### How To Calculate Your Rate

• 1. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 How to calculate your rate when starting out Business Bootcamp Bonus Content
• 2. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Hourly Rate  Method 1
• 3. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 A year from now, what do you want your annual income to be as a freelancer?
• 4. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Divide by 10. This will be your target to hit  every month.
• 5. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Why 10, and not 12 months? Subtract 1 month for vacation, and 1 month for non-billable hours (networking, administrative tasks, invoicing, etc…)
• 6. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 = MGAG 10 AG = Annual Revenue Goal MG = Monthly Revenue Goal
• 7. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 So if your annual revenue goal is to earn \$100k, your monthly goal will be \$10k.
• 8. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Now, how many hours can you realistically work per week? For reference, full time employees typically works 40 hours per week (8 hours a day/5 days a week).
• 9. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 = HRMG Hx4 MG = Monthly Revenue Goal HR = Hourly Rate
• 10. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In the previous question, it was determined that your monthly goal was \$10k. If you can work 40 hours per week, your eﬀective hourly rate is: \$63/hr. (round up).
• 11. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 = \$63/hr \$10,000 40hr. x4
• 12. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Search for jobs where people get paid this hourly rate. What are they?
• 13. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Project Rate  Method 2
• 14. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 A year from now, what do you want your annual income to be as a solo business owner?
• 15. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Divide by 10. This will be your target to hit  every month.
• 16. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Why 10, and not 12 months? Subtract 1 month for vacation, and 1 month for non-billable hours (sales, marketing, networking, administrative tasks, client correspondence, etc…)
• 17. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 = MGAG 10 AG = Annual Revenue Goal MG = Monthly Revenue Goal
• 18. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 So if your annual revenue goal is to earn \$100k, your monthly goal will be \$10k.
• 19. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Now, how many projects can you work on each month? This will determine the average budget for each project.
• 20. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 = APRMG P MG = Monthly Revenue Goal APR = Average Project Rate P = Number of Projects Per Month
• 21. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In the previous question, it was determined that your monthly goal was \$10k. If you can take on 4 projects per month, your average project rate needs to be \$2500.
• 22. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 = \$2500 \$10,000 4 projects
• 23. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 What kind of projects are people accustomed to paying this amount of money for?
• 24. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Comparison 3
• 25. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In both examples, the goal was to earn \$100k/yr. By billing hourly, you would need to work 160hrs each month at \$63/hr. Whereas billing project rates, you would need to complete 4 projects at an average project rate of \$2500.
• 26. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 In the case of using project rates vs. hourly rates, if you created a logo for \$2500, but it took you less than 40 hours to complete, you are eﬀectively earning more for your time.
• 27. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 What if you were really fast?  What would that look like?
• 28. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 For comparison, if you completed a logo in 10 hours, your time would be worth \$250/hr. (\$2500/10). Whereas if you billed hourly, you would have earned \$630 (\$63x10).
• 29. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Would you prefer to  bill hourly or per project?
• 30. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 What if that same logo was created for a large multi- million dollar company?
• 31. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 What if that logo was used on products and merchandising? Should the fee be the same?
• 32. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Should you charge more for the same work? This is called Value Based Pricing, where you price the client and not the job.
• 33. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 That’s a more complicated explanation for another time.
• 34. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Want to learn more? Consider enrolling in the Business Bootcamp. Class starts Sep 04
• 35. Brought to you by thefutur.com ©2018 Chris Do BUSINESSBOOTCAMP TWOTHOUSAND 18 Thank you,
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