What is the right price for this service?

Originally Posted by frankpansin

Hello everybody,

Thank you in advance for your opinion.

I've developed a little marketing tool that is proven
to deliver for my existing clients, roughly between $5,000 and $10,000
a month in revenues.

My direct costs are under $700. Right now I'm charging only 30% as
an "agency fee" So the bill for my clients is $1,000, $700 for marketing and $300 for me.

Now I want to add more accounts and I'd need to hire
a sales rep. But I have no margin...

Would you ask $ as one time sign up fee? How much?
Would you ask $500 or more as a consulting fee?
What do you perceive to be the value of $5K to 10K a month,

I offer no guarantees, the outcome is stable but not guaranteed.

What do you think?

Thanks

Frank

Frank,

When you say marketing tool, even a self developed marketing tool, I suspect you meet some resistance. We've all heard the words "marketing tool" before.

I don't want to know any trade secrets but what are you talking about when you say "marketing tool"? That may be the key to your fee structure. If I'm a potential customer, I'd like to know more about your "marketing tool". I'd like to know more because you ain't the first guy to walk through the door with a "marketing tool".

Like Dien says, my profit margin will vary per item so if I have a grasp on your concept I might be willing to pay a higher fee or charge from the one you quoted in your post.

Again, don't want any trade secrets just want a general idea.

Tom