Have you ever wanted to know how to keep clients around longer? How to make sure that you have consistent income and you’re not always chasing around after new clients?
In this episode, I am breaking down the 3 reasons to implement 3- and 6-month contracts in your business. I’m also giving you my ninja trick for getting clients to commit to those contracts, even when they’re just meeting you!
These are the things that people aren’t talking about, but that you absolutely need to know. And guess what? I happen to LOVE talking about 3- and 6-month contacts. And by the end of this episode, you will too! Because you will have the tools you need to start retaining more clients, increasing your revenue, and securing your future.
- How to get recurring clients
- How to raise your rates every 3 months without having uncomfortable conversations
- The important role that contracts play in increasing your revenue
- How 3- and 6-month contracts can benefit your marketing
- Why you should choose 3 and 6 months rather than 12
- The trick for getting new clients to commit to contracts
- How to scale your business with simplicity
Now that you’re ready to let go of any stigmas you’ve been holding on to about introducing contracts or raising prices, you can scale your business and soar to heights you weren’t even letting yourself dream about!
If you are interested in hearing more about my tips and tricks for scaling your service-based business, head on over to www.servescalesoar.com/10k and check out my free training: How to Scale to Consistent $10,000 Months Without Hiring a Team.
Don’t forget to sign up for my free training >> How to Scale to Consistent 10K Months Without Hiring a Team
Brandi: Have you ever wanted to know how to keep clients around longer and how to also make sure as a service provider that you have consistent income coming in and you're not always chasing around new clients? Well, if you've ever question those clients or you want to know how to get better systems in place to run your business more effectively, then this is the episode for you. Because in this episode, I am breaking down the three reasons why you want to implement three and six month contracts in your business. And I'm giving you my ninja trick for getting clients to commit to three and six month contract when they're just meeting you. So let's jump on it.
Welcome to the Serve Scale Soar podcast. The podcast dedicated to helping service based entrepreneurs scale their online business to five figure months so they can soar into six figure years. Your host Brandi is a wife mom. And in less than one year. Created a six figure business. And now she is spilling all her secrets. So you can to.
Brandi: Hey, hey, hey. Serve Scale Soar family. Oh, my gosh. I am so excited job because I love talking about three and six month contracts.
Brandi: I know that may sound a little crazy. It may be my law school background. It may be just because I love keeping clients on for a long time. And I like to know what my income looks like before it actually comes in. I'm big on planning ahead and my finances and always know what's coming up, what revenue we will have coming in, what revenue we may not have coming in. And so that is why this episode is so important, because these are the things that people aren't talking about. But you need to know, like you may hear someone say you need a three or six month contract, but they're not telling you the reason behind. And sometimes it's really hard for us to grasp a concept when we don't know why we're doing something. So I am telling you today the three reasons why you want to have those three and six month contracts, and I'm giving you my ninja trick at the end for how to get clients to commit to that when you're just getting started with them. But before we dove into that, I first want to spotlight one of our listeners who left a five star review. And this is from I love olives. Wow. System is step by step. The Serve Scale Soar step by step system works for my brain. That's overwhelmed. I love it because I can take my previous skill set and scale to replacing my current income and soaring into my goals. The community is encouraging and has the results. I can't tell you how much this works. Well, thank you. I love olives. Hi. Love your review. And I love that you love the fact that it's a step by step system because I'm all about providing the step by steps. And in today's episode, that's no different as I take you through the three steps and three reasons why you need to actually have three and six month contracts in your business. So let's go on and talk about this.
Brandi: So we may or may not have heard that you should have contracts and you 100 percent need a contract. All of you should have contracts. This is something you've heard me talk about on the podcast. This is something that I'm super passionate about. And some people may tell you that we need contracts for the legal standpoint. And yes, there is that. However, I believe a contract is more when we have a contract. It's more about the social contract that's in place that says that when we sign our name to something, when our client signs our name to that, this is the binding law. This is the rules that we're going to follow. This is how our relationship is going to go. And so that's why it's so important to have those boundaries in there. Like how often your response time, what it looks like if there's a failed payment and we stick to those because this is our binding contract that we have that sets the tone of our relationship and how we're gonna work. So when you don't have one of those contracts, it's not necessarily about the legal standpoint, but it is about, well, when they don't pay their payment, they're always late.
Brandi: Like, what is that look like? What are the things that you can do to rectify that? And if you are on a contract, you don't really have any room to do anything because what did you agree on, you never agreed on anything because there's no contract. And so it's so important that we are creating these boundaries with our clients and that those are outlined in the contract. So I want to jump in why I really think that having a three and six month contract is so important. And the first reason is for retention, revenue and security. And so I put these three together because retention, we want to keep our clients on as long as possible. We're not in the business of moving from client to client month to month because that can be exhausting. The onboarding process is always the longest process. Getting that groove, that vibe with a client is always the most time consuming. Once you get in a groove with the client, you know them, you know their business. Things usually go a lot smoother. So and I know some of you are my funnel builders, my web designers. And you may do a lot of one off projects, but how can you turn that in to reoccurring? And that's a whole another podcasts episode for another day. But that's a big thing with the three and six month contracts. It guarantees that you have time to work with these people to get results, to show them how valuable you are to the team.
