Saturday -- February 4, 2012

Posts Comments

Charge For Your Services

by at 28 Comments

Your questions help me focus and address issues that are relevant to you. Here’s a good one.

Question: I am constantly helping others and never receiving any payment for it. No one even thinks to ASK if I charge and I’m not sure how to tell them that I do.

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As business owners, pricing and selling your products and services determine the viability of your business, and the quality of your financial life. Making money starts with your ability to price your services, and ASK for the sale.

Free or For a Fee?

In an attempt to be helpful, do you give potential clients mixed signals about whether your services are free or for a fee? Is it a business or a hobby? Do you want to be paid for the services you provide? These are questions you’ll want to clarify for yourself.

Next consider if it is time to shift from a giving model to one of allowing yourself to receive. Do you often eschew money, downplaying its significance? Do you applaud *service* as more noble than business? What messages about money do you tell yourself and others? Are you ready to accept that you are worthy of earning more? If you want to attract more money in your life, you’ll need to change the ways in which you think and speak about money.

Don’t Prejudge Ability to Pay

A friend mentioned a woman who called about her services. She liked the prospect and felt she would enjoy working with her. Yet she doubted the prospect could afford her services.

I suggest you not prejudge another person’s ability to pay your fees. It’s amazing how people pay for what they want. Let the universe help them. You just state your fee, and then be quiet. No apologies, no equivocations. Hold a positive expectation. It’s absolutely counterproductive to hold a negative one. Expect what YOU want. Expect for others what is in their best interests, and as a service provider, what’s in your best interest too.

Keep in mind … Some will. Some won’t. So what. Next!

No Free Lunches

How many times have you tried to share freely your knowledge or expertise? How often have you been disappointed by how your offer was received? People tend to undervalue free. They also tend to commit less time and effort in implementing free advice. I wonder if they think, “If you know so much why are you working for free?”

It’s difficult to help others for free. Too often it doesn’t work. In order for many people to listen to you, they need to be financially engaged.

Limit the amount of pro bono work you do. Don’t consistently talk yourself into free labor with ego-defeating self-talk like “it’s good exposure,” or “I may meet someone important,” or other fairy tales. The probability is that it won’t be good exposure and you won’t meet anyone important. Smile and state your fee.

Discounting your fees can be a sound business decision. However, there are NO free lunches. A habit of free relationships usually costs you time and frustration, not to mention cash flow. Discount your fees only when necessary, or when you really want to work with a particular individual.

Honor yourself by charging for your services.

Have you had difficulty charging for your work? What did you do to resolve the matter? Do you have suggestions or recommendations for us? Share your thoughts in a comment below.

Warmly,
Judith

See Part 2, Ask For the Sale, on Monday.

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  • http://www.PassionsThatPay.com Katherine Reschke

    Judith, this is such a simple and yet profound lesson. When we are in a space of giving so much away yet getting little in return it usually indicates that we have a mindset that makes receiving difficult for us. So even if on the conscious level we want to be paid, somewhere buried deep in our psyche are stories that we tell ourselves that block the flow of money to us.

    Thank you so much for your wisdom.

    Katherine Reschkes last blog post..The Passion Project presents Judith Stephens

  • Vincent Wright

    Judith,
    First: I want to sincerely thank you for reminding us of this very important but very easy to forget business essential: charging for our services.

    Second: Far more times than I care to publicly admit, I’ve obviously been guilty of sending mixed signals to the extent that my *FOR* profit business seemed like a 24/7 NONprofit – providing useful services without receiving payments for those services.

    Third: Just as I received notification of your blog post, I honestly was in the process of responding to someone seeking help but, who when asked whether he was looking to hire me he responded: “can’t afford you man.”

    But, the essential turn around question is this: If he can’t afford me, how can I afford to help him?

