You are ready to launch your business, but you have one big question left to answer… How much are you going to charge?
It’s a big thing to decide! Trust me, I know! How in the world do you determine how much your time and skills are worth? How do you set pricing that is not going to scare people away but also doesn’t undervalue you as a service provider?
It’s all about balance. But let’s start from the beginning.
How much do you want to make?
How much you want to make per hour is a straightforward calculation.
Start with the salary you want to make each year, divide that by 12. This gives you your monthly salary.
Take your monthly salary and divide it by 4. This is your weekly salary.
Now divide your weekly salary by the number of hours you want to work each week.
That gives you your ideal hourly rate.
For instance, if you want to make $100,000 per year,
$100,000/12 = $8,333.33 per month
$8,333.33/4 = $2,083.33 per week
$2,083.33/30 (I only want to work 30 hours per week) = $69.44 per hour
So my ideal hourly rate is $70/hour
Now, are you going to make $70 immediately at the start of your business? Probably not. But, it is a goal you can work towards, and as you gain experience, testimonials, and knowledge, you can slowly start to raise your rates to get there.
So where do I begin?
Depending on your level of expertise and knowledge, an entry-level Virtual Assistant can charge anywhere between $10-$25 per hour. If your skills are at the expert level of fields such as graphic design or web design, you can start out charging significantly more.
The biggest thing I am going to tell you is to know your worth and don’t waiver. If you know that you are worth $25/hour, don’t lower your standards for a client that has a budget of $15/hour. In the long run, you are only hurting yourself, and that client relationship will be full of resentment because you will know you are being undervalued. The best clients will understand your worth and be willing to pay for it. Don’t sell yourself short.
Build your portfolio and skills up to earn that $70/hour you dream of. Confidence will be built naturally when you have the experience to back it up.
Yea, the first time you tell a client you are asking $40/hour, is scary. But the first time a client says, “Yes” to $40/hour will be so worth it.
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