Sophisticated Marketing: Creating Content That Builds Community with Chris Do

3 Jul 2024 · 51 min

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In short

The Jasmine Star Show: Episode Summary

Episode Title

Sophisticated Marketing: Creating Content That Builds Community with Chris Do

Host

Jasmine Star

Guest

Chris Do (Personal Branding and Business Coach)

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Episode Overview

In this episode, host Jasmine Star engages in a deep conversation with Chris Do, a successful entrepreneur and business coach. They discuss the challenges of content creation, marketing strategies, pricing models, and the significance of building a community to enhance business growth. Chris shares his experiences and insights, focusing on overcoming self-doubt in content creation and the importance of brand over product.

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Key Discussion Points

  1. Climbing "Cringe Mountain"
  2. Self-Doubt in Content Creation: Many entrepreneurs experience discomfort when putting themselves out online.
  3. Overcoming Self-Doubt: Chris emphasizes the importance of pushing through discomfort and building tolerance for it.
  1. Content Creation & Community Building
  2. Role of Free Content: Free content is essential for building an audience and establishing trust.
  3. Business Structure: Chris outlines his educational business model targeted at creative entrepreneurs looking to transition from traditional jobs to entrepreneurship.
  1. Business and Pricing Models
  2. Four Pricing Models:
  3. Pricing for Inputs: Based on time and materials.
  4. Pricing for Outputs: Fixed fees where the service provider assumes the risk.
  5. Value-Based Pricing: Pricing determined by the perceived value to the client.
  6. Performance-Based Pricing: Earnings tied to the success of the project, aligning interests between service provider and client.
  7. Importance of Diverse Pricing Models: Chris advises diversifying pricing models to minimize risk.
  1. Coaching and Community
  2. Coaching Communities: Chris operates groups for different revenue levels, providing tailored support to creative entrepreneurs.
  3. Brand vs. Product: Emphasizes the significance of community and brand over individual products.
  1. Marketing Strategies
  2. Sophisticated Marketing: The movement towards more complex marketing strategies, including nurturing existing warm audiences rather than seeking new leads.
  3. Importance of Community Engagement: Chris highlights the need to engage directly with the community to deepen relationships and improve sales.
  1. Actionable Takeaways
  2. Radical Self-Acceptance: Chris shares how self-acceptance was crucial in overcoming his initial fears of content creation.
  3. Test and Innovate: Encourages continual testing of marketing strategies and learning from results.

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Quotes

  • "All profit comes from risk."
  • "The connection that someone has with you is more important than the product."
  • "You can create a product based on the audience's needs and trust."

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Conclusion The episode delivers valuable insights into the intersection of creativity, marketing, and entrepreneurship, emphasizing the importance of community, self-acceptance, and innovative thinking in business growth.

For more actionable tips, visit [The Jasmine Star Show website](https://jasminestar.com/podcast/episode448) and check out Chris Do's resources at [The Future](https://thefuture.com).

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Call to Action

  • Rate and Review: Listeners are encouraged to leave a review for a chance to access exclusive content regarding pricing models.
  • Engage on Social Media: Share key takeaways from the episode and tag @ChrisDo and @JasmineStar.

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Transcript

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0:0010 years ago, I made the decision to build my personal brand that was elevated, yet approachable, and reflected who I was, not just what I did. I created my website with ShowIt because it's true drag and drop freedom so you can easily build and update your site. Plus, their real human support team, game changer. Want to try it for yourself? Head to jasminestar.com forward slash show it for a 14-day free trial and first month free when you subscribe. Welcome to the Jasmine Star Show where we talk about life and we talk about business. And today we get to talk about the penultimate version in human form of creativity.

0:35Now, I know that sounds like a very big statement, but I am not by any stretch of the imagination over expanding the amount of words that I could use to describe the person who is sitting next to me. But before we get there, I like to introduce people in the podcast because podcast guests are people I know or I have experienced. So let me set the stage where in Beverly Hills, I've been invited to go to a mastermind. And like the nerd that I am, I'm sitting there in the front row with my notebook out and I am there to learn. except for the fact that when this gentleman walks on the stage, I didn't take a single note because I was so enraptured in the way that he spoke, his storytelling, his cadence, his brilliance.

1:15And so here I was, I've identified as being a creative. And what I saw was the complete counter opposite of somebody who's so strategic, high creative, business owner, iterative, and like a king of pivots and keeping it all together. Ladies and gentlemen, welcome Chris Doe to the Jasmine Star Show. brother let's go oh my god what an intro i mean it's just the truth that was my story bro wow i'm like who dis where is this person coming i thought i was here i'm so happy you're here i'm so happy you get to break down business and creativity and how many times a person can change and still embody the core of who you are and like continue to grow in business and i think that's what i want to talk about so a little bit of um backstory this show is for entrepreneurs and my focus is the business of your business oh the business of your business because what i've identified and learned and like people tell me is like when they hear about somebody else talking about their business they're able to contextualize their business in relation to yours different even or the same and then when you talk about how you've marketed your business they start thinking oh contextually so this show is about getting disparate pieces and then at the end of the show we get to connect it and then we take an action item because on this show we're like one piece of action every episode that's going to change your business so when i look at your business so a little bit of a side note okay chris and i are mentors it is our second year together as mentors for a small business challenge hosted from the ups store and ink magazine and so we work virtually with our mentees and then each of us has three mentees and then one is selected to go to a city for a big show.

2:57Well, last year, Chris and I met for the first time in person in New York City. And in between recordings, Chris and I got into the business of his business. And I was like, ooh, I like what this guy is doing. So to bring everybody up to speed, can you describe your business? We'll get into your origin story, but let's add some context and then we... Okay, well, my business is in education. Not that different than yours, I believe. and we exist to serve mostly creative people who are looking to ditch their 9 to 5 and are in their 5 to 9 but don't know how to scale. And so we like to think that there are these skills that they need to learn to be successful entrepreneurs, things like marketing, negotiation, sales, pricing, those kinds of fundamentals that you would learn in business school.

