Guest Post: What Packages Are, Why They Matter, Three Big Mistakes People Make With Them (and what you can do instead)

2417_2by Rebecca Tracey of The Uncaged Life

This blog post is about the three big mistakes you might be making with your packages.

Of course, this assumes you know what I mean by the word ‘package’ and, if you do, that you are currently offering packages.

But let’s start with this…

Since I started my business 3 years ago, I have worked with hundreds of holistic practitioners (particularly service-based folks like life coaches and nutritionists) in the online space, and I have noticed that one commonality between most of them that really holds them back in business –  They are fantastic at what they do, but they aren’t offering it in a way that is best suited to help them grow their business.

Of course, this isn’t their fault.

They went to school, learned how to master their craft, and then were sent out into the world to figure out this whole business thing on their own. No one taught them how to sell, or how to market. If you’ve been reading Tad’s blog for a while, you know the story.

Chapter One – Excitement: They get into business and hang up their shingle. They make a website, list their hourly rates, and they are off to the races.

Chapter Two – Vanishing: They get clients, and work with them for a while, and things go ok, but eventually those clients start to drop off. This can happen for a number of reasons – people get busy. Budget becomes an issue. People start to make your work together less of a priority. They need more clients.

Chapter Three – Stress: They stress out, because the income they thought they could count on is up in the air with each client who drops off, so they have to constantly hustle for new clients.? But how many do they need? What if all their other clients drop off soon too?  It’s all a guessing game at this point – income isn’t consistent, there is no way to know how many people you will be working with at any given time, and it feels like a constant hustle.

Chapter Four – Exhaustion: Soon they are exhausted trying to find new clients. Will things ever even out? Will this ever feel sustainable?

Chapter Five – Realization: They realize they need to ask clients to come back. Or they need to find a better way to make sure clients stay committed to the work they are doing. But again – how?

Chapter Six – Asking: They ask. And then they ask some more. And they keep asking with every client they get. But they wonder if there might be a better way than asking individual clients to come back for individual sessions. Something better than will help clients commit to longer term work together, wihtout constantly having to awkwardly ask them if they want to keep going.

Chapter Seven – Packages: Maybe they hear about the idea of creating ‘packages’. Aha! They could ask their clients to come back for not only one session but a series of sessions. They invite clients to book three massages. Or to sign up for a monthly membership thing. They do this but they find the response to be underwhelming. Getting clients to commit to ongoing work together proves challenging, and the result sis till the same – people drop off and they are left back where they started.  They never know whether they will have enough clients to fill their roster, or enough money to pay the bills.

 At the end of this all they feel deflated, like giving up and like their business will never be sustainable (for their energy or their bank account)

 

 They know they need a better way, but what?

 

The solution is to create results-based packages for their services.

A package is a way of putting your services together that allows you to create some consistency in your business.

 

A Package Has Four Qualities: 

  1. a defined length of time
  2. defined results
  3. a defined price
  4. serves as a direct response to your clients needs.

It’s created to help give your client understand the full value of your services, and often includes more than just  your time (ie. you may include worksheets, or email support, or weekly homework – something that happens outside of the time they spend with you). It could be just a one-time session, or it could be a six month agreement – the key factor is that it is creating an experience for your client that is based on getting them a defined result.

YOU are the expert in your business, and it is up to you to tell a client how long they will need to get the results they want. Afterall – if a client drops off midway through your work together, they won’t get the full benefit of your service. Similarly if you are selling one-time sessions and billing by the hour. if a client doesn’t see results right away, they may not come back.

Packages ensure that clients are on board for the full experience with you.

 

Three Reasons That Creating Packages is a Fantastic Business Model: 

Reason #1: Packages are easier to sell. Like ten times easier to sell. Packages are results-based, which means instead of selling your time, you are selling results. Clients love this, because it helps them trust that they will get the help they need.

Reason #2: Having packages lets you predict your income. By charging clients the package price instead of an hourly rate, clients sign up to commit to the whole package, which means they are less likely to change their mind of drop off midway through your work, because they have already committed to a set amount of time and set price.

