Meeting Your Financial Goals

 

Turn Your Talent Into a Business in 12 Steps

 

Lesson Info

Meeting Your Financial Goals

Let's get somebody up here and uh what I want to do now is I want to talk about how we're calculating how many clients do you need to arrive so you all need you all have your number now on how much money you want to bring in so who would like to go in the hot seat has been up yet okay mary weii just call it the hot seat to put you off it's really actually found thank god you're gonna warm it up just fine okay so where is that true olympus has plenty of money coming from so I'm going to take you through this really quickly so you kind of know so if we look at the slide if you want to make fifty thousand dollars you can I have ten clients who by one unit at five hundred dollars they get you to five thousand dollars ten clients by two units at five hundred dollars you to get you to an extra ten thousand dollars ten clients another ten clients by two units at uh five hundred dollars which is ten thousand dollars and then ten clients who by five units that bring thio in an extra twenty five...

thousand dollars so if you add all of these up you have forty clients that bring you in a total of fifty thousand dollars so let's calculate so what's the number we need to reach uh this whole I reached my cheat sheet ninety thousand so we want to get to ninety thousand dollars so how are we going to get there? What are the products and services and how many of those do we have to sell to how many people to get there so on average my clients would spend six hundred dollars for their yeah for what they spend with me and what's included in the six hundred dollars a creative session fee and theoretically either a mix of prince and specialty prince or digital images and or like so to twenty five for a session I like that better thank you you're welcome you called yourself you're like oh my god I'm mixing the revenue streams big mistake here two twenty five okay and then you up sell on average? Sure yeah three hundred seventy five dollars that's pretty interesting to see this she heard her base fee is lower than her up selfie. So where do you think the growth opportunity in here is selling crap but your face your base fee unless though what if that what if that is actually in sort of unethical bribe of sorts can it be you see, that was part of my question yesterday was, you know, can I just dio my session like combine my session fee and my digitals and just do everybody a flat six hundred if they have a nice day thanks for coming in like myself but that's what a terrible idea what a horrible idea give me six hundred dollars don't ask me any questions don't want anything from me you just get me to give you and that's it have a good product and a good service how do I know the other guy doesn't fort one fifty and even tells me what I'm getting you just say give me six and a dollars and don't worry I do the rest for you that's why you know breaking it down it's important so this is your creative feet right way should have brought a calculator so we could have calculated this through if if uh anybody has a calculator if you do that along with us that would be awesome okay good, good, good good good so do me a favor divide ninety thousand dollars by two hundred twenty five just for the fun of it so you get to have a different revenue streams four hundred dollars uh ninety thousand divided by two twenty five ninety thousand divided by two twenty five four hundred okay so you would have to do four hundred sessions and three hundred sixty five days e coli is impossible uh no I'm not I'm counting the number of days of the year exactly later ok eso now theo do the ninety thousand divided by six hundred please divided by six hundred that's one fifty okay you're working every other day is that doable? Theoretically yeah okay how long is a session hour and a half to two hours and how much time to spend with the upsell uh let's say six hours so your hourly rate for this and luggage hourly rate for this you losing money because we thought this was the bigger number it's not much smaller number because you spend six hours on them but again that's what I'm going back to because I do all the work no matter what for this like my editing so thank you and them getting to view those beautiful images is all tied into that so this six out an hour of this is ordering and getting it all shipped and hand planned out all right so calculate what's your hourly on to twenty five the powers in the calculated number what I'm hearing her say it's her to twenty five is really six and a half hours seven no because she's saying one hour for for the for the actual sale of the upscale but so you said that it's going to take you all those hours to produce the images for that to twenty five for them to see select from five of these six hours is me editing the person's yeah she and that's included in the two twenty five you know, five hours of editing sure does your client how much do you shoot two hundred fifty images session wow wait, I've never time to myself I could be wrong eyes your client choose their package ahead of time not always dependent so they could just pay you the two twenty five on walk away like when you do the reveal or whatever you show them so you've spent potentially seven and a half hours to get to twenty five doing it for me I'm getting my composure here right now cuddling you're coddling neither right now yeah flames shooting right mate? You're like, am I doing