How to double your income during a crisis
3 Steps: Find out the cost, see the true market value, and expand
I am going to explain in 4 minutes how you can double your income during troubles times. Most freelancers (especially the ones that work alone) believe they do not have a budget to bid on projects (especially during a crisis), but the opposite is true. There are three things you need to do to make it all happen, by following the three steps below you can do it, so let’ s go!
The first step is research: Find the best freelancers in your niche, this can be a semi-famous writer in your niche, a good sales-person who helps people sell what you sell, it does really matter in which niche you work as long as you research people who are (slightly) above your level. Search and send this email to your favorite three freelancers.
An email template:
Hey (insert name)
I am interested in hiring you for a project that involves (insert some details about the fictional project).
Could you make me an estimate of the cost?
Greetings (your name)
The second step is to find the average on their rates and compare them to your own rates. By comparing the average of your favorite three freelancers with your own, you’ll soon realize if your own rates are realistic or not. You are probably charging less than they do, this means that the market value is higher than what you ask. When the average of the three freelancers and your own rates are miles apart, it’s time to adjust your rates accordingly. But there is another (critical) thing you need to do with this information to raise your rates and increase your income.
Let’s say you are a freelance software developer, you worked on big(ger) projects before and you know that you are capable of delivering great results for the client. your favorite three freelancers that you found using the above steps are all asking $900 per day on average, the next time you bid on a project I want you to imagine that you need to hire one of your favorite three freelancers to do this project for you.
Let’s say this project would take the freelancer 3 days. The total cost for you would then be $2.700, but what would happen if he needs more time? You also need to consider this in your bid before you run out of money.
You can even hire a salesperson to find new projects, this person wants 10% of the income for example. The minimal cost for you would then be $2970, but you also want to make sure that you can pay the freelancer if he needs more time, $3.500 it is.
Don’t forget your own income, most business owners include a 20 or 30% profit margin in their bids. After adding all things up, including profit and padding since things never go according to plan, your bid will $4.375.
Grant Cardone is a famous investor in real-estate and a sales specialist who said in one of his speeches that he never buys a building with less than 200 units. The main reason for this is that he does not want to be a property manager, and after some time, the income from the units will pay for the property manager. He says that his job is being an investor and not a property manager.
Now, I want you to think of yourself as being an investor and not a manager. Think of yourself as someone whos money makes money and someone who invests in a team. By trying to be a manager, a salesperson, and a software designer (in this example) all at the same time you cannot afford to hire other people and expand your business. This causes you to bid low on a project and you will lose money if you try to hire somebody to help you out.
The remedy for this problem is finding out how much it costs to hire other people and find the true market value of what you do. And if you really like to work with the people you hire, and the results are great after you’ve done some projects together, you can even ask them to be part of your team. But before you do this, make sure that you work together with people that you really feel a connection with and that they share the same values. After that, it’s time to scale up!
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