00:00.00
Preston
Hey and welcome again to a different q and a episode of freelance to founder as you understand each Tuesday we do these brief q and a episodes answering questions from listeners such as you you’ll be able to go to freelance to a founder dot com slash ask and submit a fast query there and we’ll do our greatest to reply it on the air. And this Thursday we’ve got arising a fullleng um, a variety of instances virtually an hour lengthy teaching name with a freelancer who calls in and we assist them work on their enterprise. A lot of enjoyable. So remember to be part of us on Thursdays as properly. For these episodes. I’m Preston Lee with milo.co the place we assist freelancers develop their companies and ah becoming a member of me in fact is my pal Clay Mosley from gettrify.com hey Clay give me a fast plug for gettripify.com clay.
00:39.90
Clay
Hey preston lee with millow.co is ah ah getrify.com is the very best advertising and marketing framework that you could purchase on the web.
00:51.92
Preston
I Really feel like that ought to have been the pitch for our final Q and a episode the place we talked about advertising and marketing plans. Oops.
00:55.23
Clay
I Know that’s all proper if persons are curious. They’ll go to they will go to my web site.
01:02.97
Preston
Ah, that’s proper go to gettripify.com Clay ah Clay is superior to to co-host this present and has been doing so for years. So remember to go and help the work that he’s doing. We’ve acquired a query right here in the present day from kiki. I’m going to summarize just a little bit so Kikis is a branding knowledgeable typically does some primary like Squarespace web sites however a shopper just lately requested her to tackle a extra sturdy web site manner out of her ability degree. It feels like and so she’s determined to companion with an online dev company to get the job achieved. So her query is. Ought to I cost just a little greater than the company quoted me since I’m the 1 dealing with and promoting the job. For instance, if the online company says it’s going to be $1400 can I attempt to promote the online piece for $1600 since I might be managing it. Um after which she has a second query so it’s a 2 wo-part query in the present day she says. Have a contract they usually have a contract does my shopper have to signal 2 contracts. So first query is can I upcharge principally second query is does my shopper have to signal 2 contracts. Do you need to take a stab at it. Clay.
02:10.20
Clay
Ah, the the reply to the primary query on whether or not you need to upcharge. Um, completely I believe yeah and particularly so the the differentiator right here is.
02:15.12
Preston
Sure, and have our permission.
02:26.49
Clay
The truth that you you will handle it handle the mission if this was a straight referral and the shopper goes to work immediately with the online company and you might be form of such as you simply do the branding and outdoors of that your fingers off then I’d say not. Like since you’re not concerned with that mission. However should you’re concerned managing that net mission. Yeah I’d I’d upcharge and I’d up cost. Um, a minimum of 30% in my view.
02:58.82
Preston
yeah yeah I used to be going to say I believe Kiki is just not charging sufficient. So it’s so $200 of $1400 can be about 14% so not even 15% markup um I’m with you a minimum of 30 Possibly even like 50%
03:01.55
Clay
Yeah.
03:09.65
Clay
Ah.
03:14.23
Clay
Prime extra? Yeah I if I used to be at 1400 like for me I’d I’d in all probability cost like 25 to 3000 um yeah and right here’s right here’s the explanation why there’s as a result of um, there’s going to be lots of people right here that disagree with that. Um.
03:15.64
Preston
Yeah.
03:22.56
Preston
I Was gonna say I’d in all probability double that. Um, yeah, they’re gonna say we’re grasping 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 mission there’s effort and time there so it is advisable to get pay for it to if and this sort 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 that is particularly vital if there may be one contract and that’s with you and you might be white labeling the company as a result of now there’s a authorized.
04:02.60
Preston
Yep.
04:06.77
Clay
Publicity right here and you need to receives a commission for that as a result of if one thing goes mistaken and the the shopper decides to Sue for no matter motive they’re going to sue you not the online company proper? yep.
04:19.10
Preston
Yeah, you’re assuming all the danger with the shopper but additionally not even the authorized danger as a result of you understand the chance of getting sued is possibly pretty low for most individuals. However you consider like what if this net designer that you just’ve employed or this Dev company that you just’ve employed what in the event that they determine they will’t end the mission and it’s a must to go rent another person.
04:38.94
Clay
Yep.
04:38.97
Preston
What if you understand what? if? um, what in the event that they’re not capable of full it on time and it’s a must to go discover another person like there’s There’s all these variables you might be assuming 100% of the danger of this mission and so that you it is advisable to construct in a buffer for your self and. And simply be rewarded for taking up the danger individuals in enterprise who take dangers are those who find yourself charging extra.
05:02.30
Clay
Um, completely yeah, so all of it comes right down to is it going to take it any extra time and and or danger.
05:13.40
Preston
Yep.
05:13.34
Clay
If the reply to the both 1 of these questions or each is sure you need to completely cost extra for positive.
05:21.28
Preston
Yep, and and simply so you understand this occurs within the enterprise world on a regular basis simply so that you just don’t assume that clay and I are similar to throwing numbers on the market being tremendous grasping. You understand most retailers Mark up by 100% 50 to 100% um can oh yeah.
05:30.39
Clay
Ah.
05:36.42
Clay
Contractors too like dwelling contractors such as you’re constructing a home like there’s a common contractor that’s accountable for every part they usually subcontract electrical plumbing issues like that like yeah, they take the danger 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
Had been to rent the Electrician immediately.
05:55.19
Preston
After which when the house owner goes to them and says um, there’s blue tile in our kitchen we really needed inexperienced tile proper? Then they’ve assumed that danger they usually should eat that price after which they pay for that and so yeah, and so sure, assuming all that danger and managing the mission is price quite a bit and and that’s.
