There was a very controversial conversation that brewed nationally regarding McDonald’s employees protesting for their minimum wage to be $15 per hour.
While I am not the expert of McDonald’s business plan, I will tell you that if the employee can’t follow the directions to leave the pickles off my husband’s sandwich, that’s not a $15/hr position.
I have also seen multiple conversations recently online among solopreneurs surrounding “What should I charge?” “This is why I charge so much….”
One conversation was spawned from an article someone shared in a Facebook group where the author said something something to the effect of “I charge [so much] because my work takes my time away from my family.”
Honey, let me kindly tell you—your clients don’t care about your family.
[don’t start hollering, y’all. chill. and keep reading.]
Here’s what I mean—if you have 1 kid or 5 kids; if you are married, going through a nasty divorce or are happily single traveling the world [cheers to ya’], your clients don’t care.
What they care about—your quality of work.
What they care about—the results you are getting for them.
What they care about —their bottom line.
What should determine your rate
First and foremost…
What will the market pay?
So you think you’re worth $500/hour? Honey, you may be. But if you’re just starting out, I can almost promise you you’re not.
It’s business 101, y’all. Supply and demand. Yes, there will always be someone whose rates are higher than your and someone whose rates are lower than yours. It’s business.
What matters for you is that your rates are inline with what the market will pay for your product/service. And that you are worth that rate.
Do your homework.
Which leads to #2…..
Are you worth it?
The market average may be $80K a year for [pretend position]. But are you worth it? Are you qualified? Do you get results? Your methods don’t have to be conventional —you’re a contractor. But do you get results? That is what companies want to see.
Let’s chat using pretend numbers:
If you are charging $10 to run FB ads that get a ROAS of 1. Someone else in your niche charges $20 to run FB ads. Does that mean you should raise your rate?
Ummm…. Not when the $20 person is getting a ROAS of 5 or greater.
And if you are managing Facebook ads and don’t understand what ROAS is, let’s get you some Facebook ad training.
So where do you start?
Everyone has to start somewhere. If you’ve been in business for a while, have built a result-driven portfolio, you may need to revisit your rates if you haven’t in a while.
If you are just getting started, do just that—get started.
You may also hear the suggestion of “figure out what you want to make a year (or a month), divide the number of hours you have available, and that should be your hourly rate.”
Y’all it doesn’t work like that either.
I have always told my kids, “I don’t care if you are a floor sweeper. You be the best floor sweeper there is.”
Same goes for anyone in any field—take pride in your work.
You may have to start with charging a lower rate, but that doesn’t mean you should do a lower-quality job.
Just the opposite—it means you work like you’re making your one-day-i-will-charge-rate and prove yourself.
Build your portfolio.
Get the results.
And then and only then—charge what (you think) you’re worth.