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Ahmad Study Time
  • 1 year ago
The concept of Freelancing is different from a conventional job because it gives you the freedom
to be your own boss rather than being employed by someone. Freelancing is for all those people
who are not happy with their 9-5 jobs, and don’t want to follow the mechanism of conventional
jobs. Freelancing is better than any other job because it gives you freedom of time, and there is
no need to follow a formal working environment. But hard work, self-assessment, and dedication
are the most important factors to be a successful freelancer.

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Learning
Transcript
00:00Music
00:13Ladies and gentlemen, we have discussed in great detail how to value yourself as a freelancer.
00:19Now, the zillion dollar question gets down to how to calculate your hours and how to calculate the price per hour.
00:27Before I tell you all this, I would like to share a story with you.
00:32It is a very interesting story.
00:35There are two graphic designers.
00:38Both of them are freelancers.
00:40Both of them work in a freelance marketplace.
00:43Both of them earn $1,000 per month.
00:47Both of them are happy.
00:48Both of them have a lot of work.
00:50Both of them have a lot of projects in the pipeline because they are in demand.
00:55That is why they are earning so much money.
00:57But there is a small difference here.
01:01The difference is that one freelancer earns $1,000 per month by working for 9 hours.
01:10Whereas, the other freelancer earns $1,000 per month by working for 4 hours.
01:19Friends, I am a freelancer myself.
01:24One is my past and the other is my today.
01:28I did not know how to value myself until I had my past.
01:32And I have believed in working hours after hours to get to $1,000 per month.
01:40And today, scientifically, by working smart over hard work,
01:48I earn the same amount of money by working for 4 hours.
01:54The question arises, how did I do that?
01:57What magic trick is up my sleeves that I adopted
02:02and all of a sudden my work hours reduced
02:07without compromising on the amount of money I was earning on a monthly basis?
02:14If I was earning money, I would not have compromised on quality,
02:19communication skills, and business development skills.
02:26So, how did it happen that my work hours reduced by half
02:31and the amount of money earned was the same?
02:35Let me tell you a magic formula to calculate hours or price per hour.
02:43Both are the same thing.
02:45If you look at the screen, for example, the price of a project is $100.
02:53As I told you, a person's typical cost is $100.
02:57And it takes 10 hours to complete it after going through the overall phases.
03:03So, when you divide 100 by 10, this would give you your per hour price.
03:11Now, let's do the opposite.
03:15Imagine, you know your per hour price,
03:19but you do not know the amount of hours it will take for you to complete that assignment.
03:25So, all you need to do is just take the overall price, which is 100,
03:29divide by 10, which is your per hour price,
03:32and you will be able to get a figure of 10,
03:34which is the number of hours it will take to complete an assignment.
03:40It's a simple math.
03:42These kids ask me endless questions.
03:44Sir, we can't figure out the price.
03:47Believe me, the price is a formula that you have to define yourself.
03:52Yes, the mathematical way, as I told you, does apply,
03:58but you need to figure out, you need to understand, you need to know yourself
04:04what kind of value you can provide to your employer,
04:08what kind of expertise you have in that particular skill set.
04:13All these things play a big role in determining a per hour price.
04:20Your per hour price is directly associated with your self-promotion, ladies and gentlemen.
04:27As I told you, if you work for someone for 9 to 5 years,
04:32then every year you get an annual increment,
04:36or according to the organization's rules,
04:39you get an increment after any time period or time frame.
04:44In the case of freelancing, you are boss of your own,
04:47so you need to self-assess yourself and you need to promote yourself
04:52based on your experience, based on the expertise,
04:58and of course, above all, the most important thing,
05:02based on your quality of work, with which the timeline is also associated,
05:08because the way you are an expert in a skill set,
05:12so as a beginner, the time it takes you to complete a project,
05:17as an expert, as a pro, your time of completion is substantially reduced.
05:24Therefore, you can self-promote yourself,
05:27you can increase your per hour price, and this is a very easy way.
05:32There is another debate of per hour price versus the fixed project price
05:37that I would like to present to you with my personal example.
05:41Look, in the beginning, no one told me that fixed price is better than per hour price,
05:49and I still believe this.
05:51Over a decade, what I have figured out is that the overall project price gives you more money.
05:57How? Let me give you an example.
05:59I got a client five years ago.
06:02My per hour price was $30.
06:06Now, I had to utilize that $30 in four hours,
06:11and I had to pay the overall price of a project, $120.
06:15It was a beautiful website.
06:17It was a WordPress theme, which only needed a user interface and a design,
06:21and I finished it and gave it to them, and I earned $120.
06:24I was very happy at that time.
06:26Then I realized, over a period of time, through experience,
06:30that if I had given a fixed price for this work,
06:33then I would not have talked less than $300.
06:36So, therefore, that healthy debate of charging per hour as well as giving a fixed price,
06:44actually wins the weightage and wins the competition,
06:48just because if you get the per hour price capped,
06:52you'll have to stay on the clock.
06:55There are a lot of tools, which are called project management tools,
06:59on which you record your screen, and you stay on the clock.
07:03But what is the loss of that?
07:05The loss is that the more hours you work, the more price you will pay.
07:09Whereas, you'll not be able to account for all those expenses
07:13and all those extra price and the profit you need to get.
07:18So, my request is always to try to charge a fixed price.
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