pricing design projects can be so dang hard that sometimes we end up just throwing out random numbers to see what sticks but the problem with guessing on your pricing like this is you either end up under bidding and losing out on money that you could have made or you end up overbidding and scaring away your prospect so my goal is by the end of this video you will never have to guess on your pricing again you'll be able to just go through this simple process and then know exactly how much to charge for every single
project so my team and I have been working non-stop to finish this resource that we now call the design pricing blueprint this is a complete walkthrough of everything that you need to do to accurately price your projects and earn as much money as you can from each one now this blueprint can only be accessed inside my private Pro Group but you don't need to join that because in this video I'm going to reveal to you the most important factors from that blueprint so you don't need to spend a dime all you need to do is
watch this video all the way through and and hit the like button if you find it helpful so this video is broken down into just four parts number one we're going to talk about the eight different pricing models that you can use number two we're going to help you establish a minimum engagement rate which is the lowest amount of money that you will possibly take on a project for number three I'm going to show you every single pricing factor that you need to consider before giving out a bid and then at the very end we're
going to help you understand the market rate which is the industry standard that you should be selling each project for all right so let's talk about the eight different pricing models for web design now as we go through these I'm going to share with you the pros and the cons so you can determine which one's going to be best for you and which one's going to make you the most money so number one is hourly rate I'm sure all of us at some point have worked on an hourly rate where you track your time and
you get paid directly for your time now the pros to this are it's really easy to price things out and you can have a universal rate for your hours and then you can just buckle down and work unfortunately there're just way too too many cons to hourly pricing the biggest con being that you get penalized for working faster and more efficiently so typically I would not recommend this pricing model the second pricing model is the fixed project rate now this is what most of you are probably using you have a project you and the client
agree upon a fixed rate and it doesn't matter how long it takes or how much work it takes you get paid that fixed rate no matter what the only variation in this model is if there is additional work that falls outside of your agreement you're going to charge extra for that now the pros to this model is you get to charge more and you don't have to track your time or account for every hour of your day but the cons to this are it can be difficult to predict a project and how much work is
going to go into it so there are times where you might under bid with that fixed rate and you could lose money or break even the third pricing model is the per page rate so this is exactly how it sounds you're going to charge per web page that you design and develop now I find it useful to charge these separately so you have a per page rate for design work and a per page rate to actually develop those pages now having a standard per page rate makes pricing out every project super easy CU all you
need to know is how many pages there are and then you just calculate that based on your rate but one con that I would like to mention about the per page rate is this can be difficult when the client doesn't know what they want when they're not sure how many pages they need and so you're going to have to spend the time to either hash that out with them and figure it out or choose a different method of pricing all right number four is value based pricing and this is one that gets talked about a
lot and this is basically you are charging based on the value that your work provides so you're not getting paid for your time or your resources or how much work went into this but instead you'll be compensated based on how important and valuable Your solution or your service actually is to the client so this pricing model is going to take into account potential impact of your website the client's business goals and how much they're anticipating to get out of this website so in other words just ask yourself how much is my solution worth to this
business now this value based pricing model seems really abstract and and it is really there is no limit there's no high or low to how much you can charge as long as you can justify the value and help your client really see that value and feel like it's a good investment so a pro is you can charge insanely High rates for your work but the cons are this is pretty difficult to sell and you really need to work with the client to help them see the value otherwise they're not going to be willing to pay
those High rates number five is retainer pricing so this is where you and the client come to an agreement that's going to be ongoing where they get a certain amount of your time or work or tasks every single month on a recurring basis now a lot of designers will charge this monthly quarterly or even annually but the best part about this is you get recurring revenue and the only cause of having a retainer with clients is often times you might feel like you are becoming an employee of theirs and that people are constantly barking orders
at you and you're still just getting paid for your time so make sure if you do retainer pricing that you just charge enough to make it worth your time number six is the subscription model now this is very similar to a retainer but in this instance you're charging a higher rate and most of the time you're offering services that are Unlimited so clients get unlimited requests for design updates and then you just need to have some sort of cue to get to those now a lot of clients respond well to this because they love the
idea of having you fulltime but you just need to make sure to protect your time if you're running a subscription to make sure that you can service multiple clients and still have good turnaround time now the pros of this are you can make a ton of money and you can do that on a recurring basis the cons are it's a heavy workload and the business can't function without you so this means minimal sick days minimal vacation days you are going to be in the business hustling non-stop number seven is package pricing now this is something
that I did for a long time and it works really well what this is is rather than just charging a set rate for a website you're going to package a website in with some other ongoing service and then sell it to them as a complete package so rather than charging $5,000 for a website I would sell them a website and 12 months of SEO and all they would have to pay is $9.99 per month month for 12 months so packages like this can actually earn you more Revenue over the long term the only cons are
