WHY: FEEL GOOD ABOUT WHAT YOU CHARGE
Earlier this month Seth Godin wrote a brief blog post sharing a simple formula for calculating hourly rates for independent contractors.
'Successful freelancers need to charge at least double the hourly rate that they'd be happy earning doing full time work. (In many fields, it's more like 4 or 5x).'
If the average proficient painter can make $20/hour ($40,000/yr) working as an employee, let's see what he should charge for contract work using this principle:
$20 x 2.5 = $50/hour
That should be your baseline figure. If you or your clients feel that is high - how can you reconcile the cost and feel confident about your ask?
One thing you can do is do the math...
So a few years ago I took my daughter to see a particular show that was on tour. One of the take-aways for her was the chorus to one of the songs. She would sing that line for months afterward. I think she may have actually learned something pretty important that day.
Around that time I learned the same lesson, but I came to it from a different route.
The summer lake house had about 4 feet of water in it...
What is the point of paying a graphic designer to create attractive branding and marketing materials...
What is the point of buying and distributing business cards...
What is the point of paying for a web designer, hosting fees, SEO optimization, website registration, and a high speed internet connection...
What is the point of purchasing store front signage or decals for your vehicle...
What is the point of paying for advertising and a phonebook listing...
What is the point of paying for a costly cell phone plan...
Today is moving day.
10 years after starting my painting business it was time to sell it and move on to another opportunity. Change is complicated, both emotionally and logistically. And it got me thinking about how things like moving away or starting a new business require you to be 'all in', because everything is about to change. There is a sink or swim urgency that awakens your senses and forces you to rise to the challenge. Feels like the opposite of being in a rut.
But it requires a lot of dedication and hard work. Lots of hard work. It's almost always easier to avoid change and see it is a threat.
What does this have to do with you?...