- Mindset shift. Clients → Customers
Mindset shift. Clients → Customers
The art of trading vs. selling your time
I came across this tweet from Alex Hormozi this morning and wanted to share some thoughts around it that I think can help you launch into the week with some momentum.
Everyone trades their time for money. You just don’t want to sell your time for money.
— Alex Hormozi (@AlexHormozi)
Apr 10, 2023
This is something I have been thinking a lot about and connects nicely with my philosophy of creating a business of customers and not clients.
The idea is simple.
Clients pay for your time.
Customers pay for your result/product.
Allow me to explain why this change is crucial and how it can impact your business:
Clients purchase your time, which often leads to working long hours and feeling overwhelmed with an endless treadmill of custom projects.
Customers, on the other hand, buy your products. By productizing your services, you can escape the burnout, income limitations, and scope creep that plague businesses reliant on clients.
To illustrate the power of this mindset shift, let's dive deeper into the key strategies that propelled The Hoth's meteoric rise under the leadership of my good friend, CMO Clayton Johnson:
Value-based pricing: Traditional time-based pricing can limit your income and undervalue your expertise. By focusing on the value your services provide, you can charge a premium and attract customers who appreciate your worth. Additionally, value-based pricing allows you to forecast revenue more accurately, leading to better business decisions. Alex Boyd of RevenueZen also approaches this in a great way.
Streamlined service delivery: Offering clear, well-defined productized services eliminates confusion and streamlines the buying process for customers. When customers know what to expect, it builds trust and fosters long-term relationships. This clarity also helps your team stay focused, efficient, and consistent in delivering high-quality services over and over again.
Building valuable assets: When you create systems, processes, and intellectual property that increase your business's value, you're investing in a brighter future. These assets not only make your business more attractive to investors but also contribute to long-term, sustainable growth.
You may be “trading your time” for money but it is an investment into your business asset. “Selling your time” for money is the direct opposite.
Trade your time for customers. Never sell your time to clients.
Embracing a customer-centric approach and implementing these strategies can lead to exponential business growth, as evidenced by The Hoth's journey from $100k to $3MM+ in monthly revenue and then an exit this last year.
Some other examples of how others are selling results/outcomes:
By focusing on customers rather than clients, you can create a scalable, thriving business that appreciates in value and becomes a prime acquisition target.
Hope this helps you kick the week off on the right foot.
Let’s keep building!