how do I charge my clients I get this question a lot from my readers and it’s
question a lot from my readers and it’s
question a lot from my readers and it’s really important when you’re starting a
really important when you’re starting a
really important when you’re starting a service-based business you have to
service-based business you have to
service-based business you have to figure out how much you’re gonna charge
figure out how much you’re gonna charge
figure out how much you’re gonna charge and how you’re gonna actually get paid
and how you’re gonna actually get paid
and how you’re gonna actually get paid by your clients a lot of the question
by your clients a lot of the question
by your clients a lot of the question again came in from a mal one of my
again came in from a mal one of my
again came in from a mal one of my facebook readers he wrote in hi Evan as
facebook readers he wrote in hi Evan as
facebook readers he wrote in hi Evan as a consultant how do I charge my clients
a consultant how do I charge my clients
a consultant how do I charge my clients is it an hourly rate per project
is it an hourly rate per project
is it an hourly rate per project percentage of the total project cost
percentage of the total project cost
percentage of the total project cost thank you for this question I’d really
thank you for this question I’d really
thank you for this question I’d really look at what phase you’re at in your
look at what phase you’re at in your
look at what phase you’re at in your business okay let me let me explain for
business okay let me let me explain for
business okay let me let me explain for the customers they want cost certainty
the customers they want cost certainty
the customers they want cost certainty okay this the biggest fear for a
okay this the biggest fear for a
okay this the biggest fear for a customer is that you’re gonna do an
customer is that you’re gonna do an
customer is that you’re gonna do an hourly project you’re gonna run way over
hourly project you’re gonna run way over
hourly project you’re gonna run way over your time and they’re gonna be way over
your time and they’re gonna be way over
your time and they’re gonna be way over budget on the flip side the challenge
budget on the flip side the challenge
budget on the flip side the challenge for you is if you do a fixed fee then
for you is if you do a fixed fee then
for you is if you do a fixed fee then you may not be able to factor in all of
you may not be able to factor in all of
you may not be able to factor in all of the costs that are gonna come right you
the costs that are gonna come right you
the costs that are gonna come right you may end up working for minimum wage
may end up working for minimum wage
may end up working for minimum wage because you’ve done so much extra work
because you’ve done so much extra work
because you’ve done so much extra work above and beyond what you thought the
above and beyond what you thought the
above and beyond what you thought the project was gonna entail my preferred
project was gonna entail my preferred
project was gonna entail my preferred model if you’re just starting up if you
model if you’re just starting up if you
model if you’re just starting up if you are just in the startup phase if you are
are just in the startup phase if you are
are just in the startup phase if you are not at the point of survival yet you’re
not at the point of survival yet you’re
not at the point of survival yet you’re not at the point where you’re making
not at the point where you’re making
not at the point where you’re making enough money to pay your bills put food
enough money to pay your bills put food
enough money to pay your bills put food on the table we’ll have to worry about
on the table we’ll have to worry about
on the table we’ll have to worry about going in and get another job right if
going in and get another job right if
going in and get another job right if you’re not there yet
you’re not there yet
you’re not there yet then my preferred option would be to do
then my preferred option would be to do
then my preferred option would be to do a fixed fee rate so whatever the
a fixed fee rate so whatever the
a fixed fee rate so whatever the projects gonna be you estimate how long
projects gonna be you estimate how long
projects gonna be you estimate how long it’s going to take you and you give your
it’s going to take you and you give your
it’s going to take you and you give your clients certainty the reason why is
clients certainty the reason why is
clients certainty the reason why is important is because you want to build a
important is because you want to build a
important is because you want to build a relationship with your clients and it’s
relationship with your clients and it’s
relationship with your clients and it’s easier to get them to say yes to a deal
easier to get them to say yes to a deal
easier to get them to say yes to a deal when they have certainty the more risks
when they have certainty the more risks
when they have certainty the more risks you take away from them the easier it is
you take away from them the easier it is
you take away from them the easier it is to say yes so do a fixed fee say it’s
to say yes so do a fixed fee say it’s
to say yes so do a fixed fee say it’s gonna cost you $2,000 $100 10,000
gonna cost you $2,000 $100 10,000
gonna cost you $2,000 $100 10,000 whatever it is you make an estimate
whatever it is you make an estimate
whatever it is you make an estimate you’re gonna be wrong but you’re gonna
you’re gonna be wrong but you’re gonna
