We will discuss the three most common ways how to price your services:
- Hourly rate
- Project rate
- Service as a product
But basics first.
How to Price Your Services in a Way You Don't Get Busto
// A THREAD //
We will discuss the three most common ways how to price your services:
- Hourly rate
- Project rate
- Service as a product
But basics first.
Rather build a very close relationship with it.
It:
- helps you to increase/decrease demand
- gives hints about how good/bad your service is
- positions yourself on the market
Know how to use this tool.
Imagine someone selling you a car for $350.
What would you think about it?
Exactly.
Set the fair price, not the scam inducing one.
The cheap price will bring you a specific sort of people.
- to be polite.
So always compete with quality, not price.
This is the most straightforward way how to set your price.
How to set it?
The basic equation may look like:
[Monthly target profit ($) + All costs ($)] / no. of billable hours in a month
PS. Even if you're starting out don't get much lower under this price.
Get an idea: https://t.co/BGibIPZeqX
Advanced calculator: https://t.co/QnzbtDRTUw
If you're not sure set a little lower hourly rate and then you can increase it.
Remember: "Price is the tool to use".
This means you will tell the client how much (exactly) he will pay before the work even starts.
Let's say somebody wants a website:
So you take:
- 15 hours for creating it
- 5 hours for communication
- 20% time reserve
Project rate = 24 hours * hourly rate
Using the hourly rate (and take reserve) is the easiest way. Break the price down to the client as well.
PS. $3000 for a website seems like you have a HUGE margin there. Better say $3180 and put yourself into a better negotiation position.
- Turnkey website
- Course
- Workshop
The "service" has defined
- Scope
- Price
- Complexity
You can see this type of pricing mostly on platforms like UpWork or Fiverr.
It's not ideal for any type of service but for some as:
- Small websites
- Logo making
- Template design
It may be the best solution for both sides.
But always check what's the standard in your niche.
More from Freedom Designer
5 Micro Skills That Will Improve Your Life Drastically
// A THREAD //
Even the small things compound over time... and become huge.
And they become HUGE.
This is the list of small skills that will improve your life A LOT over time, you can't even imagine how much... before you give it a try.
I'll present the skills in form of mini challenges.
1. Type with all ten fingers 10 days - 10 mins in the morning.
Most of us spend a lot of our time behind the computer typing.
Yet, not many people know how to write with all ten fingers —> drastically faster.
You can learn it for free here:
https://t.co/ow2WTHrXBJ
2. Make at least one Zap
Zappier allows you to make micro workflows between the applications you use.
Let's say you have to calendars (work and normal) and you want to sync them all the time —> Zappier
2b. You send an email every month remind your customers to pay the maintenance fee + reminder them if they won't —> Zappier
You want an email notification every time someone edits a Google sheet —> Zappier
Basic version is free. @zapier
// A THREAD //
Even the small things compound over time... and become huge.
And they become HUGE.
This is the list of small skills that will improve your life A LOT over time, you can't even imagine how much... before you give it a try.
I'll present the skills in form of mini challenges.
1. Type with all ten fingers 10 days - 10 mins in the morning.
Most of us spend a lot of our time behind the computer typing.
Yet, not many people know how to write with all ten fingers —> drastically faster.
You can learn it for free here:
https://t.co/ow2WTHrXBJ
2. Make at least one Zap
Zappier allows you to make micro workflows between the applications you use.
Let's say you have to calendars (work and normal) and you want to sync them all the time —> Zappier
2b. You send an email every month remind your customers to pay the maintenance fee + reminder them if they won't —> Zappier
You want an email notification every time someone edits a Google sheet —> Zappier
Basic version is free. @zapier
20 Most Important Lesson of 2020
// A THREAD //
It was a fast and weird year.
The year of change.
My life changed a lot and I learned even more.
Here are the 20 most important lessons - which will shape the upcoming decade for me.
1. Systems Are Better Than Goals
In the past, I failed many of my goals.
This year I've realized that it could be caused by the fact that they were goals, not systems.
Thanks, @ScottAdamsSays for helping me realize this.
Short article on the topic: https://t.co/lyBqGBR0yM
2. Use Notion More
@NotionHQ is definitely the most useful tool I've discovered this year.
I use it for:
- Twitter
- Freelance CRM
- Content Creation
- Website project management
And for personal use, it's completely free.
3. Email Is Immortal
This year we saw on social sites:
- Shadow bans
- Normal bans
- Decreasing reach (e.g. during the presidential election)
That's why I believe building an independent audience e.g. email list is mandatory.
P.S. https://t.co/iuhQJIf80K
// A THREAD //
It was a fast and weird year.
The year of change.
My life changed a lot and I learned even more.
Here are the 20 most important lessons - which will shape the upcoming decade for me.
1. Systems Are Better Than Goals
In the past, I failed many of my goals.
This year I've realized that it could be caused by the fact that they were goals, not systems.
Thanks, @ScottAdamsSays for helping me realize this.
Short article on the topic: https://t.co/lyBqGBR0yM
2. Use Notion More
@NotionHQ is definitely the most useful tool I've discovered this year.
I use it for:
- Freelance CRM
- Content Creation
- Website project management
And for personal use, it's completely free.
3. Email Is Immortal
This year we saw on social sites:
- Shadow bans
- Normal bans
- Decreasing reach (e.g. during the presidential election)
That's why I believe building an independent audience e.g. email list is mandatory.
P.S. https://t.co/iuhQJIf80K
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So the cryptocurrency industry has basically two products, one which is relatively benign and doesn't have product market fit, and one which is malignant and does. The industry has a weird superposition of understanding this fact and (strategically?) not understanding it.
The benign product is sovereign programmable money, which is historically a niche interest of folks with a relatively clustered set of beliefs about the state, the literary merit of Snow Crash, and the utility of gold to the modern economy.
This product has narrow appeal and, accordingly, is worth about as much as everything else on a 486 sitting in someone's basement is worth.
The other product is investment scams, which have approximately the best product market fit of anything produced by humans. In no age, in no country, in no city, at no level of sophistication do people consistently say "Actually I would prefer not to get money for nothing."
This product needs the exchanges like they need oxygen, because the value of it is directly tied to having payment rails to move real currency into the ecosystem and some jurisdictional and regulatory legerdemain to stay one step ahead of the banhammer.
If everyone was holding bitcoin on the old x86 in their parents basement, we would be finding a price bottom. The problem is the risk is all pooled at a few brokerages and a network of rotten exchanges with counter party risk that makes AIG circa 2008 look like a good credit.
— Greg Wester (@gwestr) November 25, 2018
The benign product is sovereign programmable money, which is historically a niche interest of folks with a relatively clustered set of beliefs about the state, the literary merit of Snow Crash, and the utility of gold to the modern economy.
This product has narrow appeal and, accordingly, is worth about as much as everything else on a 486 sitting in someone's basement is worth.
The other product is investment scams, which have approximately the best product market fit of anything produced by humans. In no age, in no country, in no city, at no level of sophistication do people consistently say "Actually I would prefer not to get money for nothing."
This product needs the exchanges like they need oxygen, because the value of it is directly tied to having payment rails to move real currency into the ecosystem and some jurisdictional and regulatory legerdemain to stay one step ahead of the banhammer.
