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Hey Reader, Pricing is one of the single biggest levers in your creator business. Too many people just make a guess and run with it. I've used pricing to double revenue on several different launches—and I'd love for you to do the same. Here are 6 of the tips I think create the most leverage for creators: 1. Give them a number to compare againstThe first number someone looks at will set an anchor. Meaning every number after that will be seen in comparison to the first number they saw. If the first number they see is your $499 program, that’s the anchor. Whether that number is perceived as high or low is entirely subjective to that person. But if they first see a story on your sales page that describes the cost of not solving their problem as being over $10,000, the cost of your program will be seen as low relative to that number. They say "the best place to sell a $2,000 watch is next to a $20,000 watch" because price anchoring matters so much (I saw this in practice at Harrods in London). The number you show doesn’t have to be the price of another product (although it can be). It can simply be the cost of not solving their problem. Or the price of hiring a consultant. What you want to avoid is the first number anyone sees being your price. Your buyer is going to compare the price of your product to something no matter what you do. You may as well choose what that is. 2. Offer three pricing tiersIf you only use a single price, you’re leaving money on the table. There are people who would pay you more, but having only one option doesn’t capture that extra value. Three tiers is the sweet spot. Studies show that more options isn’t always better. If you have too many options, people end up feeling overwhelmed and don’t buy. But having three tiers instead of one will increase profit dramatically. Even if a smaller number of people choose your higher tier, often it will make up the bulk of your revenue. Rather than split your existing offer into smaller tiers, I recommend setting your main product as the base tier and adding higher options above it. Ask yourself what people need to do after they buy your product. How could you make that easier for them? How could you do that work for them? The answer becomes your higher tiers. Add a concierge option or include access to you. Find ways to add value. 3. Let your plan names do the sellingSometimes the names of your plans can hold you back. Patrick McKenzie, who has written more about software pricing than just about anyone, told a story from early in his career. His team needed a tool, and the $9 a month “Hobbyist” plan had everything they needed, so he asked his manager to approve it. “F*** if I’m going to show my boss any paper that has ‘Hobbyist’ written on it,” his boss said and grabbed a pen to cross the word out and write in “Enterprise”. Then, he changed $9 a month to $500 a month and handed it back to Patrick for his sign off on the changes. They only needed the $9 plan, but his boss was willing to pay $491 a month extra just to avoid two seconds of social awkwardness with his boss. A good name lets someone choose easily without having to read a feature table. “Basic” and “Plus” make them do that work. “Freelancer” and “Agency” tell them which one they are. 4. Aim for a 30% close rateWhen it comes to sales calls, people often brag about their close rate. 50%. 70%. 80%. They feel proud because they’re closing lots of deals and see it as a sign that their pitch is dialed in. But Layla Pomper, who was a guest on my podcast this summer, makes the opposite case: Closing more than half of your calls means your price is too low. Her target is around one in five. She says the other four who don’t convert aren’t a total loss either. Often, they’ll work with you later or send people your way who can. A high close rate usually means there's room to raise your price or get more leads in the door. 5. Double your pricesSpeaking of increasing prices, this one may not apply to everyone, but it applies to more people than not. Most creators I talk to are charging too little. There are a lot of reasons for this that we could get into, but a simple method is to try doubling your prices. That sounds scary, but let’s think about the math for a moment: If you double your prices and don’t lose half your customers, you come out ahead. You’re making more money while managing less support and delivery. It’s a handy shortcut for charging in line with the value you offer. In a lot of cases I’ve seen, it’s the right move. Chris Donnelly, another guest on the show, raised his consulting rate from $750 an hour to $2,000 an hour because he had too many requests. Even after more than doubling prices, there was still more demand than he could handle. 6. Make them feel like they got a dealYour customer or client should always walk away feeling like they got more than they paid for. That’s why it’s a good idea to find ways to leave some value on the table. When people feel like they got a good deal, it leads to them recommending you to a friend. If you have existing customers, be sure to reward their loyalty. If you’ve added a significant amount of value to your product and haven’t updated prices in years, go ahead and update them to reflect the value but consider delaying the increase for your existing customers. Most creators I’ve talked to are undercharging, and it’s why a lot of what I’ve shared so far has been on the topic of charging more. But make sure when you do that you always consider the customer experience and find ways to reward loyalty. – I hope you found some of these helpful! PODCAST$100M YouTube Lawyer Reveals How to Protect Your Channel in 2026What does it take to turn a YouTube channel into a valuable, sellable business? Tyler Chou spent 20 years as an entertainment attorney at Disney, Skydance, and BuzzFeed, and now represents some of YouTube’s biggest channels. At any moment a platform can change the rules or cut off an audience you spent years building. Tyler explains what investors look for beyond views. Here’s what we dig into:
Watch or listen to episode » ARTICLESurviving 35 Days Solo on Alone UKTom Williams spent 35 days alone in the Canadian wilderness and won the UK version of the TV show Alone. With no phone and nobody around, the only dopamine he could get came from catching food. He says each cast of his fishing line felt like a spin of the roulette wheel. He writes about what a month of that did to his health and how happy he felt by the end of it. He also makes a case for why you shouldn’t try to skip to the top of Maslow’s hierarchy. SURVEYContent Creator Survey QuestionnaireWe’re curious what running a creator business actually looks like right now, so we put together a quick survey. It takes about 3 minutes and it’s mostly multiple choice, so you don’t have to write a bunch out. We’ll compile the insights into a report that we’re publishing for creators in a month or two. Thanks for taking a few minutes on this if you do. —Nathan P.S. Had a great time flying up to McCall for a pickleball tournament, where the boys took gold in the 4.5 division and silver in 3.5. We were home by 2pm. The approach in over the lake and town is really special. |
I'm a designer who turned into a writer who turned into a startup CEO. My mission is to help creators earn a living. Subscribe for essays on building an audience and earning a living as a creator.
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