Trading dollars for hours, or charging by an hourly rate, can seem like a good thing to do when you start your business. But charging this way can actually stunt not only your business growth, it can also contribute towards burnout and limit your earning potential.
Hey there, my gorgeous entrepreneurial friends. Today, I want to share an inspiring story with you about Natalie, a talented content creator who embarked on her online business journey by offering her exceptional services. She wrote articles, crafted short reports, and even penned captivating eBooks for her ever-expanding client base.
Starting your online venture by providing services is a fantastic way to dip your toes into the waters of entrepreneurship. It’s like your learning playground, where you discover what your audience truly craves and how to deliver it. You get to experiment with various projects, finding your unique style along the way. 🌟
But, as wonderful as offering services is, there’s one significant limitation you’ll inevitably encounter – time. Sure, you can charge for the hours you put in, but let’s face it, there are only so many hours in a day.
And what happens if you’re unwell or – heaven forbid! – if you want to take a vacation?
Now, don’t get me wrong; you can become a pro at working efficiently and maximising your productivity. But sooner or later, you’ll hit that unyielding barrier… a ceiling that caps your potential and income.
That is, unless you consider a game-changing approach.
Enter The Hero Of Our Story: Packages! 🎁
Let me break it down for you – instead of charging by the hour for your exceptional services, imagine creating irresistible packages.
These packages define a specific outcome or result you’ll deliver, like designing 25 dazzling graphics. Initially, it might take you around 10 hours to complete.
But here’s where the magic happens – instead of billing your client for those 10 hours, you attach a fixed price to the package. Your client pays this price, without fretting over the hours it takes you to work your creative wizardry.
As you sharpen your skills and gain a deeper understanding of your client’s needs, you become lightning-fast, completing projects in a fraction of the time while still reaping the rewards of your original package price. That’s the true power of packages, my friends!
And guess what? Your clients adore packages just as much as you do!
Believe it or not, most clients don’t like the ‘trading dollars for hours’ hourly rate concept either. They generally appreciate the simplicity of a clear price and a concise task list, making their decision-making process a breeze.
Plus, they’re investing in more than just your time; they’re tapping into your knowledge and experience. Your wisdom is a treasure trove, and your journey as an entrepreneur adds immense value to your offerings. 📚💡
Why I Almost Never Charge By The Hour:
Personally, I always found charging an hourly rate incredibly stressful, which is one of the reasons I practically never do that now. But when I did that in my early days of business, I was always rushing, as clients often wanted me to keep the hours down so they paid less. Or I felt like I had to justify why my hourly rate was what it was.
Let me ask you this… would you like to pay someone $10/hour or $50/hour for a project?
While that might initially sound like a trick question… well, actually it is. Because it’s like asking how long a piece of string is.
You see, simply looking at the hourly rate means nothing. If the quality, service and time spent on the project is the same, then of course $10/hour is more attractive. But if the $10/hour person takes waaaaay longer to complete the project and the quality sucks, then no thanks. I’ll happily pay $50/hour for the fast, reliable, quality provider.
But not everybody sees that, so you’ll end up feeling like you have to justify your rate over and over again.
Whereas if you sell a package, your clients have a much clearer idea of the outcome, cost and time-frame up front. And you can focus on doing the job, rather than tracking the time you’re spending on it.
Can YOU Stop Trading Dollars For Hours?
Now, here’s the incredible part – packages are a versatile game-changer that suits virtually any industry and service profession. Whether you’re a wordsmith, a design diva, a life coach, or any other kind of freelancer, coach, consultant or service provider, packages can transform your business and your life.
Natalie, our talented content creator, can vouch for the package power. She was initially concerned that packaging her services might diminish their perceived value. However, she soon discovered the opposite to be true. Her clients not only appreciated the clarity of packages but also recognised the wealth of knowledge and experience she brought to the table. Demand for her services skyrocketed, and she had to create a waiting list for eager potential clients itching to work with her.
So, my fellow entrepreneurs, do you think it’s time for YOU to embrace the world of packages? Go on! Unleash your creativity, offer clear value, and watch your business soar to new heights.
You’ve got this, and I’m here to cheer you on every step of the way! 🌟🙌