Are You Being Seduced By Silly Math?
- November 9, 2009
- Posted by: Rochelle
- Category: Fees + Revenue
Silly math happens when you take numbers that don’t add up and convince yourself they do. Before you know it, you’re making decisions that cost you real money. For example:
Low paying client = high-paying client. All clients are not the same. Spending more time with a client who won’t pay your top fees rarely makes sense. If you truly enjoy working with them or you’re getting critical experience, invest away. But not because it’s easier than trolling for new, better clients.
One-off project minus investment time= new revenue stream. New consultants especially are prone to this. You get paid for 3 days of delivery but decide not to charge for the 5 days of prep since you’re sure it will open up a lucrative revenue source. If you’re going to blaze new territory, make it a conscious choice with a clear sales plan.
Speaking invitation minus your target audience = great opportunity. It’s easy to be flattered. Instead, take a deep breath, and ask the tough questions. Who will be there? Are they the right level, specialty, industry? Are they buyers? Can you draw a straight line from your speech to powerful new relationships? If not, consider whether you can afford to accept the invite. Ego won’t grow your business.
The challenge then is to leap beyond silly math and make decisions based on what really matters to you—and its true cost. Now if I could only do that at Costco…