Information Technology Dark Side

What Are You Worth?

Whether you’re looking for a new job, consulting, or starting your own business there’s the question of what you should charge. Think of yourself as a great product in limited supply. When you walk into a job interview or meeting with a potential client you’re selling this product. They’re already interested enough in the product they’ve taken time out of their day to evaluate it. They don’t even realize just how great of a product you really are yet. Here’s the catch, there’s only one of you. So if they want you they’re going to have to pay for it.

Don’t Hold Back

Don’t hold back when deciding what to charge. A few years ago a friend of mine was working three jobs, trying to escape what she called the “golden handcuffs” at a large corporation. She was worn out and sick of working there. One of her other two jobs was conducting training seminars. One day she got an email from a prospective client asking her if she would teach a two-day class in Alabama and how much she charged per day. The usual answer was $2,000 per day but she said $5,000. She half expected the client to run for the hills. But the client didn’t even blink. They accepted, she taught the class, and soon after left that job at a large corporation. Her new standard rate is $5,000. Now that she’s armed with the knowledge that clients will pay that much she can walk away from clients who can’t afford her.

The 20% Rule

So this isn’t a common rule. It’s actually just my rule. But it’s one I always advise others to use because it’s worked for me. When I go into a job interview I’ve already got a good idea of what the pay range is for the position. I look for jobs where the maximum salary for that job is 20% more than what my current job pays. If the average raise is 4% per year I’m giving myself an instant raise that would take 5 years to earn at my current job. The point is you can afford to take some time to find the right job at the right pay. Unless you simply must jump ship from your current employer now or risk going crazy you should keep looking for that job that pays 20% more. If you follow this rule you’ll step up a pay grade with each new job.

Price as a Signal

Whether you’re looking for someone to teach a seminar or you’re buying a new computer price sends a signal. We all know that you get what you pay for. When you sell yourself short not only are you missing out on lost revenue by setting your price low you’re telling the customer or employer, “Hey, you could get better, but I’m the cheaper option.” Other clients may pass you over because you’re not charging the price other experts are. If price is your competitive advantage you’re not in the right industry.

95th Percentile

The product you’re selling is about quality. Look around at where you currently work. If you were the hiring manager which of your coworkers would you have hired? I doubt many of you would say more than half. But you’re different than most of them. Most of them leave on the dot at eight hours each day. Bob and Suzy spent an hour today talking about last night’s American Idol. You on the other hand are working late on tomorrow’s presentation. If you were a hiring manager and someone with your drive and abilities walked into an interview you’d count yourself lucky because they’re hard to find. You’re in the 95th percentile. You’re worth a salary in the 95th percentile.

About the Author
Jared Brown is the founder of Talentopoly.com, a web startup improving the job hunt by helping talented candidates be found. Free your resume from the pay walls of other job sites by posting your resume publicly on Talentopoly. Let us help you get more exposure.

Stumble it!