you’re gonna be wrong but you’re gonna try to be close it’ll teach you to make
try to be close it’ll teach you to make
try to be close it’ll teach you to make your estimates better and as you develop
your estimates better and as you develop
your estimates better and as you develop in your business you’ll get better and
in your business you’ll get better and
in your business you’ll get better and better at making estimates and the one
better at making estimates and the one
better at making estimates and the one thing I would put in there is really
thing I would put in there is really
thing I would put in there is really defining what the project is gonna be
defining what the project is gonna be
defining what the project is gonna be about because almost always the project
about because almost always the project
about because almost always the project changes the longer the project
changes the longer the project
changes the longer the project for there are things that will change in
for there are things that will change in
for there are things that will change in what they want you to do some things
what they want you to do some things
what they want you to do some things will now become important that weren’t
will now become important that weren’t
will now become important that weren’t in there in the beginning
in there in the beginning
in there in the beginning some things that they wanted before now
some things that they wanted before now
some things that they wanted before now aren’t important anymore they’re gonna
aren’t important anymore they’re gonna
aren’t important anymore they’re gonna throw away some of the project it always
throw away some of the project it always
throw away some of the project it always happens and that’s a big risk on your
happens and that’s a big risk on your
happens and that’s a big risk on your part as being a consultant so you wanna
part as being a consultant so you wanna
part as being a consultant so you wanna you want to watch out for project scope
you want to watch out for project scope
you want to watch out for project scope creep and that’s where your clients are
creep and that’s where your clients are
creep and that’s where your clients are changing the deals on you anytime
changing the deals on you anytime
changing the deals on you anytime something comes up where they want to
something comes up where they want to
something comes up where they want to change something then you have to make a
change something then you have to make a
change something then you have to make a decision and talk to the client and let
decision and talk to the client and let
decision and talk to the client and let them know okay if we’re gonna do this it
them know okay if we’re gonna do this it
them know okay if we’re gonna do this it wasn’t part of our initial deal but if
wasn’t part of our initial deal but if
wasn’t part of our initial deal but if you want to do this then it’s either
you want to do this then it’s either
you want to do this then it’s either them a costume or or we have to take
them a costume or or we have to take
them a costume or or we have to take something out and keeping those lines of
something out and keeping those lines of
something out and keeping those lines of communication open always because it
communication open always because it
communication open always because it builds a relationship with you in the
builds a relationship with you in the
builds a relationship with you in the client and it also prevents bad feelings
client and it also prevents bad feelings
client and it also prevents bad feelings you know if the client keeps saying add
you know if the client keeps saying add
you know if the client keeps saying add this add this add this and suddenly
this add this add this and suddenly
this add this add this and suddenly you’re working so many extra hours are
you’re working so many extra hours are
you’re working so many extra hours are not able to deliver it on a budget that
not able to deliver it on a budget that
not able to deliver it on a budget that you’re happy with then it’s not going to
you’re happy with then it’s not going to
you’re happy with then it’s not going to be a good relationship with you and the
be a good relationship with you and the
be a good relationship with you and the client and it’s gonna probably end up
client and it’s gonna probably end up
client and it’s gonna probably end up and in some kind of fight and the
and in some kind of fight and the
and in some kind of fight and the project not finish it so be conscious of
project not finish it so be conscious of
project not finish it so be conscious of that be consider the project scope creep
that be consider the project scope creep
that be consider the project scope creep but at the start to make it easy for
but at the start to make it easy for
but at the start to make it easy for your clients I would say start on a
your clients I would say start on a
your clients I would say start on a fixed fee base so they have cost
fixed fee base so they have cost
fixed fee base so they have cost certainty okay this is only to get to
certainty okay this is only to get to
certainty okay this is only to get to the phase of survival to get to the
the phase of survival to get to the
the phase of survival to get to the point where you’re making enough money
point where you’re making enough money
point where you’re making enough money that you don’t have to worry about going
that you don’t have to worry about going
that you don’t have to worry about going back into the job I’m not talking about
