00:00.00
Preston
Hello and welcome back to a different q and a episode of freelance to founder as you recognize every Tuesday we do these short q and a episodes answering questions from listeners such as you you possibly can visit freelance to a founder dot com slash ask and submit a quick query there and we’ll do our greatest to reply it on the air. And this Thursday we’ve coming up a fullleng um, a lot of times almost an hour long coaching call with a freelancer who calls in and we help them work on their business. A number of fun. So you should definitely join us on Thursdays as well. For those episodes. I’m Preston Lee with milo.co where we help freelancers grow their businesses and ah joining me in fact is my friend Clay Mosley from gettrify.com hey Clay give me a quick plug for gettripify.com clay.
00:39.90
Clay
Hello preston lee with millow.co is ah ah getrify.com is the most effective marketing framework which you can buy on the web.
00:51.92
Preston
I Feel like that ought to have been the pitch for our last Q and a episode where we talked about marketing plans. Oops.
00:55.23
Clay
I Know that’s all right if individuals are curious. They’ll go to they will go to my website.
01:02.97
Preston
Ah, that’s right visit gettripify.com Clay ah Clay is awesome to to co-host this show and has been doing so for years. So you should definitely go and support the work that he’s doing. We’ve got a query here today from kiki. I’m going to summarize a little bit so Kikis is a branding expert sometimes does some basic like Squarespace web sites but a client recently asked her to tackle a more robust website way out of her skill level. It seems like and so she’s decided to partner with a web dev agency to get the job done. So her query is. Should I charge a little greater than the agency quoted me since I’m the 1 handling and selling the job. For instance, if the net agency says it’s going to be $1400 can I attempt to sell the net piece for $1600 since I will probably be managing it. Um after which she has a second query so it’s a 2 wo-part query today she says. Have a contract they usually have a contract does my client have to sign 2 contracts. So first query is can I upcharge mainly second query is does my client have to sign 2 contracts. Do you would like to take a stab at it. Clay.
02:10.20
Clay
Ah, the the reply to the primary query on whether you must upcharge. Um, absolutely I feel yeah and particularly so the the differentiator here is.
02:15.12
Preston
Yes, and have our permission.
02:26.49
Clay
The incontrovertible fact that you you’ll manage it manage the project if this was a straight referral and the client goes to work directly with the net agency and you’re form of like you only do the branding and out of doors of that your hands off then I might say not. Like since you’re not involved with that project. But should you’re involved managing that web project. Yeah I might I might upcharge and I might up charge. Um, no less than 30% for my part.
02:58.82
Preston
yeah yeah I used to be going to say I feel Kiki is just not charging enough. So it’s so $200 of $1400 could be about 14% so not even 15% markup um I’m with you no less than 30 Perhaps even like 50%
03:01.55
Clay
Yeah.
03:09.65
Clay
Ah.
03:14.23
Clay
Prime more? Yeah I if I used to be at 1400 like for me I might I’d probably charge like 25 to 3000 um yeah and here’s here’s the explanation why there’s because um, there’s going to be a lot of individuals here that disagree with that. Um.
03:15.64
Preston
Yeah.
03:22.56
Preston
I Was gonna say I’d probably double that. Um, yeah, they’re gonna say we’re greedy and and the way dare we take a lot. Yeah.
03:30.80
Clay
Yeah, it’s not. It’s not greed. It’s It’s one. Okay, she’s managing the project there’s effort and time there so you want to get pay for it to if and this type of that is form of a leeway into. Ah.
03:39.40
Preston
A.
03:48.87
Clay
Like a transition into the second query this is particularly necessary if there’s one contract and that’s with you and you’re white labeling the agency because now there’s a legal.
04:02.60
Preston
Yep.
04:06.77
Clay
Exposure here and you must receives a commission for that because if something goes unsuitable and the the client decides to Sue for whatever reason they’re going to sue you not the net agency right? yep.
04:19.10
Preston
Yeah, you’re assuming all the chance with the client but additionally not even the legal risk because you recognize the likelihood of getting sued is perhaps fairly low for most individuals. But you consider like what if this web designer that you simply’ve hired or this Dev agency that you simply’ve hired what in the event that they determine they will’t finish the project and you might have to go hire another person.
04:38.94
Clay
Yep.
04:38.97
Preston
What should you know what? if? um, what in the event that they’re not in a position to complete it on time and you might have to go find another person like there’s There’s all these variables you’re assuming 100% of the chance of this project and so that you you want to construct in a buffer for yourself and. And just be rewarded for taking up the chance people in business who take risks are those who find yourself charging more.
05:02.30
Clay
Um, absolutely yeah, so all of it comes all the way down to is it going to take it any more time and and or risk.
05:13.40
Preston
Yep.
05:13.34
Clay
If the reply to the either 1 of those questions or each is yes you must absolutely charge more for sure.
05:21.28
Preston
Yep, and and just so you recognize this happens within the business world on a regular basis just so that you simply don’t think that clay and I are identical to throwing numbers on the market being super greedy. You realize most retailers Mark up by a hundred percent 50 to 100% um can oh yeah.
05:30.39
Clay
Ah.
05:36.42
Clay
Contractors too like home contractors such as you’re constructing a house like there’s a general contractor that’s in command of every thing they usually subcontract electrical plumbing things like that like yeah, they take the chance in order that they’re going to. They’re charging greater than is should you.
05:39.21
Preston
Yeah, yep.
05:49.94
Preston
Yep.
