Clients Will Pay What They Think You’re Worth
How much is your work worth?
How much do you charge?
How much will clients happily pay you?
While you ponder those questions, consider this…
Apparently, the minimum fee for a consulting engagement with Price Waterhouse is $500,000. Most engagements cost many multiples of that.
A few years ago, one of the leading design firms charged Pepsi $1 million to redesign their logo. When it was done, it looked like a minor redesign of the old one.
Allegedly the Canadian government paid a consulting firm over $54 million for the design, programming, updates, and support for a Covid monitoring app. It started as an $80,000 job.
You’re Not Them, But Who Are You?
Any company that approaches Price Waterhouse knows the price range in advance. They’re not going to PWC for a $50,000 job.
When Pepsi hired the global design firm, were they thinking it would be a quick $10,000 redesign? Probably not.
As for the Canadian government, well, who knows what they were thinking.
The point is this:
Companies set expectations. Their messages convey these expectations. Their websites, social media, and PR are aligned in their messaging.
Along with communicating expectations, professional companies also communicate who they want as clients. PWC talks about power, global leaders, government, and actionable insights. There’s no mistaking who they’re addressing.
So, here’s the question for freelancers or small agencies. What expectations are you setting?
If prospective clients run across your communications, what will they think? What will you deliver, and what can prospects expect when they work with you?
You could put pricing on your website, but most freelancers don’t. The big companies I mentioned above don’t either. So how do you communicate your value without a price list?
The Unspoken Speaks Loudly
The first thing to consider is the appearance of your communications. We process visuals before we start to read. Design and graphics matter, even if you’re a writer.
When prospects see your website or social, what do you want them to think? Ignore the words for a moment and focus on the overall look.
What impression do you want to leave? That you’re creative? Buttoned down? Reliable? Some combination of those?
The look of your communications supports your value and how much you can charge.
Spend some time with the design of your site and any other outreach materials. Decide whether they communicate what you want them to say.
Could you charge more if you present yourself differently? Perhaps.
How Are You Positioning Yourself?
If someone reads your site or social, they should know what to expect when they contact you. Think about the first thing that prospects read. From your opening communications, prospects should be clear on the following:
An indication of the services you offer
Where you focus, your niche
Support or proof for your statements (could be a portfolio piece, case study, or testimonial)
Find an elegant way to deliver these messages. You don’t need a laundry list of services.
For example, a few well-chosen portfolio pieces or case studies will indicate what you do, who you do it for and give an idea of the scope and scale of your work. Add a client testimonial for even greater credibility.
Add Authority—Communicate Your Processes
No one will hire you just for your processes. But clearly-defined processes and terms of engagement are signs of professionalism and play a role in supporting your pricing. Processes help clients feel secure, and they’ll pay for security.
Somewhere in your communications, you may want to indicate how you work.
For example, you could outline what you ask clients in your onboarding process. You can say how you handle revisions and changes. Talk about how you estimate projects.
How much or little of this you want to include is up to you. But ideally, prospects should have some indication of what it would be like to work with you.
How to Talk About Money (When It’s Too Early to Talk About Money)
Often prospects will read your site or social, contact you, describe a project they have in mind, and then want to know how much?
It’s obviously far too early to answer that question. Here’s a way to get around it.
“I can’t give you an estimate without more detail, but I can tell you I’ve done similar-sounding projects that ranged from $X to $XX. Is that what you had in mind?”
To do this successfully, you’ll have to think fast. What projects are you thinking of (in case they ask for more detail), and what numbers will you put in there? This is your opportunity to set expectations.
If you’re not comfortable doing that, you should ask for a written brief and be willing to provide an estimate based on that.
Under no circumstances, blurt out a “rough ballpark” or estimate on a specific project without a full brief.
The Truth About Rates
How much you can charge is determined by the following:
Who are your clients—some have bigger budgets than others
What you deliver and how you deliver it
Your track record—what you’ve done before (portfolio, case studies, testimonials)
How you define and present yourself
What you asked for
Rates are completely fluid. Some writers are writing blog posts for $20. Others get $200, and still others, $2,000.
The difference? The five points above: who are your clients, what do you deliver, what have you delivered in the past, your presentation, and what you asked for.
How to Increase Your Rates
So, to charge more, try some combination of:
Changing (upgrading) your clients
Improving your deliverables and processes
Focusing on your track record
Upgrading the presentation of your positioning
Asking for more (it can be that simple)
There’s much more on getting paid what you’re worth in my book, How to Start a Successful Creative Agency. It’s the essential business guide for graphic designers, copywriters, filmmakers, photographers, and programmers.
With over 300 pages and 23 chapters, it’s available at Amazon (Paper & Kindle), Kobo (ebook), Apple Books (ebook), and Gumroad (PDF).
Learned a Lot of Things I Haven't Found Anywhere
“Freelancers and agency owners, if you're struggling with pricing, writing good estimates, profitability etc., get @StroteBook's book. Finished it yesterday and learned a lot of things I haven't found anywhere.”
Kasun Pathirage, Freelance B2B Writer, posted on Twitter
The book is packed with useful information to help creatives start and grow their business.
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