Praise for Breaking

the Time Barrier

Its the eternal struggle of the freelance worker: how do you price
your work in a way thats fair to both you and the client? Nothing
less than your career success and personal happiness hinges
on this question. Spend an hour with this book, and youll come
away with a whole new way of looking at your value and your
relationship with your clients.

Daniel H. Pink, best-selling author of Drive, A Whole New

Mind and Free Agent Nation

Spectacularly simple, remarkably true, for every small business

owner whos determined to grow, Breaking the Time Barrier will
work for you!

Michael E. Gerber, best-selling author of The E-Myth, and

inventor of The Dreaming Room for entrepreneurs

People constantly ask me How can I get a 4-hour workweek with

a service business? This story is the short answer.

Tim Ferriss, author of the #1 bestseller, The 4-Hour

Workweek
This book unlocks the truth about how to build an insanely
profitable business.

John Jantsch, best-selling author of Duct Tape Marketing

I urge my friends in public accounting to first read the book and

then make sure every one of your small business clients does too.
It could prove to be the most important 30 minutes you invest this
year!

Gregory L. LaFollette, CPA.CITP CGMA

Breaking The Time Barrier is a must read for every business

owner whos ever struggled with putting a price tag on their
services. If only it would have been around when I started my
design studio.

Tina Roth Eisenberg, founder of CreativeMornings,

swiss-miss.com

In order to understand the difference between time and

value, just read Breaking the Time Barrier. In about an hour,
Mike McDerment will get you up to speed on the fundamental
difference between churning billable hours and delivering
value to your clients.

Sam Glover, editor-in-chief of the law practice blog,

Lawyerist.com
Breaking the
Time Barrier
How to Unlock Your True
Earning Potential

Mike McDerment and Donald Cowper

Copyright 2013 FreshBooks

TORONTO
 A word or two
before we begin
In January 2003, I was running a small design firm
when I finally snapped. I was using Microsoft Word to
bill my clients when I accidently saved over an invoice.
The frustration of billing my clients overwhelmed me,
and so did the thought of using accounting software
so I built my own solution.

Building my own product company quickly became a

passion, but passion projects dont payat least not
on day one. To keep the lights on I moved into my
parents basement for 3.5 years to save money and
I completely revamped how I ran my design firm to
the point where I worked 19 days in one year and
generated over $200,000 to fund my side project.
How did I do that? This book will show youand help
you do it too.

Thinking back, my ability to work so little and

produce so much income had a lot to do with how I
priced and positioned my services, something most
small business owners struggle with. So I sat down
with Donald Cowpera best-selling author who
joined FreshBooks as our small business writer last
yearto try and capture the essence of things. The
result is this booka business fable designed to share
the lessons I learned the hard way, so you dont have
to.

This book will take you one hour to read, and you can
read it for free. But a free book about pricing, thats
ironic, no? Yes. So heres the twist: I hope that once
you have read this book you will find it so valuable you
will WANT to pay for it to recognize its value. Should
you feel that way, please do two things. First, share
it with others so they can benefit too. Second, go to
FreshBooks.com/BreakingtheTimeBarrier where you
can pay what you believe this book is worth to you
and your businessit could be one dollar, could be
$5000you decide.

With that, enjoy.

Mike
Mike McDerment
Co-founder & CEO
FreshBooks
About FreshBooks
FreshBooks is a simple-to-use, cloud-based
accounting solution designed exclusively for small
business ownersthe kind of owners who are
passionate about what they do and may not fully
understand a balance sheet (or even know what one
is), and shouldnt be ashamed of that. Since launching
in May 2004 from Mikes parents basement,
FreshBooks has helped more than 5 million people
send and receive, print and pay invoices.

At the time of writing, only Intuitmakers of

QuickBookshave more online paying customers in
America than FreshBooks, making FreshBooks the
#1 cloud accounting solution designed exclusively for
small business owners.

The FreshBooks vision is a world where entrepreneurs

successfully run their businesses without having to
learn accounting. If this sounds good to you, go to
FreshBooks.com and try it for free.
 False Start
teve stepped out of his bosss office, stunned.
The company couldnt meet its payroll and
needed to cut half its staff. Steve was one of
the unlucky ones. It was the second time hed been
laid off because his employer went belly-up. And it
would be the last, he thought as he marched out of the
building. He was going to start his own design firm,
take charge of his own destiny.

Three weeks later he was sitting in front of someone

who wanted him to work his design magic on her

8
website. Then she asked a question he wasnt fully
prepared to answerHow much is this going to cost
me?

That night, Steve jumped on his computer and began

searching for what other freelance web designers
charged. The results werent very helpful. Some
designers charged $10/hr, some over $200/hr, and
the rest charged anything in between. He wasnt sure
where to peg himself. Then he remembered that his
old college buddy John had gone out on his own as a
designer.

Over the phone, John suggested that Steve figure out

his rates using a tried-and-true pricing formulaan
approach that is known in the accounting world as
cost-plus. With the help of an online rate calculator,
Steve plugged in his coststhe various business
expenses he expected to have as well as his personal
life expenses. After he put in how many hours he
would be able to work over the year, the calculator
spat out a breakeven rate of $50/hr. To generate a
20% profitthe plus element in cost-plushe
would have to charge $60/hr. If he worked steadily,
his annual incomeafter business expenses, taxes
and government planswould be around $50,000.

9
It wasnt the six-figure income he hoped to make one
day, but he felt it was fair considering he was just
starting out.

Steve won that client, and a few others over the

ensuing weeks. He was busy, but found himself
struggling with a few problems.

For one, he was almost always competing for the

business, sometimes against cut-rate designers or
services that offered inexpensive, do-it-yourself
website solutions. He would try to explain why he was
the better choice, but in the end, he felt that if he stuck
to his rates, hed lose out. And at this early stage, he
badly needed to build a clientele. So he would often
offer discounts, sometimes below his breakeven rate.
He wasnt happy about it, but it seemed to be the only
way hed stand a chance to get the business.

For another, Steve would also try to beat out the

competition by quoting fees based on conservative
estimates. It worked a lot of the time, but it usually
meant he had to put in more time to finish his
projects. Plus, a lot of his clients tended to grind him
down, insisting on extras here and there. The result

10
he was making significantly less per hour than the rate
he billed.

A few months after going solo, he was run ragged and

having trouble paying his bills. A conversation one
night with John helped him through a particularly low
time.

