Freelance Pricing: Hourly or Value-Based Pricing?

A budding product designer asks:

“…hourly pricing as opposed to value pricing? What pricing models have worked out best for you and why?”

TLDR: value pricing.

Full story…

A few years back, I got hired by a well-known blogger to build his membership site. At the time, I was charging 75/hour. After the project was complete, I suddenly started getting emails from acolytes of his who wanted me to build them a similar kind of site.

I ended up creating a fixed price project and charging 3K for it.

Dozens of his followers bought the package.

And, I made more off that than anything else I’ve ever done.

Thing was, the projects took me 4-5 hours to complete. My clients didn’t know and didn’t care. And so, I went from making 75/hour to over 500/hour. That’s the benefit of value pricing.

Let me put it another way…

How many hours of work went into making the computer, tablet or phone you’re reading this on? What was the cost to the manufacturer to make it? Do you know? Do you care?

When you make your services look more like products…

People stop caring.

They’re paying for what they get not what it took you to make it.

That’s the sweet spot.

Of course, that doesn’t mean you never charge an hourly rate. There are times and situations where that makes sense. But, your goal should be to have and push people into fixed-price projects as much as possible.

Last thing…

The reason a lot of freelancers DON’T use value pricing is because it takes some work to get right. You can’t just throw up any old package and have it work. You have to figure out your “magic bullet” offer.

The offer that’s like “free ice cream on a blistering hot day”.

To quote the infamous copywriter, Frank Kern.

Good news is there’s a simple, data-driven process to do this. So, you KNOW your offer will be a hit. It’s not rocket surgery. It’s simply a matter of putting in the effort and implementing.

But, if you DO…

I’m confident you’ll create an offer that can bring you in 100, 200, 300 or more per hour… that potential clients will be tripping over themselves to hire you for. Obviously, no guarantees, but I’ve seen it time and time again.

In any case, I show you the process in the first installment of my Freelancing 101 series: What Services to Offer. I show you how to figure out your perfect niche, what services you should offer, how to package your services to look more like products and what to charge.

All based on real-world DATA…

Not guessing and hoping.

It’s not for everybody, that’s for sure. It takes some thinking and some work to get right. But, once you do… watch out!

Anyway, link to enroll in the course for free on Skillshare is here: https://johnmorrisonline.com/niche

Later,

John

P.S. If you want more info on the free Skillshare offer, the full details and how to get free access are here: https://johnmorrisonline.com/skillshare

You might also like

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on pinterest
Pinterest
John Morris

JOHN MORRIS

I’m a 15-year veteran of freelance web development. I’ve worked with bestselling authors and average Joe’s next door. These days, I focus on helping other freelancers build their freelance business and their lifestyles.

The simple secrets to high-paying freelance clients

What makes clients willing to pay $5,000, $10,000 even $20,000 and up for your services? Download and install my mobile app and I’ll show you. It’s free. Just click the button below:

Clients Like:

Inc. Magazine Logo
Lewis Howes Logo
Ray Edwards Logo

WHAT OTHERS ARE SAYING

Jason Rumley

Jason Rumley

John has a habit of over-delivering on the expectations he sets up. That’s why he’s the best.

Steve Dimmick

Steve Dimmick

John has provided expert knowledge and advice on multiple occasions that have helped me better serve my clients. John is a Rockstar!

Michael Skye

Michael Skye

John is a man of integrity, who gives generously of himself to projects and people he cares about.

Thabo Motsoahae

John is one of the best instructors I have come across, I learned a lot from his online tutorials.

Andrew Malone

Andrew Malone

John Morris is exceptional in his ability to give focused insight into Freelancing and starting one’s business. His direct methods inspire confidence in his honesty.

Oliver Wainwright

Oliver Wainwright

I’m a fan. I have completed several of John’s courses. I find him very knowledgeable and he has a great delivery.

Lori Grant

John did an outstanding job on my project. I highly recommend him and look forward to working with him on future projects.

Xan Barksdale

Xan Barksdale

Very professional worker who is extremely knowledgable in WordPress and Wishlist Member. I would definitely hire again.

Ray Edwards

I recommend John every chance I get. If every person I worked with were as committed to excellence, punctuality, value, and unquestionable integrity… the world would be a better place. Highest recommendation.

Jim DeJonge

Jim DeJonge

John has a relaxed and engaging manner. His advice is solid and the explanations are well thought out.

Lewis Howes

John is amazing at building membership sites. He converted one of my sites over from it’s existing (hardly working) platform over to the clean and simple to use WishList membership platform. I highly recommend using John and WishList for any of your membership site needs.

Chris Aitken

He significantly improved my site through his expert knowledge of PHP, CSS and Javascript. Would definitely recommend John to others.

Bradley Smith

John and I have worked together on numerous projects. John is very quick and efficient and was a pleasure to work with.