Make Money at Home

If you are having difficulty knowing what to charge, then check out your competition and find out what they’re doing. Find out if they post prices or fees on their website or if they have “packages” or deals. Do they have payment options?
While you are researching, keep in mind just because your competition is charging one way it is not necessarily how you should be charging.

One of my clients is a business and life coach. Most coaches charge for a set number of scheduled phone meetings, which seems to be a standard for “the coaching industry,” but that doesn’t mean it’s the best way.

I encourage my clients to charge fees that match who their clients are and what they are trying to accomplish. It’s very refreshing to do what works for you and not necessarily follow the “industry standard.” If you don’t feel comfortable with the way your industry charges, by all means change it. Just because the industry’s doing it doesn’t mean that it’s right.
Another client of mine, Shelly, is a wedding planner. When we first began working together she had three “wedding packages” because that’s what “everyone else does.” She ran into problems with pricing because most of her potential clients didn’t fit into the standard package and therefore Shelly had a long list of “upgrades” and additional items. She also had to charge more for weddings above a certain number of guests and weddings with over a specific number of attendants in the wedding party.

Potential clients became fixated on the package fees and felt ripped off when Shelly began adding additional charges all over the place. The packages were supposed to make things easier for Shelly’s, but they actually created more problems than they solved.

Shelly was so relieved when she realized she didn’t have to use the standard pricing packages most wedding planners used. She never felt good about them, but didn’t trust her own instincts on how to charge. We worked on making a pricing structure that wasn’t based on hours or packages but on the value to the client. She was able to quickly raise her fees and increase her client base simply based on her fee changes.

Are you charging your clients based on the value you are providing them or based on the “industry standard”? Is the industry standard an effective way to charge or is just what everyone else is doing?

Take a good look at the way you set your fees and handle client charges. Is it right for you?

Kirstin Carey is the author of “Starving Artist No More: Hearty Business Strategies for Creative Folks.” Kirstin knows how much most creative people hate sales, contracts, and discussing money and she consults creative people on the business side of creativity so they make more money, get better clients, and still love what they do. She put together a resource full of proven strategies and insider secrets guaranteed to help creative types get the business help they need so they don’t have to starve anymore! Go to http://www.MyCreativeBiz.com

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One of the biggest challenges with a creative business is getting paid what you are worth. The root of the problem isn’t that the client doesn’t have the money and it isn’t that the client isn’t willing to pay you what you are worth. The root of the problem is how you are charging and how you are creating value in the mind of the client.

First, you must create a business based on value pricing and not hourly pricing. The number one worst way to charge (and most creative businesses are charging this way) is by the hour.

Frankly, it shouldn’t matter how long it takes you to solve the client’s problems or provide your service, it should matter that the client is getting what he needs and what he wants. If you’re creating value and you’re giving them value, they’ll pay you for that value. They shouldn’t be paying you for your time. If you’re being paid for your time you’re essentially setting the ceiling to how much money you can make because you can only work so many hours.

Therefore, you must determine, specifically what your value is to the customer, not how many hours you will work for that customer.

To do this, ask yourself the following questions:

How do you impact that customer or potential client?

What do you provide to them that will help them and helps solve their problems? How will solving these problems impact the customer? Is it a problem with high impact or low impact?

What is important to the customer? Why is it important to the customer? How important is it?

Have they had experiences working with someone in your type of business before? If so, was it a good or back experience? Why? Exactly what happened?

Why is the client coming to you for this issue?

What is the client’s definition of success with this project? Ask him to describe specific ways he will know he made the right choice in hiring you.

By getting the answers to these questions - not guessing what the client will say, but actually getting the client to answer these questions - you will have the information you need to create VALUE in the mind of the client. If they perceive your work to be valuable, they will be thrilled to pay you. If they do not perceive your work to be of value, they won’t pay you no matter how low you go on the pricing scale.

It’s all in the mind of the client. Get in their head and understand specifically what they want and, even more specifically, why they want it. Once you do that, getting paid what you are worth is a piece of cake!

Kirstin Carey is the author of “Starving Artist No More: Hearty Business Strategies for Creative Folks.” Kirstin knows how much most creative people hate sales, contracts, and discussing money and she consults creative people on the business side of creativity so they make more money, get better clients, and still love what they do. She put together a resource full of proven strategies and insider secrets guaranteed to help creative types get the business help they need so they don’t have to starve anymore! Go to http://www.MyCreativeBiz.com

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