3:44And if there's an equivalent in the universe, there's the D school that Stanford does, the D school for business. and then we want to be the B school for design. We want to be the exact opposite of them. So it's this concept that they understand the importance of creative lateral thinking, divergent thinking for business operators. And so they think they can teach business people left brainers, right brain kind of strategies. I think it's a lot easier to teach right brainers, left brain strategies because there's a couple of fundamental things if they were to execute on, they can live an entirely different life.

4:18So then the creative finds you and says, I want to make a business for my creativity. Yes. Okay, got it. Now, what does the structure of your business look like? Like when we had spoken, there was different levels and variations. What does that look like for you right now? Okay, there's a couple of different things in which people can have a relationship with us. The easiest way is to consume some of our content on social. We produce a lot of YouTube videos. I write for LinkedIn or I write on LinkedIn and then I create content on Instagram. It's how people get to know you. And hopefully they can use some of the free content to level up and also to kind of have a trial with you.

4:57Like, do I like this person? Do they know what they're talking about? And so then they graduate to some form of there's a transactional moment that happens. Okay, cool. So for the sake of this context, nobody knows who you are. We're just going to pretend nobody knows who you are. Not that following matters, but that the quality of the education that you're producing, what is your social following? Like your top three channels, what are the sizes of that? because I think an audience member is gonna be like, oh, okay, now I get why he's talking about education. Okay, so our biggest following is on YouTube.

5:23We have, I think, about two and a half million subscribers. The next biggest following is on Instagram. I'm at 964, 65, something like that, 965 ,000. And then LinkedIn is my next biggest following, which is 500-ish thousand. Okay. So those are the stats. So we're gonna pause there because between those platforms, we're looking at maybe 3.5 million subscribers, not including other people who can find your content organically or getting touched, especially as the algorithms change, but we're talking about you have created education, also known as content out on free social platforms as a way just to kind of give people in a moosh, boosh, a taste.

6:02Am I about, am I about his brand? Great. Then what happens next? Okay. And then some of them get excited and they ask, and this is what I really believe in. If you teach people, they're going to become excited about the things that you do and they're going to look it up you don't even have to sell that's right so then they can they then there's a number of kits courses and things they can buy from as little as 19 as to as much as like five thousand dollars that they can buy and some of those people consume that and this is so what's next now i want more of you we have okay so so we're right now we're talking about a product suite yes and the product suite at the lower end from free content points into what's the lowest ticket up to$5 ,000 in this particular arm of the business?

6:44Yes. What does it start at? What's like the... I think$19. Okay, great. There's a template or a kit. Okay. It's a self-guided thing and those sell really well. My chief operating officer generally writes those because he likes to write. I like to produce instructional videos and things like that. So we play to our strengths. Okay. And so if it's like an instructional booklet, you can think of it as like a really hyper-specific PDF digital booklet that you can download by. and there are usually templates and things that you can use and you can apply immediately. One of the examples is something we call the perfect proposal.

7:16So having been in the creative service business for over two decades and working on this, we've refined what a proposal should look like and most creatives don't know what that looks like and how to speak in a professional way as a presentation. So we put that together. It's a keynote presentation. There's a PDF guide that you read and then you fill it in and people make real money. And here's the secret. the not so secret secret, you already have the secret sauce. You just needed to believe in yourself. So the proposal, the way it looks and how it's laid out gives you that confidence to add a little bit more money into your bid.

7:52And for them, that changes their lives. How cool. But specifically now, when we contextualize that from a business perspective, you went to the consumer, right? So this person buys this and then it doesn't result just in proposal, it results in self-confidence. And that ROI alone is worth more than the$20,$30,$40 that they spent on that kit. Amazing. So that's the first point of entry into a business. And then from there, they could move forward up into$5 ,000 for different types of offerings. Okay. And then people get to that point and they're like, I'm fully bought in. What's next? Yeah. So we run two coaching communities.

8:27One's called the Accelerator Group, which is for people who are between zero to a hundred thousand dollars in revenue a year. They have to be a creative person because that's the group that Ben and Stephanie runs because it's a very specific way that they've structured the curriculum. And then I run something that we call the Future Pro Group, which is for people who are around a hundred grand to about a million dollars in revenue and they want to scale up. At this point, they have systems in place, they have portfolio, they know how to talk to clients and work with clients, but then they hit some kind of ceiling.

8:56They've hit a peak and they're starting to level out and they want to learn how to scale from there. That's where I can come in and give very strategic tactical things, design business models for them, help them to figure out their offer and then off they go. And that's usually how that works. So the business of the business is free content, low ticket paid offering, move up a product suite, get them to the point of what's next. And then depending on where they are in the business, there's two offerings, zero or what? So we'll say like low five figures to a hundred thousand, a hundred thousand to a million.

9:33And the level of your involvement in that is really just at the high end of your product suite. Yes. Incredible. Ladies and gentlemen, Christo, there he is. So it's like, I just, you know, I want to do the podcast because you and I share a similar belief and the similar belief is share your best stuff, give them a taste and then move them into different offerings along that. Okay. Can I take a second and read something from your website? Of course. Okay. Quote, I've been running a successful design business for over 22 years with a combined gross billings of over 80 million and have since launched a second seven figure business that has been growing over 300 percent in revenue year over year.

10:13So if you had to pick two things that have impacted your growth the most, what are those two things? Really good question. The first business is so different than the second business. Do you want me to talk about the second business or the first business? Well, let's identify. Now that we know what the product suites and offering, what did you identify as a second business for a listener who has no idea what they're listening to? Okay. So this has a little bit to do with my origin. Let's go there. Let's go there. I used to run a production and post-production company. We make commercials and music videos for some of the biggest brands and bands in the world.