something wrong? It's like no, I'm genuinely concerned here because because now we have to do this actually differently because this is a time issue is becoming a time issue not even so much money issue because if you spending seven and a half hours for something you making six hundred dollars on then you are lee is really low and then we have to put that in relation for how many hours you actually want to work to get to the ninety thousand dollars, right? So this is not working. I think we've established this already, right? So we have to figure something else so let's let's talk about the other revenue stream school photography okay, what's that when you mean what is it a school portrait um how does that business model work? I am back by another company out of marin and I get a percentage of the profits from the school's. Okay, good. So give me like a number that I can put down for like a session or or for a time frame like for okay, so a season whatever. You however you calculate that say per school the net would be six grand. And how many are you doing? Uh, this europe, I do three. Okay, we got eighteen. Okay. Anything else? Any other revenue streams? Okay, so this the part about the work shopping now that I don't want you to all be invested in, okay, two twenty five for now and a half is that acceptable is, uh, two hundred twenty five acceptable for hiring a professional who, um to twenty five who spends five hours on this. I know. So the editing part is something that I you know, so so this would be my note. I would say with the editing, something has to be improved, and you will be very delighted to hear that one of our guests, um, tomorrow, but ever let has developed the whole system for this type of stuff where a lot of this is being taken care of because there's programs out there where you actually at your customer do the editing well, I mean, you do the raw you know, you take the really bad stuff out, but but you have to put this in relationship. So what I rather have you see doing I'm not ever suggested giving all showing all the images, so I'm saying, what would you say if this was two hours? Well, you're still ok? Let's do it the other way around. If I were to give you fifty dollars, what would you do? What would you be willing to do for fifty dollars head shots? Maybe. How many? Funny. How much time? Oh, like a half an hour. Okay. Half hour. Twenty that said in and out. Yeah. What would you do for two hundred fifty dollars? You would. I would get an hour and a half of studying. You okay? Sitting and I'd get how many images? Seventy five, seventy five. Okay, if I give you a thousand dollars, what would I get? Oh, you get us because that's happened. I'm like oh, yeah, um, you could get your session, you'll get some digitals and some prints and specialty prince what would you give me for twenty five dollars, more coverage time coloring book? Yeah, we can snuggle tio. Well, I asked, I know full circle, okay, good, so here's, what I think needs to happen with with your way we do need to talk about putting packages together the way because we docs so packages packages work my new thing is I just build a new package for every person that comes based on what they want that's not a time saver for anything useless all right, I'm going to take you through it. I'm going to do that for you think what's the number one objection everybody has that wants to buy from us what's their objective who if somebody comes to us what's the first objects what's the first thing though is that a lot of pain and they don't have much they don't value it is much us what it really well depends on the client they if they do value it then they're going to spend the money if they don't value it they're not gonna wanna spend it it's a really it's a navy first question though I think it's your first price package is exactly that what's the lowest number you willing to do something for right? Somebody says price that's expensive then you say oh if prices you objection here's a mini thousand for fifty dollars you get a half hour and you get twenty shots that's for people that have a price objection right here comes the second package this is what we really want to sell number two says how much do you really want to make on one session to get to the ninety thousand dollars she really wanted a thousand thank you very much all right, self this is the package that has to be decked out and has to be valuable so this has to be this has one, two, three, four five onda fast acting bonus if you get it today I'll even throw in the canvas print and I hand delivered to your door and I sent a cake to your grandmother so where they go you know, I mean, I wouldn't you know, I probably wouldn't recommend the fifty dollars to the house because it's a pretty big pretty pretty big two packages in between yeah, well, I would not do to many packs I would keep it to three and always has to be a pack. This could be your drop down not something you offer right off. I probably would would rather do sort of this like a two hundred fifty dollars kind of package and then I do a thousand and then you do the platinum package and that's like, you know, the big one that's for everybody who wants absolutely everything so because some people want the best sure and they say, well, how tell me about that but the most important thing about package and putting packages together and please please write this down is it has to have a line item by line item my line item and you get this and you get this and you