  • Carol Deckert

    Judith,

    Thank you for bringing a much needed subject to the surface for discussion. I struggle constantly with that mindset, being willing to help others but it is becoming detrimental to my financial well-being. It is very difficult to change your habits, the way you promote yourself, to include the price of your services and I do believe it is very natural to “assume” whether or not the person you are speaking to can or cannot afford your services.

    I have made a very conscious decision in the past few weeks to be very limited in the amount of information that I share freely without any reference to my coaching services. A lot of my new marketing materials include a statement such as “if you are interested in learning how to do this more effectively” or “if you want to learn more, contact me” and include the fact that I will work on on hourly or contractual basis to help them achieve their goals.

    I appreciate your advice and would love to learn more about how others are effectively turning potential clients to paying clients instead of only utilizing the information you offer for free.

    Thanks again for such an informative article. I’m looking forward to reading the next installment.

    Happy Netweaving,

    Carol

    Carol Deckert
    Netweaving/Networking Coach
    RUNLancaster.com

  • Jenn Givler

    Well, great minds surely think alike… I blogged on this EXACT same topic today.

    I had someone unsub from my e-zine because I didn’t “give enough FREE information…” Well – ya got that right. I’m passionate about what I do, but I also understand that I deserve to be properly compensated… if I’m not – guess what? I don’t get to do what I’m passionate about.

    Charging for your services – and charging what they are worth – is so important. The payee needs to feel as though they’ve compensated you properly – so that they feel good about accepting what you’re offering.

    And you need to feel good about what you’re being paid so that you can feel financially secure, and do what you do the best of your ability.

    Thanks for shining the light on this Judith!

    Jenn Givlers last blog post..Not enough free stuff…

  • http://www.nadinetouzet.com/blog Nadine Touzet

    You are so right Judith. I’ve had extensive experience with pro bono work, it doesn’t necessarily bring a lot of paid work or recognition, but that really depended on the contacts I made. However whenever I do voluntary work, I have to be aware that it makes me feel good in other ways, or I don’t do it (whether my bank account feels good as a result is another story).

    Keep well.

    Nadine Touzets last blog post..Twitter Updates for 2008-10-16

  • http://BrandiPierce.com Brandi Pierce

    I was actually in the process of writing a similar article last night! I’m on the third page and wondering how I can paraphrase; which you do beautifully!

    This articulated exactly how I feel, yet when in action I tend to plummet into some of the pitfalls you mentioned.

    For a long time I had become a walking freebie, but finally got fed up when I received news that someone I had given free advice to — someone who had never even bothered to thank me — made a million dollars off one of the ideas I had personally passed them! Yes, true story. How much could I have charged for that $1 mil idea? Who knows really. But definitely at minimum my consulting rate!

    This is why articles like this are desperately needed to help reinforce the fact that experts are valuable and if someone isn’t willing to pay for it (whether by choice or circumstance) it is not our responsibility to hold their hand. They wouldn’t do it for us, nor should we expect them to.

    Great article, Judith! =)

    Brandi Pierces last blog post..Photoshoot | Valerie Farris

  • Kathy Pop

    Thank you Judith. This has been on my mind sooo much lately. It’s one reason I haven’t been on Skype or Messenger so much. Some days I just get bombarded by folks needing some help which ends up taking my whole day!

    Some are friends and I don’t mind helping a friend out most of the time. It’s when they would rather have me do it instead of learning how to and assume that I would want to spend an entire day or two fixing a preventable problem (had they just learned how first) instead of my own work.

    My solution for now is that I am much less accessible to them and politely tell them I can look at their problem and can only spend X amount of time before Ihave to go back to running my business. Friends and family can be the hardest people to turn down.

  • http://www.Designing-Diva.com Randi Deckard

    As an artist and entrepreneur, my two selves struggle….the entrepreneur side knows my worth because everything is calculated (time, effort, expertise, etc..) but my artist side has doubts and sometimes wonders who would buy/pay for that product?

    I really enjoyed this…it was a great reminder to remember what I and my handmade goods are worth and if they can’t afford it/don’t want to buy it….No biggee. NEXT…..

