RR#120 - The real cost of your ‘fee phobia’ (and how it’s killing your business)

Ever catch yourself wincing when you quote your rates?

That gut-twisting feeling isn't just uncomfortable. It's a symptom of a silent killer in the world of service providers, consultants, and coaches.

I call it "fee phobia" - the irrational fear of charging what you're truly worth.

And it's not just that you’re leaving money on the table. It's actively sabotaging your business, your clients, and your sanity - especially if you’re personally delivering the services you sell.

Here's how.

The Undercharging Domino Effect

It starts innocently enough. You want more clients, so you keep your rates low. Seems logical, right?

Wrong.

Low rates mean you need more clients to hit your income goals. More clients mean you end up getting spread too thin. Being spread thin leads to rushing through work, cutting corners, and delivering less than your best.

And that's where things really start to unravel.

The Churn-and-Burn Cycle

Mediocre work leads to unhappy clients. Unhappy clients churn. Suddenly, you're on the hamster wheel of constantly hunting for new business.

But new clients require more time to onboard and ramp up. So you're even more pressed for time, delivering even lower quality work.

It's a vicious cycle that leaves you exhausted, frustrated, and wondering why you started this business in the first place.

The Social Proof Paradox

When you're not delivering your best work, you miss out on the most powerful marketing tool you have: satisfied clients.

No glowing testimonials. No impressive case studies. No one you can send new prospects to who will sing your praises.

Without this social proof, it becomes even harder to justify higher or even premium rates. So you stay stuck in the low-fee trap, unable to break free.

The Referral Drought

Referrals are the holy grail of client acquisition. They’re usually a shorter sales cycle, tend to be better long-term clients, and they come to you pre-sold on your value.

But when you're stuck in the churn-and-burn cycle, those referrals dry up. And with them, your easiest path to sustainable growth.

So, what's the solution?

It's simple, but not easy: You’ve got to charge more.

For some of you, this is downright scary.

For others, it may feel counterintuitive. You want to drive more revenue & income, but increasing your prices will lead to fewer sales, right?

No. And here’s why:

1. Higher fees create space on your calendar to do high-quality work.

2. High-quality work leads to happier clients and better results.

3. Better results generate powerful social proof and referrals.

4. Social proof and referrals justify even higher rates.

Suddenly, you're in a positive cycle that compounds over time.

You're doing your best work, for clients who value and appreciate it, at rates that reflect your true worth.

Now, I'm not saying you need to double your rates overnight (although I have done that before with very positive results). But I am challenging you to take a hard look at your pricing and ask yourself:

"Am I charging enough to deliver my absolute best work?"

If the answer is no, it's time to make a change.

Start small if you need to. Raise your rates by 20% for new clients. Or introduce a premium tier of service to existing clients.

But whatever you do, don't let fee phobia crush your business.

Because the truth is, by undercharging, you're not just shortchanging yourself. You're robbing your clients of the transformative results you're capable of delivering.

And in the end, isn't that why we got into this business in the first place?

To do work we actually enjoy doing and create wealth in the process?

So, take a deep breath. Gather your courage. And charge what you're worth.

Your future self (and your future clients) will thank you.

Adios,

Ray