Do you charge for what you do or do you charge for what you know?


I am sure you are thinking that it is a very topical question. If you have heard that we are in the information age, several years ago and thanks to the incredible revolution that the internet and digital marketing world meant, you will suspect what perspective I would like you to take to answer this question.
 
Do you charge for what you do or do you charge for what you know? Do you charge for what you do or do you charge for what you know?

Do you charge for what you do or do you charge for what you know?



While there are still very specific professions that require very specific knowledge and skills for which we need them to “do for us,” today there are millions of people around the world who live from what their knowledge can provide to their clients. Is this your case? Or do you still charge for what you do?

The globalization, the excess of information, the internationalization of the markets, made some tasks relegated, a little devalued and become commodities (if you don't know what it is, it is used to be given the goods of consumption, especially grains - because one does not differ from another, except in the price - and in its most general version it is about products (or services, as I am telling you) generic, basic and without major differentiation.

But it doesn't have to be that way in your case. You can reinvent your profession and become a knowledge professional. It's true, it's not a simple task, I'm not going to lie to you, and neither will you in the blink of an eye. But maybe you realize it's worth it and you can start on the road with this first step:  rediscovering how valuable your knowledge is (what you know, your experience, what you can help others to achieve). But if you still don't decide, then it's a good time for me to share with you:


3 disadvantages of charging for what you do (instead of charging for what you know)

How to charge

Disadvantage # 1 - More dependence on your work hours
First, you are more dependent on your time and your dedication in the business. It's the typical example of "if you're not there, you don't earn money.”And of course, it is logical, if you are not "working" things are not "working."

In addition, there is a very unpleasant little trap with which many professionals who charge for what they do are frequently found: the typical “How do you charge me X money if you've only worked 5 minutes?” And this happens frequently  because your clients associate the value of your services or your fees, while you dedicate it to solve such problem. It is natural and "they miss" the concept of training, your training, your "trial and error" in secret and in silence with which you have struggled in your beginnings, the experience you have acquired year after year, your own learning and evolution , what you strive to improve every day and that means doing faster. That is the first problem of charging for what you do. Everything else is in the shadows and your client does not recognize it.

Disadvantage # 2 - There is no transformational value and therefore it is difficult to show added value

If you do the work for them, your clients are more likely not to transform themselves in the process. If there is no transformational power (if you have not learned anything, if you have not changed and improved, if you have not achieved more than before) then you run the risk of being “one more” of your potential suppliers.

It's natural, your customers can't see and appreciate the value of what you do, because they don't see it and especially because they don't live it . Don't get me wrong, it's easier for them to do it, there's no doubt about that. But if you don't have additional added value, it is very difficult for you to compete for more than just the price in the market. And if you compete for price (for your rates) you stop being a professional and become a number. Henceforth that number is the only thing that your customers will see for more effort you put into your work.

Disadvantage # 3 - More competitive rates

There is nothing wrong with having more competitive rates, unless you want to be a high level professional.  If you want to be a professional of excellence and high level, your rates must be high. I'm not talking about raising your rates because yes, I'm talking about having high rates because the service you offer is high level too.

Now, what makes your services high level so you can have high rates? First, results. If a client does not get what he expects with you (and he would even tell you a little more than his initial expectations set) you are not a high-level professional. Second, a learning they can replicate. 

I give you a simple example: what my clients learn with me today and apply to create their successful professional practice, they can reapply it in a few years if they decide to open a new professional practice. 
While knowledge (strategies, models, functional tasks) does not become obsolete, it is absolutely replicable. So your investment is not only repaid with your first clients, but you can obtain revenue from it over and over again. Something that would be quite difficult if I did the work for them. You see it?

Do we reflect?
I imagine that if this is the first time you encounter this information and this point of view, you may find it a bit complicated to assimilate. Or maybe not, you have realized that it makes a lot of sense and you feel identified with what is going on around you. 

In any case, it does not matter at the rate you weigh these opportunities, but it is important that you do so. Ask yourself, think and reflect:

In what area are you an expert and could you help others achieve what they alone could not achieve?

What knowledge do you have for which others would be willing to pay to receive or apply in your life?

Answer these questions and you will surely find knowledge that can help you have a business and professional practice in a world where the rules have changed and where you can take the lead in your own professional career.

What do you think about this article? Do you still charge for what you do or charge for what you know? Has this reflection made you think of something different and you want to reinvent your profession? Share your opinion with us in the comment box at the bottom of this page!

Reactions

Post a Comment

0 Comments