Dear ,

You may have heard me or Peleg say, in a workshop or webinar recently, that your hourly rate is none of your client's business. Just because they ask for it doesn't mean you have to tell.

 

It's a pretty provocative position, I realize, and we get a lot of pushback on it. Here's the thinking behind it.

 

First of all, this applies mostly to writers, designers and other freelancers or independent contractors who are producing something tangible -- not consultants, who provide advice and guidance.

 

That said, when you reveal your hourly rate, your client starts calculating. But they can't possibly know how long it takes to do your work. They can only imagine your creative process and would misuse the information -- most likely not in your favor. That's why we say, don't tell.

 

However, as with all rules, there are a couple of exceptions: 

Revision hourly rate: You can say how much you charge hourly to do revisions, especially once you go beyond the scope of an initial agreement. But keep your revision hourly rate high, to discourage too many rounds of revisions.

 

Production hourly rate: You can reveal what it costs to implement your creative ideas, which can be done by someone else anyway. However, the fee to create them should be value-based and not dependent on time spent.

Notice also that I have given names to the various hourly rates. This is to distinguish your creative work, which is difficult to quantify, from everything else. That makes it less vague and demonstrates that you know what you're doing.

 

Peleg will be talking all about this and much more on March 15 in Los Angeles in the full day Pricing and Marketing Workshop. Workshop details here.

 

And if you can't make the workshop, you can still get all this info from the Pricing and Marketing Secrets download. (We are extending our special offer of $20 off until February 15th.) More details here.

If you're still not convinced not to reveal hourly rates to clients, read this great article on hourly rates by Chris Haddad at Biznik.com.

 

And if you're really interested in these pricing questions, check out the think tank, VeraSage.

 

************************* 

Today's links from the MarketingMixBlog.com focus on testimonials:

• Starter questions for testimonials
• Two parts to a testimonial 
• How to get great testimonials, simplified 

You can also listen to an interview I did this week with Jim Blasingame, The Small Business Advocate, during which we talked all about testimonials. 

 

If you keep forgetting to read the Marketing Mix Blog, receive it via email directly to your inbox here or sign up for the "RSS feed" here.

 

For early risers in New Jersey: I'll be speaking at a Business Builders breakfast on Feb. 20, 7:30-9:30. Details here.