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Full Show Transcript:
[00:00:46] Hi there and welcome back to the show. This is episode number 316 and we are diving into a topic today that I know that many of you have had on your mind. You actually hunt us down for the answer to this question. So the question that we’re answering today is how do you actually price your training or your program or your curriculum or your content to license it To other companies, what do you charge for that?
[00:01:13] Where does it even start? And in this episode, I’m going to introduce you to the strategy of pricing. You are here because you’re probably a coach or a consultant or a subject matter expert, and you’re certainly in the right place. As you know, my name is April Beach and me and my team work with subject matter experts, coaches, and consultants to help you license your material and give you all the steps.
[00:01:37] Even down to the pricing calculators of releasing your content, expanding your reach and increasing your profit through licensing. And so you’re here because you’re good at what you do. Let’s just frankly talk about that first. The fact that you are even in a place where your work. Has made a significant impact on a B2C side, whether it’s in programs that you’ve delivered directly or workshops or consulting you’ve already done.
[00:02:04] And now you want to release it into the hands of other companies and possibly even other companies are coming to you asking you for your content. So congratulations on being absolutely top notch at what you do and having proven systems, methodologies that other people want, and frankly, not everybody is there.
[00:02:26] So licensing is an advanced move. You can tap into all of our resources we have here for you. And if you haven’t yet, the best place for you to start and to get more information so that you can license your program successfully Is by visiting licensing launchpad. com. It’s a short little mini masterclass.
[00:02:47] You can go over there and I’m going to unpack for you how to get started with licensing, even what the top 10 industries are looking for. It’s a great starter place for you. If you are ready to go in licensing. You can always shoot us a message by visiting suite life coat. com, and we will partner with you and help you to be successful at that.
[00:03:06] So this episode, number 316, we are answering the question of how, how do you even prices? And I’m going to actually break out the steps and the questions that you need to answer before you are able to. Price your licensing offer and training, and then I’m actually going to break out the two different ways to actually price your program so you can consider which one is best for you.
[00:03:28] So if that’s what you’re looking for, stick with me here. We’re going to dive into all the things here in this episode. Okay, a little bit of a foundation. Uh, if you have never heard about licensing before, please go back into our podcast resources, and I have many trainings. You can even visit our YouTube channel, where I have trainings about licensing, how to get started with licensing, what is licensing, and we have so many resources available to you.
[00:03:53] But let’s talk about what is the definition of licensing. You’re probably actually familiar with licensing. Licensing songs, licensing art, licensing. Images for your marketing, uh, licensing brands. So for example, let’s talk about the, the biggest brand that everybody knows, Mickey Mouse, right? So your child may have a Mickey Mouse backpack that Jansport licensed permission to put Mickey Mouse on a Jansport backpack, but who owns Mickey Mouse?
[00:04:21] Disney Corporation, right? That is an example of licensing. By the way, that is not the type of licensing coach I am. That is not why you’re here. I know that. We’re talking about something different. We’re talking about a secret scale strategy through licensing, and this secret is why people come and seek us out, and why businesses are All over the world work with us to learn, to license their materials.
[00:04:45] And that is licensing your content, licensing, your trainings, licensing, your system, your thought process, your framework, your courses. That’s the kind of licensing you and I are talking about here. And I can’t wait to dive into this with you and at least start to skim the surface of this first. burning question that I already know that you want to know the answer to immediately.
[00:05:10] So in order to answer the question of how do you actually price your curriculum for licensing, first, there are some things, some very important things that you need to know. And some of these are common sense, let’s just be honest, but my job is to make sure that I’m filling in all the holes for you so you don’t do this wrong in the most I can do here for you on this free podcast, obviously giving away free information and, uh, it’s, it’s very valuable what we’re talking about here today.
[00:05:42] So the first thing is you need to be able to identify your operational costs for licensing this. This is back to a lot of business 101. But frankly, you would be shocked at how many coaches and consultants out there don’t know their numbers. So the first thing you need to do is you need to understand your operational overhead of how much it’s gonna cost you in hard costs.
[00:06:10] We’re not talking about your sweat equity here. Yeah, we’re talking hard cost of how much money your company is going to have to spend to maintain the release of your content into licensing. And here are some different areas that can control your costs. So where, first of all, is the training content going to live?
[00:06:35] Does that training content live in your LMS or is that when you release your content to another company or another entrepreneur, you know, whatever that is? Who houses the content? There are hard costs with software. They’re hard operational costs with that. You need to know your company costs. Another example of this is is teams.
