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How much are you actually earning per hour

N.B. It is not what you charge!

If you have just escaped your corporate career and started your online business or have never worked at a corporate, you might have a skewed perception of the rates.

Let me explain!

This is how it usually goes (based on my experience with clients):

You have finally dared to raise your rates to 50usd/h and now think you will roll in cash.

On average, there are around 160 work hours (40h a week x 4 weeks) in a month, so:

160h x 50 USD/h = 8 000 USD

You think you are so close to the magical 10k months everyone is talking about online!

Then you think:

I like what I do; I will add more in the evenings, on weekends, and… Hello, 10k months?

No, not so fast!

The biggest problem with this calculation is this:

You need to spend quite a lot of hours to get that client who will pay you 50 USD for that one hour.

At corporate, you get paid for EVERY hour you work regardless of what you do – client work, admin, or training.

So, never compare those numbers. That is a big trap you are falling into.

How to calculate the actual rate you are earning (so that it is comparable to that corporate rate)?

Here is the formula:

All revenue received in a month* / ALL hours worked in a month

Be honest! Count in all the weekend work, education, admin, replying to comments, messages, etc. All of it is WORK!

* If you have not finished the project for that month but have received money, count only a proportion of that money based on how much you have actually accomplished.

P.S. It works regardless of how you structure your services (hourly rates, packages, value pricing – you can always recalculate it in hourly rates after).

What number did you get

3 000 USD / 200h = 15 USD / h

Three thousand is based on the fact that a healthy amount of client work is about 35-45% of the total time  (8 000 * 37.5%) in your business and that you probably work on weekends too, hence 200 hours.

Is your number more? Less?

Don’t forget that you must pay for business expenses and taxes from that amount.

So, you earn even less!

Does 50 USD / h still look like a lot?

Have you ever done this exercise?

Did the outcome surprise you?

Do you want to calculate how much you actually earn the easy way?

Check out my game-changing calculator, ProfitHOUR, designed for freelancers, consultants, and service-based business owners. Just 15 minutes of your time NOW will help grow your business and ensure profitability FOREVER.


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