Ever wondered, “How much should my hourly rate be?”
If you're charging your clients an hourly rate, there are five reasons that you need to STOP right now.
As discussed in this video, these are the TOP 5 reasons why you should stop charging hourly rates for your services.
#1. You're Limiting Your Client's Success
Let's face it, you have the skills and experience that can HELP people get significant results.
If you're a coach, a consultant, a freelancer, a wellness practitioner, or if you're delivering any type of professional services, you want to help people get the MAXIMUM results possible.
But if you charge an hourly rate, your clients will only want to work the MINIMUM number of hours with you.
So now you're not only limiting your client's success, but you're also limiting your own income.
#2. You're Not Getting Paid What You're Worth
If you're great at what you do, your hourly rate only focuses on the QUANTITY of the work you do, not the QUALITY.
The VOLUME of hours you work is not the actual VALUE that you provide.
That's because what if you can actually get a better result, or you can do it quicker due to your experience?
Charging an hourly rate means you get paid less for being good at your job, which makes zero sense, in my opinion.
That's because people will now compare your hourly rate to your competitors' hourly rate, which isn't a fair comparison.
So now, it's a race to the bottom of who has the cheapest price, and you don't want to win that race!
#3. You're Trading Your Time For Money
If you're trading your time for money, the only way to make more money is to work more hours.
But the problem with that is there's only a limited number of hours in a day. So pretty soon, you'll hit a ceiling on your income.
But what if there are other ways to help your clients that will also allow you to free up your time? Like a recorded educational video, a computer program or using an offshore team member?
You can't actually do it because it's not factored into your "hourly rate".
Now I know I'm being quite direct with you. Just know that this advice didn't just come from some blog post or a book I read.
It's from training over 1,000 service-based businesses since 2009 and seeing firsthand what separates a business that succeeds from the ones that fail.
#4. Charging An Hourly Rate Not Only Lowers Your Financial Rewards, But It also Lowers Your Fulfilment
Think about this if you’re still wondering, “How much should my hourly rate be?”. When you start charging an hourly rate, you get into a nickel-and-dime mentality where you want to bill for every single thing you do for a client because if you don't, it doesn't seem like a fair exchange.
But charging for every single thing that you do can actually get annoying for your clients.
If you have an hourly wage mentality, so will your customers. So now you feel the need to justify your hours to your client, and they may question everything you do, which isn't fulfilling for anybody.
It's also a lot of extra work and stress tracking all these billable hours and invoicing for it.
#5. Hourly Rates Can Scare Off Clients
When I get into a taxi, they don't say, "It's $100 an hour" because that would scare people off.
Instead, we should be more like Uber… charge an agreed fee for an agreed result.
This is really a win/win because now, your client has the predictability of the cost, and you can now focus entirely on getting them the result instead of watching the clock.
So Right Now, You Might Be Thinking, What Should I Do Instead?
You need to do two things right…
- You need to learn how to PACKAGE your services. There are dozens of different things you can offer your client besides trading your time for money.
There are also many great ways you can package your services, such as a one-off fee for the result you deliver or an ongoing recurring fee.
- You need to have the right CONVERSATION with your potential clients. The fact is, charging an hourly rate is common, and it's what some clients expect.
But in the initial conversation, you need to introduce your package in a precise way. As an example, introduce your package as a path. You need to show them a path because people pay for the path.
If you don't show them a path to getting results, they will only see the price.
For example, a student of ours, Tiffany Bowtell, struggled with her service-based business when she was charging an hourly rate. The fact is, she was struggling with her business and was considering going back to a 9-5 job.
Now I taught her exactly how to do these two things, and her results are amazing. Tiffany generated $105,000 of new coaching business within 40 days of learning how to have the right package and the right conversation with her clients.
This entire system obviously takes more time to explain in detail than just a few minutes, and that's why I created a very special FREE online event called "Prosper From Your Passion Sharing Your Knowledge Online".
Not only will you learn how to package your services correctly and have the right conversation with potential clients, but there are also other critical things we need to discuss about your business, such as:
- How to build the self-belief around charging what you're worth, and how to communicate that confidently
- The different pricing structures
- The best way to market your services
- How to best use technology like Zoom and webinars to grow your business
What that really means for you is you'll make a difference and a living doing what you love.
To learn more or book your FREE ticket to "Prosper From Your Passion Sharing Your Knowledge Online”, click here.
But Why Is It Free?
It’s free because we use a marketing method called Freemium. Just like Zoom, Spotify and Gmail are free, we also deliver great value for free, and a small percentage of people who want to learn more decide to buy the premium version, which makes it a win-win for everyone.
So, if you want to stop charging an hourly rate and start charging what you're worth (while getting your clients a better result), click here.
We hope you enjoyed this video and blog post. Remember, stop asking how much should my hourly rate be and start packaging your services.
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