Illustration of a sales funnel
If you’re a sales funnel builder or are thinking of becoming one, it can be hard to know how much to charge for your services.
As with many questions, the answer is ‘how long is a piece of string?’.
But while charges vary, there are some strategies to learn which can help you determine how much to charge for a sales funnel.
Want to learn how much to charge for a sales funnel? Keep reading and we’ll spill all.
Don't undersell yourself
Many funnel builders struggle to earn enough income, as they find it difficult to calculate how much to charge and because they become worried about putting off customers with a price increase.
Deciding on a price can be a touchy subject as it involves money, confidence, and time.
Our pricing often relates to our confidence in our work, and often we undersell ourselves.
If you’re struggling with the amount of work you’re putting in for the pay you’re getting back, you’re probably underselling your sales funnel services.
This is, of course, a strain on your business and finances. One of the best ways to learn how much to charge is to change the question around.
Instead of asking ‘how much should I charge for a sales funnel?’ ask ‘how do I justify a price which the customer can afford?’.
By asking this, you can earn enough from your sales funnel while also pleasing the customer.
One of the biggest problems when determining a price for sales funnels is that most of the time our delivery isn’t consistent.
If we’re new to selling sales funnels especially, we become accustomed to believing that as a business we should offer customized services to fit exactly what the customer wants.
While it’s great to offer such a supreme service, often customers will push for hundreds of extra add-ons and marketers will agree to gain the sale.
As every job is so different, it can all get confusing. It often even ends up getting delivered all wrong or ends up taking a ton more time than planned.
It’s tempting to sell a huge host of products at different prices, but this can make things complicated.
For each product, you’ll have different costs involved and it can be difficult switching between different types of jobs without losing productivity and slowing down.
While personal and bespoke services are lovely for the customer, often it’s you as the seller that will miss out.
Products that aren’t standardized often mean you’ll suffer from the flexible pricing.
Instead of bending over backward for every single customer, focus on delivering one quality sales funnel process that can be tweaked and edited to suit the customer.
That way you can work on excelling in that process and can set the same price for each sale.
Once you’ve perfected your process, you’ll know exactly how long it takes to build and what the lead time is for the project.
That makes coming up with a price for your standardized product a whole lot easier.
While it may sound crazy to decide on a price first, hear us out.
Before even deciding on the sales funnel you’re going to deliver to the customer, ask yourself ‘what do I want from the customer?’
The pricing of your sales funnel shouldn’t relate to what you think you’ll be paid for your services but what you require from the market to sustain your business and live a comfortable lifestyle.
If you think your company requires $300,000 a year in revenue to sustain itself, then think about how many packages you’d want to sell to make this work.
That way you have control over your business and can help it become profitable.
Maybe you’ll decide to sell a turnkey funnel solution. Or perhaps you’ll focus on creating a full marketing and branding strategy complete with automation and funnel marketing.
Whatever you decide to sell as your product, by deciding on your price beforehand you’re being clear and concise about what you need from the market and are more likely to stick to that and make it work.
When deciding on a price for your sales funnel, you’ll need to work out the extra costs the work will cost.
For example, how much will it cost to deliver the funnel to the customer and for it to run in the business?
You need to learn how much it will cost to create, start and deliver each project. And – worst-case scenario – how much does it cost for your company to run, even without customers?
While it’s not nice to think about, it does happen to plenty of businesses, so you need to be prepared.
There’s rent, costs, bills, and staff to pay for always, even without customers.
Firstly, you should decide how much of the cost of the funnel goes straight to you.
That means that from the very beginning you pay yourself for your time and investment for the business and the project.
Some of the money will pay towards the management and delivery of the project, but usually, most of the delivery is looked after by someone else.
While this figure, of course, depends on your business, we would recommend putting aside 50% of the price to go straight to the company. That means you have 50% more to spend on costs, tax, and profit.
Knowing how much you’ll take for the business also helps you understand how much you can deliver to the client.
With any project, there will be costs and overheads to pay for. These are your biggest business overheads along with the costs to hire an individual to help outsource the work.
Again, how much you opt for depends on your business situation, but we would recommend leaving 30% to pay for costs and overheads.
This again can affect how much you believe you can offer the customer. Without putting aside around 30% for costs and overheads, it’s easy to overdeliver and give away too much for too little.
You may discover that you need to rethink and remove extra features and deliverables from your sales funnel to have enough budget to cover the costs and overheads of the project.
Tax rates vary from country to country, but approximately 15% is a good figure to save for taxes from each product. We recommend hiring a good accountant to discuss this with you.
Increase of profit
Most importantly, you must decide how much to put away for company profit.
Again, this will depend on your company’s circumstances and outcomes, but saving 5% as profit is a good figure to start with.
This figure is a pure profit margin, so every single bit of that 5% profit is kept and saved as profit, never spent on the project.
Without saving profit as a business, you can’t grow as a company and won’t have any budget to help with future projects and business investments.
Make money using Systeme.io
While it’s difficult to place an exact price on a sales funnel strategy without knowing the company or what exactly will be delivered, this advice should give you some insight on how to margin your sales funnels.
Rather than listing out every deliverable you’d like to offer clients and then trying to decide how much to charge for it, instead ask yourself how much you need to make for your business.
Work out what you’d need to make per year and per project and decide on your budget from there. Once you’ve decided on a price, you can plan and decide exactly what you can offer for that figure.
This way it shifts to ‘what do I need to offer the customer to justify this price?’ rather than ‘what do I need to charge for what I’m offering?’.
It’s a subtle difference, but it’s a game-changer for business owners designing and selling sales funnels.
Here at Systeme.io, we’re quite the experts in sales funnels. Our all-inclusive marketing platform is designed for entrepreneurs and business owners looking for an easy way to manage their online business.
As the platform is completely integrated, it’s very easy to use and performs many marketing processes.
These include creating entire sales funnels from scratch, managing email lists, sending unlimited emails, launching a blog, creating memberships, and starting affiliate programs.
Curious about Systeme and how the software creates sales funnels? Learn more about the platform here.