With online business opportunities providing a low-cost entry to entrepreneurship, I have been talking to quite a few executives who want to transition to consultants.
The conversation always goes quickly to money.
* How will I replace my corporate salary?
* What should I charge for my consulting services?
You see, while I don’t believe that there is a magic formula to pricing your consulting services, I do believe that there are critical questions you need to answer before determining your fees.
Going from an employee to an entrepreneur means taking being very clear on who you are, who your ideal clients are, what problem you want to solve and what value you bring to the table.
More importantly, you should be solving a specific problem that your ideal clients want solved…not what you think they should get solved.
Your Money Mindset:
- Do you get uncomfortable or nervous when quoting your fees?
- Are you justifying your fees to prospective clients?
- Are you committed to giving “realistic” fees for your services?
Your Niche Market:
- Have you clearly identified and clarified your niche market?
- Do you know your ideal client and what he/she wants resolved immediately?
- Are you staying abreast of economic, industry or technology changes impacting your niche market?
Your Competitors’ Rates
- What are other consultants offering a similar service charging?
- Do you want to offer the same services or be a trailblazer?
- Are you focused on competing primarily on price?
Your Potential Clients’ Perceived Value
- Is your ideal client losing sleep over the problems you solve?
- Do you have one big offer or several offers to meet the clients’ needs?
- Are your ideal clients seeking you out or are you chasing them?
Your Standard Fee Structure
- Are you charging hourly, by project or by retainer?
- Do you adjust your fees according to your expertise?
- Would you increase your fees with long-term clients
There is plenty of thought, strategy and insight that goes into pricing your consulting services.
Good news, you can quickly replace your corporate salary as a new consultant when your pricing (with key branding and marketing strategies) is done right.
Are you comfortable with your current pricing strategies?