Are You Pricing Like a Part-Timer?

It's easy to be a part-timer. It's also easy to recognize them.

These are the folks who decide to keep their day jobs and do a few copy projects on the side.

It happens all the time, and not only in the field of copywriting. You'll see the same thing with programmers, graphic designers, etc. It's so common, perhaps we should call them...

Part-Time Professionals!
(Tongue in Cheek, Of Course.)

Although it would seem there's nothing inherently wrong with working part-time, there is at least one unpleasant side effect, mainly in the area of pricing. It's caused by the "safety net"--the job the part-timer holds on to for so-called security.

Here's how it works:

The part-timer thinks, "Well, I have a full-time job that pays me well. And it'd be really nice to have an extra two-hundred bucks this month so I can eat out a few more times and pay a little extra on my credit cards... so I'll bid this job for $200."

Do you see the problem? The part-timer is quoting a price based on his desire for discretionary income instead of what the job is actually worth!

The part-timer can "afford" to quote low because he's already making a full-time income from his day job. You, on the other hand, know what you have to make to survive--and what the job is actually worth--so you quote higher.

Of course, if you know what you're doing (i.e., you're positioned well in the market), you should be able to command higher fees and never lack for clients.

Still, getting low-balled can be irritating. So, what do you do about it?

• Recognize the problem and position yourself accordingly. Offer a compelling and believable reason why you charge more than all the other copywriters out there.

• Provide proof of results. In most cases, ample proof of results will be far more persuasive than a low quote.

• Educate other service providers like I'm doing here. Explain why it doesn't make sense to write copy for less than minimum wage.

Ideas for Pricing Jobs
When You're Starting Out

If you are a service provider who is just getting started, it can be hard to know how you should quote a job. Here are a few ideas:

1. Price by the hour. Calculate what you're currently making in your full-time job, or what you used to make if you've gone full-time. Then provide a quote that at least mirrors your current income.

For instance, if you're currently making $20 an hour, you would not quote a job at $10 an hour. That's stupid. You would quote at least $20 an hour.

If you're providing a quote based on the amount of time you expect to invest, then you might consider multiplying whatever number you come up with by 2x. Why that number?

For one, most projects go longer than expected. And two, providing time-based quotes usually assumes you'll be paid the same rate for 40 hours a week.

But if you've been in business for more than a month, then you already know that not every hour in a work day is an income-producing hour. You must calculate fees with the idea that there are only 2-4 hours a day when you'll actually be writing.

2. Price by the page. This can be effective with direct mail pieces where you're working with a certain number of pages. You might charge $200 a page, $400 a page, or even $800 a page.

In my opinion, writing for $100 a page is a bit low. I'd suggest you not go below this level. Starting at $150 or $200 a page would be better.

3. Price by the project. This is my favorite way to quote new copy jobs. I only write a few different types of copy. The long-form sales letter is the centerpiece of most of my projects. Since I limit what I write, it's easy to price by the project.

You'll have to come up with your own fees here, but you can always cross-check your number by comparing what the fee would be if you were to quote by the hour or by the page. If your per project fee is lower, then you've done something wrong. Go back and rework the quote.

No matter how you decide to price projects, you must always remember not to under-price yourself. Never quote a project for less than you would ordinarily be paid in a full-time salaried job.

Remember this: It's better to err on the side of quoting too high rather than quoting too low.

For part-timers: You cannot under-price copy jobs and then make up for it in volume. It doesn't work when selling products, and it doesn't work when selling your time either. Quote high, burn your ships, and go full-time.

For full-timers: Marketing skills can overcome almost any business problem, including the ability to attract clients in a sea of slave labor. Become a marketing expert.

For clients: If you hire a copywriter for a "steal of a deal," set your expectations low. Real low. This way you'll avoid disappointment, and still be pleasantly surprised if it works out in your favor.

Comments

[Tom Chandler]

Damn you Healy! I'm halfway through a "How to charge" post of my own.

You'll pay for your insolence. Somehow.

[Ryan Healy]

Tom - I think that's the funniest comment I've ever read on my blog!

I love your sense of humor.

