Announcements, Art of Earning
If you haven’t yet picked up The Art of Earning, my digital guide to rewriting your money story, this is the weekend to do it!
Grab The Art of Earning for just 99 cents in the Amazon Kindle Store now!
You don’t need a Kindle to grab the Kindle version. You can read the book right in your browser (it’s a good reading experience) or on your smart phone or tablet with the free Kindle app.
Sorry, the pdf/epub version is not part of this deal.
What are you waiting for? Go pick up a copy of The Art of Earning now!
Art of Earning, Business Brainstorm
Earlier this week, I wrote about pricing. Specifically, that most business owners are selling themselves short when they price their work.
Why? They consider “the market” when they determine prices. Smart move.
If you consider the right market.
Most often, they consider a market that’s not pricing properly to begin with. They’re considering “affordability” (that’s a code word for low priority). They’re thinking about volume instead of quality.
They’re playing small because that’s the only game around. Or is it?
The Myth of Volume
What kind of businesses succeed on a volume model? What kind of businesses operate on a razor thin margin? Huge corporations: Walmart, Target, McDonald’s… They have supply chains, human resource policies, and manufacturing systems that support this business model.
You don’t. Don’t pretend volume will make your profitable. Build your business model around delivering exceptional value.
“I used to act on the principle of higher production rate equals greater return. Now I operate on higher value equaling greater return. …
“The idea is that you as an independent are the only one responsible for everything – marketing, selling, creating, building, growing – and as a result you must be very conscious of the advantages this brings to your ability to become self-sufficient within your work.”
— Adam King, How Do You Define Meaningful Work?
Run the numbers. Unless you can – or want to – create 60 of what you make every day, don’t bet on volume.
The best market to consider when pricing your work is the market you want to be in, not the market you’ve ended up in by default.
Businesses don’t thrive “by default.” Businesses thrive when they take the lead on creating something truly worthwhile, something innovative, something that goes beyond a new take on what’s already unnecessary. Businesses thrive when a product or service is the result of a hundred or more careful calculations, when every decision is derived from a distinct perspective.
So what market do you want to be in? When you dream about your successful business, who are your peers? Who is making the waves you want to make? What products or services are unrivaled in your eyes?
Why not price yourself into that market?
Actually, I’m sure you can think of plenty of reasons not to price yourself into that market. And I have plenty of ideas on that (they’re coming in my next post). For now, I want you to consider some specific examples as objectively as possible.
Ask yourself: what’s so different between these businesses & yours?
You wanna run with the big dogs?
John T Unger: an artist with perspective
John T Unger has a unique perspective:
My creative mandate is “sustainable design with an edge.” Just because we’re good doesn’t mean we have to be boring, right? I think there’s a place for rock n’ roll to dance with environmental responsibility in a house shakin’ way. If green products are to compete in the market, they need to be sexy, sleek and chic— cooler than new.
Unger creates unmistakable “firebowls” from recycled materials. He has a large & loyal following that covets his work and supports his vision.
But Unger knows the value of his work to his customers. He knows the statement — the WOW factor — it makes on the front lawn or back porch. His firebowls range from $1500 to $3000 for the readily available models.
Danielle LaPorte: an artist with strategy
Danielle LaPorte retired her $1000 business strategy sessions, Fire Starter Sessions, almost a year ago. And certainly not for lack of clients.
In addition to undying passion, unceasing discipline, and fierce spirituality, LaPorte lives & breathes strategy. Those who committed to a Fire Starter Session with her had complete faith in her ability to give them a $10k, $20k, or $50k idea. Would you be willing to trade $1,000 for $50,000? Thought so.
Decide to rise because you want to expand — your being, your life, your possibilities.
Decide to rise because super powers are meant to be activated and applied in everyday life.
Decide to rise to explore your place in the universe.
LaPorte urges her clients, readers, and fans to rise. Rise to meet her.
