Hey fellow podcast editors. One of the hot topics that constantly pops up in our circles is pricing. It's like navigating through a maze, and today, we'll try to illuminate some of the paths.
First things first, there isn't a one-size-fits-all solution. Pricing for podcast editors is a combination of multiple factors, from your geographical location and its associated cost of living to your expertise and the clientele you’re aiming for. Plus, are you aiming for a few high-quality clients or a higher volume of lower paying clients?
Regardless of whether you plan on charging clients hourly, it's paramount you calculate your effective hourly rate. This isn't just about time – it's about everything that goes into running your editing business. For example, the time you spend on administrative tasks, marketing, and even communication – not to mention taxes and potential paid time off.
There’s a helpful spreadsheet linked below, it's setup for US taxes, but it can be adjusted for tax rates across the globe. This resource is designed to guide you in determining your hourly rate.
Freelance Rate Calculator spreadsheet
Checkout our series Making the Leap if you're interested in learning about various factors that can present a challenge when trying to transition from freelancer to self-employment
So, you've got your internal hourly rate down. What's next? Deciding how you'll bill your clients. The two popular strategies here are:
It’s crucial to underline the penalties associated with charging by time as efficiency increases. While increasing rates is an option, it's not always feasible or accepted by clients.
When venturing into flat rate pricing, the structure and presentation of your rates play a significant role. The goal? Simplify! Some structures are so convoluted that they seem to require a math degree to comprehend.
In our experience, we've opted for a tiered package system that presents clients with three options: basic, standard, and premium. This way, clients have clarity, and any negotiations focus on service adjustments rather than price drops.
One significant aspect to remember with monthly rates is the extra, fifth episode that crops up every three months. When devising a monthly price, ensure it covers this additional workload.
So, fellow editors, how do you approach pricing? What structures or strategies have you adopted? Share your insights, and let’s keep this conversation going!
If you're seeking guidance or contemplating taking your freelance gig to full-time entrepreneurship, we've got resources for you. Dive into the Pro Group in Tanzi Astor Academy.