Making Money on The Internet

One thing to always keep in mind about your rates, every client is different, and every client has different needs, priorities, and in most cases, a limited budget… Just because you charge what you do, doesn’t mean you will get the work. You should always be able to back yourself up with a strong portfolio, and always bring the full value, if not more, of what you are charging the client for… Make them rave about your work… Make them wanting more…

1. Number One, Be Aware of Average Salaries, & compare to other similar jobs as well:
   https://www.hellobonsai.com/freelance-rates
   You can even Google web programmer salary https://bit.ly/2GK1TxQ
   Compare that to graphic designer salary https://bit.ly/2X5qsLA
   Know the break down or annual salaries to the hourly rate… $40k/yr is roughly $20/hr.
2. If it costs time, it costs money
   This about ALL the time you are spending Working on any task for any client… Meetings, Calls, Planning, Designing… If you were working at a normal job somewhere else would they be paying you or someone else to do this ? Of course.
3. This about all the extra expenses that a normal job is helping cover for you… A workspace/office, Health Insurance, Business Insurance, Equipment to work on… All of these you should be factoring into how you are charging. Also factor in room for Growth… Don’t just be breaking even, if you are providing good quality work, make sure you are making good quality money in return.
4. Be Patient, this all Takes Time, and Trial & Error… Think about a lawyer… Do you think they all start at $300/hour ?
5. Flat Rate vs Hourly. This one falls into Trial & Error for sure… You need to see how you work best. I’ve gone back & forth over the years, and still do depending on the project and/or client. If you are doing a flat rate, MAKE SURE you Set Requirements & Expectations up front, and generally an agreed upon hourly after those expectations are met for future maintenance, additional features, etc. Always be very aware of this. Larger projects can always be split into phases as well.
6. Outgrowing Your Rates… Don’t be afraid to raise your prices. Think about that lawyer again… Many people review & adjust their rates annually.
7. Did you factor in room for Discounts? Everyone will try to knock you down on price… Are you high enough that you can offer a discount? Sometimes the word discount alone is enough to get someone to select you for the job. You could offer a New Client Discount, Recurring Customer Discount, etc.
8. So many other ways to generate income… Consulting, Selling Products, Similar Services/Set up Email, etc, Advertising (Google AdWords, AdSense, even sell your own ads)

Also check out this very interesting & extremely informational YouTube Channel and Website Income School https://incomeschool.com

Great Article to Follow that some of our notes above were based from:
https://skillcrush.com/2014/03/11/how-to-charge-rates-web-design-freelance/

—–ALSO TO KEEP IN MIND WHEN QUOTING A JOB—–

Quoting what you charge clients is essential for several reasons:

Transparency: Providing a clear and detailed quote demonstrates transparency in your pricing. Clients appreciate knowing exactly what they will be charged for your goods or services, which builds trust and confidence in your business.

Expectation Setting: A well-documented quote sets clear expectations for both you and your client regarding the scope of work, deliverables, and associated costs. It helps avoid misunderstandings and disputes later in the project.

Professionalism: Providing a formal quote conveys professionalism and competence. It shows that you have a structured approach to pricing and are serious about your business.

Legal Protection: A written quote can serve as a legal document that outlines the terms and conditions of the agreement. This can protect both you and the client in case of disputes or disagreements.

Budgeting: Clients often have budget constraints. A quote allows them to assess whether your services or products fit within their budget and make informed decisions accordingly.

Comparisons: Clients may be considering multiple providers for a project. Having a clear quote allows them to compare your pricing, services, and terms with those of competitors.

Scope Clarification: A quote helps clarify the scope of work and any optional or additional services or products that may incur extra costs. This ensures that clients understand what’s included and what isn’t.

Documentation: Quotes serve as important documentation for your records and for the client’s records. They provide a historical record of the agreed-upon terms, which can be useful for future reference.

Payment Expectations: The quote specifies the total cost and any payment milestones or terms, allowing clients to plan their finances accordingly. It provides a basis for invoicing and payment processing.

Accountability: When both parties agree to a quote, it creates a level of accountability. Clients are more likely to fulfill their payment obligations, and you are committed to delivering the agreed-upon products or services.

Professional Relationships: A clear and fair quoting process can help build positive and long-lasting professional relationships with clients. It shows that you value their business and are committed to providing value.

Protection Against Scope Creep: When the scope of a project is well-defined in a quote, it helps prevent scope creep, where additional work or changes are requested without proper compensation.

In summary, quoting what you charge clients is a fundamental part of conducting business. It promotes transparency, professionalism, and trust while helping both parties clearly understand the terms of the agreement. It’s a vital step in ensuring a successful and mutually beneficial client-provider relationship.

INVOICING

Invoicing is a crucial aspect of running a business, and there are several important things to keep in mind when invoicing a client to ensure a smooth and professional transaction:

Accuracy: Double-check all the details on the invoice for accuracy. Ensure that you have the correct client information, including their name, company name, and contact details.

Invoice Numbering: Use a consistent and sequential invoice numbering system. This helps both you and your client keep track of invoices and payments.

Invoice Date: Clearly state the date on which the invoice was issued. This helps establish a timeline for payment.

Payment Due Date: Specify a clear payment due date. Standard payment terms are often 15, 30, or 45 days from the invoice date, but you can negotiate terms with your client.

Payment Methods: Clearly outline the payment methods you accept (e.g., bank transfer, credit card, PayPal). Include all necessary payment details such as bank account information or PayPal email.

Itemized Description: Provide a detailed breakdown of the goods or services rendered. Include descriptions, quantities, rates, and total amounts for each line item. This makes it easy for the client to understand what they are being charged for.

Subtotals and Totals: Calculate and display subtotals for each category of charges (e.g., products, services, taxes) and the total amount due. Ensure that the math is correct.

Taxes: If applicable, clearly indicate any applicable taxes, such as sales tax or value-added tax (VAT), and include the tax identification number if required by law.

Payment Terms: Include any late payment fees or interest charges if your business has such policies. Make sure these terms are communicated in advance and are in compliance with local regulations.

Terms and Conditions: Consider including a section with your business’s payment terms and conditions. This can cover topics like refunds, dispute resolution, and ownership rights.

Payment Reminders: If the payment due date is approaching and the invoice hasn’t been paid, it’s a good practice to send a polite payment reminder. Clearly state the outstanding amount and due date.

Professional Design: Create a professional and well-designed invoice. There are many online tools and templates available to help you create a polished invoice.

Keep Copies: Keep a copy of every invoice you send for your records. This is essential for tracking your finances and resolving any disputes.

Payment Tracking: Use an invoicing software or accounting system to track payments and outstanding invoices. This can help you stay organized and follow up on unpaid invoices.

Communication: Maintain open communication with your client regarding the invoice. If there are any questions or issues, address them promptly and professionally.

Backup Documentation: Keep records of any supporting documentation related to the invoice, such as contracts, purchase orders, or delivery receipts.

Payment Receipts: Once the payment is received, promptly send a payment receipt or acknowledgment to the client as confirmation.

Legal Compliance: Ensure that your invoices comply with local tax and accounting regulations. Consult with an accountant or tax professional if needed.

By following these invoicing best practices, you can maintain professionalism, streamline your payment processes, and establish clear expectations with your clients regarding payments and terms.

https://blog.invoiceberry.com/2016/11/top-9-invoicing-tips-web-designers/

Explore Online Tools such as https://invoice-generator.com/