Valuing your services on the basis of your skills, knowledge, and experience—as opposed to hourly rates for a task—gives your freelance business a lot more income potential than blindly following rate sheets. It’s not a calculation you can make in isolation, however. A value-based pricing approach requires looking at the situation from the client’s perspective: What can they expect from their investment if they hire you? [Read more…]
Dr. Freelance, a potential new corporate client has asked to speak to a couple of my existing clients as references. Is it fair and appropriate to ask those clients to keep the freelance rate I charge them confidential, since it’s lower than what I’ve quoted this potential client? I have different rates for different types of clients, but the new client may not appreciate the distinction. Any advice on approach—what to do/say or what not to do/say—would be greatly appreciated. Thanks!—Keeping It on the QT
As you may have seen on social media, I’m experimenting with BookGrabbr. (UPDATE: The promotion is over as of March 8, 2016.) It’s a relatively new book marketing tool that provides readers a free preview of a book in exchange for sharing the link. (I’ve uploaded the first 7 chapters of The Science, Art and Voodoo of Freelance Pricing and Getting Paid.) Before I get into my initial take on the tool, though, I want to discuss why I’m giving it a try. In short, it’s because I believe experimenting is a critical component of freelance success. [Read more…]
Dr. Freelance: I was approached by a successful entrepreneur and aspiring author who’s written a massive book about his industry. I initially gave him my editing rates in an hourly rate (a mistake, I know!), and he asked me to calculate a project fee based on the document as it stands. Well, my estimate was about 25% above his budget, and now he’s asking me to lower my rates. (He still wants me to edit the book, based on my own experience in his industry and the editing sample I sent him.) The challenge is that he wants more than just copyediting: He wants to cut out a lot of fluff, and there are some organizational issues I’d need to address as well as cleaning up the manuscript. I truly believe that my estimate is fair, but I’m torn between wanting the gig and needing to stand my ground.—What’s My Next Move? [Read more…]
In addition to the measurable facts of a project (work volume, meeting time, deadline, etc.), freelance pricing requires accounting for highly individual items that can’t be defined in hours or put into a spreadsheet—but will have an impact on how much you charge: [Read more…]
Wanted to do a quick video followup on a post earlier this week that talked about how you shouldn’t assume a smaller company within a given industry is going to command a lower price than a larger company in that same industry.
The reason I bring this up is that I do believe you should price your services differently based on different industries. As an example, a few weeks ago I was at a networking meeting with a group of other small business owners, and the featured presenter was the former CEO of a large industrial metals company. They produced everything from automotive steel to aerospace materials to fine-grade machine tools. His comment was that they priced differently by sector, region, and country, and they would have been foolish to do otherwise. [Read more…]