What does "Charge by Your Value" Actually Mean?

·17 min·1 clip

Amy Suto reveals why memoir ghostwriting commands premium rates compared to other writing projects.

Host Preston Lee and guest Amy Suto, a freelance writer and author of "Write for Money and Power," explore the practical meaning of value-based pricing for freelancers. They address a listener question from Sam, who is new to freelancing and confused about setting prices without an hourly rate. The episode uses historical examples, like William Shakespeare co-owning the Globe Theater and Michelangelo negotiating with the Vatican, to challenge the "starving artist" myth. Amy explains that value depends on the client's project type and goals, contrasting a deeply personal memoir ghostwriting project with editing a ChatGPT-generated e-book. She details how she calculates a base price using an estimated hourly rate that factors in her experience, business expenses, and a 30% buffer for project unknowns. The complexity of a project, such as extensive research or in-person travel for interviews, justifies additional fees. Preston recommends Millo's detailed Freelance Rate Calculator, which helps determine project, hourly, and target rates by accounting for profit, savings, desired work hours, and business expenses. A key insight is that a discovery call is crucial for assessing a client's potential nitpickiness and the project's emotional or logistical demands to inform pricing. Amy shares that she does not post public rates, preferring to tailor quotes after evaluating each client and project's unique scope. She admits that initially neglecting business fundamentals like pricing and profit calculations hurt her early career. The discussion emphasizes that freelancers must move beyond just their craft skills to intentionally manage the business side, including sales and marketing. The tone is conversational and educational, blending personal anecdotes with actionable advice for freelancers. Listeners seeking concrete strategies to transition from hourly billing to value-based pricing will find this episode particularly useful. Those looking for advanced negotiation tactics or industry-specific pricing frameworks might find the advice too introductory.

As heard by us

A practical founder-minded conversation with a slow start and a clear emphasis on writing for money and power.

Freelance to Founder stays focused on a practical, founder-minded conversation, with Preston and Amy Sudo keeping the discussion grounded and easy to follow.

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Why you'd press play

If you are growing a service business, this is for your next founder conversation.

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