It amazes me how many different ways you can lose money in business. When you are trying to Rule Your Realm, losing money is not a very good way to do it! As an entrepreneur, it’s important to know what your strengths and weakness are. This way you can either work on those weaknesses or hire someone else to do those things. Believe me, I know!…
There was a bad habit that I had to fight for years that literally has cost me thousands upon thousands of dollars. What was that habit? It was doing things for free and not liking to charging my customers and clients. Although, I did like getting paid, I didn’t like quoting prices or asking for money. That may sound weird to some of you, but there you have it, that was my struggle! I’m not a greedy person and I enjoy helping people, which are great qualities to have as an entrepreneur, but when it’s all said and done, you have to get paid! You have bills to pay just like everyone else!
It wasn’t until I came to the realization that every time I did something for free, or I did a free coaching session, or quoted a very low price on a job, I was really robbing my family!! I was making it harder on my myself and my family, all because I didn’t like charging people! I realized not only am I making it harder on my family, but I am not Ruling My Realm in my business or finances..
So here is what I did…
First, I decided I was going to charge people what I am worth. I think it’s very important to know how much your time is worth. Because most of us start out by having jobs, we can get used to others dictating how much we are worth. But, not anymore! We get to choose now! I do recommend doing some research first and finding out what the standard rate is for someone in your Industry, that way you have an idea of what people are used to paying for your products or services. You have to value what you offer, because if you don’t… No one else will either!
Next, I put an end to allowing people to “Pick My Brain” for free. It absolutely amazes me the mindset of the masses. Now this is not a put down, but it is true and you need to be aware of what you are up against. I am always amazed by the amount of people that want to pick my brain about this Social Media strategy or that Facebook ad tactic, plus the ones that want me to do a whole job for them for free! I don’t know about you, but I don’t think I could get away with that if I walked up to a doctor, a surgeon or even a mechanic and expected them to give me free advice or a free service! I guess it could be worth a shot, but it normally just doesn’t work that way. But, because we are dealing with more intellectual property and online stuff, people’s mentality seem to skip over the fact that this is how we make our living! Don’t you think your expertise you have worked so hard for is worth more than a cup of coffee!?
I am all about offering value for free, but whatever that value is that you are giving away for free needs to be done strategically. That way you can still give out good stuff and pay your bills!
The third thing I did which really helped was, I setup a proposal and billing system that forced people to see how much I charge and when their payment was due. There are a lot of cool billing systems out there, you can check out Freshbooks which I personally use.
Implementing just those three things really helped me get over my discomfort of quoting and billing people. If we are going to Rule Our Realm and make a difference on this planet, we need money to do it!… Otherwise, it’s just a hobby.
Keep on Ruling!
All very true Paul! The one I see so many have problems with is charging what they are worth. You're a business and you need to survive and thrive. That takes charging a reasonable price for the service you provide. Remember you can set at home put your feet up drink a beer and go broke. There no reason to work lots of hours risk your financial future and ruin your life to do it.
So bottom line charge a fair rate and don't apologize for doing so.
Hi Frank! Thanks for your comment. You are right on! So very true. I have to wonder if people tend to do this because they were sold a dream, like so many biz ops offer. Like if you go in business for yourself, you can sit back and relax…
Whatever the reason, you are right… charge what you are worth and don't apologize for it!
Keep it up Frank and thanks again! 🙂
Thanks for sharing Paul. So many of my own clients struggle with this issue – its all about mindset. You cannot charge what you are truly worth until you believe it yourself. Really enjoying your content. Glad we are connected via the Social Buzz Club!
Thanks again!
Thank you for sharing and commenting Lisa! That really is the case, I know it took some time for me. When that mindset changed for me a couple years ago, things really changed in a good way! 🙂
Thank you for your kind words and yes, I am happy that we connected via the SBC! 🙂
Take care Lisa!
First, great advice Paul. This is the type of information I love finding through social media. So helpful for so many people.
Second, people often confuse "casual" social media (friends and family) and "business" social media (growing and cultivating your client base). They tend to think that since they can post a photo on Facebook or say hi to a friend on Twitter that they understand the ins and outs of a social media strategy for their business. Hence the reason they think nothing of asking for your expertise, "picking your brain", for free.
