Success in Sweatpants

How to set your online rate? Is it just a number you grab from the air? No.

The amount you charge should account for:

Your needs. This is the fundamental basis for your rates. At the very least, you must bring in enough to cover your current expenses and debts.  Actually, in the longer term your present and future needs must be considered—you should include retirement savings, for example, and any other future goals that require good financial backing.

Your credentials. You need to be able to demonstrate that you are worth the rate you are bidding. How long have you been performing the services you now offer? What results have you produced? Does your sample portfolio demonstrate your quality? Can you offer testimonials from clients? Do you have degrees or certifications that apply to your services? The longer you’ve been at it and the more you can show for it, the higher your rate can be.

The market. After considering your needs and your credibility, you need to look at your market. What are others with your background charging in the market you serve for the same caliber of client you seek? This will give you an idea of what rate range your prospects will accept.

Take some time to think about these three items and collect the information you need to get a good handle on each. I’ll talk about how these translate into actual numbers in a future post.