Everyone goes through these growing pains, John

said. When youre new, you do what you gotta do to
win the business and survive. Its a matter of paying
dues. You hustle, gain experience and build up your
skill set until you establish a clientele of higher-quality
clients. Dont worry, things will improve.

On the cusp
Steve took Johns words to heart and muscled on. His
perseverance looked like it would soon pay off after
a friend introduced him to a start-up with a health
product. Steve loved the people at the start-up, and
their product too. They wanted a killer website with
an e-commerce function. It was going to be a large
project that would keep Steve busy for a few months,
with ongoing servicing after that. As an added
bonus, the start-up was well capitalized and so Steve

11
proposed a fee based on his profitable hourly rate,
which they didnt blink at.

Steve, who felt like he was on the cusp of success,

threw himself into the project. The start-up team
loved his work, particularly his great ideas around
how to design the site as a marketing engine, not just
a storefront. Steves ideas worked wonders. Soon after
the site went live, the company began selling product
at an accelerating rate, hitting their aggressive
revenue targets on time. Everyone at the company was
going to get rich. Steve was thrilled that he had been
instrumental in the start-ups wild success. But given
the kind of impact hed made, a part of him wondered
if hed charged for his services properly. After all, it
was his ideas, not just his work, that had made the
difference.

The next time Steve spoke with John, he explained

what had happened with the start-up, and asked John
if he ever felt underpaid in situations like that.

Sure, I get that feeling sometimes, John said. I did

this amazing redesign for a client that totally turned
around their business. Considering the impact it had

12
on their revenue compared to what I charged, they got
an amazing deal. But what else can you do?

I dont know. Thats why Im calling you.

Well, all you can do, John said, is try to increase

your rates so it gets a little fairer. In this case, Id
negotiate a higher rate for your ongoing service for the
start-up.

Steve did quote a higher rate for the maintenance

work, which the team agreed to, but the ongoing
service amounted to only a couple hours a week. So
Steve had to scramble again for new business. He
was determined, however, to charge a higher hourly
rate to all new clients. Unfortunately, many of his
prospects were referrals from clients he had offered
discounts to, who expected similar rates. Because he
was desperate for billable hours, he took on the low-
paying business.

With a six-figure income looking like a pipe dream,

Steve put in another call to his buddy John, hoping for
some new insights. Instead he discovered that John
had just taken a full-time position. Steve was floored.
After probing, he learned that John had been secretly
struggling. Work wasnt always steady and bills had

13
been piling up. With a new kid on the way, John had
decided he needed the security of a steady paycheck.

Darkness
After hanging up the phone, Steve sat down on his
living room couch, put his head in his hands and
closed his eyes. All he could see was darkness. He
began to wonder if he should pull the chute like John.
It was a thought that gave him some relief. After all,
the past few months hadnt been much fun. As he sat
there contemplating the death of his young business,
he recalled the afternoon his former boss called
him into his office and told him he had just received
his last paycheck. It was a painful day, but one that
taught him a lessonthere was no more security in
a full-time job than in running your own business.
He hoped things would work out for John, but Steve
wasnt going to put all his energy into finding a job,
only to get laid off a third time.

Steve opened his eyes and looked around his living

room. He made a promise to himself right thenthat
he was not going to give up. And right after that, he
made another promisethat he was going to find a
way to do more than just scrape by. The world was full

14
of successful business owners and somehow he was
going to become one of them. Exactly how, he didnt
know yet. But he went to sleep that night determined
to find out.

The next morning it hit Steve that seeking Johns

advice had probably not been the wisest move. John
had been handy, but that didnt make him the right
teacher. After spending a few hours sifting through
his list of contacts, Steve found that he had a mutual
connection with Karen, one of the most successful
designers in his city. Later that afternoon he spoke
with Karen over the phone. After briefly sharing his
story, he explained that he was reaching out to her
because she was an inspiration and he needed some
of that now. She said shed be happy to talk with him
and they agreed to meet at Karens favorite caf that
Friday.

15
 A Whole New Way
of Thinking
n Friday Steve stepped into Karens caf,
a cozy spot with leather chairs and shelves
lined with old books. He looked around,
taking in the aroma of fresh coffee, then made his way
to a back table, where Karen was waiting for him.

After Karen greeted him warmly he settled into his chair,

thanking her for meeting with him.

Im happy to help, she said before a server came and

took their order. Then Karen invited Steve to sketch

16
out his solopreneur journey, which he did over the
clatter of coffee cups that surrounded them.

When Steve was done she gave him a one-word

verdict: Pricing.

Pricing? he asked.

She nodded as their coffees arrived. Wellpricing

and positioning. From what youve told me, it sounds
like the way you think about pricing is holding you
back.

In what way?

If someone wanted to know what exactly you sell to

your clients, what would you tell them?

My services. Web design.

How do you charge for your services?

I charge them a fee based on my hourly rate.

Then arent you really selling hours? Karen asked.

But I use those hours to design websites.

Do those websites have any positive impact on your

clients?

17
Sure, Steve said.

Do you think it would make more sense to charge a

fixed fee that represents the value of the impact your
websites have on your clients?

Well, I do mostly charge fixed fees

But those fees are based on a multiple of your hours,

right?

Right, he said.

Im talking about fixed fees based on value, not time.

I guess Im not sure what you mean by value.

The value of what I do, Karen said, is based on the

impact I can have on my clients business. Impact
is how they value my services. So I look at pricing
from their point of view. They dont hire me to design
a website for the sake of designing a website. They
hire me to design a website thats going to help them
grow their business. I find when I look at it like that
from their perspectiveits clear Im not selling time.
Instead, Im selling a solution that is going to make
an impact for my client and achieve some business
objective.

18
So, how do you set
your prices then?
The value of what I do
Let me give you an is based on the impact I
example. A couple of can have on my clients
months ago I sat down business.
with a client to talk
about their website. I
asked them to tell me why they thought they needed
a website. When we drilled down into their reasons,
they said they believed a website could generate
an additional $100,000 of profit annually for their
business. So I asked them to make an investment of
$20,000 in the website. Based on your hourly pricing
model, youd probably charge in the area of $2,000 to
$2,500.

Did they agree to your price?

Yes. Wouldnt you invest $20,000 to generate

$100,000?

Steve agreed and he was excited about what Karen

was telling him, but lots of questions were flooding his
brain. I get your math, he said, but doesnt it come
down to time in the end anyway? I mean, you spend
a certain amount of time on the project. You could

19
theoretically work out your hourly rate and so could
your client. Youre probably effectively charging $400
an hour, or something like that. What if your client
thinks thats too high?

