Pricing and Billing for Solopreneurs
Pricing your services as a self-employed professional can be hard to figure out, and even harder to quote with confidence. One of the biggest mistakes solopreneurs make at all stages of their business is underpricing for their expertise. When just starting out, an hourly rate is the easiest and safest way to price your services (or package pricing for things like executive coaching). If you’ve been independent for a while, it may be time to transition to fixed fee pricing.
The resources in this section will help you correctly price your services, invoice your clients, and collect the money due to you. Foundational concepts are listed first, followed by resources sorted by lifecycle stage. (The seedling graphic represents just starting out; the mature tree for established solopreneurs.) PICA members and non-members can access the unlocked content below.
PICA members can also get their questions answered in Office Hours or by emailing PICA’s Chief Advocate.
Foundational Concepts for Every Independent Professional
How you price your services and bill your clients is critical to your success as a solopreneur and the longevity of your career.
| Lifecycle Stage | Title | Description | |
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Temporary Employee vs. Independent Contractor | Whether you call yourself a consultant, contractor, or freelancer, the only status that matters is how you are classified and paid. Be sure you understand the various labels and terms so you know how to position yourself for success. | |
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Beware of Staffing Agencies | Understanding why third-party firms are usually bad for consultants is crucial. They can cost you money, even if you're paid on a 1099 tax basis. Be informed and improve your profitability! | |
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Costly Mistake: Paying a Consultant as a Temp Worker | Be sure you understand the 4 reasons why paying an independent consultant on a W-2 tax basis is bad for both you and the client. |
Resources on Pricing and Billing
| Lifecycle Stage | Title | Description | |
|---|---|---|---|
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How to Figure Out Your Consulting Bill Rate | Figuring out what to charge a client can be more complex than you may think. Learn what to consider before quoting your bill rate. Don't quote your rate out of habit! | |
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Invoicing Your Clients | The more streamlined your billing process, the sooner you're likely to get paid. Find tips, templates, and other considerations here. | |
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Quote Your Billing Rate with Confidence | No matter how you price your services and expertise, confidence is key. Every solopreneur should read this! | |
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What to Do If Your Client Doesn't Pay | Having trouble getting paid? Learn how to collect payment without hiring a lawyer. | |
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Is It Time to Consider a Fixed Fee for Your Consulting Services? | The longer you've been self-employed, the more likely it is that you should charge a fixed fee. This article explains why and how to do it. | |
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How and When to Raise Your Consulting Rate | The most ideal time to raise your rate is when you're on the cusp of something new. Get tips and suggestions on the best approach from PICA's Chief Advocate. |
Related Tools, Services, and Events
| Lifecycle Stage | Tool/Service/Event | Description | |
|---|---|---|---|
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Web Workshop: Billing Rates and Pricing Strategies Offered several times a year; see Calendar |
Participate in this 90-minute workshop to learn how to set your initial billing rate, the pros & cons of various pricing models, and do some informal benchmarking with your peers. | |
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Timekeeping Resource Guide | As a solopreneur, it's a good habit to track how you spend your time, and not just billable client time either! "Anything measured can be improved." Tracking how you spend your time will lead to increased productivity and possibly higher revenue too. |
Web Workshop: Billing Rates and Pricing Strategies
Offered several times a year; see Calendar
As a solopreneur, it's a good habit to track how you spend your time, and not just billable client time either! "Anything measured can be improved." Tracking how you spend your time will lead to increased productivity and possibly higher revenue too.