10:44And then somewhere in my early 40s, I decided, you know what? I want to teach and I want to see if I can do something else besides doing this service for hire work. Okay, pause. Chris says, I want to do something different. And he's in his 40s at this point in time. So there's a lot of people watching, listening, and they hear old 40s. Some people say that's so young. And some people say that's so old. And Chris is saying, I'm going to start something new at this age. Risk, willing to take the risk. Okay. I love risk, by the way. And as you know, all profit comes from risk. Hey, if that's not a quotable, like, let's just bring that on the screen.

11:20All profit comes from risk. Okay. Yeah. Yeah. So in creating commercial work, the biggest breakthrough was to have a sales process, to have reps or agents that work for you, to understand how the game is played. And when you get to a certain level, the game is very different than what you might have thought in school. And so one of the biggest key decisions I made was to hire a business coach who helped me to go from$200 ,000 per job to unlimited amount of money. And I didn't realize something and it was a lesson he taught me he said i think you think you're a major league player but you're a minor league player and when the budgets open up they can literally hire anybody in the world so now you're not just competing with people in the united states you're competing with the world so what we have to do is level up your game so that you can be a major in the majors and that was like a shock to me because i didn't understand that because before what was happening was we would win jobs up to about$200 ,000.

12:19That was not a problem for us. But when the budgets got to 300, 400, I was like, why are we losing now? We're only winning about 20 % of the gigs and it's really depressing because we're pitching for work and then you're like, well, we could have done that, but we didn't. Then you look at your bank account and I'm like, well, that reflects there too. So he taught me how to pitch, how to have the sales conversation. It's something that you don't learn in school, you learn in real life. Now, luckily for us, I'm a good student, but we also had a lot of opportunities. He calls them at bats. So in those days, we're getting probably new business calls like three times a week.

12:52And we're talking about hundreds of thousands of dollars per call. So you get good or you go broke. So when you talked about the 300 % growth year over year, what were the two things that impacted that? Was it the coach or was it the sales component? Okay, now we're talking about the second business. Yes. Okay, it's easy relatively, I want to give some context here, to grow 300 % year over year for a number of years because at the beginning, we're like doing$30 ,000. So if you do$100 ,000, you're 300%. And our whole thing was, can we continue at this growth? What I learned in the second business, which is unlike the first business, is we're moving away from - And the second business is the business you described, the digital resources up into the coaching.

13:32The education company. And so the second business is really built around working with customers versus clients. And there's a big difference. Who explained that? Okay, so in the first business, We're dealing with only a handful of clients. It's high ticket, high touch, white glove experience. It's very bespoke solutions. And you're selling one-off things to people and that's it. And so it has to be very focused on a client per se. The second business is a product-based business, not a service. And so the products, we're selling lots of copies of the product to a much broader audience. It's not bespoke because they could not afford it to be bespoke and we could not produce it in a bespoke way.

14:12so now we're building a very different business model and the key here was learning to create content to build an audience that's the game changer we have this debate and the thought experiment that i have with people is to to do this because this literally happened with me so i had a business partner his name is jose he's the one who actually encouraged me to make content and at some point we had divergent ideas on what the company should be about i had my version he had his version. So what we had to do was we had to go our separate ways. And what we did is we chopped up the company into what I thought were equal parts so that no one would feel cheated out of the separation.

14:50Something that my dad taught me. It's like, if there's a cookie, you and your brother, one person cuts it, the other person gets a pick. So I was like, to the micrometer, the cookie is going to be in half because I was one who's going to cut it. And then my little brother's like, oh, that's a bigger cookie. I'm like, shoot, the sandwich, the cookie, the cake, you have to do it like that. So I was the one who decided, okay, I'm going to cut the company in half. You pick. And so I went back and forth like, oh, I don't want to cheat myself. I don't want to screw. I want to make it super fair. What do you want?

15:18So here's the thought experiment because it actually happened in real life. I said, okay, so we have one product that generates all the revenue for the company, 100%. And then there's the audience, which doesn't generate any money for the company, but it's worth something too. So I said, do you want to keep the product and the revenue or do you want to keep the community and the channel? Dang. So this is a tough decision, right? Because all the revenue was coming in from the product. And my business partner said, okay, I don't really have capacity to create content and you're much better at that than I am.

15:49So I will take the product and the revenue. Then you take the company. And if you allow me. You'll take the community and the channels. Yeah, the community and the channels. Sorry. Thanks for clarifying. Okay, so. No, I'm writing notes, Chris. This is amazing. Okay, so let's see what happens here. So the first couple of years in which we separated, I was really worried because they're like, what happened to the other guy? And now I'm starting over from zero because I have to create a new brand, had to build the audience up again, but the channel I get to keep. Okay. So we make the announcement, Jose's no longer with the company.

16:22We're going to go do this thing on our own. And what I found was we were able to grow the audience right back really quickly. And now we needed a product because we're making no money. we're selling the product for Jose. He takes all the revenue. So once we created a product, something miraculous happened. The stickiness isn't in the product. It's the connection that someone has, the customer has with you. So now I can theoretically create an unlimited number of products. And if my relationship with them is good, they will buy the product because of me, not because of the product. And this is a really interesting thing because a lot of people think, Like, well, what you're doing isn't really valuable.

17:02This content, this free content that you keep putting out. I said, well, good luck trying to launch a product without this community. So then the debate comes in, like, what is more valuable? The product and the revenue or the brand and the community? And I bet 100 % every single time, 10 out of 10, it's always the brand and the community. So somebody's listening and they've bought in. Like, they know it and they see it. and then the story they tell themselves is, but that's not me. Like, so you're saying that as a direct derivative, you can create a product because of you and then people hear, but I'm not whatever X, right?

17:38So I'm not captivating, I'm not articulate, I'm not creative, I'm not pizzazzy. And so Chris can do this because it's Chris. And so how do you respond to the person who believes that content can be the key, but they don't believe that they can create that content? Well, I will tell them, I believe what you believed. How? That's where I was. I'm 42 years old. My friend and then my partner said, let's go make content on YouTube. I'm like, I don't do that. I'm behind the camera talent. I'm not in front of camera. And he kind of made an ultimatum. He's like, we don't do this unless you're willing to step in front of the camera.

