This puts the pricing lessons into numbers. If you haven't yet, watch "You will fail if you try to price @ your full-time wage" and "The Math & Benefits Of Fixed-Fee Pricing" first.
For more on pricing, Austin Church's book Free Money is very good.
Early Stages - Mindset & Getting the Basics Right
Work out what you need to earn, your floor rate, what a fixed fee pays per hour when a project runs long, and which past projects paid you best.
This puts the pricing lessons into numbers. If you haven't yet, watch "You will fail if you try to price @ your full-time wage" and "The Math & Benefits Of Fixed-Fee Pricing" first.
For more on pricing, Austin Church's book Free Money is very good.
Start with what you need to earn, then find the lowest hourly rate that gets you there. The last two panels show what a fixed fee pays per hour when a project runs long, and which of your past projects paid best.
The target income panel uses the same math as my Target Income Calculator. The fixed-fee panel starts with the numbers from the fixed-fee lesson.
The numbers start as an example. Change any of them. Saved in this browser. Sign in to keep your answers across devices.
Personal costs per month
Costs are grossed up for tax: $60,000 a year in costs at 25% tax needs $80,000 in fees. It covers costs only, so add savings and time off on top.
A salary pays for about 2,080 hours a year. As a freelancer you'll bill far fewer, and you need time to find clients, handle taxes and invoices, and keep learning.
At two times your floor, this estimate would be priced at about $23,077.
The shaded area is slack: hours you can spend doing the work well, bringing in help, or absorbing some scope creep before the fee pays less than your hourly rate.
| Project | Fee | Hours it took | Effective rate | Remove |
|---|---|---|---|---|
| $144 | ||||
| $288 | ||||
| $100 |
Leadership workshop pays the most per hour. That's the kind of work to package and sell more of.
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The pricing slides start at slide 35, including an editable fixed-fee chart.
Download the pricing slides (PPTX)