[00:06:56] So are you’re in part of the release of your content to another organization or corporation or even another entrepreneur, whoever you plan to release your content to, which is Totally a different strategy. We can’t even get into today. The question is, is how much time is it going to take you and your team to actually facilitate that release?
[00:07:19] Well, And will you or your team be required to provide ongoing operational support? So those are two really two of quite a few different numbers, but those are two really hard numbers that you can’t change. And if you’re trying to price your program for licensing and you don’t know those numbers, the very first thing you should be doing is going back to the organization or the potential licensee that you’re talking to and Getting the answers to those questions.
[00:07:51] Where does the content live? Who is managing the, the, the it and the customer service and the onboarding of this, you need to know the expectations of you and your team so that you can understand the hard numbers. We aren’t even talking about profit. We aren’t even talking about the value of the actual program yet.
[00:08:10] Step number one, there are some hardcore numbers that you need to know and before you can price any sort of licensing program for release, you need to know them. Other factors that will come into your pricing are legal costs and making sure that you have a correct licensing contract. By the way, we give all of our clients our licensing contracts template and we help our clients to actually customize that and then they can take it over to an attorney for legal advice.
[00:08:35] So those are some shortcuts that our company can provide to you. But they’re very important costs, and you don’t ever want to cut legal corners in the process of licensing your intellectual property. So just make sure that you know what your costs are and that you can anticipate those costs before you give an organization a price for your program.
[00:08:57] Now, there are other factors, and I want to break these apart for you. So what is the ROI of what you deliver? First of all, there’s two Basic forms of ROI that your content can deliver and that your content can deliver both. First of all, your content can deliver an actual tangible training benefit of some kind.
[00:09:21] So you’re up leveling a skill, you’re up leveling, uh, the way, the way. People do things, you’re teaching a method or a process or you’re giving a system. You’re actually leveling up information. You’re feeding people or you’re feeding a company, a wonderful, amazing systems and processes that level up their knowledge, their implementation, their information, their content, their training, their skills.
[00:09:44] That’s one side. And then, and I’m going to do a whole nother podcast for you guys on this. Cause I get questions about this all the time. The other side is your program can. also benefit lifestyle. So your program may have a training benefit, generally speaking, or it may also have a lifestyle benefit.
[00:10:01] This is really important to understand. One technically is not more valuable than the other. So if you, for example, have a program that teaches people how to increase sales, teaches sales teams in an organization, the exact thing to say, and it gives a sales process. That fits in an actual skill upgrade.
[00:10:23] If your program is helping to increase wellness and mindfulness and lifestyle, that is a lifestyle benefit in both are as important, but you need to do the work and find out the ROI. Every single thing has a number. Okay, not talking about sales numbers. Every single solution has a correlated number that it can relate to that affects the bottom line of every single company or the bottom line of every single individual.
[00:11:01] It and when I’m talking about bottom line, it’s not always dollars in increase in bottom line could be more time. It could be, uh, saving frustration. It could be helping parents communicate with teenagers. It could be preparing for a baby, or it could be equity, diversity and inclusion and understanding how to level up an organization with your training.
[00:11:23] You know, there’s so many different parts of what you do, and it benefits in two different categories, either a training category or a lifestyle benefit category. Pretty generalized here just for the sake of this podcast. But step number one, know your operational expenses. Step number two, be able, you have to be able to articulate the ROI that your program actually delivers.
[00:11:44] And you need to find the numbers, the percentages, the statistics out there that relate to the solution you provide. And then step number three is to actually price the program itself. And I told you that I would give you our two main pricing formulas here on this show. And here is my promise delivered.
[00:12:01] There are two ways to price your program for licensing. Number one is bulk pricing, and number two is what we call Amplify ROI pricing. And that one particularly is named after our Amplify licensing accelerator and program. Now, let me explain to you the difference of these. Bulk pricing is pretty general, exactly what you’re thinking.
[00:12:25] You are going to reduce the cost based on the number of seats in a program. So if you are selling at retail, let’s say your program’s 1, 000 retail per person. If an organization wants to buy 1, 000 seats to 1, 000 a program, how much are you willing to reduce that cost for that organization without undervaluing the transformation that you deliver?
[00:12:48] So bulk pricing. Pretty straightforward. You know, I don’t ever want you guys winging anything with pricing because there are many other things that come into a factor with pricing. But for the sake of this podcast, most of you guys are probably thinking, Oh, well, do I just bolt price it? Those are, those are the questions I get when we connect with new businesses.