18:14And he was very generous in his offer. He says, look, I'll do most of the talking. You just sit there. When you're ready to speak, you speak. And what happens is you have all these ideas, these limiting beliefs about what you can and can't do. And so the first, I think, three to five episodes, I barely spoke. My jaw was really tight. I was super self-conscious. And I literally told the team, when you're editing the videos, if you see me walk by the studio, turn it off. I can't hear it. I can't see it because I just don't like my face. I don't like my voice. And literally, I will fire you if you don't do that.

18:43Because I just, it kind of, it was so gross for me. It was so cringe for me to see myself. And so I'm saying this to you because a lot of people do feel this way. But you expose yourself to the things that you don't like and you build up a tolerance for those things and eventually you learn to be okay with it. And at some point, you actually like it. I once heard it described as the mountain of cringe. And we climb the mountain of cringe and it's a slog and we hate it. And then somewhere along the ascent, you will get to a plateau where that's where the haters dwell. And so I wonder, before you reach the pinnacle, whatever the pinnacle is, and like I probably it's debatable whether you would agree that you're the pinnacle, but some people can look at two million subscribers on YouTube and a million on Instagram and all of those other vanity metrics.

19:32And they say, oh, he must be at the pinnacle. And whether or not you feel you're there or not is not debatable. There was a point along the climb of like the mountain of cringe where you're asking your team, turn off the computer. I can't see myself. And then you have to say, what I'm going to repeat back what I heard is you have to be comfortable in the uncomfortable. And until you find a way to enjoy tiny bits of it along the way. And then I wonder, did you ever get along that place where your greatest fears became manifested in what people were saying about the work that you were putting out?

20:00That's a great question. I don't think I had so much fear about the things I was putting out. I just, I had my own high standards of myself. I don't really put too much stock in the opinions of other people. And that comes from the confidence I got from doing design work for two decades and for teaching that. But the moment, there was a breakthrough moment for me, which was I had a video and I couldn't watch it. And it was pretty early on in my YouTube days. And I asked my wife, honey, can you just look at this? And she goes, why? Just look at it for a second. And she goes, okay. I'm like, do you see anything weird?

20:33She goes, no, I don't get where this is going. I said, does that look like me? He goes, of course it looks like you. Does that sound like me? She goes, yeah. And I was like, I can't trust my wife. Boys, come over. And my boys are like small at this point. You know, they're very young. I said, boys, I need you to do something for dad come on okay yeah dad I said I want you to watch this and I'm going to come back in a minute because I couldn't even watch it and then they're like okay and I come back I said does that sound and look like dad and they're like yeah dad what and they just ran away and like went to play video games or something like okay so here's the thing in my head I sound different and your head voice sounds different than what you hear when it's played back yeah in my mind I look different because when we look in the mirror we only see certain parts we don't see it like frozen in time like the whole face.

21:17But I was thinking, wait a minute, my wife and my children theoretically love me, accept me for exactly who I am, how I look and how I sound. Maybe I just got to get over myself. And I think the world already sees you for who you are and accepts your voice or they don't and you can't really change that. So now it's the journey of self-acceptance. So if my wife and my children see me exactly like this person who I thought this cannot be me, I'm just gonna have to be okay with that and that was the big unlock for me. I love that whole thing right there just Radical self-acceptance and you know Depending on the spectrum where you say I don't give too much credibility Or space to what people think because I have higher standards than what most people would have like an opinion about And then it was you You became your greatest opposition on the mountain of cringe crazy and you overcame that through radical self-acceptance.

22:14Yeah. I love that. Okay. So how do other businesses take this approach, right? So you had one business that was client driven. Yes. Hundreds of thousands of dollars per phone call. And then that business you decide to divide with Jose. And he takes that business, the client facing business. No, no. I'm sorry. There's two different companies. That company he has nothing to do with. Got it. That company I ran for almost 20 years. Got it. At that point. And then this new business that we're embarking on together. this is the future the other one's a different company got it so the future started you and jose yes and then you guys divided yes and you kept the future community and content yes and your big belief as you begin to market that is content yes so as you're looking at the marketing structure for the future then versus today are they same are they different how has marketing changed in the time that you have been leading the future?

23:10Okay, that's a very good question. The marketing has gotten more sophisticated, although we're not pros at marketing. I always tell people I'm the worst marketer in the world. I really am. Well, I mean, I don't know, Chris. I'm just putting it out there. I think I'm a great content creator, and I want somebody to come in like my fairy godmother and just handle all the marketing so I could just teach. I do love to teach. And I wanted to clarify one thing. When we create content, it's not a taste. It's the full thing. I don't believe in gatekeeping. I think that's a term that people use. So when we do a whiteboard workshop, I think you should be paying me hundreds of dollars, if not thousands of dollars to watch this, but I just release it for free, which creates concern for my team.

23:50Because they say, Chris, if you release this, what will they buy? This should be a course that we produce. I don't care. And so I'm trying to like figure this thing out myself and I'm still working through it, Jasmine, which is how much free content do we create? Because I do believe this. it does hurt the sales of our products. And the reason is, if you can't keep up with the free content that we create, why would you then spend money to buy another educational product that you're not going to be able to watch or implement? This is a problem for us. So when you see most content creators, and I don't know who fits in what category, but I think what they do is they give you a taste and then there's a prompt and said, if you want the rest, come join this and enroll in this program.

24:33I believe in this idea of like, just giving in a generous spirit and people find a way to give you back somehow. It's not immediate and it's not one-to-one, but some things will happen. And I think being able to do the mentoring with you, with the UPS store and Inc. Magazine is the manifestation of that. Because I don't think anybody calls me up and says, hey, would you like to mentor these three entrepreneurs if they don't watch the content? I'm almost certain that no one from the UPS team took a course from me. Right. They just saw the content. Maybe they looked at the social following and said, this person seems to know what they're talking about.