    Thanks for sharing. I look forward to part II.

    Have a great weekend!

  • http://www.boomerdivanation.org Beverly Mahone

    I think the problem with most business owners and entrepreneurs is they believe the MUST give something away FREE first before anyone will trust them or consider them for future purchases.

    As a media consultant, I know I can deliver–and no, I’m not cheap but I will give my clients the absolute best AND THEN SOME—so they will become my referral base and that’s a great base to have!

    Beverly Mahones last blog post..Marketing in Uncertainty

  • http://vsvas.wordpress.com/ Teri Dempski

    This is an important discussion. I also have fallen victim to pro bono work for family and friends. I also volunteer quite a bit of time for worthy causes–much different!

    I can’t tell you how many clients I have referred to others because they didn’t want to pay my fee. My fees are set fairly, to cover the cost of doing business and my salary. I don’t even charge as much as many others do for the same set of skills! That is why I don’t back down anymore, I don’t “him and haw” my fees, and non-negotiable!

    Thank you for posting this!

  • http://feistysideoffifty.com/ Eileen Williams

    This is such an important post… and, yes, especially for women. Many of us want to be helpers and devalue our own gifts. Respecting yourself means that you value your own expertise and, in our society, that means asking for fair and equitable wages for what we offer. Thank you for this valuable reminder!

    Eileen Williamss last blog post..Women Over Fifty—The Joys of an Old Pair of Shoes

  • http://www.mycountrykitchen.com Betty Lynch

    Great article, thank you!

    Betty Lynchs last blog post..Foodbuzz Publisher Community Launches

  • PopArtDiva

    I learned many years ago that free advice or service is never respected. I also learned not to donate my talents to charitable organizations – sad, but there is no respect for something that is not paid for and your time is not a tax deduction!

    I spent years in college and decades in my field. My knowledge and my talents are my stock in trade and they are my income. I earn my hourly fee and I earned the respect of being paid that fee.

    I taught myself everything about computers, the internet and web marketing and SEO. If anyone asks for my “advice” about what I’ve learned I tell them I will be happy to consult with them for a fee. If they don’t want to pay that fee they can do exactly what I did – spend years on the internet, reading books and breaking the learning curve!

  • http://thegardenofplenty.com Kate Phillips

    Great article, Judith! Giving and receiving both feel good to me, and I like to be in the flow of both. It doesn’t feel good to give away my services unless that is my choice, and sometimes it is a choice that I will make. Last year I coached a Landmark Class (they don’t pay their coaches). I didn’t have many clients at the time and it helped me continue to develop my skills and build my confidence as an effective coach. (I wouldn’t do it now, but it was perfect at the time).

    Right now I am learning Christian Mickelson’s system for coaches, I think it’s called “Free Sessions that Sell,” which teaches how to do an approx 30 minute strategic introductory session that is likely to lead to someone hiring you. I think that for people who are building their businesses and trying to gain exposure, the “loss leader” can be effective, if it is done right and not over-used. But you do well to point out the “fantasy” that sometimes we are just giving away our services in a non-strategic way because it is easier for us to give, but hard to receive, or hard to ask for what we want.

    Kate Phillipss last blog post..Autumn Contemplations, Financial Chaos, and Spring

  • http://happynutritionist.com Claudia, The Happy Nutritionist

    This post was written for me, Judith, thank you. I tend to hate to ask and love to just give freely, or do I? Maybe I just wish I was that way but deep inside I know that I deserve to also receive for what I’ve given at least in business…so I’m getting there, but haven’t quite stepped completely over the line :-)

  • http://www.lukeithermd.com Lukeither

    As a web designer and online marketing entrepreneur, you’d think this is an unspoken rule that is obvious. However, I recently learned it the hard way when I gave online marketing advice (which was based on statistics and my concern for changes they were making in their business) to a friend who told me that my opinion was not welcome.

    So much for freebies. Yes, we’re still friends, but I know now to keep my expertise/opinions to myself unless asked and provided a price. LOL.