Your math may be right, but Im not a collection of

hours, Karen said. Im the accumulation of all my
skills and talents. Im wisdom and creativity. Ive
stopped seeing myself as a punch card. My clients
dont see me that way either. Yes, sometimes, Ive
had to change my clients mind-set. But it starts with
me, first, just as it starts with you. You have to forget
selling time. The best thing you could do for yourself
is to get the concept of time out of your head.

Dont I need an hourly

rate for some stuff?
Im the accumulation
Everyone I know has
of all my skills and
one.
talents. Im wisdom
You know me now, and creativity.
and I dont have an hourly
rate.

So I should never
charge by the hour?

20
To be honest, when I started out I charged an hourly
rate and I think hourly rates make sense for someone
just starting out, someone with little experience and
limited skill. But over time I established myself and
my credibility, which led to great references. When
that happens, you begin to outgrow the cost-plus
pricing model of charging by the hour. So if you stay
with that pricing model, youll find it very limiting.

For example, Karen continued, since there are only

so many hours in a year, it puts a cap on how much
revenue you can collect in a year, and it means that
the only way to make more money is to work more
hours. These are limitsand the truth is, they are false
limitations that lead to bad behaviors, like burning
yourself out by working around the clock in an effort
to earn more.

Thats me, Steve said.

Me too, when I first went out on my own, until I

learned that a value-based approach to pricing your
services is a powerful way to break through the time
barrier and avoid the bad behaviors. But like a lot
of people, I didnt start from scratch, and neither
did you. You started your business after many years

21
of design experience. You already had the ability to
create value for your clients. And now, after being in
business for a while, youve got references you can
build on. Youve also had the chance to see the impact
your projects have had. Im sure its far greater than
you expected. Think of the value you created for that
health start-up. Thats an impressive story that you
can use to move away from charging based on time to
charging based on value.

Steve nodded. Karen was righthis experience with

the start-up was something he could leverage. At least
for project work. But what do you do for ongoing
service?

I charge a recurring fixed fee. Depending on the

client, it could be $500 per month. Or $1,000 per
month. Or whatever is appropriate for the value Im
delivering.

Steve recalled a time when he ended up doing way

more maintenance for a client than hed estimated.
But what if you have to spend 25 hours on one client
that month? If youre only charging them $500 your
hourly rate is $20.

Youre stuck on time, arent you?

22
But we all have only so much time. Time is money,
isnt it?

We do have only so much time, Karen said, which

is why you need to divorce yourself from the time
model. It will limit you. You and I share one thing
in commonthe number of hours in your week is
the same as in my week. I could walk around the
marketplace with a higher hourly price tag on my
forehead than you, but that still puts a revenue ceiling
on my business. Plus, it doesnt serve my clients.

What do you mean? Steve stirred his cappuccino.

Selling hours actually creates a conflict of interest. It

puts you and the client on opposite sides of the table.
If youre selling hours, its in your best interest to take
longer, to bill more hours. But your client is interested
in getting solutions that work as promptly as possible.
What if you work quicker for one client than another,
but deliver the same value? Should you penalize the
client you worked longer for? If youre slow, its not
their fault.

And if you get quicker at something, Steve said,

which was happening with me, you should get

23
rewarded, right? But I was charging less if it took me
less time.

Exactly, Karen said,

smiling. For a lot of
Selling hours actually
your clients, getting your
creates a conflict of
solution sooner rather
interest.
than later has more
value, and for that
theyd pay more, not less. So let me ask you thishave
you ever delivered the same thing to one client that
you once delivered to another client?

Steve thought for a minute. Yes. I built a little

program for one client that I reused in a project for
another.

What did you charge for that?

I dont know. I mean, I didnt charge specifically

for it. I just charged the client my time for the whole
project.

So, with regard to the program, you charged for

however long it took you to install it, right?

I guess so.

24
Maybe ten minutes of your time?

Steve nodded.

But Im sure your program had value to your

client that wasnt captured by the price of those ten
minutes, Karen said. Let me share with you how I
handle something like that.

I have a turnkey e-commerce solution that I spent

years building. I threw all the genius and creativity I
could muster into it so I could help my clients increase
their revenue. Its proven to do just thatusually by
a minimum of 15%. Because its so powerful, they
want it as soon as possible. I can install it in a couple
of hours and right away it starts having an impact.
Would it make sense for me to charge two hours of
installation time? Hardly. It has significant value to
them, so the price they pay is based on what its worth
to their business.

That makes sense, Steve said, but I still want to

know what you do when you have to spend 25 hours
one month on a client youre only charging $500?

I do what it takes, Karen said. And yes, that

situation has happened before. But those cases are

25
offset by everything balancing out eventually. I have
to make sure I can cover my costs.

So you do care about your costs?

Absolutely. I know all the numbers for my business,

including my costs. I actually use one of those cost
and rate calculators. To run my shop and support
the people I work with I personally need to generate
almost $100,000 annually. In your time-based world
that works out to an average of $100 an hour for 20
hours a week, 48 weeks of the year.

So you havent completely given up the concept of

time.

Do you mind if I give you an example from some

other people?

Of course not. Lets hear it, Steve said.

Okay. Arty and Mack are two designers I know. Arty

runs a lean operation. He works out of his apartment
and keeps all his costs as low as possible. Hes super
frugal. Doesnt own a car, rarely eats out and doesnt
take vacations. Macks the opposite. Hes got a huge
house, fancy car and leases a big office downtown. He
also spends lavishly and travels the world. They both

26
use a cost-plus approach. Artys hourly rate is $20.
Macks is $210. Thing is, they both provide the exact
same level of service. Should a client be asked which
lifestyle they want to support?

No.

Right. Our clients dont care about our costs. They

care about the value we create for them, so thats what
we should be asking them to pay for. But just because
my clients dont care about my costs, doesnt mean I
dont. I do care, very much. Which is why I see it as
my job to look for ways to create value for my clients
so that I can charge fees that more than cover my
costs, making my business profitable.

Unfortunately, Karen
continued, making a
Our clients dont care
profit is difficult with
about our costs. They
how youre pricing your
care about the value
services now. You are too
we create for them, so
vulnerable to a project
thats what we should
taking longer than
be asking them to pay
expected, or to droughts.
for.
If you go a month or
two without making a

27
sale, youre out of business. But slow stretches happen
to everyone. Trust me, I know. Ive had my share of
droughts over the years. They are not fun, but they
are to be expected and nothing to be ashamed of. But
because I charge value-based prices, instead of cost-
plus prices, I give my business the margin of error our
profession demands.