25:13Maybe we should invite them. Okay. So I'm going to repeat back what I think I heard. Your team says, if you show it all, what do they buy? Yes. And your response is, I will show it all and people will figure out what to buy. Yes. How to buy. Why to buy. Or they will buy less, but I'm okay with that. So there's always this friction that exists. And I don't want to say my team, they're not bad people. No, of course not. They're in charge to make sure we make money. Yes. That there's still a way for us to move forward as a team. And it's a difficult thing and it's something, they speak the truth.

25:47I know that. Right. But I'm just like, I'm trying to live on this reciprocity principle and try to acquire or build up as much karmic equity as I can so that when I need to ask them for something, my community, that they will give. And they, I mean, they do. You have a wildly successful business. And then there's also another element there that I want to speak to the person who says, well, Chris can do that because Chris is making multiple seven figures, eight figures, whatever. But there is a level that somebody consumes the free content and then they know that it's always there versus the person who buys or invest, you know, a hundred, 500,$5 ,000, they show up differently.

Read the full transcript

26:25So it's almost like they're putting it on themselves that there is a lot of free content, but I want highly specified. What I believe that what you and I can do is we sell time. We give education, but what we sell is time because the amount of education that you are creating is so voluminous that someone's like, I could figure it out. If I only focused on his content, I could go back and pick out the pieces that I need for my business. But what you offer is a paid solution to say, what is the specific question you have? This is the specific answer. So I'm going to give you the content that you could probably sift and find by myself and tens of thousands of others.

26:59But right here, this is the path of least resistance and gets you to the end result. Someone's like, okay, I trust I'm going to get the end result from you because of your free content. Now I want to go from like point A to Z in the quickest amount of time. You sell time. Yeah. Cool. Okay. So I want to go, you talk a lot about the sales and negotiations and value-based pricing. Yeah. A big topic on the podcast is pricing. People love pricing. Okay. So when somebody comes to you and says, very broad question. How do I price? What do you immediately say? What is your distillation? What's like a framework that somebody can listen to the podcast and say, okay, I understand his pathology in pricing.

27:34What is that? Okay. My answer was it depends. What are you doing right now? So can you channel this person and we can have a conversation about it? Oh yeah. There's not like a template answer for this question. It depends on where you're at in your journey, what your confidence level is, your level of expertise and how driven and ambitious you are. And I think, and people often mistake me for this. They think all I care about is value-based pricing. I don't. Well, define value-based pricing right now. Okay. Let's start there. Okay. There are essentially four pricing models. So I'm sorry, we're going to get super nerdy, everybody.

28:09No, this is a show for nerds. We're business nerds. We're self-proclaimed. We love it. Okay. Okay. Number one is typically called pricing for inputs, which is selling time and materials. This is generally what contractors do. Like if you have a contractor working in your house, they come up and they work on something for six, seven hours. There's a rate and then materials plus markup, time and materials. This is how most creative people price. And the reason why it's, it's very easy. It doesn't take any kind of degree because you just measure your time and you set a rate and then you charge the client.

28:40There are some challenges with this in that the client assumes all the risk. And what I mean by that, because they're like, well, why would they assume the risk? because there is no limit as to how long or quickly you can get the job done. So when you price based on time and materials, what is the client focused on? Well, they're focused on how long you're working on something. And they're thinking it shouldn't take this long. Even though you might have a legitimate claim that it kind of takes that long and I'm doing it as fast as a person can do it because you're selling them units of time. Yes.

29:13So that's what they want to manage. And so at some point, they become really uneasy with this. And they enter into a different dialogue with you. They say, look, can you flat bid this? Yep. Which will take us to pricing model number two, pricing for outputs. So now they say, you know what? I don't want to assume the risk anymore. You assume the risk. You're the professional. How long should this take? You just charged me a flat fee. And I don't really care if you're doing one hour or you're doing 100 hours as long as the job is done. And done is to my satisfaction, right? There's a certain metric of quality and completion that you have to hit.

29:45So now we're called pricing for output. So now you have to, with your experience, figure out what it's really going to take to do this job. And then if you guess wrong, you're going to eat it. So built into this now that you assume risk is you have to pad the estimate. So now the estimate is like, well, I think it's going to take 20 hours, but there are unforeseeable circumstances. And I need to put in an extra 25%. And the buyer assumes that you're going to add the markup because now you're assuming the risk. All they care about now is a flat fee. And this is generally what happens when you get a little bit more mature in your business because you've done it enough times, you know what it should cost.

30:24This is really cool now because you're incentivized to complete the job to a certain quality, but to do it as fast as possible. Not in terms of cutting corners, but investing in higher quality team, systems and processes, tools. You're going to innovate. You can do everything. You're going to automate many different things because now you're incentivized to spend less time. So you're pricing for outputs. Number three is pricing based on value. So what we realize is if you want to make money, you don't price for the job, you price for the client. And what I mean, people have different tolerance for risk.

31:01Some people have more riding on the outcome of what you do. So if you build a website, let's say that if it's possible and it's not 100 % possible, that every site that you build is pretty much the same. There's a very strict process that you go through and you're going to make something. There's only so many human hours that go into it. You know what your expenses are. But what happens is you're not accounting for the factor that some companies, they live or die based on their website. In some companies, their website doesn't even matter to the business at all. So what you're saying is, I don't really care about your business.

31:34I care about what I make and my profit when you do a flat fee based on these people. So if a person has an e-com store, like say they're starting up a fashion brand, or maybe they're a realtor and how they get new referrals and clients is based on their website and how it performs. There's SEO, there's conversions, there's dwell time, there's all those things that matter to them. Well, they have a lot more riding on the success of the website than the person where it doesn't matter at all. So they're willing to pay more because they have a direct return on investment on this. So this is when you get to value-based pricing, where we look at the business, the stakes, what they have to gain, what they have to lose, their pain points and their dream outcome.

