Well we all know how to USE money, right? This channel is a discussion group about money and finances.ย 

How you earn it, how you manage it, taxes, and even how you spend it. Any question related to money can be shared here.

This space is intended to be free-flowing, so share away! No need to overthink.
TL;DR Figuring out what you should charge is a mix of accepting other's feedback and being courageous enough to push your boundaries. Here are a couple of specifics on how to do that.

Got fired up by a recent post from someone asking what she should charge for sponsorship in her newsletter.

She got $125/an email

But could she have gotten more?

Patt Flynn Mentioned in his early days, he charged $25 a month for ad space that cost the company $250 elsewhere.

The whole "what should I charge/charge what your worth" conversation comes up all the time, my 2 cents (for what it's worth, pun intended):

The "you're a valuable human being and we all have imposter syndrome" sentiment behind "charge what you're worth" is great and needed.

But at the end of the day, part of what makes dollars and cents a valuable tool is that they create a very clear line.

Either yes, you've earned that amount or no, you haven't.

Either yes, someone else thinks you offer them enough value to pay that amount or no, they don't.

Have you gotten paid $10/hour to do web design? Yes? Great, your time is worth at least that much to some people.

Have you gotten paid $1000 an hour to coach entrepreneurs on mindset? No?

Well, then I definitely think you should go for it. Set that goal. Have that vision.

But don't let yourself fall into the ego/pride/self-delusion trap of believing that, just because you feel good thinking you're time is worth $1000/hr, that it truly is.

That's a recipe for massive disappointment and ultimate failure. It's for the people you want to deliver value to to decide whether or not they find your time that valuable (and thus are willing to trade their hard-earned cash for it).

Also, try to separate your sense of "I'm a valuable, worthwhile human being" from your income

I know. This is *very* hard sometimes. But the fact is, there's more to you as a person than your income and no, money cannot buy happiness. :)

But building businesses/earning income can be a fun part of life - as can finding your answer to the "how much should I charge" question!

So how do we close the gap if we know we can earn $10 but want to earn $1000?

The strategy I've used (as a freelancer/consultant, though the principles apply to other businesses): Pick a starting point and set triggers for when to move up

For me, this was aiming to get 20 hours of client work a week, starting at $20 an hour; once I got to that point, I made the next person pay $30 an hour.

Did some people decide that was too much for them/what I was offering?

Yep, and that's fine, they're right. For them, their business and what I'm offering them, in this time, my work is not worth $30/hr.

Also, was fine. Still a worthwhile human being. And I had the work I needed so this was the perfect time to risk the loss.

In another case, for someone I was talking with about with his monthly membership program, I suggested he charge his first 10 members $5 a month, then his next 100 $10/month and so on similar to how Kickstarter campaigns have limited reward tiers.

This way he can get to income fast with an "easy to say yes to" price point, but can also increase his rate until he finds out just how much people are willing to pay.

A tactic I haven't used yet but am definitely keen to: Ackerman Bargaining.

The basic idea comes from a negotiating book I highly recommend, Never Split the Difference.

The basic idea is to pitch a rate that's much higher than you really want to earn (135% to be specific), then back down at certain intervals until you arrive at the number you actually want to earn.

This way, you can give yourself a clear goal for how you'll do price negotiations so you can say to your imposter syndrome self "I know, this feels like too much, but it's part of the plan."

While also, potentially, learning that your time is actually worth more than you think it is.

Rant over. Questions/comments/snide remarks welcome :)
I charge by the project and not by the hour, so my calculations are a bit different but definitely build on some ofย Alex Bell's comments above. My project fees are based on two pieces of information: An estimate of the amount of time the project will take multiplied by an hourly rate (based on the income I need to make each year with plenty of time built-in for business development), and a great resource put out by AWAI that gives a range of fees for about 75 different writing projects. I take that information, whirl it around in my head, add a dash of gut instinct, and come up with a range that feels right. I have a copy of my project fees printed out and on my desk so I don't suddenly under-value my work when I'm talking to a client.

If you're interested, here's the link to the AWAI page where you can download a copy of their pricing guide (it's free): awai.com/copywriter-rates/.ย 
Alex Bell replied
  ·  1 reply
You're missing a variable.

You have mindset. You have skill. You have pitch methodology.

You're missing the client.

There is surprisingly little difference between a 5k website and a 20k website. The biggest single difference is the buyer.

I think a lot of us would do better if we found better clients. It's like we're trying to use pro football tactics but we're playing with high schoolers. It looks good on paper but doesn't work.
Erica Holthausen replied
  ·  2 replies
Wow! Really helpful. Thank you everyone for good advice

I've heard a lot of people jump on the Personal Capital train.

Has anyone used Personal Captial and Mint? Which do you like better and why?ย 
I use Personal Capital lightly for budgeting and easily tracking my expenses; lately and quickbooks self employed has made strides in personal expense reporting though so Iโ€™ve been using that more since I use it for my business anyway!
Does anyone here have any experience using Profit First? I'm working to implement it into my own business now...would love to hear what's worked for you!
Are you referring to the book or is there a software/program called Profit First?
Matthew Gattozzi The book, but really the system that the book outlines. I opened an Ally Bank account to create separate bank accounts, and I'm curious if other people have implemented this successfully.