Im following all that, Steve said, but dollars are

dollars, and youre obviously implying that charging
value-based prices will be more expensive to the
client. I certainly want to make more money, but I
know my clients want to keep their costs down. So I
dont understand why they would pay $20,000 to you
to design their website when they could hire me to
build the same site for $2,500.

Ah, Karen said, but I wouldnt build the same

website as you.

But earlier you said that I would charge $2,500 for

the same project you would charge $20,000.

I didnt actually say it that way. Karen took a sip of

her coffee. I essentially said you would charge $2,500
to the same client I would charge $20,000. Thats

28
different. Her cup clinked on the saucer as she set it
down.

I dont understand.

When you meet with a client, one of the first things

you talk about is price, right?

Sure, Steve said, because thats one of the first

things they ask about. They want to know what my
rate is or how much things are going to cost.

And you tell them your hourly rate, right? Or give

them a rough estimate?

Sure.

Do you realize that when you start off talking about

price with a client, youre putting your needs ahead of
theirs?

How?
When you start off
What does the client
talking about price
get for paying you $50
with a client, youre
an hour, even if youre
putting your needs
quoting them $2,500
ahead of theirs.
overall?

29
A website.

They dont want a website, Karen said.

They want revenue. Is that what you mean?

Maybe. The truth is, I dont know what the client

wants, and neither do you. Which means you cant
really give your client an appropriate price. And when
you talk about price before exploring what your client
is trying to achieve, you risk delivering a solution that
isnt right for them.

So what do you do if your client wants to talk about

price right away?

I tell them I need to understand what they want first

before I can set a price. Most people are fine with
that. If theyre desperate to know a ballpark, I might
give them a range, but I really resist that. I find that
prospects who focus on price right away often turn
out to be the kind of client you dont want anyway.
The best thing I can do for the client is to help them
explore what they want. And it turns out, this initial
conversation about their problem is the foundation of
my approach to pricing.

In what way? Steve asked, before sipping his coffee.

30
In that conversation
Im probing the client
The best thing I can do
for information. I want to
for the client is to help
know the pain they might
them explore what they
be experiencing, the
want.
problems they want
to solve. Ill probe on
what their dreams are,
their big goals. A lot of the time, clients arent clear
about what problem they want solved or what their
objectives are. If they cant define success or establish
ways to measure success, then pricing is guesswork.
Thats not good for either of us. Both of us should
know that the price they are going to pay makes sense
based on the value they can expect from my services.
So Ill keep nudging that conversation forward until
we get some clarity. In an ideal world, the client can
express what theyre trying to achieve in a dollar
figure, like revenue. Or cost saving.

Steve said, Some of my clients might be able to

measure value in dollars, but sometimes they just
want a website that helps build their brand. What do
you do in situations like that?

31
A friend of mine who is a marketing consultant likes
to ask, How much is a client worth to you? Usually
the answer is more than the cost of her services. So if
she can help the business get even one more client, its
worth it to hire her.

By taking this approach, my friend is able to make an

intangible benefit real. Thats how you want to handle
benefits that are hard to measure. Sometimes it helps
to ask: What does success look like to you? How are
you going to know youve achieved what you want? I
had one client tell me that hed know the project was
successful if most of his clients thought his website
was beautiful. Hed kept hearing that people thought
his current site was ugly. So thats what he really
wantedto change the perception. Going from 25%
of people loving his website to 75% was something he
could measure, and something he could put a value
on. He also knew that a more beautiful site would
increase referrals and, therefore, business.

What if the client cant put any value on your service?

Does that ever happen?

Yes, Karen said. Sometimes the clients business

objectives dont actually warrant much investment in

32
a website. If thats the case, Ill tell them theres not
much reason for us to pursue a working relationship.
They appreciate that kind of honesty. In most cases,
though, were able to establish how valuable the
website is to them.

So, do you give them a price at the end of the

meeting?

In a word, no. I will do it very rarely, and only for

small jobs. Instead I tell the client Ill go away and
work up a proposal. That proposal outlines the scope
of the project and includes some options, each with its
own value and price.

You quote more than one price?

I do.

Why is that?

Because thats whats best for the client.

How so?

Having an exploratory conversation with your clients

leads to a number of benefits for them. Ive actually
found seven kinds of value over the years. I write them

33
down when I discover them. Let me show you what I
have so far.

Karen laid a computer tablet on the table and pulled

up a presentation that read The seven mutual benefits
of exploring value with your clients.

This is from a presentation I developed for a webinar

I gave last year, Karen said. Ill run through it if
youve got a bit more time this afternoon.

I dont care about time anymore, Steve said.

Karen laughed. Youll see that I call them mutual

benefits. Thats because you benefit from exploring
value just as much as the client does. Karen then
began to walk Steve through each of the benefits,
thumbing through her presentation slides as she did so.

The seven mutual benefits of exploring

value with your clients
1. Creates trust

When I start off by asking my clients probing

questions, they see that Im interested in
understanding their unique problems and crafting
solutions based on what I learn. That inspires trust

34
because they know Im not trying to push cookie-
cutter stuff that I force on everyone. I also ask a lot of
insightful questions that demonstrate my expertise,
which reassures the client that theyve got someone
in the room who can help them. That relieves a lot of
anxiety for them. I had that experience myself a few
months ago. My knee had been bothering me so I
went to a doctor. During the examination he asked me
if it hurt a lot when I flexed my foot a certain way. As
soon as he asked that question I knew I had the right
doctor, because when my foot was in that position it
hurt like hell. I want my clients to have that same aha
experience that Im the expert who knows exactly how
to solve their problem and that I have experience with
what is ailing them. That feeling deepens the trust Ive
started to create, which is something of great value to
both my clients and me.

2. Fosters alignment

During the exploratory phase Im trying to foster

alignment, because to move the relationship forward
in any meaningful way you have to be on the same
page. I find it helpful to see if we can agree on two
points. Point A is where the client is now. Point B is
where the client wants to go. To establish Point A, Ill

35
probe on what problems or pain the client might be
experiencing. That might be sales trending downward
or new competitors emerging. I try to probe for big
problems where the stakes are high, because those
are the ones my client needs help with most, the ones
they value solving. Too many service providers focus
on small problems, but the client is less likely to take
action on those and their work is less likely to have a
big impact.