05:52.74
Clay
Were to rent the Electrician directly.
05:55.19
Preston
After which when the homeowner goes to them and says um, there’s blue tile in our kitchen we actually wanted green tile right? Then they’ve assumed that risk they usually need to eat that cost after which they pay for that and so yeah, and so yes, assuming all that risk and managing the project is price a lot and and that’s.
06:06.70
Clay
Yep.
06:09.99
Clay
Her her.
06:12.75
Preston
Actually that’s perhaps another excuse is like you might have to acknowledge the worth that you simply’re presenting right? and also you’re going to take the data out of your client on what they need out of a website and also you’re going to pass that along along in a clear way in order that ultimately they get what they need at the top of the day that’s like communicating with a web designer. Managing that whole process. That’s gonna that’s something that your client doesn’t need to do probably right? and so that you’re going to take that on for them and in order that’s price money as Well. So I feel there’s numerous reasons to charge extra. We expect you’re probably not charging enough Kiki so I might go up in your in your.
06:35.57
Clay
Yeah.
06:49.23
Preston
Percentage I might probably double it or more. Um, but yeah, should we move on to the second query or is there more you would like to add there for me the second query while you brought up just like the contractor you recognize, working on a home subcontractors for me that.
06:53.41
Clay
Yeah, no I feel that’s good. Yeah, let’s move on.
07:08.32
Preston
Ah, clarifies this contract query a lot right? So I actually have you recognize we finished our basement in our home a few years ago and we had 1 general contractor who subbed out all of the jobs and we had one contract that we signed with him.
07:09.33
Clay
Just and.
07:25.28
Preston
And it’s not like he had me each time the sheet rock gate guy got here in I didn’t need to sign with him after which the flooring guy got here in and I signed with him like none of that happened right? He has an agreement with them but I actually have an agreement just with the the 1 guy who’s taking point on the project.
07:32.63
Clay
Yes.
07:42.36
Clay
I feel it’s a really good point I feel on this scenario there’s going to be 2 contracts. It’s just who who’s it with um so there might be 1 contract between you between the client and also you.
07:48.80
Preston
Yep.
07:56.12
Clay
But just like the second contract should you’re going to work with this web agency must be between you and the net agency.
08:01.60
Preston
Yeah, well since you’re you’re essentially the client on the 1 hand, you’re the freelancer or the agency and however, you’re the client right? and so there must be 2 different agreements.
08:12.95
Clay
Yep, yeah, there must be 2 and there’s not. There’s no right or unsuitable approach to try this. Just be certain there’s 2 You realize what? I mean. Ah.
08:21.89
Preston
Yeah, and again coming back to that concept of like assuming all the chance right? I I might I might put as much risk on the opposite people as possible to kind of mitigate your your risk a little bit and meaning. Like in your contract with the with the dev that you simply’re going to work with or the agent’s dev agency like what happens in the event that they can’t deliver right? Well perhaps they refund your money or or perhaps they hand the project off to another person like some.
08:46.82
Clay
Ah.
08:53.97
Preston
Some Dev agencies I’ve worked with actually won’t hand the project off to anyone else ever irrespective of what and that’s bonkers to me. But um, so that you got to be certain all that’s in there to guard you after which I used to be just going to say like after which like while you’re on the opposite end while you’re making a.
08:57.25
Clay
Right.
09:06.62
Clay
Ah, yeah.
09:12.18
Preston
Contract along with your client. It’s like what happens if the timeline goes bad because your subcontractor didn’t hit the timeline. How will you mitigate your risk there. So it’s just necessary to think through that whole relationship.
09:19.20
Clay
Yeah, yeah, not only work scope but additionally like what’s the what’s the protocol on client contact who who when like when and if is it appropriate for.
09:30.26
Preston
Yeah, yeah, yeah, that’s true.
09:38.99
Clay
All parties to to work with the client directly and that’s going to be that’s going to be an agreement between you and the net agency.
09:43.40
Preston
Yeah,, that’s a good point. Yeah, if in any respect right should you want them communicating in any respect.
09:52.97
Clay
Yeah, and and if not that I still think that should be spelled out within the agreement. Yeah.
09:59.39
Preston
I agree. Yep yeah yeah, the rest so as to add I feel like those were pretty straightforward answers. Um, to start with, you might have our permission to upcharge second of all, no, you don’t have to have your client sign 2 contracts just sign one and then you definitely sign the contract with the opposite the rest.
10:05.42
Clay
Um, yeah I feel that’s it.
10:14.49
Clay
Also also full disclosure. We are usually not lawyers. Ah.
10:17.79
Preston
Oh yeah, thanks for adding that Yes, we are usually not lawyers or accountants. You can not ah yeah, seek the advice of your individual legal professionals. We’re just a couple of entrepreneurs doing our greatest and making it up half the time if we’re being honest, but that’s the enjoyment of entrepreneurship. So ah, we’ve we’ve been down the road a couple times we’ve been through a few of those situations. So um.
10:21.53
Clay
Seek the advice of your individual. Ah.
10:36.21
Preston
Hopefully that’s helpful today. Kiki um, we wish you the most effective of luck as you work this out and yeah, good luck upcharging. It may be a cool business model to ah to sign with a client after which subcontract it out and take mainly a management fee. It may be really fun to to do this. So.
10:49.32
Clay
Um, yeah.
10:51.15
Preston
Wish you the most effective of luck I’ve been Preston with millo.coclay from gettripify.com thanks a lot man see ya.
10:56.99
Clay
Cia.