Looking forward to your new post. ;-)

[Chris O'Byrne]

This mindset applies to so many other areas in addition to copywriting. I think I see this even more with web design where everyone has a family member that "knows" how to create a website. They figure that if their nephew can throw one together in an afternoon, that you should be able to do it in even less time for next to nothing. It takes a benefits-oriented approach to explain web standards, seo, online marketing, and so on.

Thanks for bringing this topic up!

[Joseph Ratliff]

Ryan,

Nicely done. You have hit on a topic that deserves a blog all by itself in my opinion.

The "part time" entrepreneur.

You can certainly be a part - time copywriter, graphic designer etc...

But don't act like it.

I repeat, don't act like it.

Your a business professional, so even if you have a "full - time" income from another job etc... you still need to command fees that are worth your level of expertise. (I would challenge that working for someone else can NEVER give you a true full time income).

Don't price yourself like an amateur. Period.

If business owners can find a bunch of "part timers" that are acting like "part timers" when they price their work...it actually devalues the entire field of copywriting, graphic design, etc...

Treat your part - time business as a full - time business...who knows? Maybe it will become your first "real" income stream.

Joseph Ratliff

[Andrew Cavanagh]

1. You shouldn't be "bidding" on anything.

If that happens too often it means you're not niching yourself effectively and you're not following up with prospects who approach you effectively.

2. If you price by the hour you deserve to get paid peanuts.

I don't know of any highly skilled direct response copywriter who charges by the hour.

Your clients want a salesletter that sells...not an employee.

3. Don't even get me started on quoting by the page.

When someone says to me "I want a 5 page salesletter written" I just reply "How do you know it needs to be 5 pages?"

I don't even know how long a salesletter needs to be until AFTER I've written it.

It's a sales presentation and it needs to be long enough to make the sale to a real live prospect.

And you can't know how long that is until you've done a significant portion of the research and writing required.

4. Obviously you should quote by the project.

And I 100% agree that if you're hiring a copywriter and you go for the lowest bidder you should expect to get a steaming pile of crap in return.

It is my observation that most copywriters have very little idea of effective marketing or even an understanding of business.

All of my high paying clients are paying me because I have spent many years learning the ins and outs of business and marketing in the real world.

If you really want to understand business and marketing I highly recommend you read Jay Abraham (free report at http://www.businessjointventure.com/JayAbrahampdf.html )and you start developing some friendships with real, live bricks and mortar business people.

Kindest regards,
Andrew Cavanagh

[Ryan Healy]

Andrew - All points well taken. I appreciate them.

1. I don't bid on any projects. I only quote projects to leads who've expressed an interest in working with me.

2. I don't quote jobs by the hour. (Though I have provided on-the-phone marketing consultations by the hour.)

3. I don't quote jobs by the page.

4. I always quote jobs by the project.

Still, for some copywriters, the ideas I've shared here are worth testing.

Note: After you've quoted a job by the project, and completed it, you can back into an hourly rate and per page rate.

I think it's helpful to know these numbers.

[Diane Clancy]

I am several part-time things all adding up to more than full-time. I am an artist, but also a graphic designer and webs designer. No salary in sight!

I specialize in working closely with clients who want a lot of creative control and input. Most designers don't like that niche, but I prefer it.

I do price by the hour because there tends to be tons of meetings, calls and emails - this way I get paid for the time I put in working with the client.

Many of my clients are either artists or activists who want control - makes me happy, makes them happy.

I am not happy when I hear people working for $20 an hour for web design ... but I won't - even if then a job doesn't come my way.

I am trying to get better at pricing by the job - but it those changes and more changes and more changes that make me happy by the hour ...

My two cents ...

~ Diane Clancy
www.dianeclancy.com
www.dianeclancy.com/blog

[Tracey "Word Doctor" Dooley]

It all comes to down to value.

You VALUE your time. You VALUE your talent, skill set and business acumen. You VALUE the results you can bring to your clients. Or at least you should. ;-)

Too many people undervalue themselves – and the jobs they're delivering. That can only end up in disaster.

Cheers!

Tracey

[Mike Jezek]

If you're pricing too low, then you'll attract the deadbeats. And you don't want to work with deadbeats!

[tower defense]

You still need to command fees that are worth your level of expertise. I would challenge that working for someone else can NEVER give you a true full time income.