How to Price an Internet Marketing Project

I get this question often from wannabe freelance marketers.

There are several ways to determine the price of a project. Corporates have a way of determining the cost which involves a bit of complex calculation. I will not get into that.

Such methods include overheads of running a office besides the actual project cost, which is non-existent in case of a freelancer.

First look at the pricing offered by competing companies. A simple Google search will turn up a big list of such providers.

From the first few pages pick some 10 – 12 providers and ask them the price of a similar project, ask them for a quote. Then take the average and subtract something around 30% – 40%. That will be the price you can ask your client.

Why are we deducting the 30% – 40%? Because this is the overhead that companies will have that you can remove as a solo freelancer. Your clients will love the reduced price!

Another method to determine the price is per hour basis. Compare your prices to people in similar profession. How much do you value your time? How much an chartered accountant would earn in an hour?

Set your value accordingly and estimate how much time it may take to complete the project. Multiply by the time and you get your price.

Pricing is a very vital aspect of freelance marketing. Lower it to match lowest common denominator and you will end up competing with the bottom feeders! Price it high and you will price yourself out of the market.

Hence it makes sense to take your time and come up with a proper pricing strategy.

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