We’ve established that the mindset behind charging by the hour is a mindset that will never allow you to scale. This mindset must be broken if you are going to build a successful business that pays you in predictable ways. Instead of charging by the hour, you must consider how to package your services. Bundling your services and then offering a variety of packages is one of the best ways to make efficient use of the skills and services you already offer. Below is a simple example of this concept.

Consider how a web designer might package his or her services:

Package 1
Theme and plugin updates (within a month of release)
Email support

Package 2
Theme and plugin updates (within two weeks of release)
Email support
2 site changes per months

Package 3
Theme and plugin updates (within a week of release)
Email and phone support
10 site changes per month
Monthly WordPress lessons

This approach succeeds for several reasons. Firstly, it capitalizes on skills you already possess but might not have considered monetizable. For instance, if you’re adept at building websites, naturally, you could also offer WordPress training. Why not package this with your services for a premium rate, especially when it’s something within your wheelhouse?

Moreover, you’re moving beyond a simple yes/no proposition for your potential clients, instead presenting them with a range of options. As the perceived value of the package increases with the addition of more services, clients tend to feel they’re getting greater value for their investment.

An intriguing insight: a significant majority of customers gravitate towards higher-priced options. Statistically, only about 20% opt for the most affordable choice. This knowledge can be quite empowering.

Mastering the art of organizing, presenting, and packaging your existing skills and resources can lead to a substantial boost in income. Personally, this strategy enabled me to increase my income by more than fourfold within a year.

Offering well-constructed packages also positions you differently in the eyes of clients, distinguishing you from those who only offer hourly rates. Instead of being seen as just another freelancer, you’re viewed as a business offering a comprehensive suite of products and services. This not only elevates your professional image but also makes your offerings more attractive compared to someone charging by the hour.

Package selling also complicates direct comparisons with your competitors. While hourly rates are easy to compare, packaged offers are not, often leading to a higher perceived value. This strategy tends to attract quality, high-value clients, who are precisely the demographic you should be targeting.

Consider the various businesses you interact with; many offer packaged options. From fast food combos to cable bundles, hardware store deals, and gym memberships with added benefits, packages are everywhere. This strategy isn’t just prevalent because it’s effective; it scales well and plays into the psychological preference for bundled offers, allowing businesses to command higher fees for the same or even fewer services than they would if charging by the hour.

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