Natalie Chanin: an artist with a community
Natalie Chanin‘s collection of handcrafted clothing exists at once in both days gone by & the present. Texture, layers, and tone-on-tone pattern are the hallmarks of this vision-driven brand.
Chanin employs an arsenal of artisans in Alabama to create pieces that range from $3-5,000. Her customers value the unique designs, the attention to detail, and the sustainable lifestyle her clothing represents.
…early in my journey I realized that sewing traditions (and I would go so far as to say survival traditions – everything around food, clothing and shelter) were dying in my community – and communities all over. Very soon after coming home to begin my work with hand sewing, it became clear that it was important to begin to collect stories and techniques about these traditions and to work towards not only incorporating them in my work but using my work as a means towards cultural preservation.
— Natalie Chanin, interview on EcoSalon
For Chanin, who also has a line of DIY kits & books, it’s not enough to stop at good enough, or even great enough. She finds value, as do her clients, in the fullest expression of her vision & values.
Peter Shallard: an artist who fast tracks
Peter Shallard is the shrink for entrepreneurs. He caters to a specific type of clientele, tells it like it is, and is confident of the results he delivers.
But, perhaps most importantly, Shallard understands that the true value he provides to this motivated bunch of clients is an express train to greater success. These are people who are already accomplishing quite a bit. Shallard gets them to bigger & better, faster.
My approach focuses on actionable psychological insight that creates practical, measurable results, making me an ideal choice for the busy entrepreneur who wants to fast-forward success – the kind of person who wants to rapidly leave roadblocks behind and make big things happen quickly.
What’s the express train to success worth to his clients? It’s certainly worth more than the $750 per month for email consultation that is the lowest entrance price to his services.
Shallard believes in enabling enterpreneurs to achieve wealth, freedom, and social impact with as few barriers as possible. Now that’s convenience.
Who is your role model?
Your particular role model probably isn’t on this list. Maybe you dream of being the next Jonathan Adler, Rachel Zoe, Jonathan Fields, Martha Beck, or Kris Carr.
And maybe, just maybe, you’re closer than you think.
Does your business — and the way you & your customers view it — represent your proximity to this dream?
What would you need to change to bring it closer?
***
Want to run with the big dogs but don’t know where to start? Know where to start but it scares the %*&@ out of you? It’s time for an Insight Intensive. Let’s spend some quality time breaking it down, making plans, and gather information. Let’s run together – click here for more info.
Art of Earning, New Economy
Yep, that headline is not at all based on scientific analysis. But it is based on the day I spent at the Etsy Success Symposium on Friday.
I had the distinct privilege of talking business with 17 business owners. I did one after another, 20-minute quick-fire consultations.
Yes, yes I was extremely exhausted at the end of the day. Thank you for asking.
All 17 consultations were with makers or designers. I gave 15 of the 17 business owners the same advice:
Double your prices.
Of course, that’s not easy advice to give. And it doesn’t help that it’s most often met with jaws being dropped or a “but… but… but…” kind of answer.
I don’t give the “double your prices” advice lightly.
There’s lots of other information I want to know first. I want to know what kind of problems and pain points are perceived. I want to know what goals my client has.
I ask a few questions. I listen for key words. And then I make my diagnosis:
It all comes back to your pricing.
Instead of making this a post on proper pricing, I want to concentrate on how this problem is felt within a business and how it manifests itself on the outside of a business.
1) You create goals & expectations based on the market you think you’re in instead of the market you want to be in.
While Etsy sellers find themselves in a very distinct market based on the marketplace they’ve chosen, this problem can be seen in any industry.
I know you’re judging yourself & your work against others you see as competition. But who really is your competition — those who are at the same level as you now or those who are at the level you want to be at?
I would argue the latter. When I ask you to read my next book, I’m not asking you to weigh it against my peers similar work or offers. I’m asking you to compare it to Dan Pink’s or Malcolm Gladwell’s latest bestseller. That’s the bar I’m setting for myself. I want you to think of my work in line with theirs.
