Pricing Database Reactivation
I am wondering if anyone has advice on how they price database reactivation, such as how you would break down a sliding scale. If you start at $2500 - $10k for DBR based on the size of the database, what would be the size that you would charge the $2500 and how that would scale up to what the size would be to charge $10k?
5
12 comments
• Oct '23
Hey great question. The answer is it depends. Some of the metrics you must gather from your application is:
  1. How long in business?
  2. How many current clients/members in your database?
  3. Hiw many non-active clients/members do you have in your database?
  4. What is the average transactional value per client/member?
  5. What is the frequency of purchase?
These are a few insights that can be used to qualify whether or not they are a fit.
However, you must determine the minimum initial fee you will take and the monthly afterwards.
So if you determine your initial fee to be $5,000 for the first 3 months then $1,500/mo afterwards the math has to work for the client.
Hope that makes sense.
4
• Oct '23
OK, I'm going to be going through some of the video training courses to get more clarity but from what you're saying, the amount you would charge would be directly related to the value of a lead to the client multiplied by the reasonable amount of new customers to expect from the DR? Like the equation (Lead Value x Leads Generated) ÷ (ROI) = (Cost of DR), so the cost of your service would fluctuate for each client based on that info?
2
• Oct '23
here's a more accurate metric from what I have gleaned from the training. ROI Calculation is based upon the following:
[Average Client Lifetime Value] X [a Reasonable Number of Clients you Can Help Them Product]/10 to 20] = [What They Are Willing To Spend]
Examples: Based upon 5 clients per month with AVG LTV $10,000
[$10,000x5]/20 = $2,500 20X ROI
[$10,000x5]/10 = $5,000 10X ROI
We can do the math once we determine AVG. LTV. A couple other important considerations are of course, such as;
  • Database 2500+ as a rule, but there are exceptions.
  • The age of the business (2 years+)
You are correct, we are saying the same thing. The cost of service would vary for each client depending upon AVG LTV and the reasonable number of clients we could produce from DR.
However, I am targeting clients where my fee begins at $5,000 for the first 3 months then $1,500 per month afterwards. So my client criteria will disqualify anyone below that number.
I hope this makes sense.
Level 5 really drills deeply into this so let's get you there.
5
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thanks for the insight
2
• Oct '23
May I ask how much it is to pay my way to lvl 5?
2
• Oct '23
it's $118/mo you also get access to Robb's Elite Membership with some great content and other bonuses
1
• Oct '23
Awesome thank you Carl
2
• Oct '23
you are most welcome!
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Bryon Potter
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Pricing Database Reactivation
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