How to Price Your Services in a Way You Don't Get Busto

// A THREAD //

Whether you're a full-time freelancer or you just want freelance on the side you have to know your price so you don't get busto.

We will discuss the three most common ways how to price your services:

- Hourly rate
- Project rate
- Service as a product

But basics first.
Don't think about the price as a one-night-stand.

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.
Cheaper ≠ Better

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.
1. Hourly rate

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.
1b. Tools that will help you to set your hourly rate:

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".
2. Project rate

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
2b. Tip: Really count it, don't guess

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.
3. Selling your service as a product

- 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.
3b. The service can even have its own website, reviews, etc.

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.
To sum it up:

1. Count your (roughly) minimum hourly rate.
2. Check the pricing conventions in your field
3. Prepare the rough price list

Have a great time getting new clients and starting your freelance career!
Thanks for reading!

If you liked the thread consider RT the 1st tweet.

👇 Which of the pricing approaches do you think is best for your business?

More from Freedom Designer

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
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

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