I am sure a lot of our readers and members provide some sorts of online marketing services and thus they are facing with the well-known dilemma: How to measure and charge for the service? How to make your pricing competitive and clear while not under-pricing yourself.
[There’s also a follow up to this article on how to manage your own time more effectively]
With these questions we came to some of companies:
David Leonhardt from THGM Writing Services
“…estimate how much effort is involved and charge by the project”
First, let us draw a distinction between time-management and client billing.
For time management, that being my own work and work for clients combined, as well as any personal/family/household chores to get done, I work from a to-do list. I try to get the most important things done first, then I usually panic because the list is not shrinking very fast, so I turn my attention to quick things that I can tick off… then, being able to breathe more easily, I turn my attention to whatever is most important among what is left.
When it comes to client work, I estimate how much effort is involved and charge by the project. I really don’t want to watch the clock, and a lot of client work cannot be done in a single block of time, but rather needs to be interspersed with other work.
Tat Apostolova from Mum in search
“Charging for tasks keeps me motivated”
Back in the corporate world, when I was working in a job that paid for time spent in the office, I always felt undervalued. I’m a hard worker and I loved my job, so I was putting my heart into it when other people around me would just do the bare minimum and get paid a similar wage.
It just didn’t seem fair. I was a lot happier when I switched to a commission based job (in fact, this is exactly the reason I switched to a commission based job – I wanted to be paid fairly for my effort). Now that I’m running my own business from home, I charge for tasks. It keeps me motivated to work more productively.
Ashley Faulkes from Mad Lemmings
The future of work is task based
When pricing and measuring my work I try, or am still trying, to bring the cost of a service to task based. Basing your work and ultimately your value on a commodity is old fashioned and not useful. And after seeing many a worker waste time in the office and still get paid, I am sure is a pointless system.
One of the biggest issues with this idea is that people still see many services as commodities. So it is hard to sell, for instance, a website when there are so many competitors undercutting your services. Even if you are delivering a better product. So you have to sell your service based on a result, rather than on a service which can be evaluated on the number of hours you work.
One way to do this is to add things others cannot offer in the same service. Even if these things are not time intensive. That is where in my area marketing combined with web design comes together. Most people cannot do both well. Most web designers barely know SEO and cannot write at all. So by offering customers expertise that is not a commodity, you are able to sell a value based package.
I am not saying it is simple to achieve, but it is the future and we should all work towards it. Otherwise, we are doomed to work 9-5, only perhaps at home instead of in an office!
Task based + Pomodoro
I’m a big fan of task based tracking. Not only does it focus you on getting one thing completed but it also puts halt to the temptation to multitask which has been proved to reduce productivity. I’ve used task based tracking for a while now for my freelance business and I’ve found that it works particularly well with the Pomodoro technique to keep you focused and productive.
What are your tips for measuring your work and charging for it? Please share below!