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How do you price your services as a freelance leadership development consultant?

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If you are a freelance leadership development consultant, you might wonder how to price your services in a way that is fair, competitive, and profitable. Pricing is one of the most challenging aspects of running your own business, as it involves many factors and trade-offs. In this article, we will explore some of the common methods and strategies for setting your rates, as well as some tips and best practices to help you navigate the market.

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1 Value-based pricing

One of the most popular and effective ways to price your services as a freelance leadership development consultant is to use value-based pricing. This means that you charge based on the value and impact that you create for your clients, rather than the time or effort that you spend. Value-based pricing allows you to align your fees with the outcomes and benefits that your clients expect from your work, such as improved performance, increased engagement, or reduced turnover. To use value-based pricing, you need to understand your clients' goals, challenges, and needs, as well as the return on investment that they are looking for. You also need to communicate your value proposition clearly and confidently, and demonstrate how you can help your clients achieve their desired results.

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2 Hourly or daily rates

Another common way to price your services as a freelance leadership development consultant is to use hourly or daily rates. This means that you charge based on the time that you spend on a project or task, regardless of the value or impact that you create. Hourly or daily rates are easy to calculate and communicate, and they can be adjusted according to the complexity and scope of the work. However, they also have some drawbacks, such as limiting your earning potential, creating incentives for inefficiency, and discouraging innovation. To use hourly or daily rates, you need to research the market rates for your skills and experience, as well as the demand and supply for your services. You also need to track your time accurately and transparently, and negotiate your rates with your clients based on the value and quality of your work.

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Jon Antonucci

Servant-Minded Leader | Growth Lover | Founder @ SML Consultive | Keynote Speaker | Author
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I don't recommend hourly rates for freelance work. This reverts one to a laborer and forces either lack of integrity or more time spent monitoring time than working. It is much better to give a price for a result. Then stand by the results. As we grow in our program, and product offering, we will get more efficient, but we will also make a greater impact. Hourly rates result in less income as we go along. Results-based rates result in more. The only time, I recommend offering a type of hourly rate is with specific meetings. We might offer a 30-min meeting for $150, a 45-min meeting for $200, Etc. But even in this situation, it's not really an hourly rate, due to the great deal of prep required for each meeting that isn't "clocked".

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3 Project-based or fixed fees

A third way to price your services as a freelance leadership development consultant is to use project-based or fixed fees. This means that you charge a lump sum for a specific project or deliverable, regardless of the time or effort that you spend. Project-based or fixed fees are attractive for clients who want to have a clear and predictable budget, and for consultants who want to have more flexibility and autonomy over their work. However, they also have some risks, such as underestimating the scope or duration of the work, facing unexpected changes or challenges, and losing opportunities for additional revenue. To use project-based or fixed fees, you need to define the scope and specifications of the project clearly and contractually, as well as the payment terms and conditions. You also need to manage the project efficiently and effectively, and communicate with your clients regularly and proactively.

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Dr. Venessa Marie Perry

Organizational Psychologist| Founder| Executive Coach I Author I Speaker| Forbes| HBR Advisory Council
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Typically we use project based or fixed price for our leadership development services. This works for long term projects because it allows us to project the amount of time versus cost and bill our consultants out accordingly. Because we do government contracting fixed price is typically preferred. Even if we then have to convert to an hourly rate.

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4 Tips and best practices

As a freelance leadership development consultant, it is important to do your research to determine the market rates for your skills and experience, as well as the demand and supply for your services. You should also identify your unique selling points and competitive advantages. It is beneficial to be flexible and adaptable when it comes to pricing, offering discounts, incentives, or bonuses when appropriate. Additionally, it is important to be transparent and professional when it comes to communicating with clients. Provide detailed proposals, contracts, invoices, and reports. Communicate frequently and respectfully, addressing any issues or concerns promptly.

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Dr. Venessa Marie Perry

Organizational Psychologist| Founder| Executive Coach I Author I Speaker| Forbes| HBR Advisory Council
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It’s important to have a clear proposal and scope of work for a specific time period. I’ve found that many clients have scope creep where they attempt to add more work to the project for the same cost or to extend the contract without increasing the cost. Communication is key in this instance. I learned the hard way early in my career to make sure proposals, contracts, retainers etc are in place before doing any work. Otherwise you may not get paid.

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Christine Smith

I help researchers improve their public involvement. I provide consultancy services and training for public involvement and equality impact assessments, together with mixed methods expertise in impact and evaluation.
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I use a formula developed by Aleksandra Kohut. I also charge for value not time, as far as possible. Regular communication with the project lead helps to build trust. Useful for when (not if) things go wrong.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you price your services as a freelance leadership development consultant?

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3

4

5

1 Value-based pricing

2 Hourly or daily rates

3 Project-based or fixed fees

4 Tips and best practices

5 Here’s what else to consider

Leadership Development

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How do you price your services as a freelance leadership development consultant?

1

2

3

4

5

1 Value-based pricing

2 Hourly or daily rates

3 Project-based or fixed fees

4 Tips and best practices

5 Here’s what else to consider

Leadership Development

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