Knows Mag | How To Charge Your Clients
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How To Charge Your Clients

Knows Mag || How to charge your clients

How To Charge Your Clients

How to Charge Your Clients

The biggest issue people have when it comes to consulting is knowing how much to charge clients.

 

If you do a SMALL job, They pay you SMALL money

If you do a BIG job, They pay you BIG money

 

I’ll tell you what to do = $

 

I’ll show you step by step how to do it = $$

 

I’ll show you how to do it step by step and I’ll be there everyday to guide you = $$$

 

I’ll just finish the whole damn project for you. Just sit back, relax and I’ll have it done next week = $$$$

 

As you can see from the above the more valuable the information or service you are providing, the more money you can get.

 

Try and break down your pricing this way:

 

Tier 1: Tell them what to do = $

Tier 2: Show them step-by-step = $ $

Tier 3: Show them step-by-step and be there everyday = $ $ $

Tier 4: Just do the whole damn project for them without them doing anything = $ $ $ $

 

NOW WHAT ABOUT RETAINERS

 

For projects that require you to work for more than one month, you need to charge something called a retainer. These type of projects tend to require the company you are doing the work for to pay you a flat fee every month. Examples are social media management, advertising, accounting for a company, etc.

 

Take the SEO example from before. Let’s say you negotiate GHS3000 every month to improve the companies rankings. Any additional work they have you doing, that is not related to SEO (like content creation, writing blog posts, etc) can be billed as extra.

 

See how that works. Not only do you get paid GHS3000 but also additional work.

 

Retainers are great because they guarantee you income over a certain period of time, which can reduce your stress levels, but due to their nature, they are also much harder to get.

 

Before you go for a retainer and lock yourself in, try charging an hourly rate first to test out the client. Here’s how.

 

CHARGING BY THE HOUR

 

Getting a retainer although a sweet gig is like getting married. How about a quick date first?

 

Now I talk a lot about moving away from active to passive income and this method is really active income. Active income is when you trade time for money, but if someone is paying you a few hundred cedis an hour to work, would you complain?

 

Also once a client pays you, you can get them to start paying you A LOT, once you win their trust and deliver on your work.

 

SO HOW DO YOU IMPLEMENT THIS | THE KNOWS PRICING TECHNIQUE

 

Seeing as a lot of you are already scared or uncomfortable when it comes to time to have money conversations, try this technique to help you cover all your bases.

 

Create THREE different pricing structures.

 

Basic = Cheap and safe

Advanced = Optimal amount of money you’d like

Expensive = Most clients wont spend this much. But some will

 

Here is how this technique works:

 

Basic package = $

Very basic work.

Affordable price and will atleast get you in the door

 

Clients response – This option is too little

 

 

Advanced package = $$

This is the optimal amount of work for them, and the optimal amount of money for you

 

Clients response – This option is jusssst right

 

Super Amazing Rockstar Package = $$$$$$

This is the complete sit back while we do all the work for you super rockstar package that is super expensive.

 

Clients response – This option is too high

 

This approach allows you to get clients both big and small. Here is a real world approach:

 

The Basic WordPress Package: GHS400

  • Basic WordPress website installed with your choice of theme.
  • Tweaking and Tuning of your site done.
  • One hour of personal WordPress training.

 

The Advanced WordPress Package: GHS1,300

  • Fully customized WordPress website installed.
  • Full SEO tuning done for your site.
  • Full list of content items to write for good SEO.
  • Two hours of personal WordPress training.

 

The Professional WordPress Package: GHS5,200 + GHS1,000/mo Retainer

  • Fully customized WordPress website installed.
  • Full SEO tuning done for your site.
  • Full list of content items to write for good SEO.
  • Five hours of personal WordPress training.
  • Every month we perform 2 split tests to optimize.
  • BONUS: One SEO’d article written for you per month.
  • BONUS: Full social media presence and strategy laid out.

BONUS: Blogger outreach program to get your blog into blogging communities.

 

Usually people will tend to opt for the middle package, with a lot of them seriously considering the huge package if they can afford it.

 

THEY PICKED THE LOWER PACKAGE, HOW TO I GET MORE MONEY OUT OF MY CLIENT

 

Never fear, Knows has you covered. The main approached people take to getting more money out of clients are usually:

 

1 Charging higher process from the start

2 Offering more services

3 Increasing your demand by becoming an expert in your industry or field

4 Consulting in areas that generally pay more

 

The biggest barrier however is mindset in thinking you are charging too much. Let us put it into perspective for you. You are scared of charging a company who is used to paying:

 

  • $100,000’s/year in taxes.
  • $1,000’s/year for permits.
  • $3,000/month in rent.
  • $40,000/year for employees.
  • $1,000’s/year for simple administrative work.
  • $10,000’s/year for marketing.

 

THE PROPER MINDSET FOR CONSULTING

 

How should you consult yourself with clients. This is an important question to ask yourself and will help you not get taken advantage of by clients.

Remember.

 

Your time is your product, so be strict with it

 

Make it clear from the start that you will bill hourly.

 

If someone calls you and says “Hey can you fix this??”

 

You go and fix it… but then send them an invoice for the work you just did… even if it’s a small amount.

 

This will let them know that GETTING WORK FROM YOU = PAYING YOU. After the first incident, they will know not to do this.

 

You can answer a question here and there but as you grow you need to be Extremely STRICT with your time.

PART 1: What is Consulting And Why Everyone Should Do It

PART 2: How To Find Your Clients

 



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