
THIS PRESENTATION IS AVAILABLE ONLINE:
simdex.org/pricing
More Presentations by Geoff:
simdex.org/talks
Get In Touch:
geoff@simdex.org
simdex.org
414.455.6675

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
BEFORE WE BEGIN…
ABOUT GEOFF MYERS
▸ Co-organizer of WordCamp Waukesha 2017
▸ Co-organizer of Milwaukee WordPress Meetup
▸ Speaker at WordCamp Milwaukee 2016
▸ Founder and CEO of SimDex LLC (Est. 2004)
▸ Custom WordPress + PHP Web Application Development
▸ Digital Marketing Consulting + Strategy for Small Businesses
▸ 100+ Websites Designed, Developed, Marketed + Maintained
▸ Get In Touch: geoff@simdex.org or simdex.org or 414.455.6675

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
WHO IS THIS TALK FOR?
▸ Agencies
▸ Consultants
▸ Copywriters
▸ Designers
▸ Developers
▸ Entrepreneurs
▸ Freelancers
▸ Marketing and sales
professionals
▸ Search engine
optimizers
▸ Small business
owners
▸ Any company or
individual who
provides unique,
high value services

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
WHAT WE’RE GOING TO COVER TODAY…
▸ Why pricing matters
▸ Common pricing challenges
▸ Pricing goals
▸ Why the hourly rate must die
▸ Comparison of pricing models and strategies
▸ How to change the way you position and sell your services

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
WHY PRICING STRATEGY MATTERS
▸ Business revenue and profitability
▸ Effective hourly rate (money/time ratio)
▸ Marketing and sales performance
▸ Quality and type of clients and projects you attract
▸ Time management and efficiency
▸ Work/life balance (quality of life)

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
COMMON PRICING CHALLENGES
▸ Commoditization, lack of differentiation
▸ High risk, high variability projects
▸ Low effective hourly rate
▸ Low profitability
▸ Low quality clients and projects
▸ Poor work/life balance (low quality of life)
▸ Stagnating income (limited by time)

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
PRICING GOALS
▸ Make more money
▸ Work fewer hours
▸ Deliver more value
▸ Higher quality clients and projects
▸ Better work/life balance (quality of life)
▸ Ultimate: Passive recurring income

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
PRICING MODELS AND STRATEGIES
▸ Hourly, daily, weekly, monthly rates
▸ Fixed price, fixed scope projects
▸ Productized services, bundles, packages
▸ Retainers, subscriptions
▸ Value based, pay per performance
▸ Commissions, profit sharing
▸ Equity, ownership, partnerships

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WHO CHARGES FOR TIME
(HOUR, DAY, WEEK, OR MONTH)?
DON’T BE SHY…

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
HOURLY, DAILY, WEEKLY, MONTHLY RATES
▸ Trade time for money
▸ Rate * time = price

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
HOURLY, DAILY, WEEKLY, MONTHLY RATES
▸ PROS
▸ Simple, easy to understand
▸ Universal, industry standard
▸ CONS
▸ Encourages unfair
comparisons between
different providers
▸ High risk for clients
▸ Hours are very difficult to
predict and estimate
▸ Incentivizes laziness and
inefficiency
▸ Poor correlation with value
and results
▸ Severely limits potential
revenue and profitability
▸ Commoditization

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WHO CHARGES BY THE PROJECT
(FIXED PRICE, FIXED SCOPE)?
DON’T BE SHY…

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
FIXED PRICE, FIXED SCOPE PROJECTS
▸ Requires project exploration and discovery
▸ Define scope of work, milestones, and deliverables
▸ Fixed scope
▸ Fixed price basis:
▸ Budget
▸ Cost plus
▸ Experimental
▸ Market
▸ Value

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
FIXED PRICE, FIXED SCOPE PROJECTS
▸ PROS
▸ Lower risk for client
▸ Ensures definition and
alignment of client and
provider expectations
▸ Well-defined project scope of
work and specific deliverables
▸ Protects well against scope
creep and additional requests
▸ CONS
▸ Higher risk for provider if
scope and deliverables are
not well defined
▸ Less flexibility if goals or
requirements change mid-
project
▸ Requires more upfront
investment to discover and
clearly define project scope

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WHO CHARGES FOR PRODUCTIZED
SERVICES, BUNDLES, OR PACKAGES?
DON’T BE SHY…

