Let’s dive into pricing your offer!
There are 2 ways I recommend pricing. The first is the analytical way, and that's what we're going to talk about today.
Here's where I recommend you start with this strategy:
Take your annual salary you make (or made) in your 9-5, and cut it in half. Take the first 2 numbers of that equation, and that’s your rough hourly rate. For example, if I made $50,000/year, my rough hourly rate would be $25/hour. Now, estimate how much time you’ll be spending to provide your offer, and multiply that by your hourly rate (if my program or service is going to take me 30 hours to deliver, then that’s $750).
This is a baseline for what you could charge to start out.
The reason I recommend doing this exercise is NOT because that’s the absolute price you should charge. It’s because someone ALREADY PAID YOU that amount to do work before, and you were comfortable with that, so for many people, it’s a good starting number to look at on paper.
When you're just getting started or you're stuck on pricing, it's important to keep it simple. It is NOT important for it to be the end-all be-all perfect price forever. It's much more important to get over the fear, decide on a price and get your first or next client.
Now share with us, when you do this exercise to figure out your hourly rate, how does that number look to you on paper? If you have an offer already, when you apply this formula to it, what do you think?