I don't have fixed fees for my work. My fees reflect my contribution to the value you expect to garner from my help and support, so you have an outstanding return on your investment and I am equitably compensated for my expertise. I believe this is how true collaborators work together.
We sit down and quantify what you expect to achieve from using my help and support, and then you tell me what you're willing to invest to realise that return. Look, we're living in a just universe. If you invest in Dom Perignon, then you most probably get Dom Perignon. Maybe not tomorrow or next week, but you'll get it. If you invest in carbonated horse piss, then you most probably get carbonated horse piss. Your investment is a function of your expected return. You're the sole controller of what you get for your money.
My copywriting fees consist of a flat fee plus a royalty, a certain percentage of gross sales generated by my copy. The royalty varies with the flat fee. It's like a car lease payment. The more you plunk down upfront, the less your monthly payments are. Simple really. If my copy is used for lead generation, the royalty will be in the form of a fixed fee plus a mutually agreed royalty for the use of my copy. Basically the same as radio stations pay royalty on every piece of music they play. Basically, I give you a tool that generates money for you again and again, so it's only fair that I get a part of that dough again and again.
For instance, I've just finished a website landing page for a client. The landing page's objective is to produce 1,200-1,500 newsletter subscriptions and white paper downloads per year. That is expected to result in about 350 subscribers taking the initial complimentary diagnosis, and 15-20 become clients. The lifetime value of the average client is $170,000. For the 10 clients (I prefer to be conservative), this is $1,700,000 new revenue every year. Let's be conservative again and make it only $500,000. And for the landing page that's expected to produce $500,000 per year, I charged $7,300 plus 5% of gross sales as a lifetime royalty.
This may look like a lot on the surface, but the alternative is to hire commissioned salespeople and pay them a base salary plus minimum 15% commission. And as Pareto's number proves it, 20% of your salespeople will produce 80% of the results. Nevertheless, you keep paying the other 80%. The way I see it, you'll pay the price sooner or later. Either you invest upfront in good copy that brings in business on autopilot or fall into the never-ending vicious cycle of "hiring -> training -> motivating -> firing -> replacing" of salespeople. The former takes a bit of upfront time, money and effort but works forever. The latter is easy and cheap to start but it will sap your money, energy and sanity day in day out for the rest of your life.
So, your investment depends on what you're building: A doghouse or a castle.
Some people have asked me why I insist on the flat fees and not work on a full royalty basis. Fair enough.
Over 50% of my past royalty-only clients - at the dawn of my career - never used my copy. I fulfilled my end of the deal but they failed at their ends. When I asked them why, they said they either had better ideas or got too busy to complete the very marketing initiative which my copy was supposed to support.
So, I concluded...
"No investment -> no commitment -> no improvement."
The truth is that when I finish writing and give you the copy, you have to put that copy into action. And that step is out of my hands. I can give you a tool but can't force you to actually use it.
But when you have your own money in the deal, that's a different ball game. Now you're committed not merely interested.
It reminds me of the old joke...
One day the pig and the hen decide to open a restaurant.
"And what are we going to sell?" - asks the pig curiously.
"Ham and eggs sandwiches" - answers the hen enthusiastically.
The pig scratches its head for a few seconds and then says - "I think I pass on this one. I would have to be committed for our cause, while you would have to be merely interested in it."
And when we're committed, the world can take us seriously. I've had my fair share of interested clients, and it always backfired. I can commit only to those clients who are willing to commit too.Back to main FAQ page.