4 Steps to Double Your Profits in Consulting

You get paid proportional to the volume of problems you solve, so if you want to increase your profits, you need to solve the most expensive problems.

But, how do you do that? How do you earn double profit for your work?

For example, let's say you are an executive coach, sure you can offer individual coaching and get an acceptable amount of money, but you can also offer to train all the executives in a large organization where the solutions you will use will be very similar to the solutions you use in individual coaching, but the problem you solve will be much larger and your pay will be proportional to it.

Here are 4 steps to double your profits:

1. Develop an Attraction:

Above all, the potential client should be aware of your existence. So, you should develop a key attraction and useful content that you share to capture the potential client’s attention and prove your expertise.

While the attractions are often guides, e-books, or some other free downloads, it doesn't work because the main goal is to get people to want to know more about you and what you have to offer. If you've ever participated in online discussions, you know that most bidders aren't shy about turning those discussions into an opportunity to attract potential clients. However, don't do that and make sure you've picked a good magnet before moving on to the next step.

2. Gimmick Marketing:

According to ActiveCampaign, this type of marketing means selling a product at a low price the first time in order to sell products at a higher price later, and it is a common practice aimed at winning clients over.

For example, how to do this with a professional consultant or service provider? Let's say you pay $22 for an advanced LinkedIn Marketing course that may be about to expire, but you see an offer to upgrade and sign up for a more effective program for $599 and then think you'll never see that low offer again and you will do wrong to yourself if you do not accept it. In fact, you will earn a lot of money while you will actually lose money if you do not accept the offer.

So, this method of marketing is clearly obnoxious, but there are more realistic ways to take advantage of this practice, for example, follow up via email for a free product or service after the first purchase. You can use this method to help people who can't afford your more expensive services.

3. Find a Core Product:

Your core product may be the foundation for everything in your business, it may be the solution to big client problems, and you may have developed a repeatable - yet customizable - process for its implementation.

It is the basic offer that you provide after pre-qualifying a potential client and in which you can expect to generate the bulk of your revenue based on your business. This can be a one-time purchase or a recurring subscription.

Ideally, your core product should be scalable through automation or staffing or else you will end up maxing out on the amount of revenue you can earn. This limitation is why most professional service providers find it difficult to earn more than $200,000 or even $100,000 annually.

With or without automation and staffing, another solution to increasing revenue is creating a profit multiplier.

4. Create a Profit Multiplier:

The solution to increase the chances of profit is to create a profit multiplier. This is the right solution that makes it easier and faster for clients to get the desired results. This can include more hands-on implementation, deep analysis, or other services added to your core product.

These are all options, but you can also increase your profits without expanding your core services too much and just present them in a different context. Remember, if you want to increase your profits, you have to solve more expensive problems.

Let's say you're a logistics consultant and help companies reduce the amount they pay for shipping products. Other things being equal, a company that pays $400,000 a year in shipping costs has a more expensive problem than a company that pays $40,000 a year to ship its products.

A company that pays $400,000 may face exactly the same problem, but it is a more expensive problem because of the amount paid as larger organizations face more costly problems based solely on the scale factor so thinking and curiosity are important to discovering your profit multiplier.

Now you should ask the question: "What's the next level of what I'm doing right now?"

Here are some examples:

Doing this step can be intimidating, but the worst thing that can happen is hearing the word “no” from a potential client. However, it will happen no matter what you offer, so the power of your earnings multiplier lies in the huge impact that “yes” can have on your business.

Having one or two “yes” every 3 months can make your business grow exponentially and give you a lifestyle that helps you discover your personal interests.