Do you know what your client is really worth to you?
What do we mean by that? Let me explain.
Do you have clients that provide you once off revenue/ yearly revenue or monthly revenue? Why do we ask? It’s because there is a very big difference in the value of them over a 12 month period that’s why.
Take for example a tax accountant that just does your end of year tax versus a bookkeeper that does the books on a monthly basis (note that any tax accountant that doesn’t have a bookkeeper on the payroll or doesn’t do it themselves have rocks in they heads based on the below).
Let’s just say that the tax accountant that does your yearly tax and makes $500 profit. Let’s also say that the bookkeeper that does your books charges their time out for $500 per month. Thats pretty cheap for a good quality bookkeeper.
Now most of you right now will have worked out that the bookkeeper will make more money but how much more?
The tax accountant gets $500 per client per year but the bookkeeper gets $500 per client per month or, $6,000 per year. That’s a significant difference but it doesn’t end there.
Imagine also that the tax accountant finds 100 new clients to make $50,000 per year to make it worth their while to open up shop, do you know what the bookkeeper gets? Well given that each client is worth $6,000 per year 100 clients * $6,000 per year = $600,000. Not a bad business to be in hey. Better than $50,000 per year?
Monthly recurring revenue is extremely powerful in fact broken down to weekly it is even more valuable as it seems less. Imagine saying that your bookkeeper costs you $150 per week? That’s a very affordable proposition.
Is it any wonder the accountants in the room that are successful are already engaged in a monthly basis.
Worth a thought next time you start thinking about the TRUE value if your client. Maybe it also might be time to reevaluate your current pricing structure…..