27 Part Journey to Starting a Side Hustle — Day Twelve
There are different ways to price out your service. I personally want to go with a standard monthly fee. With that said, I really don’t like paying month to month so lets see what other options are available.
Selling a product
Cost-plus pricing: You take how much it takes to make the product and then you add a markup which becomes your profit. Since I’m selling a service, this really wont apply to me. With that said, I may want to consider selling one offs every once in a while which I’ll most likely refer back to this model.
Selling a service
The book recommends pricing out services at an hourly rate. Since I didn’t go with my first idea which would be an active income service, I think I’ll be fine with my current price I’ve set for my subscription model. What I have learned is that I’ll be introducing a low introductory price and then scale that up once I start getting traction. I also plan on offering a free version. I’ll either be offering up a month for free or a portion of the material for free. My goal is to gain traction and to create a service that is great. I want to focus on creating a high quality service/product that people are going to actually want and come spend time on. If I get that right, then I know people are not going to have any problems giving me 5–10 dollars a month.
Pricing Pointers
First pointer is to have a recurring revenue model. Since I’ll have a subscription based service, this should not be a problem. My initial cost to create all the content will be recouped once people sign up
Second pointer is to offer tiers. I had not really thought about this, but since I’m offering a service to three different targets, I could essentially create “bonus” content for others and charge more. I’ll want to test this out and see how I can make this work for me.
Well that’s it for today. I think I got the price part locked down pretty well. Tomorrow we’ll learn how to identify tools and other items required to get your business off the floor. Thanks for reading and for your support!
