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- Business Impact 131: Why Underpricing Could Be Killing Your Growth
Business Impact 131: Why Underpricing Could Be Killing Your Growth
Plus: Secrets of 7-figure Newsletters
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Thought of the Week
Success is not final, failure is not fatal: It is the courage to continue that counts.
Up Front: The Science of Pricing
This Week’s Biz Quiz: Will We Stump You This Time?
Strategic Thinking: Newsletter Lessons
Need Help?: Help is On The Way!
UP FRONT:
The Science of Pricing: How to Charge More Without Losing Customers
Whenever you’re creating an offer, you’ve got to make decisions about pricing. We’ve all been there—sweaty palms as you decide how much to charge, worried you’ll scare away customers if you go too high. Here’s the thing: most of us are underpricing ourselves. Yup, I said it. And worse? That’s keeping your business stuck in neutral.
Here’s the reality: your price isn’t just a number. It’s a signal of value. Charge too little, and you’re screaming “I’m cheap” or worse, “I’m not confident in my offer.” Charge what you’re worth—or even more—and suddenly you’re attracting clients who respect you and are thrilled to pay for what you deliver.
So how do you charge more without sending your clients running for the hills? Here’s the playbook:
1. Anchor Their Perception of Value
People don’t buy based on price; they buy based on value. You need to frame the price to make it feel like a bargain. For instance, compare your price to the cost of an alternative (a $10K course vs. your $2K package that delivers the same results) or highlight the return on investment (ROI). Example: “For less than the cost of one client lost to a bad website, you’ll get a professional redesign that converts leads 24/7.”
2. Stack the Value
Show them they’re getting more than they expected. Outline every benefit and bonus—no matter how small—and give it a perceived dollar value. “You’ll get A ($500 value), B ($1,000 value), and C ($750 value). Altogether, that’s a $2,250 package for only $997.” Suddenly, your offer feels like a steal.
Nothing makes a price feel justified like hearing others rave about their results. Use testimonials, case studies, and specific metrics to prove your value. "After working with us, Sarah’s conversion rate jumped by 40%, which means she added $50K in revenue—all from a $3K investment."
4. Offer a Guarantee
People fear loss more than they crave gain. Eliminate their risk by offering a bold guarantee. Example: “If you don’t see measurable results within 30 days, we’ll refund every penny. No questions asked.” That way, they’re more likely to pull the trigger.
5. Believe in Your Worth
Finally, and this is critical: own your value. If you don’t believe you’re worth it, your clients won’t either. Confidence is contagious—when you’re excited about your pricing, so are your customers.
Ready to Charge What You’re Worth?
Your pricing is a reflection of your business’s value and your belief in what you bring to the table. Start testing these strategies today. Just one tweak could mean thousands more in revenue—without working harder.
Go ahead, take the leap. Your business deserves it.
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THIS WEEK’S BIZ QUIZ:
This tech giant, known for its operating systems and productivity software, was once sued by another tech behemoth for copyright infringement over a graphical interface element. Which company is it?
STRATEGIC THINKING:
From $0 to $1 Million: Lessons Learned From Successful Newsletter Publishers
Building a profitable newsletter business from scratch might feel like scaling a mountain barefoot. But what if you could borrow the climbing gear of those who’ve already reached the summit? Today, I’ll share real stories and actionable strategies from newsletter publishers who’ve scaled to seven figures—and how you can apply these lessons to your own growth.
Lesson 1: Start Small, Think Big (Case Study: “Morning Brew”)
Alex Lieberman and Austin Rief didn’t launch Morning Brew with a 100,000-subscriber list. They started with one email to college students who needed a quick way to stay informed about business news. Fast forward: today, their business generates over $50 million annually.
Your Action Step:
Focus on one clear value proposition. What do your readers really want? Deliver that, consistently. For example, instead of trying to be “everything for everyone,” create a newsletter like “The Remote Designer’s Digest” or “10-Minute Marketing Hacks.”
Lesson 2: Monetize Early (Example: The Hustle)
Sam Parr didn’t wait until The Hustle hit a million subscribers to monetize. Early on, he experimented with ads, affiliate links, and even ticketed events. The result? Immediate revenue streams that funded growth—and kept him cash-flow positive.
Your Action Step:
Introduce small sponsorships or affiliate partnerships. Even if your list is only 500 subscribers, partner with brands who care about reaching your niche. Your revenue doesn’t have to be huge; it just has to start.
Lesson 3: Build a Tribe, Not Just a List (Example: “The Skimm”)
The founders of The Skimm didn’t just want readers; they wanted evangelists. They empowered subscribers to share with friends via their ambassador program, rewarding superfans with exclusive perks.
Your Action Step:
Create a referral program. Offer VIP status, early access to content, or branded merch for those who bring in the most referrals. Tools like SparkLoop make this easy, even for beginners.
Lesson 4: Know Your Numbers
From open rates to average revenue per subscriber, successful publishers obsess over metrics. For example, ConvertKit’s Nathan Barry uses data to improve everything from email design to offer pricing, maximizing growth.
Your Action Step:
Set one key metric to track this month. Is it subscriber growth, click-through rates, or revenue per email? Dive into your analytics weekly, make one change, and measure its impact.
Success isn’t about luck; it’s about action. These publishers all started where you are—with big dreams and small lists. Take one of these lessons today and implement it in your newsletter. Growth starts with action. Let me know how it goes.
RESOURCES:
We’re big believers in diversified income generation. We want to work less and play more…so we enthusiastically advocate that you consider investing (wisely) in a variety of areas.
Two of our favorites are below (with deals just for us!)
The Crypto Mastermind. This program, by long-term friend John Limbocker, is a gift to us. John wants to get you educated about the right, safe way to invest in the crypto markets. He’s making an irresistible offer to the PrideNomad community, which he’s agreed to extend to Business Impact subscribers as well.
The Surprising Real Estate Strategy. We mentioned this one recently (above, in fact), and it’s a unique and timeless strategy to help you create significant income streams.
Quiz Answer
Microsoft
In the late 1980s, Apple sued Microsoft alleging that Windows 2.0 used graphical elements from Apple’s software, specifically the use of windows, icons, and menus that operated with a mouse. The case was eventually decided in Microsoft’s favor.
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