    Thanks for sharing this clearly needed information.

  • Pingback: Women’s Words Weekly - October 12- October 18, 2008 at Women On Business

  • Phyllis Mayo

    Wow, Judith. This stimulates lots of thoughts. First, I’ve often found myself thinking that the market won’t bear the full value of my services because I’m not well enough established. The amount of time it takes to design, select the components for, and create my jewelry is huge. While that remains true — and I hear others in my field saying exactly the same thing — I’ve never asked for the actual value either. So fear is driving my actions. While I may be correct as far as my current market is concerned, as you point out, what’s to preclude me from finding a higher asset market?

    As for providing free counsel — about anything — I believe people are not ready to accept free advice unless they’ve asked for it. Period. Charging a fee requires the potential recipient to determine if he or she is ready to listen.

    Thanks for continually pushing me to the edge of my comfort zone. The only possible outcomes are growth.

    Phyllis

  • Pingback: Ask for the Sale | Yes To Financial Fitness!

  • http://organiseyourbusiness.com Marcia Francois

    I charge for any one-on-one work but people can get my free stuff when they sign up to my newsletter.

    I must tell you this – I once did a free session with someone who was SOOOO keen on hiring me. Well, he took the session and I never heard from him again. I felt such resentment and that’s when I vowed, “never again” :)

    Now, if people want to check their “fit” with me, I’ll chat logistics and so on for a few minutes but no coaching whatsoever until they pay me.

    Are you proud of me? :)

  • http://www.jewelrybycustomdesign.com Joyce Aldawood

    Your article is to timely! Janusz and I were discussing this topic just the other day. Jjanusz tries to be so different from jewelry stores that we get lost with freebies. We try to educate our customers and explain our charges- which are so much lower for so much better quality than is found in most jewelry stores. And, yes, we donate extensively to many charities. You can see the piece that we created exclusively for the Rainbow Hospice’ s annual fundraiser on our web site. It was worth well over the $2500 that we valued it at for their auction, but, to date, not one of the several hundred people who attended the Angels Ball on October 20, 2007 at the Hyatt Regency O’Hare in Rosemont Illinois has contacted Jjanusz in order to do a piece of custom jewelry with us. We still see the essential goodness in people, but are cutting back on our charitable giving.
    Since we now have a high resolution camera attached to our computer at our studio, we have the capability to design for people without them being in the office. This has worked out very well with a client in California. But we have spent quite a bit of time designing for a potential client in New York- with no order- even though he said that he loved the design. So, we decided that we would charge $100 for a design session to people we have not done previous business with….and guess what? The next person who claimed that they could not find exactly what they wanted and needed to see a design never came back to us when we told them that there was a $100 fee for the design session (that would be applied to the final price). We know that fine custom jewelry design is an art and in the greater Chicago-land area we are one of the very few tht are capable of taking an idea to the sketch, wax and finished piece of jewelry. We know this because Jjanusz is the “silent” old world craftsman that many jewelry stores advertise as their very own custom jeweler.
    So, Janusz and I decided that we are not going to be shy about asking for the fee- we charge jewelry stores a minimum of $100 per design- and that charge is not credited towards anything. We have found out the hard way that people do not always appreciate our extrememly reasonable charges and free services.

  • Diana Russo

    Hi Judith

    This is obviously, by the reponse you got, an issue for many people and I also struggled with this for a long time. I now believe we teach others how to treat us by the way we treat ourselves. if we value and respect our time then others will, further, we must also apply that principle to others.

    Do unto others, and Know your value. Sometimes free is good, as long as you know when it is appropriate and when it is not.

    Thanks for getting us thinking!

  • http://freemusicdownloadssite.blogspot.com/ wilfred

    Great work. This is a great story. Thanks!

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    Hi!
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    Good Day

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  • http://www.loanrater.co.uk Secured Loan

    I would say never do anything for free, dont give potential clients all the information they need to cut you out!

    Pete