Chapter 1: Understanding Your Costs

In the world of side hustles, working intelligently is crucial. This principle applies broadly, but let’s focus on copywriting.

"Let me pose a question, Aldric. I truly enjoy my copywriting work and making my clients happy, but lately, I feel like my earnings aren’t reflecting my efforts. What should I do?"

Ah, the classic dilemma of how to set prices while ensuring you’re not losing money. Many freelance copywriters, and freelancers in general, often grapple with this issue. I faced similar concerns during my initial years in freelance copywriting. Here’s how I tackled that challenge.

Start by Knowing Your Costs

Do you have a clear understanding of your service costs?

I must admit, this question often elicits mixed reactions—some people are curious, while others seem frustrated by the need to evaluate their costs. But I’ve learned to keep it straightforward because this is not a battle I fight anymore.

“Our lives are consumed by minutiae. Simplify, simplify.”

― Henry David Thoreau, Walden and Other Writings

Freelancers must be aware of two types of costs:

1. Cost of Your Time: What is your hourly worth?
2. Cost of Materials: What expenses do you incur to serve your clients?

To determine your hourly worth, you can use one of two methods:

1. Salary Benchmarking: Take your monthly salary, divide it by 22 working days, and then by 8 hours a day. Note that number down.
2. Market Research: Investigate how much other copywriters charge per hour through platforms like Fiverr, Upwork, or a quick Google search. Record that figure as well.

These two figures establish the minimum and maximum points for your freelance rate. Your goal is to price your services as close to that higher end as possible.

CopyAuthor's Note: Repeat this process to calculate your material costs, if applicable. Your Total Cost of Service will be your hourly income benchmark plus any material costs.

Once you grasp your numbers, you can adjust your freelance rates to align more closely with your full-time job earnings—assuming you know what those numbers are.

Chapter 2: Embracing Incentive-Based Pricing

According to Burak and Smith, "An incentive scheme is a plan designed to motivate individuals for good performance, often involving monetary rewards but also including non-monetary incentives."

Many people see incentives narrowly, but they can be much broader. They not only enhance your potential earnings but also minimize the likelihood of penalties.

In essence, incentive-based pricing resembles the annual bonus we receive atop our regular salaries. It serves as a reward for exceptional work beyond the standard job expectations.

Here’s how I explain this concept to clients. First, identify what matters most to you—time, project earnings, or both. Personally, I value my time. I prefer not to spend excessive hours negotiating revisions or additional word counts for payment.

So, I present my proposal to clients like this: "Let’s go with a fixed-plus-incentive contract. I’ll charge you $600 for this project, and if I complete it two weeks early, you’ll give me a $100 incentive. This way, we can avoid the complications of the $0.10-per-word model, where there’s suspicion about my word count. What do you think?"

Naturally, my client must approve the final submission, but I find this pricing model to be highly effective.

There are two clear benefits: Firstly, we avoid spending unnecessary time inflating word counts for more pay. Secondly, we sidestep potential disagreements at the final stage, particularly if the client feels they received less than expected.

In my view, the best part is that you can earn more for completing work ahead of schedule. Wouldn’t you want such a flexible option?

Chapter 3: YouTube Insights on Pricing Strategies

In the first video, "You Should Be Charging Your Copywriting Clients This Much (Or More)", the speaker discusses the importance of setting appropriate rates for your services to maximize your earnings while maintaining quality.

The second video, "How To Price Your Copywriting Services (Full Price Guide)", provides a comprehensive guide on pricing strategies that can help freelancers ensure they receive fair compensation for their work.