Social Proof: 25% higher revenue

Hi everyone, I've been less active lately because I'm taking a few days off and I want to enjoy the time with family. However, I wanted to share an interesting anecdote with you.

This summer, Lucie Clavelloux, a top graphic designer, embarked on an original experiment: she offered to conduct graphic design audits with a pay-what-you-want pricing model.

In practice, she met with clients, provided a comprehensive audit, and then allowed them to decide how much they wanted to pay for the service.

The results were generally very positive: she received a lot of requests and received several payments that were 25% higher than what she usually charges.

Why might one receive higher payments than their usual rates? Here’s my personal analysis of the situation:

• Perceived Value: Clients are often hesitant to pay if they’re not convinced of the value they’ll receive in return. By allowing clients to choose the price, Lucie gives them the opportunity to assess the value of the service based on their own experience and perception. This creates a sense of transparency and trust.

• Emotional Engagement: By offering the choice of payment amount, Lucie establishes an emotional connection with her clients. They feel valued and respected, making them more inclined to reward the service more generously.

• Scarcity and Exclusivity Effect: The concept of pay-what-you-want pricing might also be perceived as a limited or special offer. This stimulates a sense of urgency and exclusivity, encouraging clients to seize the opportunity before it disappears. This feeling of exclusivity can also increase clients' willingness to pay a higher amount.

What does this teach us? The experiment shows that, when well-managed, pay-what-you-want pricing can transform the perceived value of a service and boost demand.

By highlighting confidence in one’s skills and offering complete transparency, it’s possible to achieve higher payments.

But, these conclusions should be nuanced. What works for one person or field doesn’t necessarily apply to all services. A client also ended up paying less than her usual rates. To draw meaningful conclusions, more similar experiences would be needed.

And you, have you ever tried pay-what-you-want pricing?