back into the job I’m not talking about
back into the job I’m not talking about living a life of luxury here this is
living a life of luxury here this is
living a life of luxury here this is basics the challenge of the service
basics the challenge of the service
basics the challenge of the service based business is it’s hard to scale
based business is it’s hard to scale
based business is it’s hard to scale it’s hard to really scale up a service
it’s hard to really scale up a service
it’s hard to really scale up a service because you’re always trading your time
because you’re always trading your time
because you’re always trading your time for money
for money
for money and your time is limited you could bring
and your time is limited you could bring
and your time is limited you could bring on other people to work under you that’s
on other people to work under you that’s
on other people to work under you that’s the best way to do it if you need to
the best way to do it if you need to
the best way to do it if you need to scale but it’s still so much harder to
scale but it’s still so much harder to
scale but it’s still so much harder to scale a service based business than a
scale a service based business than a
scale a service based business than a product if you look at the businesses
product if you look at the businesses
product if you look at the businesses that venture capitals invest in if you
that venture capitals invest in if you
that venture capitals invest in if you look at the businesses that are throwing
look at the businesses that are throwing
look at the businesses that are throwing off huge returns they’re not service
off huge returns they’re not service
off huge returns they’re not service based companies because it’s too hard to
based companies because it’s too hard to
based companies because it’s too hard to scale so if you want to have a major
scale so if you want to have a major
scale so if you want to have a major impact if you want to make a lot more
impact if you want to make a lot more
impact if you want to make a lot more money if you want to really reach your
money if you want to really reach your
money if you want to really reach your community then you want to start
community then you want to start
community then you want to start thinking about how you
thinking about how you
thinking about how you can either as a consultant take a piece
can either as a consultant take a piece
can either as a consultant take a piece of the company that you’re working with
of the company that you’re working with
of the company that you’re working with or start to productize your knowledge
or start to productize your knowledge
or start to productize your knowledge and information because that’s going to
and information because that’s going to
and information because that’s going to help you have that bigger impact okay
help you have that bigger impact okay
help you have that bigger impact okay but I don’t want you to do that from the
but I don’t want you to do that from the
but I don’t want you to do that from the beginning because that takes more time
beginning because that takes more time
beginning because that takes more time is riskier and you’re gonna run out of
is riskier and you’re gonna run out of
is riskier and you’re gonna run out of money before those things come through
money before those things come through
money before those things come through most likely so at the start get to know
most likely so at the start get to know
most likely so at the start get to know your clients more closely with them do
your clients more closely with them do
your clients more closely with them do fixed fee projects get to the point of
fixed fee projects get to the point of
fixed fee projects get to the point of survival to the point where you are not
survival to the point where you are not
survival to the point where you are not worried about having to go back and get
worried about having to go back and get
worried about having to go back and get another job and then from there you can
another job and then from there you can
another job and then from there you can afford small risks and thinking about
afford small risks and thinking about
afford small risks and thinking about taking a piece of the companies you’re
taking a piece of the companies you’re
taking a piece of the companies you’re working with starting to productize your
working with starting to productize your
working with starting to productize your information and starting to have a
information and starting to have a
information and starting to have a bigger impact that will help you scale
bigger impact that will help you scale
bigger impact that will help you scale up your knowledge and expertise believe
up your knowledge and expertise believe
up your knowledge and expertise believe those you watching liked the video
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makes me to do more for you and I’d love
makes me to do more for you and I’d love to hear what you have to think leave a
to hear what you have to think leave a
to hear what you have to think leave a comment under this video and I will make
comment under this video and I will make
comment under this video and I will make a video response if you have a question
a video response if you have a question
a video response if you have a question thank you so much guys and I’ll see you
thank you so much guys and I’ll see you
thank you so much guys and I’ll see you soon
”
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