I wondered if this lady just realized how ridiculous she sounded. In one breath, she told me she charges thousands of dollars for her business consulting and teaches others how to do the same. In another breath, she hesitated at paying me $100 a week to be her virtual assistant.
"Seriously? Did you just hear yourself?" was raging in my head. Needless to say, I don't even talk with this gal anymore.
- How much time it takes to come up with an idea
- How much time to create one aspect of the project
- How many other people are involved?
- How often should the content be reviewed?
The cost of doing work is so much higher than you (or your potential clients) think it is.
But the problem wasn't my prices. It was my clients.
One of my writing mentors, Carol Tice, has a crap ton of resources about finding the right clients to market writing. The first step is finding one that can actually afford you. We're talking 7 figures, not just 6. We're talking 20 employees and higher, not just a solopreneur.
Devaluing freelance services began way before the internet was invented. I also noticed thiswith my virtual assistant services. But I'd like to name the current phenomenon the Ferriss Fallacy.
Yes, I'm referring to Tim Ferriss, uber-popular and rich business guru who wrote about the "four-hour" work week. It only took me a few reader reviews to convince me not to buy his book. The other hours were being worked diligently by outsourced VAs who worked for peanuts. Like single digits per hour.
People read books like that and think, "Oh! Well then. If I put my budget at $15 per hour, surely my VA/writer/graphic artist will *love* me."
That's a big negatory there, good buddy.
- Taxes
- Insurance (car, home, health, etc.)
- Out of pocket medical bills
- Retirement
- Emergency Savings
- Rent/Mortgage
- Gas
- Car repairs...
Because they're great at what they do! What could take hours for you, could take a freelance web designer 30 minutes. So do you still think that $20 per hour is awesome?
It's time to think like real businesses and to treat others like they have real businesses. And a real business would end up in poverty for $20 an hour.
My web site is still DIY, because I'd like to pay a web designer what they're worth. I've hired an accountant and looking for a business coach. I'd like to pay them enough to not dread an email from me.
So here's the thing: I love entrepreneurs. I'm an entrepreneur! They're really fantastic people, and I could list about 10 people you should be following right now. But sometimes they just don't work well as clients. Much like I can't do uber-detailed free consults.
I'm zoning in on medium to large-sized companies and well-funded start-ups.
Even if an entrepreneur I came across could afford me, for whatever reason, they often choose not to. (Hence, insane story above.) Or they back out after one project and never return emails. Or they're indecisive and have no goals. And that's okay.
I've recently found an entrepreneur who I've really synced with. It rarely happens, so I'm pretty psyched.
But my fellow freelancers: Please don't keep scratching at doors that'll never open. Stand up, brush yourself off and go to the next door - ideally one that's hand carved and lined with gold.
So if you're a freelancer of any sort, take note. Start pitching the big boys. You're worth it.
I also recently posted about why I choose to write for the Huffington Post, even though it's an unpaid gig.
So are you comfortable with not only the prices you're charging, but the folks you're working with? How have you gained your client roster? Let's chat below in the comments.
This was originally posted on My Freelance Life.