Tuesday, August 3, 2010

Make Money Writing - Price Your Product Right

Many memoir and writing professionals are uncomfortable charging for their services. This manifests itself in a number of ways: charging too little, not being upfront about the fees from the beginning, forgetting to bill, etc. The truth is, if you are going to make money writing it is essential for you to determine your financial needs and price your product accordingly.

The basis of your relationship with a client is the monetary exchange. It is therefore important to arrive at:

1) A fee for each of your products that a client base is willing to pay.

2) An understanding of what your financial needs are over the long haul and an analysis of the prospects for getting that income from your products.

3) An adjustment between what the public is willing to pay and what you need to charge.

If you have already had clients, use numbers from your past to gauge what they are willing to pay. If you are new, you will have to presume a fee range your various client bases might bear. Take into account the nuances that are apparent in your different client segments and price your product accordingly.

You can add value to a product by offering something extra which costs you very little or even nothing, but which is perceived by the client as worth an extra fee.

An example is providing a workshop at a residence where your workshoppers live. For them, the location is extremely convenient and, for you, it solves the issue of finding a venue. Perhaps you can charge more to the client for the convenience.

You must make an estimate of your business expenses if you are to calculate how much money your products and services must generate.

If you are going to make money writing you must not only meet your expenses, you must surpass them. Your products must generate a surplus of income to finance further product development and marketing. You are doing this to make money, after all.

It is also essential for you to determine how much money you need in order to live the lifestyle you desire--do you want to go on trips, buy a hot tub, put your kids through college, etc.

By combining these two figures--what your business must earn to grow and your own personal needs--you will be able to derive the amount of income your products and services must generate.

If you sense that your products and fees will not producing the income you need, make a new price evaluation for your products that will meet your financial needs--your business and livelihood depend on it!

Good luck!

By : Denis_G._Ledoux

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