32:17And we start to understand that. And we put a value against that and we charge some percentage of value created. This is sophisticated. It's difficult to do, but it is for many people, the Holy Grail. And we think we're done here, but we're not done here. There's a fourth model, which is a version of value-based pricing that is based on how you might describe it as royalty-based. Oh, speak my love language, Mr. Wonderful. Okay. So now what we're saying is we're not going to charge you any money up front, or we're going to just charge you at cost. And we want to be tied to the performance of this.

32:56And they're like, okay, great. So we share risk. This is the first time we're entering into something that could be truly referred to as a partnership. We have skin in the game. If it doesn't work, you spent the least amount of money and we make no real money. We've just broke even. And so now I'm really incentivized to make sure this works. And now the relationship continues because now I want to optimize the site. I want to make sure that the image is right. I'm looking at SEO and we're not performing well.

33:29So So you can consider a joint venture, but it's like a royalty-based thing, which most people understand. The more units you sell, the more conversions you have, we profit from the difference between before you hired us and the gains appreciated. So I have a friend who runs a company and they're purely performance-based. They say, you spend no money up front. We only take a percentage of the delta difference between where you're at and where we take you. And we work for free until we get to that point. and they have, I don't know, almost a thousand employees. So clearly that model works too. And then there's one more version of this, which is a subscription-based model.

34:08So the subscription-based model is, you know what? We're going to take all the conversations about money off the table. We're going to say that the success of our clients comes from a regular working relationship with us. So now I'm not selling time. All I'm doing is I'm focusing on every single month, what I can do to continue to deliver increased value to you. Then what this does is it alleviates me from constantly looking for new business. And this can work on small levels and can work in really big levels. What do I mean by this? Let's take Netflix, for example. Netflix, I think, is like under 20 bucks a month.

34:41The amount of money that we pay is so small compared to the value of entertainment that we get that we don't longer think about that. We don't own anything. There's no tangible parts. But what Netflix has to do is continue to think, well, we need to have hit shows. We have to create series that people want. If we don't do that, then the customer is going to leave. And so they're just trying to constantly improve their catalog so that you'll continue to pay. And that's how they grow their business. So this can work also, say, if you're a web designer. Instead of charging$80 ,000 up front to build a website, which means the client takes more risk, we can say, you know what?

35:19We're going to do a program. It's going to be, say,$6 ,000 a month. So the client's okay, I can afford that. We cannot build the site in a month, but we're going to build it. And you're on a contract for a year after which you can cancel. So the first year they're like 72 grand, right? So they're making eight grand less than they would if they charge upfront. But what happens is the clients become accustomed to working with you. So they continue to pay that$6 ,000 every single month. And then you continue to tweak things for them, give them reports, analytics, and try to innovate things. you're obsessed about your client's business and how they're doing.

35:58And so in this way, they're like, that's the easiest amount of money ever spent. And then over multiple years, now you're way on the upside of the revenue and profit. Can I ask a clarifying question between pricing models three and four? So I'm going to repeat them right now for the audience because as president of the Nerd Club, I write notes. Number one was pricing for input, time, and materials. An example was a contractor. Two was pricing for output. this is done of the satisfaction of the client, but then the creative assumes the risk. And so you're essentially padding your pricing. Chris had used as a benchmark.

36:32You're probably padding it 25%. Or more. Or more, depending on client needs or risks associated. Three was pricing for value. You're not pricing for the job, but you're pricing for what the client values the most. And then you want to look at what the client stakes are. You want to look at what is the value that's being created. The more value, the higher that you would be able to price. and number four is pricing for value but a performance percentage thereafter um and then the fifth was subscription now i want to focus on pricing value okay now is there a point at which a business person is pricing for value and then at what point do they become so good and confident that pricing for percentage of performance comes into consideration like you have to prove that what you can do works to that way so that you can say, I'm not going to try to do anything upfront.

37:25This is how I know I'm so good. You're going to get a deliverable. Have you seen a pattern with businesses or creatives that do this? Like, is it after a certain amount of years? No, I get it. You're like, it so much depends. It's like on the talent, on experience. But like, is there some sort of benchmark that somebody could say like, oh, I'm ready to do no risk to you value percentage exchange? Yeah, there's not a hard formula. And I would encourage people to have a diverse pricing model so that you're not all taking every risk on every single client. Interesting. It's important. Like in the financial market, you don't want to put all your money in tech stocks because if techs go upside down, you're kind of screwed.

38:05So you diversify your portfolio so that it insulates you against from wild swings in the market. So when you're pricing, you don't want to take on only value-based price or subscription or whatever because it can go upside down. You can have a variety of different models that work for you so that there's a level of risk tolerance that you can take. Gangster, dude. Gangster. There's a couple of companies I have equity stake in. They've not done well. But I don't need them to do well to stay in business because I only have a handful of those things. And it's okay for me to take that risk. But if they do well, instead of getting paid 20 grand, I'm going to make a million dollars.

38:39That's worth the risk to me. That's a pretty good ROI. And every person needs to determine what is the amount of risk that you can take. and that depends on the season of life that you're in. If you're single, if you're married, if you have kids, you have to support your parents. That's right. Then you probably would probably do something between pricing outputs and value-based pricing. And you probably don't want to do royalty only because that's kind of risky because you have a partner in this. If they're not good operators, if they have supply problems, if they have quality control problems, that's going to come back to reflect on you.

39:08Yes, it is. So this is kind of an important thing to kind of understand. That was good. No, thank you for that clarity. And it makes it so much more incentivizing. Like you don't have to feel stuck in a certain way of doing things. You can diversify your own business client portfolio. Yes. I love that. I want to go back as we kind of like kind of start closing the conversation. As you went through and you described the type of businesses you run and diversifying the pricing of how you, you know, you said you had equity and they're not doing well, but that's okay because you have other forms of revenue in your diversified portfolio.

