Hey there. Tim here.

This week, we talk about:

• The true cost of cheap clients
• How I generate $50,000 a month using strategic partnerships
• Inspiration: Fear setting
• Post Lab: Clarity > Cleverness

1. The Cost of Cheap Clients

This is something that took me too long to realize...

Your cheap clients are costing you in 3 different ways:

1. The Opportunity Cost

When you take on a $500 client, you're actually losing $4,500.

See, Cheap and high paying clients often require the SAME amount of time.

Let’s say:

1 client = 20 hours/month

Biz Owner A: 1 client @ $5,000/month = $5,000

Biz Owner B: 10 clients @ $500/month = $5,000

Sure, both are earning the same amount.

But…

Biz Owner A: Works 20 hrs/month

Biz Owner B: Works 200 hrs/month

Operating at full capacity (40 hours/week),

Biz Owner A: 8 clients @ $5k/month = $40,000/month

For Biz Owner B to make that much money?

They would need 80 clients.

There literally aren’t enough hours in the month.

(even working around the clock)

So for every additional $500/month client you accept…

…you miss out on the opportunity to close a higher dollar client.

2. Less Budget = Less Impressive Case Studies

Most people don’t realize this.

But as a marketer, your service is just ONE piece of the puzzle.

Let’s say you sell SEO.

To get the best results, your clients need a flywheel, including:

• Paid ads
• Email marketing
• Influencer marketing
• Partnership marketing

Not to mention things like:

• Great customer service
• A decent product/service

If a company is already strapped for cash…

They probably won’t have the resources to execute the rest of the flywheel.

So you won’t have great case studies to show new prospects.

3. The Emotional Stress

And, cheap clients want the world for $500/month.

As a result, they’ll:

• Set unrealistic expectations
• Over communicate
• Ask for additional favors

In the end, it isn’t worth it.

Instead?

Target clients with budget.

It will make you more money for less stress.

Trust me.

2. How I Generate $50,000 a Month Using Strategic Partnerships

​

Most people don't realize that over half of my monthly recurring revenue ($50,000/month) comes from this channel:

Strategic partnerships

Not cold email. Not paid ads. Not SEO.

Strategic partnerships is essentially creating a network of people who send you referrals. They can be clients, but they're also:

- Former clients
- Vendors
- Consultants
- Agency owners
- Industry operators

In this video, I'll teach you how I built my referral partnership system, including how to reach out to potential partners and how to incentivize them to keep sending you clients.

​Click here to watch the video.

3. Inspiration: Fear Setting

Tim Ferriss popularized the idea of fear setting.

It's an exercise where you define your fears, considering the benefits of action, and calculating the costs of inaction.

I find that most businesses are killed by inaction rather than the wrong actions.

Give it a try.

Alex Hormozi summed it up well here:

4. Post Lab: LinkedIn Post Feedback (Academy Members Only)

Every week in Copyblogger Academy, we provide feedback on your LinkedIn posts and newsletters in Post Lab.

If you're an Academy member, you can submit your work for feedback and view the feedback videos.

Lesson of the week from this LinkedIn Post Lab:

Clarity > Cleverness in your hook: What will people learn by reading your post?

Here's the original student's hook:

"The CEO needs guidance. HR gives data.
I’ve seen this moment on repeat."

It's unclear what the point of this post is or what we'll talk about.

Here's how I rewrote it for clarity:

"Most HR leaders think their CEOs want data. ​
​But the top 1% know that’s not true.”

This hook makes it clear what we'll talk about: a key concept the top 1% of HR leaders know their CEOs want.

It creates a curiosity gap but is still clear what we'll talk about.

Watch the video inside Copyblogger Academy to see the full feedback session.

P.S. - Not a member?

​>> Click here to join The Copyblogger Academy.