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Awkward. Uncomfortable. Ungenerous.
That’s what most of us feel when we get asked for the friends and family discount and we haven’t created a clear policy to handle it.
If you say no-go, you may feel like a selfish money monger. If you say sure-thing, you may feel resentful or turn down much needed revenue for your business.
So what’s the answer?
You’ve got a few options and thankfully, they’re all classy, straightforward and customizable.
In today’s episode of MarieTV, I’ll show you three different strategies to use, including word-for-word scripts, to set clear policies and forever avoid the awkward friends and family discount dilemma.
WARNING: Ridiculously cute dog alert. Dougie, a tiny pants Chihuahua, guest stars in this episode. Click play and watch it now.
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Q&A Tuesday.
Jen writes: I'm a photographer and my friends and family want me to do their photos which is both a blessing and a curse. I love to work with them but when it comes to the money part it's so awkward. I don't like taking money from them but they often get spots that full paying clients would get. What can I do to balance and keep my relationships intact while running my business?
This is a great question Jen because many people want the special friends and family discounts. so there's a few different ways to handle this but what really stood out in your question was where you said this, “I don't like taking money from them.” Here's the deal: your discomfort is keeping you from being clear about your policies and inviting all the awkwardness to come your way. For example, this is probably how you roll.
Jen, how much do I owe you for taking the portrait of my chihuahua?
Don't worry about it. We’re friends.
Wow, Jen! You’re so Jen-erous!
Understand this, 99% of the time people will take something for free overpaying for it any day of the week so it's up to you to set clear policies for what you do. I'll tell you that in my business some of my closest friends have paid me my full rate for programs and consulting and they've gotten amazing results with zero awkwardness. Why? because I respect my time and therefore my friends and family do too.
so Jen here are three strategies to handle the friends and family and discount. number one: set aside time. If you want to give special deals to family and friends just set aside one day per quarter for projects like this. this way you've got it in your schedule and you don't feel put out or like you're losing money to do it. number two: just say no. don't do special deals girl. when friends and family want to work with you use this script:
I'm thrilled you want to work together. Know that I'd never expect you to hire me just because of our relationship. Before we get started make sure that I'm the person you really want to work with because I don't offer a friends and family discount. If you want to move ahead here are my rates and three available dates.
Here's why this works. you say I'd never expect you to hire me. Using the word hire implies payment. see when you introduce that word you're planting the seed that they will pay even before you introduce your know friends and family discount policy. this way there's no, “hey you know I have to charge you,” awkward moment.
number three, make it clear in advance. If you want to gift your product or service or cut a special deal, make it clear in advance homie. saying this is my gift to you or this is a private offer outside of my regular rates, tells people that you're giving them something of value that not everybody can get. This allows you to take a proactive approach and avoid all the awkwardness. There you have it, Jen three different ways to deal with the friends and family discount. hope it helps.
Now, how about you? Do people ask you for the friends and family discount? ever have awkward moments with family and friends related to your pricing? How do you deal with it? leave a comment and let me know. like this video? Subscribe! And of course, share it with friends, I would so appreciate it. If you want even more great resources to kick ass in business in life and find out some stuff that I never put anywhere else with off my email newsletters, come to marieforleo.com and sign up for updates. Thank you for watching! Thank you for watching!
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Now I’d love to hear from all you women entrepreneurs out there. Do people ask you for the friends and family discount? How do you handle it?
If you have stories or strategies to share, leave a comment below. And before I forget, I’ve got one important thing to share.
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