Why & how to charge value (instead of hours) as a freelancer

Hey there, rebels and game-changers! Listen, if you're charging by the hour, you're playing an old-school game in a world that's rapidly evolving. Time's ticking (literally), and it's high time we throw that outdated playbook out the window. You're not a clock-puncher; you're a creative genius, a problem-solver, a freedom-chaser. Let’s dive into why and how you should be charging based on value, not time.

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The 'Why': Shift Your Mindset, Amplify Your Worth

1. Time ≠ Value

Charging by the hour restricts you. Why? Because time is finite; your value is not. When you charge based on the transformation you bring to your client, you create a win-win situation.

2. Your Skill Level Deserves More

If you've spent years honing your craft, why should you get paid the same rate for an hour that someone less qualified might charge? You're a professional, dammit. Act like one.

3. Risk & Rewards

Charging by value makes you more invested in the project. The risk is higher, but so is the reward. Your success is tied to your client's success, creating a more collaborative and vested relationship.

The 'How': Tips to Implement Value-Based Pricing

1. Understand the Client's Needs

Sit your client down (virtually or physically) and get into the nitty-gritty of what they want to achieve. Ask the hard questions. What's their end game? What do they consider a win? Make notes. Lots of 'em.

2. Calculate the Value You Bring

Assign a monetary value to what you'll deliver. If you're a marketer who can bring in $50,000 worth of sales, why are you charging $50 an hour? If you're a graphic designer and your branding package is going to elevate a company's identity, that’s worth more than the time it takes to create a logo.

3. Quote a Fixed Price

After you've assessed the value, give them a fixed price. Not an estimate, not a ballpark figure—a price. This makes budgeting easier for your client and sets clear expectations.

4. Use a 'Value Ladder'

Not all clients can afford your top-tier service. Create a value ladder with multiple offerings at different price points. Each rung of the ladder should offer more value for a higher price.

5. Be Ready to Walk Away

Not every client will understand value-based pricing. And that’s fine. If they're not willing to pay for the value you offer, they're not the right client for you. Period.

Final Thoughts

Listen, the universe isn't going to hand you anything. You've got to know your worth, then go out and get it. Value-based pricing isn’t just about charging more; it's about creating a business model where your expertise is accurately reflected and rewarded. So stop selling yourself short. Break the mold, charge what you’re worth, and let's disrupt the system together.

Until next time, go forth and be valuable.