[00:13:08] Uh, it’s usually, do I bolt price it? And the answer is yes, you can absolutely do that. They’re. Tons of other factors, including value and operational expenses and ROI. And are you collecting royalties? Uh, and all the other things that you could add into that, like your consulting time and workshops you may teach, or maybe you’re doing a keynote.
[00:13:29] There are so many other things that factor in that, but pricing structure, number one is bulk pricing. We do have a bulk pricing calculator that we give to all of our clients. If that’s something that you would like to access. And then the other side of it, this one is a bit more complicated. It’s actually my favorite, and the reason why it’s my favorite is because when you present this pricing structure to a potential licensee for your program, there’s nothing that they can ever say to you to say, this price is wrong or this price is too much.
[00:14:03] There’s nothing that they’re ever going to be able to do based on how we use this Amplify ROI pricing calculator. And here is what it is at a high level. You price your program based on the ROI. Whether, remember a minute ago we talked about whether it’s a training ROI or a lifestyle ROI, and it doesn’t necessarily always equal hard numbers, you price your program based on the ROI that you reasonably believe that your program can deliver.
[00:14:39] And the coolest part about this, you guys, it’s, I’m going to geek out on numbers now, which this is the only area of business that I actually geek out on numbers. Let’s be real. Um, and, uh, you know, not a huge numbers fan here until it comes to something like licensing and pricing and, and profit. But the reason why this is so cool is because you can actually customize the ROI based on every single company’s specific use case.
[00:15:11] So you can say this number of, you have this number of people in your organization that are affected by this problem. And based on your organization’s numbers, very specifically, we are going to charge you this because we reasonably believe we can create change for your organization based on your Own numbers in what’s so cool about this amplify pricing calculator in when you just generally speaking, when you are able to articulate what your program delivers and then be able to say, and here you go, this is your organization, or this is your small business, or this is your corporation, or this is your university.
[00:16:00] And here, here’s what is being affected in your sphere and with based on your numbers, you literally take the potential licensees own numbers, whether it’s numbers based on people or numbers based on the statistics or numbers based on sales or numbers based on attrition, whatever that is that that organization is struggling with and the, your program obviously affects and solves and we can literally take the organization’s own numbers and show them back to them.
[00:16:29] And it’s such a cool thing in being able to have the power to sit across the virtual, which is really what it is now table from an organization and saying, I see where you guys are struggling here. I want to be able to partner with you. I want to bring this solution that we know is proven. We know it’s transformational, which we have to know that little little prerequisite here.
[00:16:51] If your program and your content isn’t transformational yet, we need to level that up. And sit across from them and say, here you go. Based on your numbers. This is what we have and we want to create this change for you. And we want to, we want to help you do this. That is the Amplify ROI pricing formula.
[00:17:11] And so let’s kind of recap what we talked about here today. We talked about how to price your program for licensing. No joke. You guys, this is the number one thing that I get people reaching out to me on LinkedIn and Instagram and sending us messages saying, I’ve been approached by a company and they, you know, I need you to help me price this very, very fast.
[00:17:32] Within our own client private ecosystem, we do help with those type of emergency wonderful opportunities. But here on the podcast, let’s be real. I can’t I can’t give you the exact answers to that. And I would be doing you a disservice if I did. I haven’t even heard your voice yet. So I’m giving you as much as I can to really equip you to move in the right direction to start thinking strategically about licensing so that You don’t shoot yourself in the foot so that you don’t undersell yourself.
[00:18:00] Um, and let me tell you a quick case study of a client of ours because I want you to feel this way as well. She came to us and she was teaching a 6, 000 workshop to an organization. She had amazing systems and processes and materials and she’d been a consultant to corporations for a really, really long time.
[00:18:19] And based on her content, we were able to repackage it. And represent her program out using a combination of the bulk calculator and the amplify pricing calculator. And she was able to turn around and license this program for 298, 000. And she said to me, she’s like, I never would have ever asked for that much.
[00:18:44] And so that might be what you’re thinking. You know, when we talk to clients with licensing, sometimes there’s. A big mindset block in this where you’re thinking, how can I go from selling something that might have been, you know, even like a 10, 000 strategy or a 1, 000 course or shoot, even if it’s a 9 course for heaven’s sakes, how can I go from that?