Hi DJ Thistle! How's it going? Thank you for your comment! I am glad you liked the article. That can be very true with the difference between casual and business. Something that I have found personally to be true with many business owners is, they still don't see the value in Social Media. They are trying it out because they have been told they need to, but it is not a valuable tool to them.
Which then leads to the biggest task for me when talking to people, I have found I almost always need to educate for anything else.
Thanks again for your comment and sharing this post! I appreciate it! 🙂
Paul, it seems like you and I have a lot of the same traits. I, too, truly love helping people and find myself wanting to do things for free or at a discount. I've really worked to move beyond this as I transitioned into doing my business full time the first of this year because otherwise, it's hard to pay the bills! Thanks for letting me know I'm not alone in this struggle!
Hi Rebecca! Thanks for your comment! Yeah, it sure can be hard. But, it is worth the effort to overcome those struggles. Ever since I did, I have enjoyed doing business more too. It feels like it is a complete business, the way it should be. It's all a part of Ruling Your Realm! 🙂
Keep up the great work Rebecca! And thanks again for your comment!
I love your comment about the realization you were robbing your family. That's a strong motivator to charge. I also had to learn the hard way the difference between a social work mentality and a business mentality. Goes back to the whole frame of reference that as business people, if we don't prosper, it affects the whole economy in a negative way.
Thank you for your comment Beverly! You are so right! Despite what some people may say in the white house, entrepreneurs play a huge role in the economy! It is a big cause that we must take seriously and I think it does start with a mindset shift.
Keep it up Beverly! 🙂
Misery loves company. I am so pleased that I am not the only one who has trouble charging for my services. I do a lot of free work for non-profits, which I am happy to do, but I started billing everyone as if they couldn't afford to pay – only later to find out the money they saved on me went to another supplier instead. Thanks for your inspiring comments and suggestions.
Hi Felice!
Yeah, it can be hard, but worth the effort in getting your prices set. I really do believe a big part of it is knowing what the Industry standard pricing is for what you do.
Then there is a whole other topic of premium pricing vs. competitive pricing. Hmmm… Maybe should be the topic of my next blog post! 🙂
Keep it up Felice and thank you for your comment! 🙂
Paul,
Your talk about charging clients proper amount for your services make sense. I did it years ago during the recession of the eighties. My first contract ended up as a business loss because client lost her job after first half payment. Since then I went back working for government until I retired six month ago.
My question to you is I am forming a non-profit organization and our focus is giving tips and advice to job seekers. How could you charge people when they don't even have jobs.
In fact right now I have a terrible time looking for a volunteering web master for Myjobtalk.org
Any clue?
Bernice Kao
Job Coach
Hi Bernice!
Great question! I have just recently started looking into the non-profit scene. I have friends that write grant proposals for non-profits. I am not going to lie, I am no expert when it comes to the non-profit model… But it would make sense to really have a solid business model in place, where you know income will come from. Many non-profits that I have seen have a budget setup that allows them to get stuff done. But there really needs to be a well planned design. I don't know how you are planning on offering your service to people right now (offline, online, etc.). Depending on how you are doing that, that would play a factor on how I would charge. For example, if you are offering training, advice, etc. to people that have either low or no income coming in, would they be able to pay you anything at all?
If you are going the internet route, maybe there is money to be made with other organizations and companies advertising on your site? Maybe if you help place them with a job, you could work out a fee based on that.
These are just some random thoughts, I hope they make sense. Since I don't know your whole situation, it's hard to give you exact advice. But I hope that helps. 🙂
Feel free to email me more about your situation and I can see what we can come up with.
Thanks Bernice!
Hi Paul,
I read your answer today, nine months you first posted. Myjobtalk.org is doing fine; and for the first time we had a summer recess between June and August. However, my speakers are all lined up until November. This is a networking job coaching organization. Our speakers just share tips and experiences with the audiences for career insights.
We don’t charge anyone for fees, and speakers are voluntary. This is the official affiliation with the California Career Development Association, Fresno (Central Valley) Branch. We report activities to it’s quarterly newsletter.
I am still looking for a volunteer webmaster to design and maintain our simple web page.
One thing to share with you now is that my first book, “Blueprint To Have A Job Center In Your Library,”
will be published in November. Orders are accepted online. Check it out!
Bernice Kao
Hi Bernice!
That is all very exciting stuff! I am very happy for you with you book as well, awesome stuff!
Just wondering, have you looked into any of the local colleges for an intern/web master?
I will go check out your book now. 🙂