Hernan Vazquez breaks down a simple formula for pricing digital marketing services. Divide your target monthly income by total weekly hours to find your hourly rate, then multiply by the hours each client needs to get your monthly fee. If you want $5,000 a month working 35 hours weekly, that's roughly $36 an hour, or $576 per client.
Hey everybody, what's going on? Hernan Vazquez here. Welcome to this video and thank you for watching these YouTube videos. Again, I just want to have a minute to appreciate you guys. As you can see, I'm on the beautiful Barcelona still. There's a bunch of noise on the outside, so I beg your forgiveness about that. And there's a bunch of noise going on, but anyways, I didn't want to miss the opportunity to answer you guys a question that has been recurring, okay? I have been having a ton of email responses about this, and this is like really a question, a recurring question that I have from time and time again, which is how do you actually set a price for your services? How do you actually earn what you want to earn when it comes to offering SEO services PPC, social media, online reputation management, funnel building, you name it. So on this episode, I want to make a quick number with you guys and to help you with some ideas on how to price your services so that not only you are charging what you want to charge, but also you are getting the best customers possible. So that's what I want to share with you guys, and let's dive right into it. So first off, it all starts with a question, in my opinion, which is how much money you want to earn, how much money you need to be happy, to be fulfilled, how much money you need to work the amount of hours that you wanna work and to earn the amount of money that you wanna earn. And this applies not only for, you know, if you're delivering services, but also if you're selling products. This technique or this way of thinking applies to pretty much everything. So let's start over there. Let's say that you want to work that you want to work seven hours a day, Monday through Friday. Okay, which would be a decent amount of hours or a full-time job. Then you want to take weekends off and you want to earn let's say five thousand dollars a month. Okay, five thousand dollars a month is like a decent salary for somebody living pretty much anywhere in the world. All right, so five thousand dollars a month divided seven hours. Times 5 days a week for 4 weeks, that gives us around $36 an hour, okay? More or less $36 an hour. So that's what you need to be charging your clients in order to work 7 hours a day, 5 days a week, and earn $5,000, okay? That's like pure basic mathematics 101. However, we as entrepreneurs tend to complicate things and overthink things. All right, so, you know, let's keep it simple here. Let's keep it really, really simple. If you want to earn more, you will have to either work more or charge more by the hour, which is completely, completely fine. Now, the other step of the equation is to actually see how many hours you need to deliver results to a client. I have come to a place that I have some decent amount of resources in terms, in terms of SEO or in terms of PPC and knowledge, etc. So let's say that I can work 4 hours a week for a client and I can definitely deliver results. And that's the case on my end. Maybe if you're starting out, you will need a decent amount of hours, you will need more hours, or you will need to charge a bit less at the beginning, all right? So if I'm working 4 hours a week, I need to charge You know, I said $36 an hour, I need to charge around $576 per month to my client, all right? $576 per month to one client. If I want to earn $5,000, I just need 9 to 10 clients, all right? So 9 to 10 clients would be 40 hours a week, Which is what we have been talking about. So that will give you an idea on how many clients you need, how many hours you need to be working per day, and how much you need to be charging. Of course, you can be charging more because let's say that you can find an assistant that's starting out and you have some experience and you can pay them $20 an hour, which is a decent salary as well. Then from $20 to $36, you have $16 dollars more that you're making. So now you can take another 10 clients, okay, and you will be earning another chunk of money. So those are the basic mathematics that I go around and then that I go with, that I, that I move forward having in mind how much money I want to earn and then how many hours I want to work. And this is how you scale a business as well. Now for you guys, I'm gonna leave a link below so that you can download a template to present a service to any kind of client. It's like a one-size-fits-all template, okay? You will see the title of the template. It's on Google Docs. It's super easy. You will need to make a copy and you can download the template. It's completely for free. I'm gonna leave a link on the comments below and also it's gonna be a link over there so you can download the template from Google Drive. That's the template that I'm using to present it to my clients with the amount of money that I want, I'll be charging them for, why I'm charging them for, and what are the tasks that I'm gonna be providing to them, and what are the tasks that I'm not doing for them, which is topic for another video, if you would. Okay guys, so have that in mind. Set up how much money you need to earn in order to live comfortable, to fulfill your dreams, et cetera. Set how many hours per week you wanna work, and then divide that into how much you will be charging per hour. Once you have that number, then all you need to do is to multiply that number for the amount of hours that it will take you to bring results to your client, all right? Because that's the key for the client to stay with you and to keep paying you month after month, okay, results. So once you have that, you will know exactly how many clients you need to take, and then all you need to do is to get out there and take those clients. Will be working with. Okay guys, so I hope it makes sense. Download the, the template, it's free, it's on Google Docs. You just need to make a copy. And if you have any other questions whatsoever, you can follow me on Instagram, you can join the Facebook group, it's free, and we have a ton of interaction in that Facebook group. And you can ask your question on Snapchat as well. Thank you guys for watching, and I'll see you on the next video. Bye-bye!
