18 Jun How to Know What Your Time is Really Worth
Your time is your most precious resource. It’s even more precious than money. It’s an energy source that’s finite and you can’t get it back. That’s why so many of us list time freedom at the top of our entrepreneurial wish list. And it’s why you may have chosen to start a home based online business that you hope will give you the lifestyle you want.
Have you ever done some cold hard calculations on what each hour of your workday is worth? You might be surprised at the results.
Let’s say you work 40 hours a week and you bring in $3000 a month. You may be shocked to know that your hourly rate is only $19! Up the monthly sales to $5000 and your rate goes up to $31.25. Still not great. But if you really have a powerful success strategy and an in demand premium product and your sales jump to $20,000 a month, working 25 hours a week (100 hours per month), suddenly your hourly rate jumps to $200!
Here is the simple formula so you can figure out your hourly rate: Divide your monthly sales by the total number of hours you worked during the month.
The big question is this—are you making what you’re worth? Are you happy with how much your time is currently worth? There are a few questions that will help you figure this out:
- Are you getting your clients results that are truly transformational?
- Are you charging by the hour or month instead of basing your fees on the value of the significant results your clients get?
- Are you working hard to sell tons of low priced products or are you selling premium solutions to well-paying higher level clients?
- Are you wasting time on rote tasks that could and should be outsourced, like bookkeeping, checking email, submitting videos or articles, taking care of minor customer service issues, sending out emails to your list or making changes to your website?
- Are you holding onto a belief that success means struggle, endless and tiring hard work and no fun? Many of us were taught that and we internalized it. Now it’s time to let it go!
Imagine having your business organized in such a way that you had lots of free time, your productivity was really high when you did work, you were making enough money to feel financially free. Wouldn’t that be great?
Here are some tips to help you start using your time in the most worthwhile way—
- Make a daily list of tasks that are money generating. Complete those tasks first each day.
- Compute your current hourly rate then set a goal as to what you would like it to be.
- Focus your attention on selling your premium services instead of on selling low priced products. This is crucial because it takes the same effort and yet it generates much more income.
- Look at raising your prices or restructuring your packages. I see many women undercharging and over-delivering. Consider the most direct way you can deliver amazing results. Then charge clients for those results, not for your time. This is a HUGE shift in the way you think and it requires you to really value yourself and not be afraid of communicating the results you’ve been getting your clients.
If you’d like to learn more about how you can achieve this quickly in your business, register for my free webinar training—The Experts Freedom Formula. I’ll show you how I’ve done this and what I teach my clients.