Billing for a project is tricky. You don’t want to undercharge and miss out on potential profits from your hard work. But, at the same time, you don’t want to overcharge and risk losing your client. You need to find the perfect in-between.
So how much should you bill for your invoice? You can determine this by following three simple steps: determine your worth, find your margin, and then the 10% rule.
Regardless of what project you have, determining how qualified you are is a big step in the bill. The experts can charge upwards of $1000 for a project as small as a 400-500 word article whereas a newbie may get paid $5 for the same amount of work.
To determine your worth, ask yourself a few questions. How long have I been working in this field? Can I consider myself an expert? (This is usually more than five years of experience) What are my qualifications?
Once you answer each of these questions, you should have a good idea of how much value you can bring to your clients.
Don’t try to fake your expertise either. If you’ve only been working for a few months in a field and try to charge at the rate a professional would, you’re taking a big gamble. Clients expect the best work and if you fail to meet their expectations, there’s a good chance you won’t be getting a good referral from them.
One thing that freelancers and business owners mistakenly do over and over again is that they don’t find the proper margins for their work.
Each project takes time and money. And while you may not think services such as writing content take up money, the time spent on that project needs to give you your money’s worth otherwise you’ll lose in the long run.
Therefore, find your margin. If editing a video for someone takes three hours and $20, charge an amount that will not only get you those $20 dollars back but also make the time spent on the project worth it.
An example of this would be charging $60 dollars for the project. You get your $20 spent on the project back but you also make a profit of $40 for your time.
But don’t build too large of a margin because then you’ll be questioning the client’s trust. Spending two hours on a project and charging $300 could net in serious profit but the clients who are even willing to hire you are going to need some verification that you know what you’re doing.
Usually, when people are charging margins that high, that means they’re in expert in the field and they’ve been doing this professionally for a while now.
The final step to figuring out how much to charge is adding the 10% rule. Once you’ve figured out your qualifications and the margin you want, add 10% of whatever you have.
If you’re charging $50, take 10% of that and add it on to your charge. This would give you $55 as your billing fee.
But didn’t you just say to not build too large of a margin?
I did say that. But you’ll rarely have clients hesitating to pay an extra few dollars. The only time this would happen is if you’re charging a fee of $100 and up without the extra 10%.
Adding the 10% rule is a small safety net that you can depend on for the future. As business owners, we all go through some troubles and these troubles might need some cash flow to come our way.
The 10% rule will help provide some of that extra cash. If you write six articles in a month at $55 a piece with that 10% rule in play, you’ll receive $30 more dollars at the end of the payout than if you were to just charge standard price.
That may not seem like a lot then but as time adds on, by the end of the year, you could see yourself with an extra thousand dollars in your pocket.
The best part of this is that most people are willing to pay a few extra dollars each time and this will slowly add up for you. All you have to do is be patient and keep hustling.
Using our software, we simplify the billing down to what it should be. You don’t have to worry about nitpicking all the information. We have that covered from the get-go.
You can access your contacts from your phone or you computer and everything is built to be remembered.
You need the information of that coffee shop which you created a marketing campaign for? No problem. The information is saved from the moment you type it in. All you have to do is send that invoice (no pun intended).
Combine that with your newly-acquired knowledge of billing efficiently and you have everything you need to succeed.
Billing is possibly the most exciting yet tedious part of your journey as a freelancer. Creating the project is great but getting paid is even better. At the same time, getting paid is a tricky subject if you don’t know how to bill properly.
Plus, remembering information and data for each client you have is even more tiring. Fortunately for you, Send That Invoice solves every problem you need. It remembers your information, simplifies everything, and doesn’t stretch your wallet thin.
Now that you know how much you want to charge for your services and you have Send That Invoice by your side, you can elevate your business to the next level.
You don’t have to worry about filling out information sheets for each client anymore. You can focus on expanding, scaling, and building for the future. You’ve taken care of the short-term pieces. Now, it’s time to focus for the long-term.
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