Raise your Fees, Use Value PricingMarch 8, 2010
Are you charging by the hour or the day? This practice disconnects you from the ROI you provide your clients and caps your fees unnecessarily. Time-charging incentivizes you to work more (not good), while motivating your clients to use you less (doubly not good). Value pricing is the ethical alternative, providing your client with a clear return on their investment that allows you to minimize the time you spend while encouraging you and your client to focus on the true value you can generate together.
The master of Value-based fees is Alan Weiss. He turned my world around with this concept. If you are self-employed, you must read his book, Value-based Fees: How to Charge – and Get – What You’re Worth.