Add-a-Zero Pricing Strategy

A strategy for dramatically increasing revenue by targeting wealthy clients (particularly hedge funds, private equity) while providing similar services. The key is finding customers who are less price sensitive and have higher ROI potential.

Core Strategy Elements

• Target wealthy customers/companies who are not price sensitive
• Focus on high-stakes decisions where cost is trivial compared to outcome
• Package services to match wealthy client expectations
• Build credibility through existing network connections
• Position yourself as expert in specific domain they need

Key Examples Mentioned

• GLG Expert Network

  • Charges $1000+ per hour for expert calls
  • Multiple competitors all making 8-9 figures in EBITDA
  • Connects experts with hedge funds/investors who need specialized knowledge

• Red Ventures Model

  • Started with DirectTV sales
  • Targeted high LTV customers
  • Scaled to $75M EBITDA in 4 years
  • Now owns major properties like Bankrate, CNET, Points Guy

• Aux Insights Case Study

  • Charges $50k/week for marketing consulting
  • Targets PE firms doing due diligence
  • Positions as 75% cheaper than McKinsey while being more specialized
  • Found demand through network of PE friends asking for help

Implementation Tips

• Find starving crowd first (identify urgent need from wealthy customers)
• Package expertise into high-end consulting/research products
• Price based on customer's potential ROI, not your costs
• Be rational about pricing - if helping make $10M decision, $100k fee is reasonable
• Use network and relationships to understand customer needs
• Position as specialist vs generalist consulting firms

Key Success Factors

• Must have genuine expertise in valuable domain
• Need connections to wealthy customer segment
• Package services professionally for high-end market
• Focus on problems where cost of service is trivial compared to outcome
• Be willing to charge dramatically more than seems reasonable initially

The framework shows how same core service can command 10x+ prices by targeting wealthy customers who care more about results than costs.