Sent by Jonathan Stark on October 17th, 2018
People send me messages like this all the time:
“I love the idea of value pricing, but I build LMNs and it’s impossible to sell LMNs based on value.”
And then I’ll ask something like:
“What does an LMN do for your clients?”
And the person will say something like:
“They drastically increase customer retention.”
And then I’ll say:
“Stop trying to sell LMNs. Sell ’drastically increased customer retention’ to people for whom lost customers are exceptionally costly. You probably don’t even need to mention LMNs in your marketing.”
What does LMN stand for?
Nothing. I made it up. It doesn’t matter. You can’t value price APIs or DSLs or PWAs or CGIs or RWDs whatever your TLA tool of choice happens to be any more easily than you could sell an LMN.
Because these are all tools. And tools aren’t business outcomes. A tool may help you reach a business outcome, but the tool itself has no value to a client.
Sell the business outcome that you can provide, not your skill with some tool.