Three-tier Leveraged Renenue Model for Coaching

This question came in from one of our readers. If you have a small business question that you'd like for me to answer, let me know.

Q: "How do I go about creating product and service packages for my website?"

A: When you think about what products and services you are going to offer and how you're going to package them, consider this business model: 3-tier leveraged revenue.

Here's how it works:

1. Design your high-end product or service first. Then work backwards from there.

2. Have the rest of your products and services funnel into your high-end product or service.

3. Create three tiers:

•    Low: something in the $97 or below range.
•    Middle: something in the $197-497 range.
•    High: something in the $500-997 range.

First, outline your high-end product or service. This is the one that folks probably won't buy now, although they will be ready to purchase it later on, after they get to know you and have tried out your other products and services. Don't go into too much detail planning it all out. Just outline it. From an energetic standpoint, writing down and seeing what this product or service looks like will begin attracting it to you.

Then develop your first and second tier services to flow into your third tier service.

Coaching Product example:

1. Your first tier may be a home-study course that includes a CD, checklist, assessment, and book for $97.

2. Your second tier could be a group coaching program or online teleseminar. The key here is that it is structured, at a specific time, for a limited period, and geared toward getting a specific result. A three-month program that has regular group calls, downloadable stuff, and 20-pages of documentation per week could easily be priced at $297.

3. A high-end offering would be a platinum program focused on your signature offering, extended over a longer period of time. It could include one-on-one coaching with you each month, monthly group mastermind calls, monthly expert interview calls, and one or two live, in-person events, all for between $500-900 per month.

If you have a small business question that you'd like for me to answer, let me know.

Susan L. Reid
The original Accidental Pren-her™
Award-winning author of Discovering Your Inner Samurai: The Entrepreneurial Woman's Journey to Business Success