So are you going to create a competitive pricing strategy as compared to rookies and hobbyists? Or one compared to Jonathan Adler, Dwell Studio, or Kelly Rae Roberts?
Your pricing is one indication of quality to your customers. Your customers will use your prices to understand “how good” what you offer is. If your price means your product appears lacking in quality, you won’t get the kind or quantity of customers you want — regardless of how “affordable” your work is.
2) You wonder if you can’t earn anymore because you physically can’t produce any more work than you do now.
This is perhaps the easiest scenario in which to see the necessity of a price increase. But most often, business owners choose an incremental increase instead of a drastic price increase (like doubling).
Sure, an incremental increase might solve the problem for now. But what about 6 months from now or a year from now?
If you double your prices, you only need to generate half the sales to create the same amount of income for your business. You might cut your current workload in half!
Or, as I’ve seen over & over again, you might sell more. But that’s what we call a “quality problem.” In other words, it’s pretty great problem to have. In that case, doubling your prices means you can afford to invest in better tools, experienced labor, or more efficient processes to streamline your work. You’re not trying to grow your business on razor thin margins anymore!
But let’s say you start selling a good bit less. My advice is to take that extra time and use it to create a product that is leveraged. Something that can be replicated over & over again quickly. Something that has a very high profit margin. Something that gets you a lot of attention in all the right ways.
You need time & energy to create something like that with your business. You can create it by doubling your prices.
3) You choose to create things that you know will sell instead of what stretches your ambition.
All over Etsy, all over the blogosphere, all over main street, you see businesses spring up that are based on proven business models or popular trends. Their products are a guaranteed sell. Their customer base is easy to spot.
They will make sales. And those businesses will measure those sales as success.
But there’s a lot more to success than number of sales. Profit margin is one. You can make a bunch of sales but if you’re operating at a loss, you won’t last long.
Customer loyalty is another. When everyone is doing the same thing and offering the same kind of product, it’s very difficult to generate customer loyalty. It’s near impossible to gain business from word of mouth.
Longevity is yet another. How long can the same old thing last? The first few might stand the test of time. But copies of copies of copies are not long for this world. You don’t see many xeroxes in the Louvre.
Push yourself to the edge. Create something you never thought you could. Don’t do what you know you could do to make sales. Do what you dream of doing to make sales. And then dream a little harder.
Sure, the edge is an equally difficult place to survive. There is quite a bit of uncertainty. But its rewards far outreach the rewards of doing what’s certain.
To be sure, creating at your edge doesn’t always require doubling prices. But thinking about doubling your prices (or 10x-ing your prices) will certainly push you to your edge — and that’s a nice place to start.
Does this apply to me?
This is not simply a lesson for makers & designers. This is a lesson for all business owners. It’s an opportunity to challenge your assumptions about what you create, who you sell it to, and how you exchange value within the system.
While not everyone should double their prices, and yes, maybe not even 88.2% of business owners, it’s a worthy experiment in understanding yours & others perception of your business.
***
Does the thought of doubling your prices put your money mojo in a tail spin? Then you, my friend, need to understand that making money is beautiful. Intrigued? Check out my acclaimed digital guide, The Art of Earning.
Art of Earning, New Economy
Last night, Marketplace shared an interesting – although not at all surprising – statistic:
…the number of movies rented or purchased online will jump by 135 percent this year. But consumers are expected to spend $11 billion buying DVDs and Blu-ray discs this year. Compare that to less than $2 billion they’ll spend on movies over the Internet.
We’re watching more movies (and television) online than ever before. In my own life, it’s a rare occurrence to opt for the 60″ flat screen over my 13″ Mac Air. It should be noted that this is further proof that I am not a man.