39:38You had made a mention that the marketing of your business has gotten a lot more sophisticated. Yes. so can you talk about that sophistication yeah so initially the way that we launched our company was we made content which i'm comfortable doing and we had one product so it's very easy it's like one channel one product one offer so that was pretty easy i would get on youtube and i would say something like hey we're working on a new course the first course i ever authored is called like typography it's what what people are like great teachers about design and that was pretty easy. We had the classic six-figure launch and now that product that sold originally for$79 is now made over a million dollars and it can happen.

40:18So that's a lot of transactions that get to a million dollars. Now we add more products and we add more products. So now it's getting a little bit more complicated. The product mix and then now we have to figure out how do we educate the customers to what the right product is for them. And so it starts to grow and it starts to evolve. And can other people offer products besides myself? So when we bring in a teacher that they don't know, this is where I think the brand and the community is very important because by extension, you say this product is good. I like you. I trust you. So I'll buy this other product.

40:50And if the experience is good, then that trust continues to move forward. And then you have the power to say, oh, this other thing is good and this other thing or this tool that I use is good. That's why I think the brand, the community is so valuable. It's way more valuable than the transactional product that you create. And I always tell people like, well, when we get into debate, it's like, is brand worth anything? Because everybody's so focused on performance marketing, right? Right. So, well, I'll tell you how it's valuable. Your brand's only valuable if you can command a premium over an alternative.

41:24Let me explain. So there's bottles of water and they all come at different price points. So when you can buy Crystal Geyser for like 39 cents a bottle, making up that number, and you can buy, oh, I don't know, Fiji water, which is like 250 a bottle. that's the value of their brand. It's water, friends. And Voss, similar. That's the thing. So if you make a notebook, if you make a handbag, if you make a cap, whatever the difference is between what a commodity price point is and what you're able to charge, that's the value of your brand. And the brand is valuable if you extend it to something else.

41:58So if I make another product that they don't know me for and people are willing to buy that other thing, then I know that the brand has value. so where we're getting into with marketing is now we have a team and we run different marketing funnels or customer journeys that are very sophisticated with follow-up emails abandoned cart things and some targeting although we're not very sophisticated at it we try our best interesting when you had said oh i wish i can have like a fairy godmother or you know okay so pretend i'm your fairy you're latina fairy godmother what does the godmother do like i wave a magic wand and what happens in your business?

42:37And I'm asking this question because I think the future, no pun intended, is we know what we need. And it's like the gap between knowing what we need and where we are is just a bunch of series of tests. But if the fairy godmother were to wave the wand, what does it look like? It looks something like this where I get to focus on doing what I think is my zone of genius, which is to teach and to build community. And then they can take care of all the marketing things, like whether it's about here's the call to action, here's the video sales letter here's the email sequence that we will do for you that then will take all interested parties and bring them gently through this thing that's a very nurturing path so that they become customers so that you can continue to do what you do so you know what needs to get done what then becomes the gap finding the fairy godmother because what you just listed yes I think so yeah we have a problem Jasmine what we do is in the past we've hired people to run ad campaigns for us and they work at a small scale.

43:35As soon as we put more money into it, it just goes upside down. So instead of spending a dollar to acquire a customer and now it's like$12 and it's like at some point it makes no sense whatsoever. My argument with the team is if we're going to spend this much money to buy a customer, why don't we just discount the product and just give the savings to the customer versus just spending money? I know that's not the right mindset, but I was like, this is wrong. One of the problems that we have, and it's a unique problem, it's a have a warm audience. There's lots of trust and there's lots of goodwill.

44:06But when we bring people in, what they do is they try to treat our company and our marketing as if we have no audience at all. Then they create content. Why do we need more content? Oh, we need to generate more emails. We have a hundred thousand people on our email list. So they apply a cookie cutter formula that doesn't work for our audience and for what we do. So are you trying to, because this is, this is like what I literally, it drives my husband crazy. I will talk to people about marketing all day, every day and twice on Sunday. So are you saying that you would like your fairy godmother to cultivate the current warm audience and monetize them in a deeper way instead of trying to go new eyeballs because that journey is much longer and harder?

44:47Yeah, because it's also redundant. So we've literally spent a good portion of last year doing this to the detriment of our company. We're down a million dollars in revenue last year. and I said well we're spending more money there are more bodies at this why is our revenue down? it's the opposite so what they were doing and no fault to them I think it's a pretty traditional safe playbook to play by which is let's create a webinar let's generate all these new emails and then none of them I don't want to say none of them but very few of them converted I said why are we doing this? I don't understand because every day I'm posting content there's people literally commenting and saying and engaging with me why don't you just follow up with them?

45:26Why don't you jump in their DMs or tell me what the call to action is so that you can identify who's interested and then just nurture them along the path. So we switched it around. We let some of the marketing people go. We moved some people around and said, you know what? We need to really focus on warm outreach right now, not cold marketing. That doesn't work right now because we don't need that. Oh, I love this. This is literally old school grassroots. We're going one to one. Yes. Because we have that. And so you and your business are leading the marketing. Like you're the person who made that call.

45:57Yes. Like, ah, got it. Well, because the numbers are undeniable. And they're like, well, Chris, do you think this will work? Well, I know that doesn't work. Right. That's pretty clear. Right. Our overhead is like this. Yes. But our revenue is like this and our profit is even like this. Yes. So I don't care what we're doing. We're not doing that again. Yes. That would be silly for us to do. Right. And if we zoom out and we say, what are we really doing? Here's my breakdown. and I'm sorry if I heard any feelings that people who work for me or have worked for me is like, Chris, you're a jerk. I'm like, send me a DM later, okay?

46:29Here's what was happening. There was a team and they were making content and they were teaching the content and they're running the webinars and then the idea was then to sell them into my coaching program. Okay. Okay? Okay. I said, on paper, that doesn't even make sense. If people show up and you're pitching it and then they go to my program, they're like, what happened? This is a bait and switch. Yes. Conversely, if they're here to sign up for my program and they see you, they're like, well, why are you selling? Because that's a different teaching style. We don't even follow you. So on paper, that makes zero sense to me.

