As a new digital entrepreneur, one of the things you’ll have to deal with is going to be charging the right fees for each product or services you offer.
Before you go about setting the fees, certain things will have to be put into consideration.
For example, you’ll want to find out, the amount of money the service you’re rendering is worth, considering how others are charging.
You’ll also ask yourself questions like, what time and resources will I use before getting the work done.
You’ll want to contemplate your worth as the expert here considering your level of exposure and experience.
And finally, your pedigree as a newbie in search of new customers and referral will also play a significant role as you work on charging the right fees for your business.
Now besides all these factors, as a new digital entrepreneur, you’re also going to have people who will want to pay you a token…
Because they feel they are doing you a favor working with you, as you’re new and inexperienced.
Considering all these, charging the right fees for a win-win deal could be very dicey and difficult.
And when it’s not properly handled, you can end up with a happy customer and an unhappy entrepreneur or vice versa.
When such unbalanced satisfaction arises, there’s bound to be issues…
For example, where the customer loses, he may never come back to you, refer you, or he may even bad mouth your work to others.
On the other way round, if you keep losing out in price bargain as an entrepreneur, you may end up getting out of business as there will be no funds to run with.
So this is the more reason charging the right fees is very critical to your success as a new digital entrepreneur.
Because in a situation where you can’t charge the right fees, you’re already setting up yourself for failure.
Here are things to consider before charging your fees as a new digital entrepreneur.
What is your goal generally?
Answering this question is very important to all new entrepreneurs because it is key to charging the right fees.
For example, if your main goal at this moment is to attract clients that will help you boost your portfolio and get referrals, you will most likely charge less fees.
If you’re a hungry entrepreneur with urgent need to make money fast, your charges will be different too.
So, find out your goals first and charging the right fees will be much easier.
PS: Let me quickly address something here. Most entrepreneurs will want to measure their success based on the amount of money or fame they make.
This can also affect the fees they charge.
So this is not the right way to go about it. Because everything should depend on your goal.
At the end of the day, your success should be measured on your ability to achieve your set goal, not on arbitrary things like money or fame unless that’s what you set out to achieve as your goal…
And even if your goal is the money and fame, you have to use certain key factors to measure that properly.
What is the industry rate?
Does your industry have a certain range of charges for the particular services?
Is there a specific range of fees for New Freelancers, Mid-level experts, Advanced experts etc?
What are your competitors charging?
Your personal expenses to deliver a single volume of the services or product.
Ask yourself, what will it cost me to deliver one complete set of this service/product, taking into consideration, the time and resources you will need.
I wouldn’t say there should be a cap (fixed price) on your bills. Especially as a start up entrepreneur.
Because this does not really matter for a start.
You can get to cap your bills when your brand becomes much bigger and more renown.
But for a start, you can keep your fees open and flexible to the extent that even when you have a certain minimum amount for any of your services and products, you can still reduce or increase a certain percentage based on the capacity of the client or nature of the work.
Reason being that, as you keep on with this work, you’re going to find different kinds of clients with different budget levels.
There are going to be clients with a huge capacity to stay loyal but without much funds to pay up your exact charges.
I mean clients that can end up linking you with other clients.
There’s also going to be others who’s got the bucks. But are still open to getting even lower charges from you.
Further more, there are going to be clients who’ll look at you as incompetent if you offer them smaller bills. (Trust me I’ve met a few of these ones).
To avoid shooting yourself in the leg, you have to focus on charging your clients based on some background knowledge of who they are, their capacity and what they can afford.
This is the smart way to scale.
Don’t ever make the mistake of charging all your clients the same fees…
Except in some cases where you’re working with a very similar and micro defined network of clients.
Instead of trying to put up all your clients in the same category, you can even ask about what each client can afford, as they approach you for your services.
I mean asking about their budget here.
And you can tell them upfront that you’re open for further negotiations on the prices.
To me this is the best way you both can get started on a business journey that will end up a in win win situation.
Have more questions to ask? Let’s hear you here.