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
PRODUCTIZED SERVICES, BUNDLES, PACKAGES
▸ Services treated like products
▸ Predefined set of services and deliverables
▸ Client selects one or more services
▸ Bundles and packages
▸ Scope is not personalized or customized for the client
▸ Usage of templates and cookie cutter elements

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
PRODUCTIZED SERVICES, BUNDLES, PACKAGES
▸ PROS
▸ Ensures definition and alignment
of client and provider
expectations
▸ Protects well against scope creep
and additional requests
▸ Scope and deliverables are well
defined and identical for all
clients
▸ Well-defined scope of work and
specific deliverables
▸ CONS
▸ Less flexibility if goals or
requirements change mid-project
▸ May not provide ideal solution to
client due to solution being
generic
▸ Not personalized or customized
for each client

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WHO CHARGES RETAINERS OR
SUBSCRIPTION FEES?
DON’T BE SHY…

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
RETAINERS, SUBSCRIPTIONS
▸ Billed per unit of time (duration)
▸ Recurring revenue (income)
▸ Retainer agreements
▸ Service level agreements (SLAs)

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
RETAINERS, SUBSCRIPTIONS
▸ PROS
▸ Recurring revenue,
possibly passive income
▸ More predictable cash
flow and profitability
▸ Longer term, more
financially sustainable
▸ Less chasing after new
one-time client projects
▸ CONS
▸ Requires constant,
ongoing delivery and
proof of value, results, and
ROI to client
▸ Generally more difficult to
persuade and sell ongoing
expense to client

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WHO CHARGES FOR VALUE,
RESULTS, OR PERFORMANCE?
DON’T BE SHY…

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
VALUE BASED, PAY PER PERFORMANCE
▸ Financial reward is dependent on reaching goals, milestones,
and measurable KPIs
▸ Effective price is fluid and dynamic (not fixed)
▸ Client only pays when desired goals or results are achieved

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
VALUE BASED, PAY PER PERFORMANCE
▸ PROS
▸ Revenue and profit
connected to specific
outcome or result of project
or deliverables
▸ Low risk for client
▸ Aligns incentives and
expectations of client and
provider
▸ CONS
▸ Potentially higher risk for
provider depending on
strategy and execution
▸ Potentially higher revenue
and profitability for provider
▸ Difficult to define and
calculate value and
accurately measure
performance

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WHO CHARGES FOR %
COMMISSION OR % PROFIT?
DON’T BE SHY…

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
COMMISSIONS / PROFIT SHARING AND EQUITY / PARTNERSHIPS
▸ Commissions or profit sharing:
▸ Provider receives percentage of sales, revenue, or profits
for predetermined length of time
▸ Equity, ownership, or partnerships:
▸ Provider owns shares or percentage of client’s company
▸ Collective ownership, management, and control

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
COMMISSIONS / PROFIT SHARING AND EQUITY / PARTNERSHIPS
▸ PROS
▸ Aligns incentives and
expectations of client and
provider due to common
goal
▸ Potentially higher return
for both client and
provider
▸ CONS
▸ Potentially higher risk for
both client and provider
▸ Requires a very strong,
trusting relationship
▸ Difficult to find, negotiate,
and execute effectively

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
WEBSITE PRICING 101: DON’T BE A COMMODITY
ADDITIONAL ARTICLES + RESOURCES
▸ Breaking the Time Barrier / Mike Derment
▸ Consulting Success / Michael Zipursky
▸ Double Your Freelancing / Brennan Dunn
▸ Four Hour Work Week / Timothy Ferriss
▸ SEO Consultant/Agency Pricing, Structure & Services / Rand Fishkin
▸ Smart Passive Income / Pat Flynn
▸ Value Based Pricing 101 / Vivian Guo
▸ WP Elevation / Troy Dean

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
THAT’S IT FOR NOW…
THANK YOU!
Questions?
Get In Touch:
geoff@simdex.org
simdex.org
414.455.6675

GEOFF@SIMDEX.ORG | WWW.SIMDEX.ORG | 414.455.6675
BEFORE WE BEGIN…
THIS PRESENTATION IS AVAILABLE ONLINE:
simdex.org/pricing
More Presentations by Geoff:
simdex.org/talks
Get In Touch:
geoff@simdex.org
simdex.org
414.455.6675