Who is Your Social Media Management Competition?
Once you’ve identified your exact audience and what you’ll do for them, you need to find out who is already doing this. When you locate them, don’t be discouraged. Many people shy away from competitors and think they should pick a different niche, but this is faulty thinking. The truth is, if no one is doing it, it might not need to be done. If someone is doing it, and especially if they’re having some success, then you know it is a needed service.
How Can You Do It Differently?
One you locate them, join their lists, and start observing what they do. Then you want to emulate them but while doing so, fill in the gaps. For example, if you feel they are great with social media marketing but come up short on email marketing, you can improve email marketing for your clients. Figure out ways to add that something extra to your offerings that help you stand out.
Remember – do not be afraid of competition. Competition is a good thing. Let them do all your research. You won’t be copying them exactly, but you will be using their ideas, improving upon them, and capturing the customers because you’re doing it just a little better.
One of the most important aspects of becoming profitable is learning to price your social media services well. For every customer there is a sweet spot in pricing that lets you become very profitable but still makes the client feel like they got a great deal. It will take time and research to figure out what that price is.
Start with answering these questions:
What’s Your Time Worth?
Many people think this is a pie in the sky question because of course everyone will come up with a different number. But, it’s a good number to start with. When you consider the lifestyle you desire, how much would you have to earn to live it? If you want to be a millionaire, have you picked the right path?
Who Is Your Client?
Not only do you need to understand what your client can afford, but you need to understand what they’re willing to pay and that all starts by knowing exactly who your client is. You’ll know what they value in life, what they’re willing to do to get what they need, and how they view money.
What Value Do My Services Provide?
A really good way to determine how much you’ll charge is to place a value on your services. For example, if your work will generate six figures a month for your client, how much should you get of this amount? If your client knew they’d earn six figures a month, how much would they be willing to pay you of that amount?
This is a good way to go in some ways, but in a global market this can be dangerous, too. If your competitors currently live in an area that is a very low cost of living, they may be charging a tenth of what you need to just break even. Don’t let this scare you. Find competitors who are doing what you want to do in your market and compare their prices instead. Yes, sometimes your clients will go to that super low priced place, but often times they’ll be back to you due to language and other difficulties that may arise while working with low cost providers.
What Is My Break Even Point?
This is a very important bit of information to have. Even if you work from home, you have expenses. You’ll need to pay self-employment taxes, a portion of your rent or mortgage, communication costs, research costs, software costs, licensing and more. Figure out what that cost is, and multiply it by 1.5 in the case that you forgot something. Use that number as your breakeven point so that anything you make over that is considered profit for purposes of pricing.
Don’t be afraid to price yourself fairly. You want the ideal price to be that sweet spot that makes you feel good about what you do, and also makes your client feel as if they’re getting a really good deal. This price will be different for different markets. Choose your market based on what you know you need and want to earn.