when should I monetise?
I have been asked this question about monetization and pricing so many times and I think it deserves a letter.
dear you,
four years ago, someone asked me a simple question:
“Blessing, when can I start charging for my work?”
and this question recently came up in many ways in a branding Q&A session I hosted.
while there's no hard and fast rule, these are my suggestions:
when you have built a track record: if you have any related experience to the work you want to charge for, then you are ready. charge according to your work, quality, industry, and target market.
when you summon the courage: some people need a level of confidence before they can start demanding money. build self confidence. you are worth it.
when people ask for your service: sometimes it takes someone requesting for your service to realise how valuable it is. put value on your time and work.
when you have an offer: people need to know what you are offering to be willing to pay for it. do you have something to sell? then put a price on it. Is there a demand for it? then charge for it and supply.
when you are ready to make money: at the end of the day, you can stay where you are and make excuses. there'll never be a perfect scenario or moment to start putting a price tag on your work. you just do it.
when you are ready to be held accountable and do the work: don't start charging if you only want to make money but you are not ready to deliver on your work. that would be a "scam". making money requires responsibility and accountability.
in the end, the right time to start charging is when you summon up courage, gather experience, determine a pricing structure, learn as you go and recharge your account balance. if you are unsure about how to go about pricing, here are some helpful tips culled out of a conversation I had with Michael Janda some time ago:
pricing tips
separate your creative outlet from the business side of your work: know what your pet projects are and separate it from the work for clients, the work people pay you for. ensure you price your work at the maximum profitable amount that your client will approve.
pay attention to these three variables when pricing: how much would it cost you to produce this value? what is the market value of this work? and can my client afford to pay? never charge below your cost. know your target client and price yourself appropriately for them.
don't be Afraid to say no: if you are going to lose money on a project, don't take it on. Avoid unprofitable projects. every no you say, is a yes to something else. if you say yes to an unprofitable project, you're saying no to the efforts & time you can make to yield better clients and grow your brand.
for discounts, always include the full price & show your discount: always show the full price of the work e.g. $1000 and then show the discount 50% off. -$500 and name the discount e.g. nonprofit discount or referral discount or family & friends discount. when giving discounts, try your best to never go below your costs.
pitch your process not the ideas: when invited for a pitch, share the process to yield the solutions the client is looking for instead of sharing ideas. your ideas are your intellectual property & you need to be compensated for those ideas.
don't ever work for free: work for value. If someone wants you to work for free, assess the value you'll get in return. also add a clause in your contract to request a testimonial and full rights to the work. get something out of it. negotiate a deal that gives you value.
let me know if this helps you, if you have a follow-up question, or if you have more pricing tips. share in the comment.
with love,
blessing abeng
ps: if you are new here, I love writing in lowercase just for fun. so, don't be alarmed. I know the rules, and I'm choosing to break them.
This is helpful. Thank you so much.