The Business of Freelancing, Episode 3: Understanding Pricing


Show Notes

  • Fall in Virginia
  • Writing fiction
  • Pricing freelancing services
  • Double Your Freelancing Rate
  • Reverse engineering your former salary
  • Value based pricing, value delivered to clients
  • Origins of your price
  • How to decide on a price
  • Cost plus – Cost of materials, cost of equipment, labor cost, and profit.
  • Commodity pricing
  • Lack of major expenses for freelancers when using a cost plus model
  • Cost of living
  • Market rate
  • Battle between supply and demand
  • High demand drive rates up, low demand drive rates down
  • Also a commodity based strategy
  • Economic substitutes
  • Imperfect market
  • Value based pricing (Consulting)
  • Hired as an investment
  • Goal is to make more money in the long run than the cost
  • Emotional need
  • Charge based on results
  • Reflecting on the customer’s business and proposing a solution to help
  • Using your skill (software, copywriting, etc) as a means to the end (business results)

Next Week

Interview with Nathan Barry. If you have any questions for him, post a comment below.

Resources

Brennan – Samson Meteor MicShush Mac app, and The Strategy and Tactics of Pricing: A Guide to Growing More Profitably.
Eric – Million Dollar Consulting.

Action steps

Ask your next potential client questions that get at the business value of the project:

  • Why are you looking for this project?
  • What kind of financial outcomes are hoping a successful completion of this project will bring you?
  • What would you consider a failed project?

Try to get to the root of why the client is coming to you and see what you can do so you can deliver a substantial amount of business value to them.

“I still can't believe you don't charge for this course.”
Struggling to find and close projects? Need some help in figuring out how to charge what you're worth? Join more than 25,000 freelancers who have transformed the way they sell and pitch clients.
I can't thank you enough for everything you're doing to share your knowledge and experience with us. I've been reading and listening to a lot of "gurus" out there and often times feel like their approaches are a bit too gimmicky or lack what I appreciate about your content the most: genuinely caring about the client's needs. I read every word of every lesson many times over and I could truly feel my mindset shifting.
Sam F., joined the course April 18, 2018
Join 50,000+ freelancers who get early access to new articles, guides, updates, and more.