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Is Your Pricing Model Working for You? | Media Temple

In our last post on overcoming the plight of the creative entrepreneur (or the CE as I have been calling us), we talked about charging for our value. In fact, for the majority of our series we have been working on understanding our purpose so that we can understand our real value, then using that understanding to figure out how to charge for for our value. All of this, so that we CEs can live a successful independent life. Many of you may have started to implement these methods into your own businesses, and, hopefully, they have been working for you. However, what I have found is that many CEs get to the point where they understand their value and they now change what they’re worth, but they still haven’t reached creative entrepreneur enlightenment. Why do so many creative entrepreneurs find themselves in this situation? Quite simply, the way they charge is broken.

“Charging hourly, and especially charging hourly ‘just because’, can cause you some real headaches.”

What is Your Rate?

The question that I get most often from other creative entrepreneurs is “what is your rate?”. When asking this, they are, of course, asking how much I charge for an hour of work. Unfortunately, hourly is how many creative entrepreneurs charge. They take what they want their yearly salary to be and divide it by the number of hours they want to work each year and, whammo, they have an hourly rate. Worse many creative entrepreneurs don’t even think about their yearly salary first, but instead just pick an hourly pricing model because, well, everyone else charges that way when they are independent, don’t they? Rest assured hourly is not the only way that you can or should charge. In fact, many times, I’d caution against it. Because charging hourly, and especially charging hourly “just because”, can cause you some real headaches.

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Is Your Pricing Model Working for You?.

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