To establish Point B, Ill ask questions about their

goals. Goals themselves create problems because
if the goals arent met, the client will experience a
loss. So the clients problem is either something they
are experiencing currently or something they will
experience if they dont get to Point B. The value I
create for the client lies in closing the gap between A
and B and solving the problem.

You gain an immense amount of clarity by

establishing the A and B points, but many service
providers dont do it. Thats why I said my solution
would likely be different from the one you would
design. Without crystal clear alignment, you risk
designing something that doesnt have as much value
for the client as it could.

36
3. Helps your client better evaluate vendors

The clarity I help my client gain about why they are

starting a project makes it easier for them to evaluate
vendors. Thats because the deciding factor becomes
who can deliver value rather than price. And because
Im the one whos helped the client gain that clarity,
I have a leg up on the competition. The client isnt
likely to compare investing in me with your lower
price of $2,500. Yes, your price is lower, but as far as
the client is concerned, its apples to oranges to them,
because you havent shown, as I have, that you can
deliver a big impact. Lots of inexpensive providers are
surprised to lose business to a premium professional
like me. This is why and how it happens.

Ive had that happen a few times, Steve said. It

never seemed fair.

When you present prices up front, Karen said, you

make price your distinguishing factor, not your ability
to deliver results. Youre encouraging your client to
compare your hourly rate to someone elses. And as
you know, having the most competitive rate doesnt
always work in your favor. Thats because low prices
can create the perception of low value. The first thing

37
you think when someone offers to sell you a perfectly
decent-looking car for a thousand dollars is that
something must be wrong under the hood.

So, if you want to be

judged on your abilities,
The first thing you
not your hourly rate,
think when someone
you have to go through
offers to sell you a
this process. Its better
perfectly decent-
for you and your client.
looking car for a
But having said all thousand dollars is
that, lets be clear about that something must be
one thing: this value- wrong under the hood.
based pricing and
positioning stuff isnt
just a bunch of consultancy voodoo. Because I dig
in and come to understand the problems my clients
have, I design solutions that are more strategic. I wind
up taking a different and more impactful approach to
what on the surface can sometimes seem like the same
project. So my clients may pay more for my services,
but they get more too. You know the saying, You get
what you pay for? Well, this is why.

38
4. Frames the solution as an investment, not
an expense

You may have noticed I use the word investment when

referring to price. This is one massive point of difference
between my approach and yours. When you walk in
and throw out a price, youre an expense. Nobody likes
expenses, so they try to keep them as low as possible.
Thats why you experience downward pressure on your
prices. But keeping the price low isnt a benefit to the
client if they end up paying for something that doesnt
create the value it could for them.

By comparison, when I take my clients through

the process I just outlined for you, Im framing the
price differently. Because its tied to value, my price
is an investment. When clients look at your prices
through that lens, they merely want to know that the
investment is a wise one. That the return is going
to justify the outlay. And if theres a wide margin
between my price and the expected return, as there
always is, the investment is easy to justify.

5. Inspires action

When I help my clients paint the picture of what

Point B looks like, when I get them to envision the

39
awesome results they can expect from my project,
they become emotionally involved. Theyre eager to
make those results come true. Theyre inspired to act
now. They dont really want to put things off to price
shop. Acting soon is good for you, but also for the
client, because the quicker they act, the quicker they
get the great results they seek.

6. Lets your client make an informed business

decision

Which brings us to my point about offering clients

more than just one option. When I present my
proposal it comes like a menuwith options that have
distinct prices. The choices address their business
needs and goals, and offer solutions at various depths.
I wont haggle on price. If a client wants to pay less,
they have to choose to have less delivered. That puts
them in the drivers seat where they can make an
informed decision, one where they are clear about the
trade-offs.

By contrast, you ask your clients to choose your

price or not choose your price. That kind of yes-or-
no choice is more likely to result in not going ahead
than a choice between various valuable options. And

40
just as in my previous point, a no hurts both you and
the client, who now wont benefit from the results you
could deliver.

7. Establishes a trusted partnership

The last point is the culmination of all the other

benefits. Once youve created the first six benefits
and you begin working with the client, they get to
experience the impact of your work. As soon as
their investment in you translates into real value
for them, you become a trusted partner, someone
they will continue to work with. They will also
become champions for you, leading you to other
opportunities.

The heart of it
Steve was getting inspired just listening to Karens
process, but questions continued to pop up. Your
process makes sense, he said, but Im still having
trouble seeing what you would do differently for the
client. I know youre a great designer, but I think I can
do great work too. Can you give me more of an idea of
what you would do thats worth so much more for a
client than something I would build?

41
Thats a great question, Karen said, and one that
gets at the heart of value-based pricingwhich is all
about building high-value relationships.

Just then the kitchen door beside them clanged open

and a server came out with a tray of warm scones.

They have the best scones in the city, Karen said.

How about we get a scone and, as a way to answer
your question, I tell you the story of the clothing
company I helped last year?

Id love that, Steve said.

42
 Inside Out
ast summer, Karen said as she tore off a
corner of her scone, a client of mine
introduced me to a successful clothing
accessories company that sold product primarily
through retail outlets. They were looking for someone
to update the look of their website, which had an
e-commerce store. I think a lot of designers would
have started to spit out prices, but how do you put a
value on something as vague as updating a look? So I
began to ask them why they wanted to update their

43
site. They told me they thought the look and feel of it
was outdated and probably turning away potential
sales. But these were still vague terms, so I steered the
conversation toward their overall business objectives.
I wanted them to express some clear goals, not just for
the website, but for the company in general.

The client eventually revealed some revenue targets,

which gave me something to work with, because
missing their targets would be a serious problem.
I then started telling them stories about how I had
helped some of my other clients increase their revenue
by millions of dollars by training their website to sell
better. I told them I saw the same potential for them.
In their case an extra million dollars a year was a
realistic goal. That got them excited. They were now
seeing how their website could play a much bigger
role in helping them reach their company goals than
they originally thought.

By having this in-depth conversation I learned more

about the client, so I could help them where they
really needed it. That meant redefining the project
from a paint job for their website to a complete
rebuild from the ground up. A lot of designers
wouldnt have changed the project in this way, but

44
this is what the client needed. My next step was to go
away and work up a proposal for solutions to hit their
goals.

Can you tell me more about your proposal, Steve

asked, because thats one area where Im probably
falling down.

