|There’s an eye-opening version of Davido’s 200 million fundraiser which I haven’t heard anyone talk about… And this is very important to you as an entrepreneur, business owner, and if you’re someone like me who sells his services for money… You see , Davido’s fundraiser reminded me of this low level story that will best uncover the truth to youBack in 2017 when I began blogging and started having around 30,000 monthly visits on ARREYB.COM, one day I came up with this idea to start raising money from the followers we were gatheringSo we started posting and approaching businesses to advertise on our platform for a small price of 15k per weekThe team will recall that all the small monies we raised must have amounted to around 200k in 3 consistent months of chasing businesses aroundBut it didn’t end there… 13 months later after gathering some more experience and increasing my audience to 50,000 monthly views, I remember raising my prices to 50k per weekThat was in early 2019 So this time, at 50k fee, we literally needed only 4 clients to make 200k as compared to the previous year when we were charging 15k and should have needed 14 clients to hit that same 200k mark.Why do I share this with you ? Follow me carefully… Davido made 200 million in 48 hours. That means at a price point of 1,000,000, he needed approximately 200 friends to hit target. Come to think of it… Have you imagined if Davido was asking for 500k per person?That means he should have needed 400 friends to raise 200 millionAnd if he was asking for 100k per person? That means he should have needed 2,000 friends to raise 200 million So ? Which is more complicated? Is it convincing 200 people to become your clients or convincing 2,000 people? You see my friend, when we observe a bulk of these million dollar companies, the company structures and profits are not necessarily driven by how many people are consuming their product, but it is in the PRICE POINTAs you’re trying to sell your service and build your business, the thing you want to keep working on, is to improve on your product or service in such a way that you aim at convince LESS number of people and still be increasingly productive.
Sounds crazy right? …
For example, right now at our marketing agency ARREYB Is Marketing, a single client we work with could be spending a monthly retainer fee of 200k(with a promise that we raise around 2 or 3 times that amount every month — and we actually do promise them a 100% refund… I know that’s crazy to believe but we do)
So this means 3 years ago we would have needed 13 clients to raise 200k but that same figure is achievable right now if we chase and succeed to close just one single client
(And I know you may be thinking right now…)
‘But Arrey the issue of price point in business has huge exceptions..’ And I agree, they’re always based on the kind of product and several other factors…
And also for some products that need a low level price point entry… Like this week, one of my friends coming up with a digital bank asked me how he could get more clients and I said to him ‘man lower the entry level of your product, make it easy for anyone to own an account in your bank even at just 2k, knowing that as they become long-term clients, you’d make waaaay more profits from charges and transaction fees at the backend of the sales process. This is an example of some exceptions
So , take this message as you will… and put it into perspective with your line of business
Maybe with your product, you can’t just raise prices out of the blues, but let this give you a huge perspective as to how you count your numbers in business, set your weekly or monthly targets and know what it requires to truly scale a business when you know your numbers
Very important: The only time I will ever support any of my friends in raising their prices if the product honestly offers MORE VALUE and MORE RESULTS. I say that raising prices for the sake of it will bruise your head before you shoot out
PS: Arrey I’M CONFUSED!
A lot of you reach out and appreciate the long and detailed articles. And there are others who think short articles will be best
You know me, I’m down to do what works so I figured the best way will be to ask you WHAT YOU WANT
So what would you prefer moving forward? click SHORT or click LONG and confirm your choice to me, it’ll only take you 10 seconds to do for this….
Arrey Bate Entrepreneur Author Journalist