How Much Should I Ask for?
Posted in Internet Marketing on May 8th, 2011 by Googler – Be the first to commentOne of the very first things that a new Internet Marketer will ask is how much he or she should charge for the products or services that he or she is offering. This is usually very hard for many who are constantly told that only the lowest rates possible are fair. If you have been trying to figure out what amount to demand for what you have to provide, here is the way to figure it out.
The very first thing you need to do is note down all of your monthly payments. Make sure you include the cost of doing fun things like going out to dinner once in a while or cash for a few frivolous purchases when you go shopping. This is the amount of money that you should put in your bank account annually. This is not the same thing as the sum of money that you should earn.
To find the amount of money you should earn, take the amount of money you need to put in the bank annually and add at least forty percent. This will give you sufficient money for covering taxes and different fees–after all, the money that you earn on the web will count as income–it needs to be reported to the IRS and taxes need to be paid on it. This extra forty percent is going to cover the price of social security taxes, Medicare, etc. The number you are looking at right now: the expenses with forty percent added to it–is the amount of money you should make.
You’re probably planning on working no less than forty hours per week. The rest of the time you’ll be doing paperwork, advertising, etc. Why is this critical? Because it’s got a direct affect on how much you will charge. Your initial reaction might be to take the amount of money you need to make and divide it by fifty two and then divide that number by forty (which will help you figure out your hourly rate). Instead you should divide it by the number of weeks you need to work and then divide that number by twenty. How long will it take you to compose a bit of content or maybe copy? Take that time frame and multiply it by the hourly rate that you have worked out. This is the price that you need to be charging for your various assignments.