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#Actualnsmadsen

Posted 26 October 2012 - 06:22 AM

I literally just had an email conversation about this very topic! This person's email asked how much to charge and my answer is below:

You've asked a pretty tough question because so much goes into it, which I'll try to explain below:

- Part of it relies on how much cash the client has to pay. It doesn't make much sense to charge them $500,000 if they can only spend $1,000.

- Part of it relies on how much money you need to make right now. If this is your side gig and you're not relying on this money to pay bills and feed yourself, then you have more flexibility. Take a look at your personal and business finances and scope out how much you'd need to make all of your needs as well as some of your wants. (After all... nobody wants to just scrape by!)

- Another factor is credentials, as you get more stature you can charge more.

- The terms presented are another element. For example a client needing music tomorrow is going to pay more than another client not needing music for 3 months from now. What kind of rights are required? Do they require live musicians or are virtual ones okay?

- Finally what you can charge and still feel good about the situation. You never want to end up working in a situation where you feel like you're being ripped off. Trust me, I've been in those and your inspiration, motivation and energy take a direct hit.

There is no set figure. Reality check: the client is usually trying to figure out what's the lowest figure you're willing to work for and you're trying to figure out what's the highest rate they'd be willing to pay. It can be an interesting game of cat and mouse sometimes. What I do each year is establish my "normal" rates based on what I *think* the market will handle. From there I treat each client as a individual case with it's own unique situation and needs. There's a real balance because you don't want to come off super desperate but you do want to come off as accommodating. Having said all of that, you'll find clients that will want unrealistic or unreasonable terms and it's more than okay to simply say no. It's alright to politely refuse and walk away.

Perfect example, I had a client that wanted a 3 minute song, at exclusive rights, within 4 days and wanted to pay me $25 for it. When I refused he upped the offer to $35. I explained to him, politely, that the rate he was willing to pay was drastically below what I could afford to take on at the time and wished him the best of luck on his project.
Starting out can be hard but don't let your desire for projects and need for cash make you sign on to situations that make you feel uncomfortable or negative.

Hope that helps,

Nate

#1nsmadsen

Posted 26 October 2012 - 06:11 AM

I literally just had an email conversation about this very topic! This person's email asked how much to charge and my answer is below:

You've asked a pretty tough question because so much goes into it, which I'll try to explain below:

- Part of it relies on how much cash the client has to pay. It doesn't make much sense to charge them $500,000 if they can only spend $1,000.

- Part of it relies on how much money you need to make right now. If this is your side gig and you're not relying on this money to pay bills and feed yourself, then you have more flexibility. Take a look at your personal and business finances and scope out how much you'd need to make all of your needs as well as some of your wants. (After all... nobody wants to just scrape by!)

- Another factor is credentials, as you get more stature you can charge more.

- The terms presented are another element. For example a client needing music tomorrow is going to pay more than another client not needing music for 3 months from now. What kind of rights are required? Do they require live musicians or are virtual ones okay?

- Finally what you can charge and still feel good about the situation. You never want to end up working in a situation where you feel like you're being ripped off. Trust me, I've been in those and your inspiration, motivation and energy take a direct hit.

There is no set figure. What I do each year is establish my "normal" rates based on what I *think* the market will handle. From there I treat each client as a individual case with it's own unique situation and needs. There's a real balance because you don't want to come off super desperate but you do want to come off as accommodating. Having said all of that, you'll find clients that will want unrealistic or unreasonable terms and it's more than okay to simply say no. It's alright to politely refuse and walk away.

Perfect example, I had a client that wanted a 3 minute song, at exclusive rights, within 4 days and wanted to pay me $25 for it. When I refused he upped the offer to $35. I explained to him, politely, that the rate he was willing to pay was drastically below what I could afford to take on at the time and wished him the best of luck on his project.
Starting out can be hard but don't let your desire for projects and need for cash make you sign on to situations that make you feel uncomfortable or negative.

Hope that helps,

Nate

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