126 - Deep Dive: Guide To Freelancing — with Jonathan Stark
Mar 24, 2021
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Jonathan Stark, a former software developer turned author, shares his expertise on helping freelancers shift from hourly billing to value-based pricing. He discusses the critical mindset differences between freelancers and small business owners, emphasizing the significance of delivering value over merely executing tasks. Stark also offers insights on targeting specific audiences, the advantages of specialization, and how to effectively market oneself. Tune in for practical strategies to elevate your freelance career and enhance client relationships.
Specializing in a specific niche allows you to stand out and offer unique value to clients.
Transitioning from execution work to strategic services requires trust, experience, and confidence.
Value-based pricing and continuous learning are crucial for becoming a go-to expert in your chosen field.
Deep dives
The importance of specialization and niche targeting
To differentiate yourself and stand out from the competition, it is crucial to specialize and focus on a specific niche or target audience. By narrowing your focus, you can become an expert in a particular area and offer unique value to your clients. This allows you to command higher prices and attract clients who are specifically looking for your specialized services.
Transitioning from execution to strategy
For creatives who currently focus on execution or implementation work, transitioning to offering strategic services can be challenging. Building trust and establishing yourself as a consultant or strategic partner requires experience and confidence. Look for opportunities within your current client base to provide strategic advice and demonstrate your value. Gradually shift your positioning and marketing to emphasize your strategic expertise, and create content that showcases your strategic thinking to attract new clients who value your expertise.
Developing a long-term mindset
In order to successfully specialize and command value-based pricing, it is important to have a long-term mindset. Understand that becoming a specialist and building a reputation takes time and patience. Investing in specific skills and knowledge within your chosen specialty is necessary to become the go-to expert in your field. Commit to continuously learning and improving, and dedicate time and effort to marketing yourself as a specialist to attract the right clients.
Implementing value-based pricing
Value-based pricing applies to all types of services, including strategy. The key is to determine the value of the engagement to your client and price your services accordingly. Understand what the desired outcomes are for your client and how your expertise and services will contribute to achieving those outcomes. Use that knowledge to set your prices based on the value you provide, while ensuring that the price is less than the perceived value to the client. Establish clear measurements or metrics for success to avoid scope creep and demonstrate the impact of your strategic services.
Focus on Building an Audience and Becoming an Expert
Jonathan Stark emphasizes the importance of focusing on building an audience and becoming an expert in your field. By establishing yourself as an authority, you become the obvious choice for clients seeking your services. He advises that knowing your audience is crucial in order to provide valuable solutions and avoid clients who don't align with your expertise. Additionally, he suggests asking three key questions in client conversations: why this, why now, and why me? These questions help uncover the client's motivations and allow for a more strategic approach. Overall, building an audience, specializing in your field, and asking the right questions are key to positioning yourself as an expert and attracting the right clients.
Creating Mutually Profitable Engagements and Finding Ideal Clients
Jonathan Stark highlights the importance of creating mutually profitable engagements with clients. He emphasizes the need to focus on delivering value and ensuring that clients achieve their desired outcomes. By finding clients who have more money than time, it's possible to offer solutions that save them time and ultimately increase their revenue. He also suggests that building an email list is a powerful tool for audience engagement and marketing. Additionally, he explains the importance of finding the right fit with clients—ones who align with your expertise and can benefit from your services. Finally, he recommends always aiming to provide a win-win situation for both parties, where both you and the client profit from the engagement.
Do you know the difference between a freelancer and a small business owner? We won’t spoil it for you, but there is an important mindset distinction. And it can change everything about the way you do business.
In tis deep dive episode, we talk with former software developer and author, Jonathan Stark. If you’re a long time follower of The Futur, then you’ll recognize that name.
Jonathan’s mission is to rid the world of hourly billing. And in this Q&A session, he explains how you can do that. Transcend the hired gun, competing on price, and become someone who’s paid for the quality of their ideas.
Jonathan also fields other questions about how to find new leads, figuring out who you should market to, and the pros and cons of specializing.
If you’re raking it in and loving life, then give this a casual listen. But the rest of us should listen more carefully and use these free nuggets of knowledge to help our creative business pursuits.
