ROAD TO NEW ERA 10

New Season of Mentor the Young

The new season of Mentor the Young has started, and I've been paired with a strict and professional mentor named Vassi. From Vassi, I will learn the latest SEO best practices at an advanced level, which will help me optimize my sites and those of my potential clients. Excited for this new learning journey!

Episode 10 with Todor Madzharov

In this episode, we'll cover:

1. Pricing Strategy
2. A/B Testing
3. Monthly Subscription/Pay for a Year with 20% Off
4. Customer Churn Rate
5. Salary Negotiations in Person

I'm writing this chapter in large segments, continuing it for the third time in three weeks.

Chapter I: Pricing Strategy

Setting prices has always been a tricky balance—low enough to attract business, high enough to reflect value. Recently, I've had an enlightening realization that I've discussed several times: "repetition is the mother of knowledge." The most valuable resource in this dimension is time.

Regardless of one's talent, if they don't value their time, they won't achieve long-term (or even short-term) success. I constantly battle with this, even losing clients because I've started raising my prices and valuing my labor more. Here are some fundamental truths:

• I want to excel in the web industry.
• I have 10-14 hours a day at most to work.
• I want to eventually earn a significant income.
• For me, "significant income" is at least 10,000 BGN/month (bare minimum).

Breaking it down:

1. One client for 10k
2. One client for 7k and one for 3k
3. Two clients for 5k
4. Three clients for 3.5k
5. Four clients for 2.5k

Taking more than four clients means I can't offer the best of my abilities.

Chapter II: A/B Testing

A/B testing, while seemingly straightforward, can be quite subjective. My mentor, Todor Madzharov, has guided me to these conclusions, and I appreciate his insights.

A/B testing depends on its application. If the same people test two versions of a landing page on the same day, the results are likely to be 100% accurate. However, if we test live with completely different users from around the world at different times of the year, the accuracy drops to about 70-75%. This logic might not need much argument—it's just how I see it.

The point is, we should never take everything at face value.

Chapter III: Monthly Subscription/Pay for a Year with 20% Off

Implementing a subscription model with the option to pay annually at a discount can help stabilize revenue. Here’s the approach:

• Monthly Subscription: Clients pay a set amount each month for ongoing services.
• Annual Subscription: Clients can pay for a year upfront with a 20% discount, incentivizing long-term commitment and providing cash flow stability.

Chapter IV: Customer Churn Rate

Understanding and managing customer churn is crucial. Keeping clients satisfied and minimizing the rate at which they leave can significantly impact the business. Strategies include:

• Regular Check-ins: Maintain communication with clients to address concerns and ensure satisfaction.
• Quality Service: Continuously provide high-quality service to meet or exceed client expectations.
• Feedback Mechanisms: Implement systems for clients to provide feedback and suggestions for improvement.

Chapter V: Salary Negotiations in Person

Negotiating salaries in person is a vital skill. Key points include:

• Preparation: Know your worth and the market rates.
• Confidence: Approach negotiations with confidence and clarity.
• Flexibility: Be open to discussing various compensation packages, including benefits and bonuses.

Conclusion

This episode highlights the importance of valuing time, the nuances of A/B testing, implementing effective pricing strategies, managing customer churn, and mastering salary negotiations. Special thanks to Todor Madzharov for his continued mentorship and guidance.

Stay tuned for the next episodes of "Road to a New Era."