Many more of us are opting to watch a majority of our movies on all-you-can-eat-for-one-low-monthly-fee websites like Netflix or Hulu. We’re not purchasing DVDs at the same rate we’re streaming movies.
Ya know how most of us don’t collect CDs anymore? It’s kinda like that.
This is a market going through a drastic shift. This isn’t a trend it’s a complete & utter transformation of an industry.
This is great for consumers right now. Sure, we have our gripes about the quality of what’s available online or the seemingly erratic behavior of some of these companies. But for the most part, we’re in hog heaven. Access, baby. We’ve got access!
Except, according to this same Marketplace segment, the industry isn’t ready for this fundamental shift. What’s new, right? What would be new is if the entertainment industry was actually ready in terms of programming, production, intellectual property, or business model for any of the technological shifts that have of taken place over the last 60 years.
If the industry can’t make the money they need to make in this shift, jobs will be lost, quality could suffer, and studios could close. They’re in search of a new business model. Again.
I know, I know. You thought this was about the information economy not the entertainment industry. What’s the moral of the story?
Don’t let this be you.
Do you want to be the disruptor or do you want to be one of the disrupted?
— Umair Haque
The base price of information today is FREE. And it’s getting cheaper every day.
What used to be a “great value” at $97 is now free.
The information market is as thick as split pea soup. I don’t care how finely you hone the tools you use to sell the information, the first response is and will continue to be, “Is it really worth that?”
And that means for all your brilliance, all your value, it’s harder & harder to justify the price of what you’re offering.
What was today part of a valuable exchange may tomorrow be a tough sell. This isn’t obsolescence. The information is still good. Just not worth as much.
Is that all the genius is worth? Of course not. Once again, it’s an issue of substitutes.
— Seth Godin, What is Bach worth?
Why is this happening?
It gets easier to enter this market every day. More resources for selling information means more people are selling information. It’s a nasty cycle.
To add to that, what was highly prized information even 6 months ago has been read, processed, and released through other products at a cheaper cost. That’s not copyright infringement, it’s how information works. I teach you my idea, that idea gets incorporated into your ideas, you teach your ideas. Rinse and repeat.
This pushes us towards new thinking & innovation. Except when it doesn’t. It’s your job to stay on the cutting edge or risk not only being left behind but left without a penny in the bank.
Complacency is the shortest route to the poor house.
Click to spread the word!
The other thing going on, of course, is inflated supply. With millions of people trying to make a living off their bright ideas, how long can supply sustain a high value? Not long.
The app economy – think micropayments for small pieces of software – has made this work by catering to scale. A dollar here & there times a million is still a nice payout. How different is the information you have for sale? Are you willing or even able to find a million customers?
When in doubt, think beyond the “usual” way things are done.
There is a limitless number of ways to delight people — not an a la carte buffet of pre-approved information marketing tactics or even types of information that are valuable.
All too often I hear “how to” is the only way to sell ideas.
To cut through the clutter and prove the value of what you have to offer, you must step outside of “normal.” And to never forget that “normal” changes every day.
What’s a booming DVD business today could be streaming for free tomorrow.
Meanwhile, those who stay ahead of the curve, who discover new ways of delivering value, who never stop thinking about what their customers need to become fully realized human beings, have opportunities to reap ever more financial wealth from the information economy.
What does that look like?
Just like the entertainment industry is stabbing in the dark with online distribution, information & insight dealers are looking for the next best thing.
I think the key is to not look for just “the next best thing” but “your next big thing.” Big difference. What is based on your experience, strengths, and unique perspective is more likely to have value staying power.
Case in point: People are paying more for my book, The Art of Earning, than they were 6 months ago.
The tide is changing. Are you ready?
Clearly, I believe the information economy is changing. I believe that even 2 months from now the way people buy ebooks, digital programs, and even coaching will look completely different. I am coaching my clients through this shift.