Sure, Karen said. In the proposal, I laid out one

option that included various outputs and phases,
things like customer research, a website audit, a
market analysis, a complete redesign, various tests,
and so on. Each element had distinct value. The price
of them added together was $100,000, which was
10% of the total value the client could expect. By the
way, the fee I charge will often range from 10% to
20% of the expected value, and usually the difference
has to do with the risks involved. In this case, from
the clients perspective, a 10% investment was sound,
because they would only have to invest the $100,000
in the first year to build a website that could generate
a million dollars every year thereafter. Even if they
only hit $500,000, they still would have made a sound
investment.

45
My other two options included extras like daily
reports to help the client make timely business
decisions. Something like that might be worth tens
of thousands to the client, so I set the price based on
that. By the way, the client chose the top package for
$125,000.

Wow, Steve said. One of those would make my

year. And youre right, I probably would have just
updated the look of their site. But if Im being honest,
some of the value you add for your clients is beyond
me right now. Itll take me a while to do what you do.

Youll get there someday. But youll also pave your

own path and do things your unique way.

But how different could I really be? Steve asked.

Were both designers trying to help our clients in
similar ways.

Not really, Karen said. Im trying to help my

clients, and youre trying to help your clients. My
clients are different from yours.

Id like to have your kind of clients, Steve said. Isnt

that what I should be shooting forthe kind of big
clients you work with?

46
There are all types of big clients out there, Karen
said, and theyre not all the same. I work with a
certain type of client who values the services I offer. I
dont go for just any big client. I look for a fit.

Okay, but I guess my problem right now is that

the clients Ive been working with need only small
projects.

A value-based approach can help you build stronger

relationships with your current clients as well as find
other clients who need your help with bigger projects.

How?

By looking inward.

What do you mean?

When you have an exploratory conversation with

your client, youre getting to know them at a deeper
level. But youre part of the relationship too. And
getting to know yourself in a deeper way is just as
important. You want to consider all the ways you can
contribute to the relationship. Sometimes that means
tapping in to abilities you arent using, or developing
new skills. In healthy relationships both parties are
growing.

47
Can you show me what you mean?

May I tell you a story about how I helped someone

whos not a designer price and position their services?
I find its helpful to understand how this works
for other kinds of businesses, because its not just
something for designers or techies.

Sure.

Okay, great. Let me tell you about Tara, my dog

walker.

The transformation of Tara

A couple of years ago, Karen continued, Tara
introduced herself to me and offered to walk my
German shepherd. She was charging $15 for a half-
hour walk. In our neighborhood that was the going
rate for dog walking. I hired her. A few weeks later she
told me she might not keep the business going. When
I asked her why, she said she was having trouble
making ends meet. So I sat down with her and had
a very similar conversation to the one we are having
now. I tried to show her how she could transform
her business by thinking about her clients and their
problems, not just how much time she spent walking

48
a dog. After we were done talking, I encouraged her
to rethink how she priced and positioned her services.
I suggested she come back to me another time so we
could start our relationship anew. She did and here is
what happened.

Tara came back after a weekend of thinking and

started asking me about my dog and why I wanted
him to get walked. That led to a whole conversation
about how important my dog is to the happiness of my
family and how we all love him so much and want him
to have the longest, healthiest life possible. She was
getting to know me in a deeper way, but I also learned
something because I hadnt ever expressed exactly
how meaningful our dog was to my family.

Tara thought about what I told her, then began

telling me all these new things she could do, like
advising me on nutrition for my dog, grooming and
training. She also had lots of ideas about accessories,
like winter booties to protect his paws from salt on the
roads, and the best chew toys to ensure dental health.
She awed me with her expertise. I could be wrong, but I
think she impressed and surprised herself a little too.

49
Our conversation had clearly moved away from just
walking my dog to providing my dog with the best life
possible. By connecting our dog to the well-being of
my family, Tara really got my attention.

I then suggested to Tara that she go away, think some

more, and then develop some packages with all the
valuable things she could offer me.

Tara came back a week later and presented me with

three distinct packages. I chose the top package,
which included several walking sessions a week, some
of them private, some of them with other dogs. It also
included training, dog food, dog treats, a monthly dog
gift, grooming, and arranging vet appointments and
boarding, as well as travel to and from those places. It
was a whole package of services and products. I have
no idea how the hours break down and I dont care.
All I care about is the value she delivers to my dog and
my family.

These days, Im paying her considerably more than I

used to, and I couldnt be happier because I have the
happiest, healthiest dog, so I feel that every penny is
worth it for what she does.

50
A matter of distinction
When you look inward, like Tara did, and push
yourself to come up with ways to serve your clients,
you end up redefining what you do and expanding
your services. The funny thing is, the other dog
walkers in my neighborhood who keep losing business
to Tara incorrectly think of her as the most expensive
dog walker. A lot of them try to win back their clients
by offering discounted prices. But theyre playing the
wrong game. Taras services arent commodities.

While its true that

Tara is the highest-
When you look inward
priced dog walker
and push yourself to
well, her team is; shes
come up with ways to
employed two other
serve your clients, you
walkers full-timethe
end up redefining what
more accurate way to
you do and expanding
describe her is as the dog
your services.
walker who offers the
highest value. And,
of course, shes much
more than a dog walker. Shes running a thriving
dog lovers business. By redefining her business
based on delivering value, she effectively beat out the

51
competition. And shes making more than she ever
imagined possible when she first decided to walk
dogs. But just as importantly, she feels incredibly
fulfilled because shes impacting her clients lives in
significant ways. I think every service provider can go
through the kind of exercise Tara did and transform
their business.

Thats impressive, Steve said. But it sounds like the

key to her success was that after redefining what she
did with you, she started working with more clients
like you. Thats how she grew.

Thats true, Karen said. I represented an

opportunity for Tara because there was so much
potential in our relationship she wasnt tapping in to.
But once she did it with me, she realized she could
grow by targeting others like meessentially busy
professionals who travel a lot and who have a dog.
So, gradually she started to build a clientele of similar
A-level clients who could afford one of her packages
pretty much all through referrals because these clients
knew each other and found Taras services to be a
great fit for them and, therefore, for their friends as
well. Over time, she began to drop off clients who

52
werent interested in the additional benefits of her
services.

One of the key lessons from Tara is that she

developed a very specific ideal client. She knows
what her ideal client values and how to make a big
difference in their lives. She could go after other types
of clients, but shes focused on delivering high value
to a client with a specific lifestyle. Thats what I mean
when I say your big clients would be different from
my big clients. Personally, I target three or four types
of clients. One of them is medium-sized businesses
that have a retail presence and untapped online
distribution. I know exactly what they value and how
to help them. I have so much expertise with them and
that makes it hard for someone to match what I do.

