I’m going to put a list of useful blogs here (a blog roll) so I’m asking: who do you read? What blogs do you find useful as a self-employed woman? Comment here and let me know.

I know many of us feel too busy to cruise the internet for information. For me, I’ve actually had to schedule reading time. I need to stay connected and current, but if I don’t schedule it, it doesn’t happen. Often I’ll print out articles and put in a “to read” file that goes in my bag. Yesterday at my son’s swimming lessons, I pulled out this file. But I like to comment on blogs too, so I schedule computer reading time where I take my computer to a coffee shop.  (I call it the Blog Shop.) I’d rather be reading books, but then I feel I’m falling behind in the world of the internet. Arg! And when I hear about all the social networking on the internet, my head spins. I’m alreay behind and I haven’t really started. And I keep wondering—with everyone writing, who is doing all the reading? What is your method? How do you keep up on your reading?

When people ask you what you charge, instead of saying, “I charge x…” try “The fee for this type of work is…” Or “The cost for this type of service ranges from x to y, depending on what level of service you choose”. It may sound like a minor difference, but it is one way of saying that your business is charging the money, not you personally!

When people call me about private work, I don’t say, “I charge this much per hour”. Instead, I say, “Generally speaking, financial counseling runs about this much per month. You can pay for it in these ways…” Keep in mind that we don’t get to keep everything that people pay us anyways. They are paying our company, and we have to pay out costs and taxes. But this is more about a mental shift and goes back to the fact that we over-identify with our business. This makes it hard on everyone. Stop taking everything so personally! Your clients are paying your company, even if it is just you. So watch what you say. How do YOU state your fees?

Join me Monday, May 12th at 10:30am EST, on blogtalkradio when Barb Giamanco, of www.womensmentornetwork, interviews me on how ask for, and get, what you really want. This will be thirty minutes on how to negotiate, especially for self-employed women! Barb runs the WOW Women Series that airs live on the 2nd Monday of each month at 10am EST. (I’m on the second half of the show.) If you miss it live, go to www.blogtalkradio.com/wmnradio to download and listen after May 12th. Yes, you can negotiate and get what you want and deserve!

Here is an interesting article by Brent Bowers on how to raise your rates without losing clients from the New York Times. I’m not certain I agree with all the advice, though I’m glad to see this sensitive issue raised.

Here is the passage I want to discuss:

As for the consultant who wanted to know how to augment his rates without alienating existing customers, Mr. Jacobs’s counsel was to be gentle. First, he said, increase them for new clients only, and use the exercise to explore how high you can push the rates.
Then, he said, the consultant should inform existing customers in person — not in writing — that he plans to raise rates by 5 to 10 percent. “Have a conversation as part of a regular visit,” he said. “Make it casual. Tell them why you’re doing it. Say something like ‘I hope we can work out an agreement.’ ”

It’s that last sentence that will get you in trouble. I agree with the writer about talking to current clients in person. However, I disagree with leaving them room to negotiate with you. When you say, “I hope we can work out an agreement” you are in effect saying, “This new price is not really firm and you can talk me down. Go ahead. Try.” If you feel compelled to tell clients why you are raising your fees, simply say, “due to rising costs.”

Yes, this is stressful. But the truth is that not everyone should be able to afford you. Even if you lose some clients who will not pay the new higher fee, you will create room at the top for higher paying clients. If you never lose any clients when you raise your fees, I suspect you are not charging enough. You will make more money with fewer clients if you charge at the top of the range. (I’ll save my thoughts on the emotional aspects of this for a different post. I’m just finishing the ebook on the emotional dynamics of charging people money.)

When you decide to raise your fees, make the new fees effective for all NEW clients. Then, let your current clients know that you will be raising your fees. Tell them you appreciate their business, and because they are current clients, you are going to give them two months notice. Let them know that you’ve already raised your fee for new clients. “Therefore, the new fees will not go into effect for you until…” I know this is hard, but you simply must make enough money to maintain a healthy business and avoid financial deprivation!

Passive income my ass! Sure the orders for the rate-setting toolkit pop up in my email. Hurray! But man-oh-man, it is a lot of work. And money. Let’s see. I paid a lot just to edit the original workbook. My husband created the cover. Now that it is selling, I’m sinking money into a professional cover. A set of ISBN numbers costs a couple hundred. The CD’s were professionally recorded and edited. (I think I’ve found a cheaper way for the future.) The marketing consultant costs money. The postage, the web development for www.ratesettingtoolit.com. And my assistant is a virtual assistant, so last week I was schlepping packages to the post office. How is it that I have this awesome assistant and I’m standing in line at the post office?

Well, at least I got this intellectual product thing started. Yeah for me! I will improve it and expand it. But at least I’m started. I give myself a lot of credit for that. What about you? What great ideas do you have that you are sitting on? Are you waiting until you have it all figured out? You’ll be waiting a long time…

There is an awesome article posted on Freelance.com called How to Start Charging Your Dream Rates (and Get Away With It)
Skellie writes about the three factors that will determine whether your clients accept your “dream rates”:
1. They need to believe you’re worth it
2. They must be able to afford it
3. They need to believe that you wouldn’t do it any cheaper

I really liked some of the phrases he used to illustrate point number three. He writes:

If the way you communicate portrays a lack of confidence in your ability to charge the rates you want, clients will pick up on it. Phrases like: “Let me know if these rates suit you”, “But I’m open to negotiation,” and “Let me know if this is more than you can afford” all say one thing and one thing only to clients: “I hope you’ll pay me what I’ve asked, but I’ll easily work for less“.

Are you guilty of using any of those phrases? Instead, he recommends using phrases like “My standard fee for all clients is…” or “The minimum rate I do this kind of work for is…” I agree that this will discourage people from trying to negotiate.
Just remember, not everyone should be able to afford you. If everyone can afford you, you are not charging enough money. I would add to his list a fourth point. YOU must believe you are worth what you charge. So much of rate-setting is about convincing ourselves that we are worth charging our dream rate.

If you are selling your time, you have to guard it carefully. I teach people how to charge appropriately for their time. And I teach them how to really charge for “value” as opposed to just time. (Remember, the real question is, “what value are they receiving as a result of my work? That is what you charge them for. And if it is easy for you, than great! Charge for the value they receive, not how hard you work. But I digress.)

Many of us service-providers are “good girls” who always want to be nice. Colleagues and clients call with a “quick question” and thirty un-billed for minutes go by in the blink of an eye. Resentment sets in. We try to read our e-mail while half listening to the caller. (Anyone not guilty of that?) So here is a tip: after they identify themselves, instead of saying out of habit: “Hi Suzy, how are you?” say instead, “Oh hi Suzy, what can I do for you?” This immediately focuses the conversation on the task at hand and eliminates a lot of chit-chat. Said in a friendly tone, this simple trick works beautifully. So tape a note to your phone that says, “Hi… what can I do for you?” You will be amazed how much this helps. (Timothy Ferriss has a fabulous chapter called Interrupting Interruption and the Art of Refusal in his book, the Four Hour Work Week.)

Protect your time and start earning what you really worth!