When it comes to compensation, so many entrepreneurs struggle with knowing what to charge, when to charge, and how much to charge. Some struggle with charging at all! Why is it such a struggle and challenge to know how to be compensated?
It goes back to the core of identity, who you are, what you represent, and ultimately what you are selling. Here are some tips to overcome this struggle.
Yes, it starts with the words YOU use to describe yourself and what you offer and what you believe about yourself. You have to use words of value to describe yourself, your experience, and your expertise in order for you to appreciate your own value and for others to do the same.
Pro Tip: Start by writing three or four encouraging words or phrases that reinforce how able you truly are not only to do your work, but to be compensated for it. This means identifying phrases that you can use to encourage yourself as a reminder, for example start the following sentences with “I am, I will, or I have”:
This may seem somewhat melodramatic, but the words that you use to speak over and to yourself not only determine your destiny, they also determine your compensation. However, having a mindset of fulfilling your destiny by working in alignment with who you are and what you offer as a result of who you are, will carry you far. Understanding that the reality is that our estimation of ourselves often determines or greatly influences our compensation.
How to position and price your products or services and the psychology of pricing AND most importantly – what exactly do we want to sell and offer – that resonates with your target customer – should be the focus. Then from there consider how to turn that into recurring revenue. This is where we discuss both the art and science of compensation. The art has to do with all the points so far covered, in addition to implementing pricing strategy – which is not always tied to your true value, but to market entry strategy, that will culminate in true compensation to match true value. The science entails knowing the numbers – what things cost, breaking even, and profit margins, plus the good old “perceived value”. For more insights on these topics, I encourage you to check out my book.
Each month I select a topic to discuss in my Mastermind Retreat – this month the topic is compensation. But first, it starts with offering an item for sale, letting people know about it ,and gaining a reputation for it. I invite you to join the conversation on Facebook on Momentum Monday’s and Instagram LIVE Q&A. If you need feedback figuring out your business compensation strategy I can help you create one.