How to Unlock Your True Million Dollar Earning Potential

• Updated on: 2018-09-15
• Read original article here

How to Unlock Your True Million Dollar Earning Potential
Business Owners Making over $100,000, 84% of a year new clients came from word-of-mouth.
By John Rampton
John Rampton is an entrepreneur, an investor, an online marketing guru, and a startup enthusiast. He is the founder of online payment company Due . Best known as an entrepreneur and a connector, Rampton was recently ranked No. 2 in Entrepreneur magazine's Top 50 Online Influencers in the World, and named a marketing expert by Time. He currently advises several companies in the San Francisco Bay Area.
CREDIT: Getty Images
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Who doesn't want to make more money? It's a safe bet to say that we all want to become multi-millionaires .
The problem is that if you don't know your true earning potential, then you're probably going to have a hard time achieving that goal. When I started in the business world I never really believed that I could make great sums of money. I believed that "some day" I would make a six figure salary . Sound familiar? It wasn't till I really started believing in myself that I started to unlock my multi-million dollar earning potential.
But, how exactly can you unlock your earning potential?
Here's a couple of ways that myself along with many others have unlocked their true earning potential.
Starting Out
How much should someone with your experience be earning? That's the million dollar question that freelancers and small business owners ask when starting out.
In most cases, they charge hourly rates after doing some research, like searching freelance job boards. But, this may not always the most effective method.
For starters, there are many variables to consider when determining your earning potential , such as your location, family size, and monthly expenses. A freelancer with roommates living in Tennessee won't need to make as much money as the freelancer who owns a home for their family in the Bay Area.
Another concern with charging hourly is that you're often stuck making that same amount of money each hour - regardless how long it takes to complete a job. That's why some freelancers opt to charge per project .
The fact of the matter is that when starting out, do some research and look at multiple job boards where there are freelancers that have the same experience and skills as you.
You then need to look at factors like your specific cost of living. At the very least, you'll get a ballpark estimate on how much you can start charging clients.
Knowing What You're Really Worth
However, determining your true earning potential is more than just a job title and your experience level. Variables like unemployment rates, geography, and minimum wage increases can also impact compensation.
That's why you need to consider the following factors when attempting to find out what you're really worth.
Do some online research. As mentioned above, find out the current rate for your position within your industry by browsing sites like Payscale, Getraised and Glassdoor.
Create a one-page "brag sheet." Shares your measurable results; new or unique skills that you've acquired; additional work or responsibilities that you've held in the past; and success stories, such as testimonials and/or recommendations.
Get the timing right. Schedule meeting with clients when they're not busy or stressed so that you have ample time to discuss the scope of the project and how much you expect to be compensated.
Compromise. Have a pay rate at the top end of the range, but by willing to compromise if needed.
Ask for a specific number. Research from Columbia Business School found that employees who use a more precise number in an initial request are more likely to get a final offer closer to what they propose because the employer believes that they're more informed.
I'll also suggest that you start targeting more high-profile clients. Gigs on Fiverr are cool if you're just starting out or need a couple of bucks fast. But, you're not going to find clients who are willing to pay you what you're really worth.
What's Your Unique Value Add Proposition?
"As a freelancer, you're the mouse. There are 100 other mice out there," writes William Lipovsky in an excellent Due post discussing the importance of unique value proposition .
"Getting in the top ten isn't too difficult if you're good. Your prices must be competitive, you must prove you can do the work, you must be pleasant to deal with." writes Lipovsky.
"But being in the top ten doesn't mean you have a job. There's often only a job for the best. Why are you the best? What is your unique value add proposition?"
In other words, when you make your pitch you should always be asking; "Why would they want to hire me?"
What makes you stand out from all of the other freelancers out there? What skills or experiences makes you the best damn freelancer around? How can you help solve a specific pain point for a specific group of clients?
When answering those questions, be honest and authentic. You should be able to determine your unique value add proposition.
How To Price Yourself as a Freelancer
Some of the best advice I've read when it comes to determining how much you should charge as a freelancer is from an CareerFoundry article written by Jake Jorgovan.
"Make up your pricing for every client. There is no formula, no rules, and no perfect way to do it," writes Jorgovan.
However, your pricing is based on the following criteria:
Do you enjoy working with the client? I can personally vouch for this point. When I enjoy working with a client because I dig the work or like them personally, I'll throw them a bone. If I work with a picky or overbearing client, I have no problem charging them a little bit more.
How much do you expect the client to pay? Again, I've personally experienced this as well. If I'm working with an individual or startup, my rate may be a little lower than an enterprise-level company because I understand that they're on a tighter budget.
How much value are you providing the client? When you emphasize how much value you're providing the client, then you're going to definitely see an increase in your income.
Don't be afraid to experiment either until you find the pricing model that works best for you.
How You Can Start Earning More Money Now!
While you may have finally determined your true earning potential, it can still be difficult to to grow your client base and increase your revenue.
Thankfully, you can change all that by following these priceless tips:
Target a highly specific niche. Tapping into your unique selling point makes you an expert for a community of clients that are in need of your specific skills.
Calculate your hourly rate. Don't guess it. You may be undercharging clients. Not sure? Use this handy freelance hourly rate calculator .
Look for upsell opportunities. Do you offer additional services or products that your clients could use? If so, don't hesitate to discuss with your existing clients the next time you collaborate on a project together.
Look for additional revenue streams. Clients come and go. Make sure that you have a safety net in case you lose a major client. Use your skills to start making some extra cash on the side, like building an app or starting your own blog.
Leverage your existing connections. Freelancer rely heavily on word of mouth recommendations. In fact, for freelancers that make over $100,000 annually, 84% of their new clients came from word-of-mouth .
Use freelance networking sites. Just starting out or need some clients quick? Make use of the hundreds of freelance websites to find gigs to start connecting with new clients.
Team-up with other freelancers. Do you know other freelancers? Consider partnering with them. They could be a designer that has a client in need of a writer or they could be too busy to handle any additional work.
How have you unlocked your true earning potential?
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
Published on: May 31, 2017
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