But, Steve said, somebody could come along and

match your service, right? Youre always going to
have competition. In Taras case, couldnt another
dog walker do what she did? Wouldnt that put
competitive pressure on her prices?

Someone else could try to do what Tara does,

Karen said, but in all likelihood, they wouldnt do it
quite the same way. In the service world, we all have

53
our differences, however subtle. Whats important
is that you know how you are different from your
competition, and that you can help the specific types
of clients you are targeting make an informed decision
based on the distinctions between the choices they
have. If things get very competitive in your industry,
instead of trying to compete on price, which just
reduces you to a commodity, look for new ways to
distinguish yourself and your services. Sometimes
that means learning a new skill.

In fact, while Tara

already knew a lot about
If things get very
dogs, she did a ton of
competitive in your
research, took various
industry, instead of
courses and acquired a
trying to compete
number of certificates.
on price, which just
This has allowed her
reduces you to a
to help her clients in
commodity, look for
more waysand stay
new ways to add
one step ahead of the
value.
competition.

54
Lessons from a plumber
Steves mind was racing, jumping ahead to ways he
could grow, but then it hit him that Karens approach
was totally impractical for some of the ways he
worked. What about when people call me for small
jobsthings that might take a few minutes or a couple
of hours? That happens to me a lot. Isnt it easier
to just give them my hourly rate, rather than going
through this whole long exploratory process?

What do you do, Karen asked, when you can solve

the clients problem in a few minutes? Do you charge
them a tiny fraction of your hourly rate?

The minimum I charge is an hour, Steve said. So,

sometimes Ill charge an hour and if I take less than
that, the client can use up the unused time whenever
they want. Other times, Ill just do it for free because
its only a few minutes of my time.

I think its okay to do things for free sometimes,

Karen said. But charging for small jobs based on
blocks of time causes two problems. One, youre
overcharging the client if they dont actually end
up using the time theyve bought from you. Two,
youre likely to underprice yourself, because when

55
you only consider the few minutes of service time,
youre ignoring all the time youve spent in your life
acquiring the knowledge and skills required to solve
the problem.

So what do you do, Steve asked, when you get that

kind of quick service call?

I follow my regular exploratory process and establish

the size of the problem for the client and what value
they place on solving it. Most of the time this isnt
a long, drawn-out dialogue. And its not a waste of
anyones time, because its a valuable and necessary
conversation. In some cases I might end up charging
the client a couple hundred dollars for something that
might take me only a few minutes.

And theyre okay with paying you that for a few

minutes of your time? Steve asked.

Have you ever called a plumber?

Steve nodded.

Last year my kitchen faucet sprung a leak and was

spraying water all over the floor, Karen said. So I
called a plumber who offered emergency services. He
rushed over in less than twenty minutes and spent

56
probably ten minutes fixing the faucet. Do you think
he charged me ten bucks for his time?

No, but he also had travel time.

He charged me $300. Even if you attribute $50 of

that to travel, I paid him $250 for his service. But
I didnt pay him for ten minutes work. I paid him
for his speedy arrival and for fixing my problem so
quickly that he saved me thousands of dollars in water
damage. Do you think I should have complained
about his fee?

No.

Right, Karen said. I didnt complain because

I understood the value of his level of service. He
distinguishes his services by focusing on scenarios
that are time-sensitive and for which he knows clients
like me are happy to pay for responsive service. His
quickness is valuable in my eyes. And thats on top of
the value he provides for having the right tools and
the know-how to save me from costly water damage.
If you establish the value of your workeven for small
jobsyour clients will feel the same way about your
work and your expert know-how. And if you behave
like this plumber did, you can carve out some very

57
profitable services for your clients, ones that are not as
likely to be copied as you think.

Steve nodded and Karen looked at him. You look a

bit apprehensive, she said. Are you having doubts
about charging for the value you deliver?

Im totally inspired by everything youve said, Steve

answered. I absolutely want to do this. Im just trying
to work through all the scenarios. Lets say your
exploration uncovers the need for a big project. Dont
you often waste a lot of time developing a proposal
only to discover the client cant afford you? Wouldnt
you have been better off talking about price up front?

If you ask a client up front what their budget is, Karen

said, they might give you a number. But that number
often has the same lack of relevance that your hourly
rate has, because the client might not fully understand
what they want or what you can do for them. Thats
what that whole exploratory dialogue is for. You need
to go through that process to define things. Then you
can put the right numbers together. While sometimes
a budget is set in stone, Ive often found that theres
flexibility for the right solution. If the client realizes
that their original budget isnt appropriate, they might

58
be able to find the money, perhaps from other areas of
the company that will benefit.

Bye-bye, vicious cycle

Yeah, but thats not really going to happen with a lot
of the clients Ive been dealing with. Theyre grinders.

True, Karen said. Clients that hammer you on

price are unlikely to see the merits in this approach,
but honestly, you dont want them anyway. Theyre
a headache and all they do is lead you to more low-
quality clients. Its a vicious cycle that keeps your
business from growing. But when you start working
with clients who want results and want to invest in
themselves, theyll refer you to other high-quality
clients. Good clients beget good clients, which helps
you move upmarket.

The alarm on Karens smartphone went off. She

glanced down at it. Speaking of clients, she said, I
have a lunch meeting to head off to.

Karen took a last sip of her coffee and stowed her

tablet in her handbag. Ill end our conversation by
saying that it all starts with you and how you see
yourself. When you change how you see yourself, your

59
clients will change how they see you. You wont just be
an expense to them and theyll never have to wonder
if youre running out the clock. Instead, youll be the
partner they are investing alongside to deliver results
for their business. Youll be working on the same side
of the table and youll be building a relationship that is
mutually beneficial.

The server came and dropped off the bill. Steve went
to grab it, but Karen snatched it up.

You have to let me pay for it, Steve said.

No. Please let me treat you, Steve. Years ago I was

sitting where you are, across the table from someone
who enlightened me about the best way to price and
position my services. Sharing what I have learned
with you, and picking up the tab, are my ways of
saying thanks to that individual who helped me when
I needed it. Its my way of paying it forward.

As they walked out of the caf, Steve said, Im still

absorbing everything, but Im committed to changing
and I have a feeling Ill look back on this conversation
as one of the most important of my life.

60
Thats great, Steve, Karen said, standing in the
sunlight. Im really excited for you. But things will
take some time. Moving to value-based pricing isnt
something you can wave a magic wand on. You have
to earn and develop your way into it.