you get less money UPF front and number eight the final pricing model is profit share or Revenue share now what this means is you get a percentage of the revenue generated by your efforts which in this case is a website so this is incredible if you have a website that's generating tons of sales and tons of Revenue but this can also be very risky because if the website doesn't get any sales you don't get paid so that's one of the biggest cons is it's more work upfront and it's not guaranteed pay however the pros are
if you can really guarantee results and generate lots of business for your client you can make a ton of money just make sure if you run this model that you have an accurate way to track the performance to make sure that you get paid for the leads that were generated by you okay so we've talked about these eight different pricing models and so I'd invite you to take some time to determine which one fits your business goals best now the next thing that we need to do is set your minimum engagement rate and all this
is is the minimum amount of money that you are willing to work for so for some of you this might be $500 for some of you you might not take projects that are below $5,000 but setting this rate is essential for any freelance designer that's giving bids because this acts as your Baseline so you know going into a call I will never do a project that's less than let's just say $2,000 so that's where you're going to start and then you're going to work up from there based on the pricing factors that we're going to
talk about here in a second now this requires a personal commitment to never break your minimum engagement rate because if you do you end up just losing money and being too busy to take on other clients that are actually going to pay you well so to determine your minimum rate just ask yourself what is the lowest amount of money that I would be willing to work for right now and for some of you that might be a dollar if you don't have any other client your minimum rate might not be as important but as you
grow you need to continue to raise that minimum rate to make sure that you're getting paid what you're worth all right so now we're moving on to step three and this step is possibly the most important because we're talking about the different pricing factors that you need to consider when giving the prospect a bid so you know your pricing model you know your minimum rate that you're not going to go below and now what you're going to do is you're going to determine the price based on these different factors so first is the scope or
how big the project is how much work is going to go into it next is timeline or how quickly does the client want the project finished then you need to consider results what type of results is the client expecting if they have super high hopes and super high expectations for what type of results are going to come make sure that you charge them enough to deliver on those results if a client is expecting tens of millions of dollars from your work they can't expect to just pay you a few thousand it just does doesn't make
sense next you need to consider the complexity of this project how complex is the project going to be are there additional add-ons do they need fancy interactions do they need custom imagery the more that they need that turns this into a more complex project the more you need to charge next you need to consider required experience is this a project that any old designer could do because if there are millions of designers out there that can do this project you probably can't charge as much but if this is a project that calls for your specific
expertise this taking you years to acquire then you can charge a lot more for this project next you need to understand industry standard rates or in other words what are other people in my space charging if everyone is charging just $1,000 for this it might be really difficult for me to charge 20,000 for it sure I can still charge more but you want to stay in the ballpark of that industry standard because most of these prospects are doing their research they're meeting with other Freelancers and agencies so if your rate is just Way Beyond what
they're willing to spend they're probably going to go with somebody else the next thing you need to consider is client budget so ask them what is your budget and if you can't figure out their budget you might want to do a little research on the size of their company this will give you a good indication of how much they're probably willing to spend and finally consider the risk and uncertainty so this certainly will be higher risk if you're doing a profit share model but most of the time your risk should be very low especially if
you are are collecting 50% of the Project's payments up front you're going to be low risk so you don't have to charge extra for that now if you get to the end of a sales call and you don't know the answers to every single one of these bullet points it means that you need to go back and ask more questions you need to perfectly understand the project before you can accurately price it out all right we're moving into the last step so at the start of this video you decided which pricing model you want to
use we set your minimum engagement rate and we've gone through this list of all of the factors you need to consider and the questions that you need to ask to understand the project so now to wrap up this video we're going to talk about the market rate so this is the average price in your industry for the services that you're offering now if you don't understand the market rate or you have no idea even the ballpark of the market Standard you're going to be going into this blindness so we need to make sure that we
understand this and then what we can do is see that average and then we want to charge a little bit more so let's just say a three-page website on average sales for $1,500 it might be a good idea to bump your rate up to $2500 because that's going to elevate the perceived value of your services and it's going to help you stand out now what you don't want to do is try to bid somebody $155,000 for a three-page website because that makes zero sense it's Way Beyond the standard and you're never going to land those
clients so if you want to better understand your market rate what you can do is you can call other competitors and see what they're charging or what you can do is you can subscribe to my channel because every couple days I put out a poll about a specific project and we see how much the average designer and agency is charging for that website this is going to give you a really good insight into how much you could be charging how much you should be charging and how much you should not be doing this project for
now believe it or not this is just part one of this series in the next video I want to talk about presenting pricing to your clients asking them their budget Pres ing your pricing on your website and collecting payment so if you want that video go ahead and comment part two down in the comments and if we get 100 comments I'll know that you're ready for the video also if you want full access to our design pricing blueprint just go to ppro ccom and once you join the group you get full access to that blueprint
and all of our other resources thanks for watching and we'll catch you in the next video