Reason #3: Packages can be a part of your sales funnel, and can encourage repeat business. Once a client has gone through one package with you, they will have (ideally) achieved the results they want. But that doesn’t mean ALL their problems are solved. You can have different packages that cater to different parts of their problem, which means that after they finish working with you (assuming they loved it – which they will!), you are able to make sure you have something else to offer them.

Creating packages is a great next step if you have been dabbling for a while and are ready to create consistent income and streamline your processes.

But not all packages are created equal, and there are ways that you can tailor your packages to make them unique in your marketplace, and easier to sell.

After seeing so many failed packages (and having created a few myself in the past in my business) I started paying more attention to what works and what doesn’t, and experimenting with my own packages. As it started to become obvious that there are common mistakes that many practitioners make with their attempt at packaging, I decided to do something about it, and developed my own system for helping people stop making these same mistakes, and learn to put together their offerings in ways that will sell. It’s called Hey, Nice Package!  – because every good package needs a good name, right?

 

Three Big Package Making Mistakes (and what you can do instead):

Mistake #1. Having open-ended packages with no defined end date.

This happens a lot with life coaches in particular (ie. Work with me 3 times a month, for a minimum of 3 months, and we’ll go from there). Creating packages that have no defined scope is like waiting for your partner to propose when he keeps saying it will happen “someday” – it leaves your clients wondering if they will ever get what they want.

Imagine going to the dentist for a filling, and him telling you that it will take minimum 3 appointments to complete, but that you’ll continue to come in once a week after that, for an undetermined amount of time, because the results really depend on YOU… oh, and each month you’ll pay him a fee. No thanks.

Then imagine going for a second opinion, and having the dentist tell you “Yep – I can fix that in 3 appointments, and it’ll cost ya $500”.

Which dentist are you going to? That’s what I thought.

It’s the same with selling services online. No matter what you do, whether it’s tangible or super vague, you need to outline a timeline for your clients

What to do instead: Create packages that are just that – the whole package. Tell your client how long it will take them to get the results they want, and the total price. Yes, this can be scary, and of course, there are never any guarantees, but YOU are the expert, and people want you to take charge and let them know what they need to do.

One of my clients Sarah made this small change, and it has done wonders for her confidence in selling her services. She was offering really long-term coaching packages (6+ months) helping people who are dealing with grief, because she thought that’s what she was supposed to do as a life coach. But it never felt right to her. After working through Hey, Nice Package! she realized she could have the same impact in a shorter amount of time, so she created her Good Grief 4 week package and has never looked back at the old model. You can check out her package here to see how she did it.

Mistake #2: Having a zillion different package options available.

A confused mind is a non-buying mind. If you have so many options for ways to work with you that people can’t even keep track, or don’t know which one they need, they will turn away, never come back, and shake their fists at you from afar. This would look something like giving your clients the option of a one hour session, or 2 sessions a month, or 4 sessions a month, or one session every 3 weeks, or, or or… Confusing, right? If a client doesn’t know which one they should buy, they might just click away. The easier you make it for them to say yes, the more likely they will do just that.

What to do instead: Start with 1 or 2 focused packages and take your time to fully market those. When you offer something super specific and unique, people pay attention, and it’s much easier to sell! Once you’ve built up an audience and have become known as an expert in one specific area, it gives you some traction to be able to expand your business down the line.

My client Joanna, an intuitive healer, took this approach and it helped her create a waiting list for the first time ever! Her biggest struggle was that she didn’t know how everything she did fit together into a whole. She was offering channelled readings, past life readings, intuitive art workshops, soul messages – all kinds of things, and it was all feeling disjointed and overwhelming not just to her, but to her clients too. Once she figured out how these things work together as a coherent whole, she was able to create a really targeted package called Magic By Email and focused on marketing just that one package – and it continues to sell out weeks in advance!  You can see how she has structured her package here.

Mistake #3: Selling intangible results

This is typically a life coaching problem, but it can show up in other industries too (read: no one is safe.) As holistic practitioners, we tend to be shy about guaranteeing anything for our clients, and really taking a stand with confidence in what we are offering. This problem usually arises for anyone who does work that is more intangible and has somewhat vague, undefined results. Telling someone that you will help them “realize their dreams” isn’t tangible enough of a result. Neither is telling them “You will get out what you put in”. That’s all well and good – but assuming they put in 100%  – what will they get? If you can’t tell them, they won’t buy.

