Welcome back to the OBM Educator. Right now, when I am recording this, the podcast just officially launched and I have been so excited seeing everyone who has been listening and sharing and just loving the three episodes that have been launched. I think at this time it'll be five, but thank you to all of the listeners who have been taking the time to listen to these episodes. My hope is always that you get something out of each episode that will help you on your OBM journey, so thank you so much. I am going to be riding this high for a while, but today I am really excited to dive in on packages in your OBM business. I'm going to share a quick overview of what types of packages are common for OBMs and then I'm going to share my thoughts on the number one mistake that I see new OBMs make when they're looking at creating their packages and, to be honest, it's probably not what you're expecting, but I wanted to, of course, give the information about packages the educator part of it, but I also really wanted to make sure that we talked about something that I see a lot with new OBMs in creating their packages. That I feel like really does hold them back. Let's dive in.
01:24
Welcome to the OBM Educator. I'm your host, Amanda McVicker, a veteran OBM who serves six and seven figure entrepreneurs as well as educates new OBMs with the skills and confidence they need to start and grow their own successful online business management business. Follow along as I share valuable insights behind the scenes, sneak peeks and proven strategies to help you build a better OBM business. Follow along as I share valuable insights behind the scenes, sneak peeks and proven strategies to help you build a better OBM business. So whenever I'm talking with a new OBM or someone who wants to make the shift in their business to OBM, packages are always something that comes up, which is obvious. Right. How are you going to pitch to a potential client when you aren't clear on how you're offering your services? But that is usually where they get stuck. The way I usually see people approach it is kind of like this huge equation that only has one right answer, so they'll spend countless hours reworking their packages until they think it's perfect, only to wake up the next morning thinking it's the worst thing ever. In reality, there is no one right answer when it comes to how to package your OBM services, and so I want you to leave this episode with the basics, which I'll get to in a sec, but also with the confidence that you will make the best choice for you and that also, it's not a permanent choice, no matter what you make.
02:48
First thing, what are the common packages that OBMs usually have in their business? The first one isn't necessarily a package, but it's just doing straight, hourly, so you have an hourly rate, you do work and then you get paid for it, probably on like a bi-weekly or a monthly basis. This is going to be popular, or more popular, for industries that are not in the online space. So industries that are not in the online space are more used to paying employees, and so that is the structure that they usually pay their people in a traditional nine to five. So I don't recommend this in most cases, as there isn't guaranteed consistency and you're dealing with being paid after you do the work, which always ups the chance of being ghosted for your payment. But if this is what works for you or the industry that you've chosen, to work in charge a higher rate and make sure to have a contract in place. The next two are actually going to be packages and what I would recommend for about 99% of people, and that is an hourly retainer or a project retainer, and sometimes people get these confused or think they're the same thing or think hourly retainer is just charging hourly, like the hourly rate, where people just in general have questions. So let's break it down. Hourly retainer is where, yes, you have an hourly rate, just like the first one we talked about, but you have a contract in place where your client is committing to pay you for up to a certain number of hours a month. So, for example, say you have a 20-hour retainer with a client with an hourly rate of $75 an hour, your client will pay you $1,500 at the beginning of the month for the 20 hours you have contracted to them. Then you do your work throughout the month, tracking your time with the services that you've agreed upon. If you hit exactly 20 hours, great. If you're below 20 hours, you can choose to either roll over some hours or all the hours or make it clear that hours that are not used will be lost, and if you're above 20 hours, you can invoice for those extra hours.
04:57
A package retainer is where you have a set of services that you provide in a package. So as an OBM, this will usually look like you handle, say like team management, systems management and project management. Those are always the big three that I mentioned as an OBM that you can expect to be working. So things that are not included in that are considered out of scope. You know you have your services. Whatever's outside of that is considered out of scope and can potentially be added a la carte. You might put parameters around it, like I will manage your team of three. I'll manage five systems and manage one large project a month. You will have a rate that you charge per month, but it isn't officially or necessarily tied to an hourly rate. So that's the basics of both an hourly retainer and a package retainer.
05:50
I'm not going to get into the pros and cons of each. I actually did a live on this on my Instagram the end of last year that I did go more into the pros and cons. So if you want to check that out, you can go check out my instagram at amandamcvicker underscore obm or you can send me a dm and I'll share it with you. But know that there are pros and cons to both and it'll largely depend on the type of person you are, your working situation and how you work best. But what I am going to share is the number one thing I see new obms do when it comes to creating their packages, they over complicate it. And you might beBMs do when it comes to creating their packages. They overcomplicate it. And you might be saying, well, amanda, it has to be perfect. That's why I'm second guessing it and I want to say back to you why does it have to be perfect? Why can't you experiment and see what works for you? Why are you letting chasing perfection stop you from putting your services out there? But also, overcomplicating your packages can be a hindrance to getting new clients, and I'll share what I mean.
06:52
Imagine you are on a sales call with someone. You get to explaining your packages. They are like yes, absolutely Like. This sounds amazing. I think we'll work great together. What are your packages? And then you get to explaining them. I will handle team management, systems management and project management. You can choose a 10-hour retainer that includes one team member, three systems, one small project, or a 20-hour retainer that includes a max of three team members, five systems and one large project and one small project. I can add inbox management for an extra $250 a month, but only onto the 20-hour retainer, and you can add additional systems to the 10-hour retainer for a fee, but only up to two extra. I'm just confused. Saying all of that out loud, right, but I have seen packages that look like that. Imagine how confused a person who is probably drowning in the weeds of their business is going to be and how much decision fatigue that is going to get them. And I get why people do this and trust me, I'm people too, because my first packages when I was first becoming an OBM were very similar to this.
08:04
You want to make sure that you have a clearly defined role and that you aren't expected to do things that you don't want to be doing, but it actually becomes very limiting in a role that can have so much potential. I'm all for being super clear on services you like to provide and services you absolutely do not want to provide, but limiting your services to what fits in a tiny box can hinder your growth as an OBM. So what is it that I recommend? Keeping it simple If you want to do an hourly package, here are the services you provide and what fits in that 20 hours a month fits and what doesn't waits till next month. Or you get to hire a retainer If you want to do a project package. Here are the services you provide and you will be realistic about what you can do in a month and we'll push things down the pipeline to protect your sanity and then adjust as needed. If you start with hourly and realize that you have a really good grasp on the services and how long they take and you can create a package that reflects that, do it. And if you start with package and realize that you need to create more time boundaries, move to hourly.
09:15
Nothing is set in stone in your business. You are the business owner. You choose how you work. That's the beauty of having your own business. I hope this helps to give you more confidence when it comes to creating your packages as an OBM. Feel free to DM me on Instagram at amandamcvicker underscore OBM if you have any questions after listening or need any encouragement. I'm always here to cheer you on. Talk to you soon. Need any encouragement? I'm always here to cheer you on. Talk to you soon. Thanks for joining me for this episode of the OBM Educator. I hope what you heard today is helpful for you on your OBM journey. If you loved today's episode, I would so appreciate you sharing it and leaving a review on your favorite podcast platform. Want to be a guest on the OBM Educator? Fill out the form in the show notes and I'll be in touch. Join us next time on the OBM Educator. Fill out the form in the show notes and I'll be in touch. Join us next time on the OBM Educator.
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