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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y10

Got it - makes sense. I set up contingencies where the client can terminate the contract (and vice versa) to solve against this.

Not a perfect solution though.

Really appreciate the thoughts here! It's helpful.

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y30

I'm proposing that if I find out that there are other products in the market that offer the same value for free, I might feel like it's an ethical issue. I don't have strong evidence that suggests that there are products which offer the same value for free (There's a lot of issues with recruiters e.g. incentive misalignment issues, they cater to specific people, etc.). Still learning though.

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y10

I'd a love a little more detail here. What makes you think I'm not providing help? 

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y40

I think there's a relevant question of ethics here.

If I learn that these competitors offer a product / service equal to mine or better, I'd feel obligated to change the business model or innovate my product / service in some way.

Still exploring that question.

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y30

Thanks bud!

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y10

RE Jacobian's point: This is fair, though it works on the assumption that the competitors offer an equally good service (i.e. they get the job seeker the highest paid, the most fulfilling job for them, etc.). This is open to debate because a) these competitors serve their network of businesses not job seekers so they're selecting from a smaller pool and/or b) incentives aren't as strongly aligned with the candidate. I'm still exploring the space though so I can't speak to what side of the argument is stronger.

RE digital_carver: What biz do you run?

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y30

Honestly, all 3. Generally, I think the best sales people do not sell. 

They simply explain pricing in a calm way and ask questions to make sure the other person is a good fit.

Also, can't speak to competitors, but my understanding of how many people price is they experiment with different numbers to see what customers are willing to pay (which I fundamentally disagree with as a pricing strategy).

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y20

Getting a new job takes a lot of time, so I don't usually take on clients in this position. It'd also be hard for me to justify spending time on a client like this given that unemployed people would gain more from my service.

Does that make sense?

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How Lesswrong helped me make $25K: A rational pricing strategy
kareemabukhadra5y50

Great thoughts. Yep. The people I'm working with rn struggled for 6 or more months. One of them had been at it for a year, so the maths makes sense (and may be generous) for the parties I'm working with.

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50How Lesswrong helped me make $25K: A rational pricing strategy
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