What to do instead: You need to determine what exactly the tangible results are that you’re offering. And those results have to be something they want. Doing some market research and really tapping into your client’s language is the best way to make sure that you are speaking in terms of RESULTS in your packages. This is pretty easy to do too! Simply find 5-10 of your ideal clients and ask them if you can hop on the phone with them and ask them a few questions. Dig into what they are struggling with, and what they want that they don’t currently have – and be sure to record the call so you can listen back to their exact words, and then use those words in your marketing. Voila – copywriting done for you, and a WAY clearer picture of the tangibles of what you are actually selling.

For example, a client of mine Makenzie is a career coach who was working with people to help them “find their life purpose”. The problem was, most of her clients weren’t really looking for life purpose – they just wanted to quit their jobs and find work they loved. They kept saying they wanted to stop hating their Mondays!

As you can see, there was a disconnect in what Makenzie was selling, and what her clients really wanted. Once she got clear on the tangible, real world results of finding one’s life purpose (that finding life purpose, to most people, really means finding a new career they LOVE), she was able to create a unique system for working with her clients, so she now has an effective system and a streamlined way of working, AND people are clear on what they will get when they hire her, which saves so much time emailing back and forth about what they can gain by working with her. If you haven’t made your packages tangible yet, this is a small tweak that could start bringing in new clients immediately. Check out Makenzie’s package here to see how she did it.

If you’re a service-based business and you’re selling packages online, avoiding these 3 mistakes will go a long way in helping you attract the right clients and stand out in a sea of sameness in the online market.

*

If you’re still struggling to figure out how to create packages, or want a deeper dive into how to create packages in a way that will help you build a solid, sustainable business model, check out Hey, Nice Package! – an online course that will give you a step by step system to creating your packages, getting clear on your pricing, and learning everything you do fits together so that you’re never left guessing what to create next – you will always have a system to come back to so you never run out of new ideas. Grab it here.

Bio: Rebecca Tracey is the head/only honcho at The Uncaged Life where she works with clients from all over the world who want to have the freedom of working from anywhere by running their own online business. She helps people figure out what their true business message is, helps them create packages that sell, and helps them actually take action on the things they want to do. Rebecca runs an online community of over 2500 solopreneurs. She started her business while living in a van, loves rock climbing and riding her bike around Toronto, and is genuinely obsessed with helping people live their version of Uncaged.

About Tad

  • Great overview of creating packages – thanks for the insight! What I learned when I help my clients create programs and packages is that they get stuck at the pricing bit. Packages, because they include more sessions and other services, are way more expensive than per session. So some practitioners freak out about that and fear people won’t buy. A lot of mindset work needs to be done in that regard so they can actually get on board and state the price with complete confidence and conviction. It is important to getting out of the hour for dollar mindset (like, my package includes 12 hours of my time therefore it should cost $x) and look at the value of the results that is delivered. I can go on and on about the mindset piece, instead, if it’s cool, I want to share this post I recently wrote on the mindset around selling premium packages: http://business-soulwork.com/secrets-selling-premium-packages/

  • thanks so much!

  • RebeccaTracey

    Very true Ling! You really have to start looking at the full value of the package, not number of hours.

    I actually gave away the pricing chapter of Hey, Nice Package! for free a while back — check it out here:

    http://www.theuncagedlife.com/price-free-chapter-hnp/

  • This was a great article. Packages work, not just hour to hour hoping they will come back I enjoyed reading this. :)

  • Rebecca you are just always so full of valuable information. None of that vague, I-don’t-want-to-give-away-too-much “advice” stuff here. Everyone could implement this today.

  • Joyce Kaiser

    Becca ~ Since finding your work a week or so ago, I have already learned so much. Another great post and resource. Thank you. (And I haven’t even had a chance to take any of your courses yet!) ….

  • Joyce Kaiser

    Just read this resource. Awesome. What a great gift. Thank you.