How To Charge What You Are Worth!
This is an amazing blog article and so timely for me personally! I often struggle with what rate to charge for freelance work. Some clients want to pay me by the hour to design bags or just answer emails to the China factory. What clients don't understand is that to answer the emails or design the bag, takes knowledge far more deeper more than the time it takes to sketch a bag or write an email. That is why charging by the hour rarely works for me and cheapens my value! Its also better to let the low ball gigs pass you by so you can focus on the ones that are really worth your time! Its better to charge by the scope of the project and based on your knowledge....this article is a must read for consultants or freelancers. Reposted from my friends blog: www.myblastoff.com
How much should you get paid?
When you’re an employee, it’s a relatively easy question to answer. Go online to a site like Glassdoor and look up median salaries in your field. Factor in geographical location, and you’ll quickly find out what you should earn.
What about when you’re a freelancer or consultant with your own company? The fact is that many freelancers feel dependent on what is offered in the marketplace. They say the words “my rate is $60/hour” and then they get stuck in the cycle of being “paid dollars for hours.” And since there are only 24 hours in a day, there is a hard limit on what you can earn because you can only be in so many places at once. The truth is that you are not selling time, you are selling your expertise! Our group acceptance to behave like employees instead of consultants, to accept what is offered instead of setting our own terms, means we’re not actually getting paid what we’re worth. Speak up and share your authority in your area of expertise.
Last week, Mark Waid’s article “An Open Letter to Young Freelancers” hit the internet and then went viral. Waid clearly sets out the employee vs. consultant argument.
So: how much should you get paid? And how do you start asking for what you’re worth?
You’ve probably already done the basic exercise where you figure out how much money you need to earn, figure out how many hours you can bill to projects, and then figure out how many hours of non-billable work goes into your daily freelance career. Congratulations, you now have a freelance rate of anywhere from $50/hour to $300/hour. How do you turn that self-determined rate into actual earnings?
First, you have to figure out how to set yourself apart from the competition. No matter what industry your business is in, you must rise above your peers. My father always taught me to give over value. Surprise your customers by giving more than expected. They will become lifelong fans and willing to pay more because they know they can always count on your company to follow through. Follow through is a rarity in the marketplace these days, so it’s considered quite valuable.
Secondly, charge based on the transformation you are offering, not on your time. Look at what impact your product or service is offering. How is it transforming your client’s person life, health, bank account, relationship? What is that change worth to them? In some cases, its priceless.
Don’t get caught up in a price war because you will lose yourself in the battle. You don’t want people coming to you for price, you want them coming to you for you and the unique star quality of your business offering. Value yourself more and others will see you and your business as more valuable. Elevate yourself and your expectations and you will start attracting the target market you love to work with…customers that love and appreciate what you do, and that receive great value and put that value to work for themselves.
Will you lose some jobs to lower bidders? Absolutely — but those are the jobs you don’t want anyway. Saying no to a ‘wrong fit’ client, will only attract more of the ‘right fit’ clients.
In the end, the best way to improve your rates is to improve your work, to ask for what your work is worth, and to refuse low-ball offers. That’s the only true way to earn what you deserve.
To learn exactly how to do this for your business, and to learn how to package what you do to create your own products, programs and inventions for passive revenue (meaning making money while you sleep! Yeah baby!) join me at my LIVE 3 Day Business Event Extravaganza in San Diego, The Blast Off Business Breakthrough!www.myblastoff.com/bbbevent on January 31-Feb. 2nd, 2014. We sell out every year so you don’t want to miss this opportunity to kick off the year in a whole new way! Join hundreds of business owners from all over the US and beyond, and I will guide you to create your very own business blueprint that you will be able to implement right away for high-impact results in your business when you return home.