Brandi: You really can't do a lot of that in, you know, 30 days. It takes time. So that's one of the reasons I love it, is for you to know that you have consistent revenue for three to six months with this person. Also for the retention aspect of it. And because it gives you that security, we all want to know that our business is stable and no, not everything is always one percent. We saw that with Corona that, you know, clients wanted out of their contract. I heard this. And, you know, you make that judgment call. Do you really hold them to their contract when their business is failing? Do you not? And it was a tough call. But when we have a contract, for the most part, things like that aren't going to come up. And we have that sense of security in our business. And I think that when we have that sense of security, it helps us be better business owners, better parents. It just calms a lot of overwhelming worry that we may have. So that is the first thing is it's for the retention, the revenue, the security aspect that having those three and six month contracts give you. The second one is to know when to start picking up your marketing minutes. So if you know that you have five clients and two of them are coming to the end at a certain month.
Brandi: So we'll say right now when I'm recording this, it's June. Let's say that they are coming to an end in July and you don't know if they're going to continue or maybe you do know that they're not going to continue. Then, you know, in June, you need to pick up your marketing minutes. Your marketing needs to be the top of mind for June. That should be your number one focus. And if you're not sure what marketing minutes are, we will link up the podcast episode about active versus passive marketing, because you'll want to check that out, because this is the time that we know we have to replace them. We need to get on discovery calls. So what does that look like? And that is why we also want to have those three to six month contracts, because we have a hard deadline of when that contract is coming to an end. It's not one day that our client gives us fifteen days notice. And then you're like, oh, cried, what am I going to do? I didn't think they were leaving me. And that's why it's really important that we have these. So we do have deadlines. We do know when to touch base with our clients about. Are you continuing with me? Are you not? So then you can pick up your marketing minutes, which should always be going on.
Brandi: But there will be times in our business where we don't have to do as much marketing. There is a time in your business where you'll have a waitlist. There's a time in your business where you're about to go on maternity leave and things like that, where you're not going to be marketing all the time. But you should be marketing a little bit. You always want to keep that pipeline full. But then when you know that contracts are coming up, that's when you put it in two times like you are. That is top of mind. That is your priority for that month. Is your marketing minutes. So the first reason remember, it's all about the security and knowing where your revenue is coming from. The second reason is so you know when to pick up your marketing minutes. And then the third is this is one of my favorite reasons for three and six month contract. Because I know that is really hard. Some for you oughta raise your prices. It's hard for me to raise my prices. And we'll link up to the podcast episode about raising your rates. But I want you to have a definite deadline when these conversations are open. And when we get to the end of a three and six month contract, we can easily open up that conversation and say, hey, we're coming to the end of our contract.
Brandi: This is a great time for us to reevaluate. My prices have went up since we started working together. This is my new rate. I would love to continue with this rate relationship, but at this new rate and then you can lock in that rate for the next three or six months. I raised my prices every three months and that is how you do it. It gives you that open space to be able to have the conversation about raising your rates without getting all bent out of shape. But what if they don't want it? You, like, have that in. And that's also a great time for you to talk about your relationship moving forward. So I highly encourage you. It makes raising your rates super easy because you're opening up that door to make it at a time that seems natural to talk about raising your rate. And you're not going to overthink that. You probably will overthink it a little bit. But that's OK. It gives you that doorway to open up that conversation. And I think that's really important. Now, one thing people tend to ask, and I know you may be thinking this as well, is OK, but what do they get a discount if they do a six month? Do they get a discount with a three month? And I have never given a discount for them doing their six month.
Brandi: How I explain it is I have three and six month contracts. What that does for you is it locks in your current rate. I revalue of wait my rates every three months. And so going forward, you'll be locked in in total for that six month. Once we get to the end of that, the prices may have went up. There may not have at this point, I don't know. But you are locking the price down. But there is no discount. And so that's what I've always done. I don't like discounting services. I'm not a fan of that at all. And so I just tell them it helps them get locked into their price. And I can guarantee an. Six months, third price will not go up. Working with me. So that's how I handle that. Now people ask, well, why don't you do a 12 month? Why only a six? I am not that committed. I feel like a 12 month contract for anything is a really long commitment. And so I know that working with clients that my business may look completely different in twelve months and I don't know if I want to work with that client. Maybe you pivot your services, maybe you pivot your services three times. But if you're locked in for a year, you're locked in for a year, three and six months. I like that because it gives you enough room to be able to enjoy what you're doing.