get this and to get the personal consultation and we spend a half hour and I will you know, spend extra time to go in three a wardrobe with you and we do a color consultation and I will you know, do this and I will do this so when they look at this they go like wow, I'm gonna have my linkedin profile I have my dating profile I have my boudoir photography I have my you know I can bring my kids and it's hand delivered of a canvas it's being shipped directly to grandma grandpa for christmas you take care of everything for them so whatever it is so if I look at this I'm like look how much time I am saving by going with this value package how how then, um would you suggest to under to leave some some room for you too overdeliver? You know, if you promise when you promise this this just this sat in that house how do you handle that? Well, um what theo over delivery the way I do it like what we haven't even talked about my maybe this a good time to talk about their things in the workbook that are only special for those who have the workbook so because I want people that have that when you've seen it right? So when you look at the workbook there's stuff in there and you go oh my gosh, I mean she she's guiding me through how to make a job description should it didn't even tell me about it because that's how I over deliver when I when I produced something like you know on that note we're probably not gonna have time to talk about this but what would I want? What would be helpful so you just find this little things in the process and think about what your client wants, what they want an extra bookmark what theywant uh you know, like if you're in a personal service can you give him a t shirt? Can you give him a towel? Can you give them um when I came to create if life they gave me these really cool like canteens and it has like name on it my daughter will not stealing stealing be gone because it has my name on it now you know, so little things like that are really, really great and touches nice touches and they don't cost you a lot of money but there's a lot of things that you can do to over deliver in the experience remember we're creating an experience yeah, okay good alright, so with that enhance let's go back so we have now uh, package number one that's the two. Fifty that's for people that are really price conscious. So let's. See, remember, we have the thousand dollar packages that we really want to sell. We have twenty, five hundred dollars, and we have the two, fifty. Now, I want you to make that calculator. How could have smoke. Well, right now, we have eighteen thousand dollars, so you can take the ninety thousand you'd take off minus eighteen thousand. So let's. See what the numbers we need to get it seventy two. Okay, so this is the number thes three things combined need to come to seventy two thousand dollars. So that means she would have to do seventy two sessions at a thousand dollars. Or I don't know a seventy two divided by twenty, five hundred twenty eight. Okay, twenty nine, really let's not even do that. So let's, start let's. Start with that let's. Say, how many of these thousand dollars sessions do no less for the twenty five hundred. Do you think we could aim for ten selling ten of these? We could aim for it. Okay, we're not there yet. Nice this's. The great part. When the students already tell me my own stuff back, teo, that is exactly what I want, all right, so now we already read off the twenty way already have twenty five thousand dollars less so what's the number we need to reach so take the seventy two thousand twenty five thousand dollars off forty seven thousand ok, so now we are at forty seven thousand so how many thousands of them? Forty seven? Well, dough we're aiming still sorry way. Yeah. Thirty okay, now take seventeen thousand and divided by two hundred fifty, sixty eight. So this and this and this and this issue number and she really needs one hundred eight clients. So now the question I have is, should we aim? The best part is I probably had over a hundred clients last year. You close, you know, I probably had over a hundred clients last year, but I didn't you don't age remember? Okay, so you need those people are out there. You need to rework those numbers a little bit. Okay, so does this help you with this? Actually some numbers that came in this this might be a working model for you. Filmmaker says my best cell is six images from the shoot one product piece. I sell it for four sixty five they're overhead and cost of goods is sixty five dollars their taxes or twenty eight insurances seven their take home is around three hundred forty dollars per shoot on ly editing six images and I shoot around six a week and I did the math on that and that's one hundred and six thousand and eighty dollars, a year, so whoever this is I love you, right? Intermediate court yeah, I'll see I'll see you in photo, I'll pass that along to you, jen, but we do have a question web designer wants no for web designers were told not to be upfront with prices and first learned about the customers budget should they instead had the packages or learning about the budget first when he was two schools of thought on you? When was the first time somebody knew exactly what they wanted when they came to you? They don't know because they're not familiar, they have a rough idea, right? So what I do is I would ask them, paint the picture, remember in sales and marketing, where do you see yourself at the end? What's the end result? What do you have? What would