47:00Yes. Okay. What about having that team point them into the digital offerings? That would be great. Yeah. Yeah, but that's not exactly what we were doing. Right. So it's like strategic, right? Like, did you send 10 people to fight 3 ,000? Well, we kind of know that's probably not going to work out well. Those 10 people are going to get slaughtered. Right. So it has to be designed. It has to be thought through. And here's my theory. There are a lot of people out there, I'm not talking about my team, that I think enrolled in a marketing class where if you are given a very specific problem, you can run it through this template and you'll get good results.

47:33There was a time that it existed. I think some people are still coming out of these programs. Oh, 100%. Because they're in my DMs all the time. 100%. Right? And then the problem is, what happens when the client is two degrees different than what the template was designed for. Well, what happens when a flight takes off from New York to LA and is two degrees different? You end up in Japan, honey. That's what's happening. Yeah. Wow. And that's what's happening. And I think what we are seeing is, and this is just purely conjecture based on no evidence, okay? We have a bunch of really smart people who have degrees that they don't know how to find a job.

48:05Right. It's fine. There's a lot of those things. Humanities, right? Okay. And then there are marketers who are going to market you a template. Yes. but you're not really understanding the nature of the business of it the creativity that's involved yes you're not a marketing nerd yes you're not obviously a follower of this podcast right clearly and they're just trying to push something through an assembly line it just doesn't work and that's right we saw this time and time again so sadly like every year i'm like what kind of thing are we going to try that's going to fail but i'm willing to try that's not sad brother that's the game that's the reason why the future wins is because you continually ask yourself what are we going to test and what are we going to learn yeah and those are the innovators that's how you stick out and so i love asking about you looking into the future and being like i see the problem and then mapping to that because people hear it and then they start thinking oh this guy who's at my version of the penultimate success is doing this i better do the same thing And then I understand the way that you think about what you need to do next.

49:07And then people get to see when they get a DM after leaving a comment on one of your YouTube videos asking about cultivating that journey. They say, oh, I see his test. I'm a recipient of the test. And then I get to watch the results. I want to say thank you for sharing that because that's giving us a look on the inside, how the sausage is made. So thank you for that. You are so gifted. You're so brilliant. I look forward to seeing the test. And I look forward to seeing you become your own Latina version of your fairy godmother or find the right person for you. How do people go deeper? Where do you want to send them?

49:44Okay. If you're interested in some of our offerings, go to thefuture.com. The Future is spelled with that an E. It's for tour if you want to F-U-T-U-R. Or you can find me on social media everywhere on every channel, I think, at the Cristo. And that's spelled D-O. At the Cristo. So ladies and gentlemen, you just experienced a sliver of what this man does in Believe. And he said it from his own mouth. He gives 100 % of his best stuff. So why don't you go take a look at it, see what it's like to understand what it is to build a brand, have pricing, strategy, pitches, the whole nine. The future and at The Cristo.

50:25Thank you for being here. Thanks for having me. You're freaking brilliant and it is such an honor. For those of you who are listening, if you have a key takeaway, be sure to capture it on a story. Tag at the Chris Doe and myself, Jasmine Star. We want to see what you're doing and how you're taking this actual practical advice to market and grow your business. Like always, it is an honor and a privilege to host the Jasmine Star Show. If you would like to get a sneak peek of a conversation that happened after the cameras were turned off and some of them were actually going, I didn't ask a great follow-up question that our videographer had asked, which was which pricing model did you use when you first started?

50:59Because what we hear is pricing models one through five. And then we wonder where do we fit in the spectrum? If you want to know Chris's answer, if you could leave a review at the Jasmine star show, screenshot the review, we're going to send you a sneak peek video to go through Chris, just be in hot knowledge coming in hot, leave a review. They make a big difference. Again, thank you for listening to Jasmine star show.

From the publisher

Real talk: Do you ever feel like you’re climbing “Cringe Mountain”?

You know, that overwhelming sensation when you’re pushing past your comfort zone, showing up online, and suddenly, it feels like you're under a microscope, with every move scrutinized?

If you’re nodding your head in agreement, lean in and hear this… GOOOOOD. This means you’re almost to the peak of the mountain. And lemme tell you, honey, that slope down is much kinder than the ride up. How do I know? I’ve been there. We all have…

In fact, in this episode, Chris Do, Personal Branding and Business Coach (and very successful entrepreneur), shares his experiences with his climb.

You’ll also hear strategies for tolerance for standing the discomfort in content creation, building community to grow your business, and the four different pricing models.

Click play to hear all of this and…

(00:02:52) An inside look at Chris’s company and how he serves creative entrepreneurs.

(00:04:39) The role free content plays on social media for building an audience and attracting potential customers.

(00:06:08) The different levels and variations of offers.

(00:10:57) The impact of hiring a coach and implementing effective sales processes on business growth.

(00:16:56) The value of brand and community OVER product and revenue.

(00:17:06) How anyone can overcome self-doubt and lack of confidence in content creation (just like Chris did!).

(00:22:19) An inside look at the marketing structure for Chris's new business.

(00:23:56) Chris's approach to creating and sharing free content, and the impact on sales of educational products.

(00:27:40) The four different pricing models and when to use each one.

(00:37:22) Why you should diversify your pricing for your offers.

(00:42:26) The importance of cultivating a warm audience for business growth.

For full show notes, visit

https://jasminestar.com/podcast/episode448

Access the Free Value-Based Pricing Mini Training:

As promised in this episode: I’m giving you a mini-training for FREE when you rate and review on The Jasmine Star Show. Your very FIRST step to determining your offer’s TRUE worth and communicating it with confidence is to click >>HERE<<!

You know that feeling when you find a platform that just works—and you never have to worry about switching? That’s been me and Showit for the past 10+ years.

I built my website with Showit because it gives me total design freedom.

If you’re ready to build a website that works FOR you—and not against you—head to JasmineStar.com/showit for a 14-day free trial + first month free when you subscribe!

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