I understand.

I want to thank you for reaching out, she said as she

stepped toward her car. Many people dont have the
humility to ask for help, and its really the first step in
your personal growthpersonal growth that will lead
to business growth. Be well and good luck.

Karen dug in her handbag for her keys.

One last quick question, Steve said. If you know

Arty, why does he charge $20 an hour?

Ive tried to tell Arty about pricing his services based

on the value they bring to his clients, but hes stuck in
his ways, and he hasnt wanted to do the extra work to
interview and understand his customers. She opened
her car door. You have to be open to thinking this
way and he hasnt yet opened his mind.

61
As Karen got into her car, Steve thought to himself,
Funnynot much about pricing has made sense to
me until just now.

While Karen drove away, Steve headed down the

street, eager to turn his business into the thriving
entity he now knew was possible.

62
 The Test
teve started to make changes right away, but
found some aspects of the new strategy
easier than others. The most rewarding part
was taking the time to really understand what his
clients wanted. In those exploratory conversations he
was acting more like a consultant than just a designer.
Not only did he listen more deeply than he ever had
before, he was also often heavily involved in shaping
the vision and objectives for the client. He could tell
that many of his prospects were seeing him quite
differently from the way they used tomore like a
peer than someone just pitching his services.

63
Some prospects, though, still insisted on knowing his
rates up front and didnt want to get into a dialogue
first. He knew grinders like this would just drag his
business down, so he began to weed them out. That
meant giving up the chance to earn a little money,
which caused some short-term pain, but it also freed
him up to search for better clientsclients like the
health start-up. If he could get another opportunity
like that and price his services appropriately, he and
his business could make a big leap.

Wavering
While he didnt find such a client right away, he did
uncover projects that were more lucrative than he was
used to. Unfortunately, the first few times he reviewed
his value-based prices with these larger prospects
his voice wavered, which usually led to the prospect
asking for discounts. He tried to follow Karens advice
not to discount, unless it was related to getting paid
quicker, but he still found himself making some
exceptions. And whenever he did that, he ended up
feeling underpaid.

He eventually got tired of feeling like that and

decided to take a hard look within. After considering

64
the incredible work he did for his clients, he finally
embraced the idea that he was well worth the prices
he set. He determined to always talk about prices with
confidence and to hold his ground. Clients questioned
him less. Many simply agreed to go ahead with one of
his proposed options, frequently the highest-priced,
most-valuable choice.

Another thing Steve struggled with was abolishing

his hourly rate completely. Some of his clients were
more comfortable using him on an as-needed basis
for ongoing service and didnt want to commit to
recurring fees when they might not use him. So Steve
frequently used a combination of value-based fixed
fees for projects and hourly fees for maintenance. He
felt that this made more sense for the types of clients
he had, who tended to be smaller and less established
than the clients Karen dealt with.

Though he wasnt following Karens model perfectly,

his overall revenue increased and he enjoyed his
work more. He was no longer on a vicious treadmill,
living or dying by whether he could bill this hour or
that hour. This separation of fees from time was very
relieving. But it wasnt like he ignored the concept of
time altogether. He still tracked his hours, but only to

65
better manage his time and more accurately scope out
projects.

Moving up
Perhaps the most significant benefit Steve experienced
was that he was gradually moving upmarket, dealing
with bigger clients who had more exciting projects. He
attributed this upward move to a few key factors.

One, the value-based approach weeded out low-

quality prospects, forcing him to find better prospects.

Two, the better clients turned out to be referral

engines to other similar prospects. This created a
virtuous cycle, instead of the vicious cycle he was
trapped in before when low-quality clients led him to
more low-quality clients.

Three, his better clients had more exciting projects,

which were fantastic opportunities to learn, improve
his skills and gain experienceall of which made
him more valuable in the marketplace. He ended up
developing a lot of expertise in copywriting for the
web. Remembering the story of Tara, he made this
a point of difference to set himself apart from other
designers, including Karen.

66
Beyond the time barrier
A few months after his caf meeting with Karen, Steve
got a call from one of his connections at the health
company who wanted to introduce him to the CEO
of an environmentally friendly construction start-
up. A week later, Steve met with the CEO and had a
conversation about how he could help. He essentially
interviewed the CEO to understand the problems
he faced, to become intimate with the pain he was
experiencing. That eventually led to a discussion
about the need to transform the companys website
into a marketing and selling engine. Steve then told
him about the impact his work had had on the health
start-up. It was his first real chance to parlay that
success into something equally promising, but this
time he had no intention of selling himself short like
he used to.

A few days later, Steve was back at the construction

company, sitting across the boardroom table from the
CEO. They had just reviewed Steves proposal for a
project where the fee was $30,000. If the CEO signed
the check for the 50% deposit fee of $15,000, Steves
annual income would leap into the six-figure range for
the first time.

67
As Steve watched the CEO review his payment
schedule and terms, he reflected on how he would
never have been in this position if he hadnt applied
the pricing strategies his mentor Karen had taught
him. He would never have had the opportunity
to work with such a high-level client. But even if,
for some reason, he had, he knew he would have
proposed something more in the range of $3,000 for
all his hard work, and for something that wouldnt
come close to helping the client as much as his current
solution would.

Steve took a close look at the CEO, trying to guess

what he was thinking from the way he eyed the
document. For Steve this was the moment, the true
test of whether Karens strategies would actually help
him become the success he had always dreamed of.
His heart started to race.

When the CEO looked up, he asked Steve, Do you

need a check today?

Steves heart rate kicked into a higher gear.

The CEO looked back blankly and Steve wondered

if he was going to change his mind and reject the
proposal. Steve waited and then the CEO reached a

68
finger toward his phone to hit a button. A few minutes
later an assistant walked in with a check for $15,000.
The CEO signed it, taking Steve to a new level.

A few months after finishing the construction project,

Steve finally let go of his hourly rate completely,
charging fixed prices based on value for everything he
did. It was a milestone that signified he had a high-
quality clientele. Most importantly, his business was
highly profitable, his income was a healthy six figures
and growing, and he loved his work.

He discovered something else he lovedpaying it

forward during coffees he shared with aspiring young
business owners.

69
 A Word Before
You Go
Thank you for reading this book. This book was
designed to help you unlock your true earning
potential. If youve found this book valuable,
please share it with someone you know and visit
FreshBooks.com/BreakingtheTimeBarrier where
you can pay what you believe it is worth to you and
your business.

And with that said, happy trails!