Most professionals underprice by charging hourly or cost-plus rates. Instead, ask clients what their goal is worth in dollars, propose taking 10% of that value, then offer tiered options like $100k, $50k, or $25k. Anchoring to their number lets you capture way more than you'd make by the hour.
Here's why you're not making what you deserve. Most people don't think about value-based pricing, which allows you to capture the most when you're trying to win a deal. So when you go to a prospect, ask them what their goals are. But not only that, ask them what the value is of attaining that goal. They might say $2 million. So you say, if we can guarantee that outcome, would it be fair to pay us 10% of that, which is $200,000? They would say, absolutely. Then you go to the drawing board and you have worked it out that the realistic outcome is maybe 50% of that. So that's $100,000. Now you can go back with the price saying, here's the $100,000. Here's a $50,000 option and here's a $25,000 option, and you are now making a lot more money.
