How to Price Writing Commissions
WWW #92: How do You Price Your Writing Commissions?
Let’s talk about something personal. Finances.
Have you recoiled? Does this make you cringe?
As a writer, if you are selling your services, this is something you must think about. I get asked all the time how I approach pricing my services so today I want to share a few key pointers about how to price your writing commissions.
Cheap Commissions for Sale!
Every day I see the “CHEAP Commissions for Sale! Professional Writing Services for All Kinds of Stories and Word Counts!” advertisements.
These can be a diamond in the rough on rare occasions, but I love perusing writing ads and services to see if their services live up to the initial pitch. While having deals around the holidays or special prices for your current client list are all “cheaper” options in the world of discounts, selling with only “cheap prices” can hurt you more than you think.
A common cheap price I see is 1 cent per word. That’s very low by industry standards (and may reveal a seller does not know how to operate in their industry) but it is something you can totally do if you want to write for fun but there are limits.
1 cent per word for 100 words that you’ll write in 5 minutes? Sure!
1 cent per word for 1,000 words ($10.00) that you can finish in an hour? Okay!
But what about 1 cent per word for 10,000 words, totaling $100.00 that might take you upwards of 20 hours to write? That’s not good.
Finding the Right Prices for You
Planning out your prices depends on your goals.
How much do you want to make per hour?
How long does it take you to research, write, and edit 500 words?
How much do you want to make each month and what are your expenses?
These questions will guide you into the ballpark of what you should be aiming for. See how much work you can realistically complete in a day and divvy up those prices by how much you want to make an hour.
This can be very different for everyone depending on your place in life, age, work, skills, education, and experience. New writers may keep prices a little lower to build a client list and experienced writers need higher prices to keep their client list from getting too big.
For example, you’ll see me occasionally raise prices over the years to keep up with inflation and demand. And if I regularly have a full schedule booked out for three months at a time, I’ll raise the prices for brand new clients as I realistically do not have the time in my schedule but of course, I’ll make it work for a price. It’s truly all about the lovely term I hated back in high school economics: “Supply and Demand!”
Accepting Payment Upfront
We are all buying and selling things online. These transactions can and will go wrong. Someone may pay an artist for a commission and then be ghosted once the money leaves their account. A writer might accept payment at the end to only never hear from their client again once they receive their work.
This happens but you know what’s the first step to handling this is? Protecting yourself! I can’t tell you how many times I’ve received messages like, “But how can I trust you if you only accept payment upfront?” While this is a valid question and can ruffle some people’s feathers, it’s important to handle it smoothly.
Instead of asking the client, “Why are you buying things online if you can’t trust anyone?” provide them with these details instead:
An estimate for your project and services.
A terms of service document outlining your services, payment process, cancellations, and refund rules.
A contract (or invoice) stating the project timeline, deliverables, and when the client can expect their product.
Having these processes clearly spelled out on your website and referenced on every page about your services can make a huge difference! If someone is still uncomfortable with following your guidelines, then they are not the client for you. Don’t force it!
Conclusion
Understanding how commissions are priced, what the industry standard is, and how to make customers feel welcome and safe as they shop with you is key. These ideas can truly make or break your business. As there is so much more I could go into on this topic… what would you like to learn next? Do you want to know about fees and surcharges to balance out product variety? Multiple streams of income for freelancers? The parts of an invoice? Comment down below!