[00:19:10] To licensing it to an organization and asking them for 100, 000 or a million dollars for it. And the answer to that is understanding number one, the measurable value of your work. Number two, the tangible transformation for the end user, for the licensee and the end user. So let’s, wow, I should do a whole nother podcast episode for you guys on this, but there’s a difference between your licensee and your end user, right?
[00:19:39] When we’re moving into a licensing business model, and you’re, you’re leveling up in this B2B landscape, your end user is, is not the one you’re selling to. It’s different. The licensee is different than the end user. But that’s step number two, is being able to communicate the tangible, predictable, measurable results for the licensee.
[00:20:01] Not even just the end user for the licensee the company that’s actually licensing your content from you and then being able to sit in front Of them showing them their own numbers and confidently and reasonably pricing based on research based Pricing methodologies in once you have this if you in any way struggle with mindset.
[00:20:23] I can’t charge this much. How on earth am I going to charge as much blah, blah, blah, blah, blah. Then understanding the process of going through in pricing, your IP pricing, your trainings and your programs and adjusting that price accordingly to each one of your licensees. It’s just going to wipe out. Any of the guesswork that you’ve ever had, and you’re going to be able to confidently stand on your work, on your genius, on your intellectual property, knowing without a shadow of a doubt that you are going to deliver the predicted results that the program says that it will deliver in a reasonable, ethical pricing manner.
[00:20:57] And guess what? When you’re done with that pricing, you may look at those numbers and say, that’s a half a million dollars. But you’re going to feel so good because you know, just like my client knew when we went from 6, 000 to 298, 000, she knew that we’d done the work. She saw the formula on paper. She knew the ROI because she’d done the work to unpack the process of Pricing and there was never a question and guess what happened when she went, she was so nervous to go back to this organization and say, yes, you know, here you go.
[00:21:29] Here’s a proposal. It’s 298, 000. The guy looked at her and he goes, you know, across from zoom, you looked at her and he goes, Oh yeah. Okay. Yeah. That sounds great. Okay. Well I’ll get back to you later on today. This looks great. I mean, she probably could have charged even a lot more than she did. And her mind was blown about the value that she provided.
[00:21:49] And I mean, at the end of the day, that’s what we’re all here to do, right? I’m here creating this podcast episode for you to, to create value. And to pour into you and to help create a change in your thinking and your business so that you can move on to do the work that you’re really called to do. You’re here to learn how to price it so you can create value and pour in to the people that you’re supposed to serve and expand your reach.
[00:22:17] But both of us, you and me, we truly deserve to be compensated from the years and the blood, sweat, and tears and the research and the experience that we’ve gathered in order to do what we both do. You deserve to be compensated for your work. I deserve to be compensated for my work. We’ve worked hard to earn that.
[00:22:39] But in the same thing, we always lead with providing value. And when was my last thing I’ll say to you here in this episode, when you lead with always serving first, no one will ever question pouring into the value that you request. Never. They’re never going to question that because they truly believe that you have their best interest in mind because you actually do.
[00:23:06] That’s the difference maker. And you can actually take this pricing lesson in this strategy and apply it to everything that you’re doing, whether you’re pricing a course or a mastermind or a retreat or anything else as well. That’s how we price these programs and that’s how you’re going to be successful.
[00:23:24] I hope and know that you found value in this. I appreciate you being here again. My name is April Beach. We work with subject matter experts, coaches, and consultants to build million dollar offer ecosystems and help you license your IP. and expand your reach to build your business and your life to the next level.
[00:23:45] So if that’s the strategy that you need and you are looking for, here are two different resources that I will provide for you to get started. The first one is just go over to our website at sweetlifeco. com. Again, that’s sweet life. Co. com. You can find an application to apply to work with us or be in any of our programs, our licensing accelerator, any of our workshops at any time, or you can dive right into our very first kickoff training.
[00:24:13] It’s called licensing launch pad, and it’s an awesome little micro training that takes you through even deciding who you want to sell it to. And I even break down what industries are buying from you. And that program can be accessed by visiting licensinglaunchpad. com. Again that’s licensinglaunchpad.
[00:24:34] com. And if you found value in this episode, please share it with your friends. We are just going on year number seven of producing this podcast and I refuse advertisers. Because I think they’re very annoying and they, and they break our thought process. So because of that, we really appreciate you just clicking the up arrow and sharing this show on LinkedIn or on Instagram and just helping us expand the reach of our work.
[00:25:00] Thank you so much for listening and I will talk to you guys soon.