06:06.70
Clay
Yep.
06:09.99
Clay
Her her.
06:12.75
Preston
Truly that’s possibly another excuse is like it’s a must to acknowledge the worth that you just’re presenting proper? and also you’re going to take the knowledge out of your shopper on what they need out of an internet site and also you’re going to cross that alongside alongside in a transparent manner in order that finally they get what they need on the finish of the day that’s like speaking with an online designer. Managing that entire course of. That’s gonna that’s one thing that your shopper doesn’t need to do in all probability proper? and so that you’re going to take that on for them and in order that’s price cash as Nicely. So I believe there’s a number of causes to cost additional. We predict you’re in all probability not charging sufficient Kiki so I’d go up in your in your.
06:35.57
Clay
Yeah.
06:49.23
Preston
Share I’d in all probability double it or extra. Um, however yeah, ought to we transfer on to the second query or is there extra you need to add there for me the second query while you introduced up just like the contractor you understand, engaged on a house subcontractors for me that.
06:53.41
Clay
Yeah, no I believe that’s good. Yeah, let’s transfer on.
07:08.32
Preston
Ah, clarifies this contract query quite a bit proper? So I’ve you understand we completed our basement in our dwelling a number of years in the past and we had 1 common contractor who subbed out all the roles and we had one contract that we signed with him.
07:09.33
Clay
Simply and.
07:25.28
Preston
And it’s not like he had me each time the sheet rock gate man got here in I didn’t should signal with him after which the flooring man got here in and I signed with him like none of that occurred proper? He has an settlement with them however I’ve an settlement simply with the the 1 man who’s taking level on the mission.
07:32.63
Clay
Sure.
07:42.36
Clay
I believe it’s a very good level I believe on this state of affairs there’s going to be 2 contracts. It’s simply who who’s it with um so there may be 1 contract between you between the shopper and also you.
07:48.80
Preston
Yep.
07:56.12
Clay
However just like the second contract should you’re going to work with this net company must be between you and the online company.
08:01.60
Preston
Yeah, properly since you’re you’re primarily the shopper on the 1 hand, you’re the freelancer or the company and then again, you’re the shopper proper? and so there ought to be 2 totally different agreements.
08:12.95
Clay
Yep, yeah, there ought to be 2 and there’s not. There’s no proper or mistaken manner to try this. Simply be certain there’s 2 You understand what? I imply. Ah.
08:21.89
Preston
Yeah, and once more coming again to that concept of like assuming all the danger proper? I I’d I’d put as a lot danger on the opposite individuals as attainable to form of mitigate your your danger just a little bit and which means. Like in your contract with the with the dev that you just’re going to work with or the agent’s dev company like what occurs if they will’t ship proper? Nicely possibly they refund your cash or or possibly they hand the mission off to another person like some.
08:46.82
Clay
Ah.
08:53.97
Preston
Some Dev businesses I’ve labored with really gained’t hand the mission off to anybody else ever it doesn’t matter what and that’s bonkers to me. However um, so you bought to ensure all that’s in there to guard you after which I used to be simply going to say like after which like while you’re on the opposite finish while you’re making a.
08:57.25
Clay
Proper.
09:06.62
Clay
Ah, yeah.
09:12.18
Preston
Contract together with your shopper. It’s like what occurs if the timeline goes unhealthy as a result of your subcontractor didn’t hit the timeline. How are you going to mitigate your danger there. So it’s simply vital to assume by that entire relationship.
09:19.20
Clay
Yeah, yeah, not simply work scope but additionally like what’s the what’s the protocol on shopper contact who who when like when and if is it applicable for.
09:30.26
Preston
Yeah, yeah, yeah, that’s true.
09:38.99
Clay
All events to to work with the shopper immediately and that’s going to be that’s going to be an settlement between you and the online company.
09:43.40
Preston
Yeah,, that’s level. Yeah, if in any respect proper if you need them speaking in any respect.
09:52.97
Clay
Yeah, and and if not that I nonetheless assume that must be spelled out within the settlement. Yeah.
09:59.39
Preston
I agree. Yep yeah yeah, the rest so as to add I really feel like these had been fairly simple solutions. Um, initially, you will have our permission to upcharge second of all, no, you don’t have to have your shopper signal 2 contracts simply signal one and then you definately signal the contract with the opposite the rest.
10:05.42
Clay
Um, yeah I believe that’s it.
10:14.49
Clay
Additionally additionally full disclosure. We’re not legal professionals. Ah.
10:17.79
Preston
Oh yeah, thanks for including that Sure, we aren’t legal professionals or accountants. You can’t ah yeah, seek the advice of your personal authorized professionals. We’re simply a few entrepreneurs doing our greatest and making it up half the time if we’re being sincere, however that’s the enjoyment of entrepreneurship. So ah, we’ve got we’ve got been down the street a pair instances we’ve been by a number of of those conditions. So um.
10:21.53
Clay
Seek the advice of your personal. Ah.
10:36.21
Preston
Hopefully that’s useful in the present day. Kiki um, we want you the very best of luck as you work this out and yeah, good luck upcharging. It may be a cool enterprise mannequin to ah to signal with a shopper after which subcontract it out and take principally a administration price. It may be actually enjoyable to to try this. So.
10:49.32
Clay
Um, yeah.
10:51.15
Preston
Want you the very best of luck I’ve been Preston with millo.coclay from gettripify.com thanks a lot man see ya.
10:56.99
Clay
Cia.