Page 178 - The $100 Startup_ Reinvent the Way You Make a Living, Do What You Love
P. 178
Andy’s story was repeated in various forms by other service providers and a
few product-based businesses too. In 2010 I conducted a separate study of
fourteen freelancers who had raised their rates successfully. I asked them how
they did it, what they expected to happen, and what actually happened. These
freelancers were working in completely different fields, including a veterinarian,
a voice coach, a sign language interpreter, and the more typical crowd of
consultants, writers, and designers. They were also located throughout the
English-speaking world, including Canada, Australia, New Zealand, South
Africa, the United Kingdom, and the United States.
Despite the diverse backgrounds and regions, I heard the same story over and
over: “Before my price increase, I was worried that no one would hire me again.
After the price increase, I realized how easy it was, and I wish I had done it
sooner.” In most cases, the change was anticlimactic. Clients said, “OK, sure,”
and moved on.
I also asked about suggestions for other service providers who are thinking
about raising their rates. The most common advice was to maintain a practice of
regular rate increases so that it becomes normal and expected. One freelancer
likened it to going to the grocery store: No one expects the price of milk to be
the same from year to year. We all know that over time it’s going to go up, and
the same should be true for the prices we charge clients. Another suggested an
annual date for changing prices, either January 1 or the beginning of your
calendar year if it’s different. Others said that they offered an ongoing discount
for current clients, among whom the work is more familiar and a strong
relationship already exists.
Lastly, remember to price on the basis of value, not time. One designer sent us
a good example of what not to do: “I have a colleague who moderates her rate
according to how busy the day was and how long her lunch break was. Crazy!”
Our correspondent is right: Customers pay for what you deliver, not how long
you spend at lunch.
The Best Social Media Strategy:
Talk About Yourself
You may have heard that the way to build a following on Twitter or other social
networks is to promote other people’s work. People don’t want to hear you talk
about yourself all the time, right?
This advice is well-meaning and sounds good on the surface. Unfortunately,
it’s also wrong. Promoting other people’s work and sharing links to interesting
articles is fine, but don’t expect that merely doing that will help you gain