How To Calculate Your Rate

5. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Why 10, and not 12 months? Subtract 1 month for vacation, and 1 month for non-billable hours (networking, administrative tasks, invoicing, etc…)

8. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Now, how many hours can you realistically work per week? For reference, full time employees typically works 40 hours per week (8 hours a day/5 days a week).

10. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In the previous question, it was determined that your monthly goal was $10k. If you can work 40 hours per week, your eﬀective hourly rate is: $63/hr. (round up).

16. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Why 10, and not 12 months? Subtract 1 month for vacation, and 1 month for non-billable hours (sales, marketing, networking, administrative tasks, client correspondence, etc…)

21. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In the previous question, it was determined that your monthly goal was $10k. If you can take on 4 projects per month, your average project rate needs to be $2500.

25. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In both examples, the goal was to earn $100k/yr. By billing hourly, you would need to work 160hrs each month at $63/hr. Whereas billing project rates, you would need to complete 4 projects at an average project rate of $2500.

26. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In the case of using project rates vs. hourly rates, if you created a logo for $2500, but it took you less than 40 hours to complete, you are eﬀectively earning more for your time.

28. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 For comparison, if you completed a logo in 10 hours, your time would be worth $250/hr. ($2500/10). Whereas if you billed hourly, you would have earned $630 ($63x10).

32. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Should you charge more for the same work? This is called Value Based Pricing, where you price the client and not the job.