Let's talk pricing. What are the most effective ways to reach the pricing sweet spot? We explore this all in the articles below:
The Gut Feeling Method
This is a great method to use if you’re just just getting started; once you’re ready to stop working for free and start charging. I like using this method because it can change as your blog grows. You can constantly check in with it and see what makes sense based on where you’re at with your blog.
Here’s how to do it:
Get a piece of paper and write down the price that you are thinking of offering. This is your gut price, the one that you are thinking of charging right now. Don’t overthink it.
(Hint: it’s usually your low-ball number, and will likely have twinges of self-doubt and uncertainty attached to it. That’s ok).
Then, think of the price that feels like TOO much, like you’d vomit if you had to say it out
loud. You’d never be able to say it without laughing hysterically because it just feels way
too high right now. Write down that price.
Then, think of a price that is somewhere between those numbers - one that you get a little jump in your belly to think about, but one you can actually say out loud without falling over of vomiting on your shoes.
What would feel really good for you to charge right now?
Ding, ding, ding: that’s your number.
The reason this works is because it will constantly change as your blog grows. When you get to a point where you feel like you start to resent your work because you’re not getting paid enough, you can just do this again and come up with a new number.
The truth is that NO ONE else can tell you what to charge.
If you’re not confident in what you’re offering and you set your prices so high that they make you feel sick just thinking about them, you’ll never be able to confidently sell anything. You need to feel confident in your prices, and the gut feeling method is a fantastic way to do that.
We highly recommend starting with the Gut Feeling Method if you’re stressed about your prices. It ensures you’ll be pricing in a way that leaves you confident about telling people what you charge.
And at the same time, take a tip from the Planning Method and decide how many new projects you want to take on. That way you will still have a goal to work towards as you start selling your stuff, instead of arbitrarily just trying to get all the opportunities in the world.
The Planning Method
This fancy little method is great once you’ve tested your packages and you’re ready to start
creating an income plan for yourself. It’ll help you determine how to set your prices and
how many spots you need to sell to brands.
It’s nearly impossible to do this when you’re just starting out, because at that point you’ll be happy with making ANY money from your blog. Save this for when you’re ready to get down to business (literally) and create an income plan.
In this method, you price is based on how much money you want to make. Sounds simple, but you’d be surprised how much it’s overlooked! Grab your piece of paper and write down how much you want to make in the next year. If you are making $0 now , don’t write down $100k next year.
Once you have your goal it’s time to do some math:
Take your total income goal and divide it by 12 months.
That’s how much you will need to bring in each month.
Then look at your package prices (based on the gut feeling method) and figure out how many spots of each one you’d need to sell to make your desired income.
Does that seem feasible?
Here’s an example (because numbers are confusing and examples help):
Let’s say you want to make $400 next year. That’s $33/month.
And let’s say you have a sponsored post offer for $15. This means you would have to get 3 sponsored posts each month. Does that seem feasible?
Do a quick gut check here and see how that feels.
If it feels too high and makes you wanna gag, you can always lower your price (back to the Gut Feeling Method) , and then know that you need to fill in the gaps in your income with your other offers (which is fine - you can offer different options depending on your needs).
This method is great because it at least helps give you a goal to work towards and some tangible numbers to work with. Knowing exactly how many projects/brands you need to hustle for each month to meet your goal is SO much easier than just trying to get in touch with as many people as possible.
What about discounts?
There are definitely appropriate times to discount your pricing.
Here are a few:
Batch purchases: This is the one no-brainer, when it comes to discounts. Just like any product, when people buy a lot of it, they should get a better rate than if they purchase just one. It helps you plan and ultimately secures you more money.
Our standard works as follows:
- Single: full price
- 2 to 6: 10% discount off the whole purchase - 6+: 20% discount off the whole purchase
Rewarding loyal sponsors: This one isn’t so black and white, but as a thank you we offer brands who’ve been working with us for a while added discounts where it makes sense. Or if they’re looking to try something new with us, we’ll give them a nice discount to take a little of the risk off them.
Developing a potentially valuable partnership: Essentially, you’re giving brands that would be an extra great fit for your readership a discount to try out the program or to get your foot in the door with a company. You just want to be sure you don’t shoot the same foot you just got in the door. You don’t want to get in a long-term relationship where a brand is demanding an unsustainable rate. So the point is, save this as a last resort for only the top tier of companies you’d like to work with.