Episode 18: Pricing: How freelancers set rates

October 23rd, 2018  •  48 mins 27 secs  •  Download (56.8 MB)  •  Link with Timestamp

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Rob and Sara discuss how they set their prices, the benefits of subscription models, setting an hourly rate starting off, and how to know when to increase rates. Rob has a provision in his contract where if someone cancels early, they are still on the hook for a certain percentage through the end of the Agreement term. That gives him money he can plan with and rely upon. Defaulting to billing by the hour is common because it is one of the easiest ways to move forward, however it often causes people to leave money on the table. Rob recommends value-based pricing based on a consideration of what the solution he's selling is worth to his clients. Ending your pricing in 5 goes better than ending it in 0.