What we’re not doing is falling into existing models. There is no “first you release an ebook, then you release a course, then you offer full access” thing going on here. There’s no “typical life coaching business model” to draw on. That path is dying (or already dead). Hopefully it signed a DNR.
Conventional wisdom is a bad product. What other assets do you have to trade in? Personal access? Personal experience? Personal perspective? Collaborative wisdom?
You’re going to have to think this one out for yourself. You’re going to have to decide what’s valuable about what you do & how that matches your customers (sometimes unperceived) needs. You must see opportunity where before there was none. You’re going to have to make bold statements about what you believe and how you operate.
And you’re going to have to translate that all into a package that makes sense for your customer.
It’s a tall order.
Are you up for the challenge?
***
We’re having a similar conversation over at Reclaiming Wealth. Join in and — get this — pick up a FREE book on the intersection of money & meaningful living.
Art of Earning
Recently, over at Design*Sponge, Grace posted about a high-end designer showroom she visited near her home. In between the racks of pricey designer goods, she found something in her budget.
It was nail polish. The nail polish was $27 a bottle.
An unsuspecting commenter made an off hand comment about “budget” nail polish at $27 a bottle and how “successful” a woman must be to afford such a luxury.
Grace saw an opportunity:
“Comments that make women feel bad or guilty about being financially successful ultimately keep us trapped in a place where we don’t feel comfortable to demand higher salaries, raises or ask for freelance rates that are fair.
…
I don’t think we need to applaud or approve of perceived “extravagant” purchases all the time (though it’s important to note that just because someone buys a $27 bottle of nail polish it doesn’t mean they don’t cut back and conserve in places others might not), but I think female business owners deserve the right to enjoy the fruits of their labors.”
Grace believed (and I concur) that the comment was just a joke. But I think we all realize the Truth of these type of jokes. We make jokes and laugh at them because we’re uncomfortable.
I’m sure $27 nail polish made a lot of people uncomfortable.
But the problem with the jokes, as Grace rightly states, is that they create an atmosphere of shame around money & what we spend that money on.
Because we’re already uncomfortable about talking money, those off hand comments only silence us completely.
Silence is the enemy. Not money. Not even a bit of luxury.
Ultimately, spending money is about priorities.
Your every day purchases — and especially those luxurious little splurges — reflect your personal priorities. Those priorities are dictated by values and personal preferences. They’re dictated by what you perceive as “needs” and “absolutely hafta haves.”
We assume others priorities are the same as ours. We assume we know what others spend their money on. We assume that people that make the same amount of money we do live life with relatively similar lifestyles.
These assumptions are all false.
What I have learned over 3 years of growing a business, learning how to make more money, discovering how to lose more money, and launching new products & services with regularity, is that I can never truly understand how others will prioritize spending the money they earn.
Who’s to say that people won’t spend their hard earned benjamins on your crazy idea? Who’s to say that people won’t pay what you need to charge for your creation?
This isn’t about $27 nail polish. It’s about creating the success & multidimensional wealth you need to make the choices you want to make while empowering others to do the same. Give people a chance to choose you.
But what really gets me, is how easy it is sit back and say, “Not me!”
Living with scarcity is a luxury.
It is easy to sit back & make off hand remarks about other people’s spending priorities. It is easy to assume that what you have is all you will ever have. It is easy price your products or services in a way that doesn’t challenge your customers — or you.
It is easy to play the game you’ve been taught to play.
I dare you to discover abundance.
I challenge you to work towards financial candor.
I am pushing you to discover the means to splurge on what you truly love.
Will you?
Art of Earning, New Economy
I thought the presentation was real and relatable. The concepts were presented in a way that made them feel accessible. It wasn’t nuts & bolts… It was more cerebral and more elegant a presentation. I loved the focus on relationship and human interaction. I could go on and on. My brain is buzzing.
— Stephanie Corfee
Last week, I finally — finally — hosted my first live event: The Art of Earning LIVE. Carrie and I had been planning it since August. Big decisions here, little details there: last week, it all came together.