Brandi: Get to know the person. But also if your business pivots, it also gives you an out. That's not a 12 months from now. And so I think that that's really important is that I'm not going to sign and I will say courses and stuff that's different with 12 month commitments and payment plans and things like that. But working with clients, you are committing twelve months to this person, so you better really like them and you better be really sure about the services that you're providing for that. And so that's why I usually do a three and six month contract. OK, so I'm going to recap the three reasons why we want them to have those three to six month contracts. And then I'm going to give you my ninja trick for making sure that clients actually book with you with a three and six month contract. So the first one is that retention to know where your revenue is coming from and the security that that brings you. Number two is to know when to start picking up your marketing minutes. Number three is it gives you that open door policy to start talking about raising your rates. You should be raising your rates at the end of each of these contracts. And this gives you that freedom to do that. So those are the three reasons why you want those three and six month contracts.
Brandi: And I hope that this is something that you're either already doing in your business or you start implementing today. And if you already have clients that aren't on month to month, are they are on month month contracts and they're not on the three to six month, you can move them over to that easily. And so that is something I would definitely encourage you to do. Even if you already have month month contracts, tell them that you're putting in new systems. This is a good way to open up the door once again about raising rates and then that you're moving them to that three and six month contract. So you can even do that with clients that you already have. It doesn't only have to be with the clients moving forward. OK. So are you ready for my ninja trick? And so I know when I was first starting out this ism, then I implemented. No one told me this, but I just know how my brain works. And I always want to have the freedom to leave a situation if I'm not going to be happy. And one of the things is when you sign on a new contract for three months with a client, you don't know that client. That can a lot for them and can feel a lot for you. What if this client is a nightmare client? What if you're just not a good fit and now you're stuck with each other for 90 days? And so what I did when I was starting my business and I will tell you, there is times to do this.
Brandi: There are times not to do this. But when I was starting, the only people that I can think of is like our funnel builders. You're not going to do what I'm about to teach Facebook ad managers. It can be a half and half. But for everyone else, this is pretty much spot on for you. And I did this with Pinterest. I did this with organic social media. I did it with email marketing. So I've seen my OBM do it. I've seen virtual assistants do it. So I feel like you can do this with any of them. There are going to be some that require like a direct ROI. So Facebook ads funnel that thing that this may not be the best solution, but the ninja trick is to get them to commit to a 30 day trial. This is not free. It's paid at your full. Right. So let's say you are doing Pinterest management and your rate's five hundred dollars. So this is how I would word it on the Discovery column. I would say, OK. So great. This is what I do with all my clients. When we first get started, we do a one month, 30 day trial together. And so what does that look like? That means we are gonna go all in. We are going to start working together. We are going to get to know each other. We are going to get accustomed to working together. And we are going to test this out together for 30 days at my rate of five hundred dollars.
Brandi: After that 30 days, we'll make a decision together. If this was a good fit or not. If it's not, we can both part ways. No questions asked. If it is, then we can move to a three or six month contract. I love to do this because we want to make sure not only that, we're gonna get results for you, but we're also want to make sure that we're just a good fit for each other and that you like working with me and I like working with you. And so I love to offer this 30 day trial that. Start out with all my new clients. And from there, we'll move to a three to six month contract. And so what this does is it calms their nerves. They're like, OK, I can commit to 30 days for someone. It also gives you the chance to find out if you want to work with this client and to make sure they're not like a nightmare client. And then at the end of the 30 days, they're already prepared to sign a three month or six month contract with you. That's not holding them back. This sets you apart, but also gives you permission once again if you don't enjoy working with the client to step away. It also gives them permission if they don't think you're a good fit for the team, for them to step away. And I think that's a win win across the board.
Brandi: And so that is something I would definitely implement. It gives them the security that they need. It gives you the security you need. But then it also sets that foundation up that that's how you work is after the 30 days there will be a three or six month contract signed. And so that is my ninja trick for getting more clients and then getting them on their three and six month contract. So I hope you go out and implement this. If you do, let me know. I'd love to hear from you on Instagram in mind. Ms. And this is just such an easy thing that you can add to your business right now. That doesn't take a lot of things, but it makes such a big difference. You know, I love to keep things simple. I'm all about simplicity. And this will be one step that makes your job a little simpler and helps you scale with simplicity. So I love this episode. I love you all. And I cannot wait to hear about you implementing this. And so if you are interested in hearing more about my tips and tricks for scaling your service-based business head on over to Serve Scale Soar dot com forward slash K. The number 10. The letter K. And check out my free training. How to scale to consistent ten thousand dollar months without hiring a team. And until next week, y'all go out, serve your clients, scale your business and soar into your six figure year. You deserve.
Thanks again for tuning in to the Serve Scale Soar podcast with your host, Brandi. If you loved our podcast, please be sure to leave a comment or review. And be sure to tune in next time.
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Brandi Mowles is the host of the Serve Scale Soar podcast which is a podcast dedicated to helping service-based entrepreneurs scale their online business to five-figure months so they can soar into six-figure years. Brandi is a wife, mom and in less than one year, created a six-figure business. Now she is spilling all her secrets so you can too.