47. How to establish a budget for price-sensitive clients
Hello my friends,
I hope you had an amazing week, it's been a long one for me.
In this episode, I share a few updates and then answer this question from Michelle:
Hey Kevin, I don't know if you run into this issue, but I have. My client is very cheap (and right now bc of covid and election here people are full of fear and do not want to spend money). They don't have an accurate marketing budget - which makes it very hard for me to help them. Do you have techniques that help clients that generate 3.5 million in sales that they need to spend at least 3-5k a month to really get any results? I feel like my hands are tied here and then I feel even worse because I feel like I'm not really helping them by working with them for less than that... Thoughts?
I've seen clients like this before. Either they are not good clients or they simply need a reality check.
1. My advice is to guide them back to their goals. Find out what they are trying to accomplish and ask them if their tiny budget is reasonable to get them there. You can't turn $1k in to $1million. You're not a magician.
2. You can go a step further and roadmap a rough project using the KPI document as a way to show month-over-month cashflow. That can often help clients really visualize what's involved.
3. If they don't have money to spend and they expect you to pull a miracle out of your hat, it's time to move on. There are more educated clients out there.
4. Be sure to create trust, first. They may have been burned in the past by weak marketing suppliers and unwilling to do that again. You need to show competence to gain their trust. The KPI sheet shows them you're serious about financial ROI.
Hope this helps! And as always, if you have any questions you can DM me or reply to any of these posts in the comments below.
LOTS more soon,
Yours,
—k
