As a new consultant, attracting your first clients is a critical step in building your business. One common strategy is to offer discounts to encourage clients to take a chance on your services. But is this the right move for your consulting practice? Let’s explore the pros, cons, and best practices for offering discounts to your first clients.
The Case for Offering Discounts
1. Attract Initial Clients Quickly
A discounted rate can lower the barrier for potential clients to work with you, especially if they’re unsure about hiring a new consultant. This can help you secure early projects and start building your portfolio.
2. Build a Portfolio and Credibility
If you’re just starting out, you may lack case studies, testimonials, or industry recognition. Offering discounts can incentivize clients to work with you and provide the social proof you need to attract future clients.
3. Gain Experience and Refine Your Process
Working with early clients allows you to test and refine your consulting services, processes, and pricing structure. Offering discounts can make these learning experiences more accessible to clients while giving you valuable insights.
The Risks of Offering Discounts
1. Devaluing Your Expertise
Discounting your services can signal to clients that your expertise isn’t worth full price. This perception may lead to difficulty raising your rates in the future.
2. Attracting the Wrong Clients
Clients who choose you solely based on price may not value your work or may expect discounts in the future. This can lead to misaligned expectations and challenging relationships.
3. Financial Strain
Discounts can limit your revenue early on, making it harder to cover expenses or invest in your business. Be cautious about how much you discount to ensure your business remains sustainable.
When Offering Discounts Makes Sense
1. For Portfolio-Building Projects
If you’re entering a new niche or industry, offering discounts to secure key projects can be worthwhile. Make it clear that the discount is in exchange for something specific, like a testimonial or case study.
2. When You Offer a Trial or Introductory Service
Instead of discounting your full offering, consider creating a smaller, lower-cost service as an introduction to your work. This provides value to the client without devaluing your premium services.
3. With Clear Terms and Conditions
Offering discounts is less risky if you establish clear boundaries. For example:
• Specify that the discount is a limited-time offer.
• State the exact deliverables covered by the discount.
• Avoid committing to long-term discounted rates.
Alternatives to Offering Discounts
If you’re hesitant to discount your services, consider these alternatives to attract first clients:
1. Add Value Instead of Discounting
Rather than reducing your rates, offer additional perks like:
• A free strategy session or follow-up call.
• Access to exclusive resources, templates, or tools.
• Personalized recommendations beyond the scope of the project.
2. Use Testimonials and Social Proof
Highlighting even informal feedback from past colleagues or small projects can help you establish credibility without discounts.
3. Offer Flexible Payment Terms
Instead of lowering your price, provide options like installment plans or milestone-based payments to make your services more accessible.
4. Run a Referral Campaign
Encourage your network to refer clients by offering them a small incentive or complimentary service if the referral converts.
How to Communicate Discounts Effectively
If you decide to offer discounts, it’s essential to frame them strategically:
• Emphasize Value: Highlight the full value of your services and make it clear the discount is temporary.
• Be Transparent: Explain why you’re offering the discount, such as building your portfolio or entering a new market.
• Set Expectations: Specify that future projects will be charged at your standard rates to avoid misunderstandings.
Final Thoughts
Offering discounts to your first clients can be a useful strategy for getting started, but it’s not without risks. Carefully weigh the pros and cons, and consider alternatives like value-adds or trial services. If you do offer discounts, communicate them clearly and ensure they align with your long-term goals.
