No matter whether you are an individual consultant or freelancer, or an entrepreneur starting up a new business, it is always difficult to determine how much you should charge for your services. It may seem simple at first – decide on an hourly rate, multiply it out to create a day rate and maybe even a weekly rate.
But there are a range of factors that will influence the way that you structure your fees. For example, will you:
- Offer a reduced rate for a volume commitment from a client?
- Blend your rate when using resources of varying skill and experience levels?
- Cap your rate?
- Charge a flat fee per project?
- Base your fees on value exchange?
- Determine a mutually agreeable retainer?
There are all these questions and more.
To understand what is possible, Patrick on Pricing has developed the “Fee Continuum”. While it has been developed for the legal industry, many of the fee options also apply to other forms of “professional service” – and it can certainly help you frame your fee conversation with your clients.
But if you’re just looking for a simple calculator that will help you match your lifestyle to the fees you charge, then Motiv has a great calculator that will help you figure out – realistically – what you need to charge for your services.