make you really happy? And then they can say, I want a website that has e commerce that has ah block that has social media plugged in that automatically, you know, whatever does sort of all these other things has theon respond asleep ages all tied in, and at that point, you got to be so good with the stuff that you do that you can say well, a website like that will usually run you somewhere between let's say twenty, five hundred to seventy, five hundred dollars depending on how decked out you wanted and then declined will say while I was thinking more about thirty, five hundred in sales is like this the person that says the number first looseness loses a wins the one you're always trying to radically if it's the sales person that says the number they've just lost the same if you're applying for a job in the person who's hiring you says so what's your goal for a valley like an annual income the moment you tell them that's it you're done that's what you're going to get, you're not going to be able to negotiate or less exactly I have you know there really are two two sides to the to the model when somebody says a number and it's usually a number that's may be higher than mine, I tend to value people's evaluations off themselves. So if somebody wants that and they feel that that's a fair evaluation because that gives me a very good idea off where they sort of stand I had a housekeeper who came in and you know what happens when somebody comes into my house, they see my beautiful house and then autumn my rates always go up the minute somebody comes into my house and they give me an estimate, once in the house, my rates go up and I thought it was very expensive and then, you know, and I said, so what? What do you think, it's fair? And she gives me the price, and I'm looking at this and I know what I paid before, and I'm going like, well, that's, more than I wanted patient as well, but we can always negotiate. But now what happens is if I hire her permanently, then she'll always feel that she's being taken advantage off right and out or if I pay for this and I always feel like I'm overpaying her so it's really it's really a dance I like because when I estimated, when I quoted as a producer and in the stock syndication, I knew exactly what I needed to make and do exactly what my margins were in exactly how room I had. So if somebody says we want to come to us and we're going to do a shoot this that's four days, we want six models, we want five locations. We want to go out there in the desert, go to the beach. I could run those numbers in my head and I would say a production like this usually comes in between twenty five and thirty five thousand dollars depending on how expensive your models are and how much money we need to spend on location which is entirely up to you and then they have they have a number to work with and they say well we really want to come in more than twenty twenty five way r k with a thirty then you know you know sort of what you what you in it with because in the sales in the negotiation it's all about us being on the same side as they are you know that's I think the key to say what do you what do you want what can I provide for you that makes you really really happy and then we provide that and but you gotta know your numbers that's why you know this is so important to you to understand because you can say well now you can say I have a a price value package I have the package that most off my clients get because that's the best value or that's what my clients perceive is the best value or I have the platinum package which is for everybody that you know once it all decked out with x y and z and so you take the conversation away from you and you put the conversation on a system and a process and up you did you did you see how that makes the difference? Because you can say well, that depends on what of the packages is most attractive to you how do you properly build out of package if you show them your bare bones like ala carte pricing as well? I hate ala carte pricing unless it is but I mean how are you gonna upsell that if you don't if you don't have um unless it is an upsell but I don't like allah card unless it is an upsell for sure yeah, but you still need to reveal that at a certain point don't you think yeah in the up sell but so I guess what I'm asking is how much do you discount your products like ten percent maybe to get to these numbers because they want to see the value in it? Um what I would do is I would just say and um the you know and in addition to the packages I have the most frequently requested add ons and they are you know they range from fifty to two hundred fifty dollars if you take the the standard pack the regular packs the gold package, you get an automatic twenty five percent off the list price and if you take the platinum package it's fifty percent off so that it's in relationship to something so they feel like oh, if I get the really good one that I'm saving, you know that, right? Yeah, the paradox. Use, the more you spend the maur, you say. All right, thank you so much. Yeah, and you get these.

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As an analytical person with creative spirit this was the perfect class for me. Beate has the passion of an artist coupled with a sharp, almost engineering intellect. I sometimes find with courses, online or not, that topics discussed do not apply to my journey. Not the case here. Everything was useful and the course materials provided invaluable. Highly recommended.