In the first teaching session, one of the questions I posed to attendees was:
“How are you making your customers richer?”
Not just in terms money, of course, but overall wealth. Are you enabling them to live healthier lives? Are you creating stronger connections between them & those they love? Are you imparting knowledge that grows their stores of intellectual wealth?
It’s a question I’ve asked here before.
The possibilities are endless. There are so many ways to make our customers richer, to add real value to their lives. But it’s something we think very little about. It’s not just about money but about enabling more connected, more engaged, more meaningful lives.
Instead, we try to sell them on personal transformation (nope, no one believes you can buy that). Or we just keep our nose to the grindstone, working on what we’re working ON (not towards), and try to sell something.
Lesson: nothing is an easy sell except for the easy-as-1-2-3 things you don’t want to be working on.
Don’t get me wrong. An easy sell is great. That product that you know would be easy-as-1-2-3 for both you & your client is probably a great investment in your time. It’s probably a great buy for your customer.
But how long is easy-as-1-2-3 going to keep you interested?
Is easy-as-1-2-3 your greatest work?
What does this have to do with The Art of Earning LIVE?
It was a hard sell.
Let me say that again: it was a hard sell.
The people I planned it with said, “Oh my goodness! This is amazing! People will be fumbling over themselves to buy it!”
When the sales didn’t roll in right away, we thought about the variables: price, location, experience, curriculum, marketing… we made some pretty serious pivots. We changed our approach. We used contingency plans. We brought in extra help.
But in the end, I stayed true to my three touchpoints of You Economy business — the entire reason I planned a live event to begin with — and crafted an event that is already changing businesses in big ways. The Art of Earning LIVE was my greatest experiment, the biggest test of my entrepreneurial hypothesis, to date.
If, in the 21st century, people are looking for commercial exchange that delivers experience, connection, and meaning, I will deliver a product that encompasses all those things:
1) Experience: I wanted to create a true experience, from start to finish for those involved. I wanted them to feel pampered, supported, valuable.
2) Connection: I wanted those in attendance to become connected to each other. I wanted them to feel how their ideas, actions, and enthusiasm were inherently tied to every other person in the room. I wanted them to know that there were other people who cared about their success. I wanted them to reconnect to their own immanent value by seeing the value immanent in others.
3) Meaning: Perhaps most difficult to understand, I wanted people to know abundance. Attending The Art of Earning LIVE meant that they were a part of my abundance, celebrating their own abundance, and encouraging others in their abundance. Being there meant they were part of a growing movement of meaning-driven entrepreneurship.
I’m beyond proud to say that we accomplished these goals. Everyone who came to Philly – and even those who attended from home – expressed the sense of experience, connection, and meaning as I described.
We made our customers richer by providing a vessel for a supportive experience, personal connection, and abundant meaning.
Selling these ideas isn’t always easy. But that doesn’t negate their importance, their ability to transform, their capacity for long-lasting results.
It’s not that the value of connection, meaning, and experience is in question – when has it even been? – but it does need to be proven that they can be found in a commercial transaction.
This event was my attempt to prove that connection, experience, and meaning can be delivered on a grand scale. It was my boldest experiment to date. I’d say it was successful.
With each product I build, package I construct, or event I devise, the proof builds. Each time the proof builds, I’m able to further my mission and stretch towards my ambition.
Each new level, new offering, new pitch, there is a new element of uncertainty, a greater need for proof before purchase. This isn’t to be feared but embraced.
No, The Art of Earning LIVE wasn’t an easy sell. The next thing (and the next thing, and the next thing…) won’t be either.
My business is no longer on a slow & steady climb, it’s at the foot of the cliff face.
Will you embrace the uncertainty of the next level? Of gathering proof for your ideas & ambition? Will you embrace the hard sell but do everything in your power to move the product?
Or will you settle for the low hanging fruit?
