The Frustration with Proposals

Creating proposals for clients can be a time-consuming and frustrating process, especially for service businesses like graphic design agencies. The author, a graphic designer, shares his struggles with proposal creation, citing indecision about what to offer, the overwhelming scope of tasks, and the lack of consistent client conversion.

• Difficulty determining service offerings and pricing.
• Proposals taking 2-3 days to a week to create.
• Limited success in securing clients despite using proposal templates.

Why Ditching the Proposal Works

The author argues that the proposal itself is the problem, highlighting the need for a more streamlined and scalable approach. He advocates for a pricing model that brings in immediate cash and clients, eliminating the need for lengthy proposals and contracts.

• Offers clear and concise pricing, leading to faster client decisions.
• Reduces the time and effort spent on proposal creation.
• Simplifies the client onboarding process.

Key Steps to Ditching the Proposal

The article outlines five key steps to transition away from proposals and establish a scalable pricing system for a design agency or service business:

1. Define Your Ideal Customer Profile (ICP)

• Identify clients who require frequent graphic design services.
• Target clients with prior design experience who can provide clear briefs.
• Prioritize clients with consistent budgets and a long-term need for design services.
• Focus on clients who understand the design process and don't require extensive proposals.

2. Establish a Clear Offer

• Determine the most common recurring tasks performed for clients.
• Select the simplest and most frequently requested task as your core offer.
• Test your offer with trial clients or existing clients to refine it.

3. Set Scalable Pricing

• Ensure a 100% profit margin after accounting for costs and staffing.
• Share your pricing among multiple clients, leveraging time efficiency.
• Use a simple spreadsheet to determine pricing based on costs, taxes, and other income sources.

4. Define a Clear Timeline

• Estimate the timeline for each task based on past experience.
• Test your timelines with clients and adjust as needed.
• Consider monthly billing cycles to allow clients and your team to establish a comfortable working relationship.

5. Implement Upfront Billing

• Require full payment upfront from clients to ensure commitment and reduce payment collection issues.
• Offer free trials or testimonials in exchange for upfront payment for qualified prospects.
• Utilize online payment platforms with subscription features for seamless billing management.

Examples of Scalable Pricing Models

The article highlights three common scalable pricing models for design agencies and service businesses:

1. One-Time Services

• Set up business niche packages
• Offer WordPress website setup services
• Provide basic SEO blog post template setup

The article uses BetterLegal as an example, a one-stop shop for business setup services, offering a range of pricing options for different needs.

2. Monthly Subscription

• Ongoing website maintenance plans
• Social media graphic design subscriptions
• Monthly virtual assistant services

The article uses Superside as an example, a full-stack creative agency offering a subscription-based service for various design needs.

3. One-Time + Monthly Subscription

• E-commerce account setup with ongoing coaching
• Website theme development with monthly maintenance plans
• Website speed audit with ongoing optimization plans

The article uses LayeredCraft as an example, a service that customizes Ghost websites and offers both one-time setup and monthly maintenance subscriptions.

Final Thoughts

The author emphasizes the importance of asking "one-thing" questions to identify key value propositions for clients. By focusing on delivering a single, impactful solution, design agencies can establish a more efficient and profitable pricing model.

• What is one thing I can do to save my client time?
• What is one thing I can do to make things easier for them?
• What is one thing I can do to make it affordable for them?