5 Ways to Get & Increase The Client's Proposal Budget Lesson 2 - Freelance Proposal Help

5 Ways to Get & Increase The Client’s Proposal Budget Lesson 2

5 Simple Ways to Get & Increase The Client’s Proposal Budget

You’ll learn too:

> Get the proposal budget every time so you can price properly

> Double or triple client’s proposal budget to increase your profit

> Save time by quickly weeding out low budget clients

> Get paid to find the clients budget and then win the proposal

> Get clients budget without even asking them

Monday, November 20th 2017


No time to watch the quick video?  Then read the text version below


 

Now, complete the 3 quick win action steps

Action Step 1:  Download the worksheet to implement this strategy into your business.

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Action Step 2:  When you successfully implement this strategy,  please share the details of your results with the community in our Facebook Group so we can see how you did it and learn from your success.

Action Step 3:  To get more proven client winning strategies, frameworks, blueprints, trainings & content to win bigger proposals with better clients… subscribe to our VIP members email list  


 

BONUS!  

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Read the Text Version

5 Simple Ways to Get & Increase the Client’s Proposal Budget

By Chris Swemba

These 5 methods help us to quickly discover the clients budget, build trust and many cases double and triple the client’s project budget

These 5 methods are simple to do and work incredibly well.

  1. You will learn the – Ask Method
  2. You will learn the – Sliding Scale Method
  3. You will learn the – Numbers Method
  4. You will learn the – Form Method
  5. Finally you will learn the  – Paid Discovery Method.

Before we unpack these 5 methods, it is important to know that when a client says “I don’t know what my budget is” the translation of what the client is saying is that they probably have a budget in mind…but they really don’t KNOW what budget is truly needed to have a successful project. It’s our job to discover along with the client, the proper budget needed for the project and for it to be successful long-term. Now with that point made, here are the 5 methods we use to determine and increase the client’s budget

#1:  Ask Method

That’s right! It is very simple. Just go ahead and ask them: “What is your budget right now for this very important project?”

This method is the quickest way to gauge budget so you can avoid the project, of them wanting you to build Facebook for $500. We’ve had a client like this before, I am sure we all have. But going back to my original point, clients really don’t know what our services cost or the real value we can deliver to them. We have to show them that

So again it’s our job to educate them on the proper budget by asking the right questions in the project discovery process. If their budget is too low for their goals, you can do one of 2 things

  1. A)   Tell them you are not a good fit or refer them elsewhere.
  2. B) You can move them to your Project Needs Assessment Form (PNAF) and work with them in that regard to discover the proper budget needed.

#2:  Sliding Scale Method

With this method you would say “Okay, would you say your overall budget for this project is above $50k or below? Or 100k or below? – pick a number.

By using this approach, it gives you both a starting point and you can go up or down from there. When using this method, use a high number so you can set a higher budget precedence with them. In most cases, the Sliding Scale Method will get them to give you a budget while working with them

#3:  The Numbers Method

Ask clients what their income numbers are. So you can determine a proper budget. You can ask them these 2 questions:

        1) What was your total gross revenue last year?

        2) How much additional income do you want this project to make you on top of your yearly gross revenue?

Once you have these two numbers, you can formulate what they should more realistically budget to reach those specific goals.

Here is an example of how we use this method.

Let’s say…

The client’s gross yearly revenues = $1.2 million, the client wants a 25% revenue increase from this project in year one.

Take $1.2 million X 25% = $300k increase in new and desired revenue from this project.

You then suggest 8% of their gross yearly revenue as a budget starting point. Why do we do this? Well, 8% is what the United States Small Business Association (USA-SBA) recommends for companies to budget yearly for marketing.

So the equation looks something like this:

$1.2 million in gross yearly revenue X 8% = $96k as a budget starting point.

The 8% can increase or decrease based on what the final project requirements are and what the client can actually spend.

Showing the numbers enables you and the client to stand side-by-side to look at the numbers and make decisions based on a more realistic budget.

If they are coming into the engagement saying they want to spend $10k to make $300k, you can show the client that a $10k budget is not realistic in respect to a $300k return. Budgeting $96k is a much more realistic budget starting point to reach that $300k revenue goal.

Again, when you present in this way, in most cases clients see that $96k is a more realistic budget to consider to reach that $300k in additional revenue for the project.

This method isn’t an exact science,  but it does allow you and the client to have some visibility on a starting budget based on their numbers. Finding a client’s true budget comes by going deeper with the client in the project discovery process.

What if a client doesn’t give you their numbers?

If this happens we say “If we don’t know these numbers, how can we track if the project is successful or not?

Showing the clients the numbers enables you to work together with them hand-in-hand to find a realistic budget. Again, this way you are not really selling them, you are working with them based on their numbers to find the budget

#4:  The Form Method

If you don’t want to ask the clients budget up front about their budget initially, send them to your Project Needs Assessment Form (PNAF) to provide their budget there. Here is an example of the budget questions that we ask our Project Needs Assessment Form . We ask :

“What range would you expect to pay to accomplish your listed website design goals?”

 IE : I have budgeted $5k – $25k for web design.

Make sure you put a figure in there and put a higher figure in there. Since our time and yours is very valuable, please provide some figure so we know. So that’s the question that we ask for the web design and for the marketing we say

“What range would you expect to pay to accomplish your online marketing goals?”

IE : I have budgeted $5k – $25k a year on marketing.

Again, please provide your figure here.

In most cases, they will provide a budget on your form, but if they don’t then just use one of these other methods mentioned here to find out what their budget is.

#5:  The Paid Discovery Method

If the project and client’s needs are large, and goals cannot be clearly articulated at this point and there are several unknown variables in the project, Consider offering a Paid Discovery Solution where you will do paid research and planning work with the client to find the proper budget needed for their goals. In most cases when you do this, clients are very happy to pay for this solution first, then hire you to build and manage the project for them later.

Caution

I strongly suggest that you do not enter a project unless you know the budget. Without a budget it’s very difficult to properly serve the clients goals and believe me, you are losing a TON of profit in the project by under pricing your work by not knowing the budget.

Let’s Recap the 5 Methods

  1. You will learn the – Ask Method
  2. You will learn the – Sliding Scale Method
  3. You will learn the – Numbers Method
  4. You will learn the – Form Method
  5. Finally you will learn the  – Paid Discovery Method

I promise you that if you try some of these strategies the next time you talk to a new client, that one of these strategies will help you get a realistic budget from the clients. You know what you are working with, you know what products and solutions will serve them best to help them reach their goals.

Go ahead and take action. Write these down, incorporate them into your business so you can start writing bigger and better project proposals today.

Now, Complete the 3 Quick Win Action Steps

Action Step 1:  Download the worksheet to implement this strategy into your business.

Action Step 2:  When you successfully implement this strategy,  please share the details of your results with the community in our Facebook Group so we can see how you did it and learn from your success.

Action Step 3:  To get more proven client winning strategies, frameworks, blueprints, trainings & content to win bigger proposals with better clients…subscribe to our VIP members email list  .

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