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Freelancing Fundamentals
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Increasing your rates


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Freelancing Fundamentals

with Tom Geller

Video: Increasing your rates

There are only so many hours that one person can work every week. So, once those hours are spoken for, the only way you can increase the financial yield on your time is by raising your rate. To explore ways to do so, let's revisit the psychology of how people buy freelancer services. As mentioned earlier in this course, buyers have to justify your price by measuring it against other considerations. They ask themselves, "What's the overall value of doing this project?" "Can I do it myself, if so, with what costs and risks?" "What are the costs and risks of assigning it out?" And finally, "To whom can I assign it to keep the costs and risks at their lowest?" It then comes down to a cost benefit analysis for the buyer.
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  1. 10m 50s
    1. Welcome
      1m 53s
    2. What is freelancing?
      2m 53s
    3. How freelancing and employment differ
      2m 33s
    4. Preparing your mindset
      3m 31s
  2. 9m 24s
    1. Defining career goals
      2m 48s
    2. Sharpening your market focus
      3m 18s
    3. Transitioning to freelancing
      3m 18s
  3. 16m 11s
    1. Preparing your portfolio
      3m 11s
    2. Estimating costs
      3m 10s
    3. Funding your startup
      2m 42s
    4. Establishing your workspace
      3m 35s
    5. Building your professional network
      3m 33s
  4. 8m 51s
    1. Getting licenses, permits, and insurance
      2m 15s
    2. Creating contracts
      4m 23s
    3. Finding professional service vendors
      2m 13s
  5. 12m 54s
    1. Setting prices
      3m 13s
    2. Establishing payment systems
      1m 36s
    3. Invoicing and getting paid
      3m 50s
    4. Keeping the books
      2m 32s
    5. Managing taxes
      1m 43s
  6. 14m 41s
    1. Announcing your availability
      3m 16s
    2. Finding work through agencies
      2m 2s
    3. Onboarding clients
      2m 59s
    4. Avoiding scams
      3m 25s
    5. Choosing assignments
      2m 59s
  7. 11m 27s
    1. Interacting with clients
      2m 11s
    2. Delivering quality work
      2m 28s
    3. Getting referrals and recommendations
      2m 34s
    4. Losing and firing clients
      4m 14s
  8. 10m 48s
    1. Deconstructing big jobs
      3m 34s
    2. Adopting time-management tools
      2m 35s
    3. Creating schedules
      2m 30s
    4. Turning off the clock for "me time"
      2m 9s
  9. 20m 6s
    1. Staying motivated
      3m 3s
    2. Increasing your rates
      2m 52s
    3. Marketing beyond your professional network
      2m 56s
    4. Growing through hires and partnerships
      3m 30s
    5. Building passive income
      3m 48s
    6. Changing focus
      3m 57s
  10. 4m 52s
    1. Case study: Publishing a book
      2m 47s
    2. Next steps
      2m 5s
  11. 12m 42s
    1. Freelancing Q&A
      12m 42s

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Freelancing Fundamentals
2h 12m Appropriate for all Jan 30, 2013 Updated Mar 20, 2013

Viewers: in countries Watching now:

In this course, author and seasoned freelancer Tom Geller shows you how to prepare for a transition to freelancing. Begin by taking a look at your career goals, the systems that will support you, and proper ways to plan for success. Find out how to marshal your resources, refine your portfolio for presentation to clients, and estimate your costs to avoid any surprises on the financial front. Plus, discover how to create invoices, manage your books and taxes, expand your client base with marketing, and grow your business.

A bonus chapter covers common questions freelancers have when entering the field.

Topics include:
  • What is freelancing?
  • Defining your career goals
  • Funding your startup
  • Getting licenses, permits, and insurance
  • Setting prices
  • Finding work through agencies
  • Getting referrals
  • Working with time and project management tools
  • Increasing your rates
Subjects:
Business Productivity Project Management Business Skills Freelancing
Author:
Tom Geller

Increasing your rates

There are only so many hours that one person can work every week. So, once those hours are spoken for, the only way you can increase the financial yield on your time is by raising your rate. To explore ways to do so, let's revisit the psychology of how people buy freelancer services. As mentioned earlier in this course, buyers have to justify your price by measuring it against other considerations. They ask themselves, "What's the overall value of doing this project?" "Can I do it myself, if so, with what costs and risks?" "What are the costs and risks of assigning it out?" And finally, "To whom can I assign it to keep the costs and risks at their lowest?" It then comes down to a cost benefit analysis for the buyer.

The values are pretty subjective and not always easy to measure. You can sway some of the points your way, but not all of them. Let's look at each of them. First, what's the value to the buyer of having the project done at all? You might not have a say in this, although some sales processes include helping the client to recognize the value they'll get. For example, if you know about studies showing that online stores increase their revenue after adding a certain widget to their site that helps justify an increased fee for adding that widget.

Let's go to the second question that clients ask themselves, "Can I do it myself and how much will that cost?" I'm afraid you won't have any input there. But then we come to a factor you can influence. What are the costs and risks for assigning it out? If the risks for hiring you are low, you can increase your rate. So, your challenge is to demonstrate that hiring you is a low risk proposition. You do that by having a strong portfolio, good referrals and demonstrated experience.

That's why experienced freelancers and those whom the client already trusts get the best pay. The last part is that you're not just competing with the client's staff; you're also competing with all the other solution providers, including freelancers and agencies. So, your cost, and again, the dollars per hour you receive, has to be competitive. Keep in mind that many clients prefer prices to be quoted per project, not per hour. So, you'll have to do that calculation. But that actually points to another way you'll effectively raise your rates.

The longer you're in the business, the more efficiently you'll complete jobs. So when you give that project price, the total will be divided by fewer hours, giving you a better dollar per hour rate. In any case, just thinking about how to raise your rates forces you to examine the value that you give to clients. As I said earlier in the course, freelancers often fall into the trap of charging too little, because they don't recognize their own value. But your experience will show just how valuable you are, how to demonstrate that value to clients, and how to get better rates as a result.

Find answers to the most frequently asked questions about Freelancing Fundamentals.


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Q: This course was updated on 3/20/2013. What changed?
A: We added a bonus chapter that covers common questions freelancers have when entering the field, such as "How do I use Craigslist or other job boards to grow my freelance business?" and "How do I find clients?"
 
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