How to Grow your Freelancing Business & How to Price your Freelancing Services w/ Aleksander Vitkin
Are you ready to scale and outsource your business, okay, let's go. Welcome. To the outsourcing and, scaling show I'm, your host Nathan, Hersh a show, where we talk about everything. Amazon shopify, ecommerce and, digital, marketing, let's. Get started. Hey. Everyone welcome back to outsourcing and scaling, today my guest is Alex and it can now it's how you doing today. Hey. Thank you for having me I'm doing fantastically. Well here and, the, ring we appreciate your time, well. We appreciate yours, as well, for, those you don't know alex has helped over 700, people with sincere interest and entrepreneurship, and contribution, to start profitable, businesses quit their jobs and travel the world alex teaches freelancers, and agencies, to build a business which, is what we're all about if you've listened to me for any period, of time Alex. We're going to talk about all that before I want to take a step back what, were you doing before all this will talk to us about growing, up and how you got into entrepreneurship. Yeah. I always had this weird vision, as a kid, that somehow, I was gonna end up in like this boardroom, with a CEO and I was gonna advise them and it's like a very strange. Kind. Of fent and this is to have for a seven year old but for some reason I must have seen it in some movie somewhere so, I had this weird vision and it didn't come to fruition until I, graduated. College. And I. Studied business so I graduated college and everyone. Was getting jobs and they're saying Alex what is your career going to be and I. Thought wait. A second, I don't want this I just did internships they were fun at all but I don't. Feel like I'm doing what I was supposed to be doing with my life and I'm, reading all these entrepreneurship, books so I'm gonna go straight into business, as a consultant. From day one this was 2008 2009. So, it was must've been quite funny to my friends and the. First two years they, were a hundred percent right it, was kind, of a failure because, I'm lost, more money that I made and then. Over the next four, years actually, learned how to do it successfully I, started traveling as well like I had, a job for eight months but after that I quit forever I never, had a job again and I. Ended up building several, businesses like drop shipping and SEO, websites and running. An agency and some. Of those were quite successful utters. Not so much so. At a certain point about, six years into my, business. Career, let's say I have figured out that people, want to learn for me and how I travelingirl, and how I'm building a business so I started each channel and then, I started consulting people on that one and one I had a bunch of consulting, clients that I was teaching how to build a business that I've you know just found me on YouTube so I started this thing called daily. Business hustle, back then that eventually turned into business, Metacom and. Now we're two, hundred, and twenty, seven people in there so it's a worldwide community, of entrepreneurs and, people.
Join We teach them business skills and, they. End up going from running, in like, just having it for being lasting career or a job to, running, an agency just, marketing. And creative, so that's like the two-minute summary right there now, so let's talk about that because that's something that I preach we obviously have a lot of freelancers, on the free up platform and getting, in the mentality of looking yourself as a business and not just working for someone else in a remote job is usually the first step to to having more success and, really scaling, where do you see people failing. And how do you get people into that mentality. Well. The. Way I see people failing especially. If they're freelancers. Is they. End up doing all these different gigs. For, different clients that are totally, different from, each other so they do a little bit of SEO a little bit of Google Ads a little bit of design of the other thing and the, filling, in positions, in people's companies, instead. Of building their own process, and a. Single service that they deliver in. Like a factory, environment so they instead, of doing. Creating. A process creating, a business they end up doing a bunch, of different projects that are unrelated, to each other so, they are essentially, running three, or four different tiny, little businesses, and at. The same time they're not building any assets, for themselves so they're building someone, else's business they're not building their own business they're building someone else's email. List but they're not building your own email. List they're building someone else's you know wealth and for, themselves they're not really getting that much in return they're getting an hourly rate usually, so if, you want to get out of that you, need to learn several. New skills, right so you learn how to create these processes, you learn how to close sales properly. So, that you're not running from, projects, that, you don't really want to do to another project that you don't really want to do to actually choosing. Your client in its choosing who you work with and be an, absolute, expert to. Creating. An app a business that's the absolute. Top. Of the line in delivering, a certain. Type of results to a certain type of client, and this. Doing, everything for everyone versus. Being, you, know the go-to, business, for a certain type of solution, those are two very very. Different things, that are run, in very, very different ways, so. Let's talk about building, your own processes, cuz I think that's where a lot of freelancers, struggle, they're always looking to do things the way that the client wants it and you talked a little bit about niching, down how, does someone go about creating processes. For their freelance business.
Okay. So. Choose. First, of all build, up some, skill. Level, by freelancing, okay there's nothing wrong with a little bit of freelancing do that for a while and have. 1020 clients, over a year maybe year and a half and then, go, back and look, at your best performing, clients, look at the clients that did better than most and that you liked, working with the most and that. Referred you to most business, and that. Then require babysitting. And then. Drop, all the other clients drop all the other clients that are kind of wasting your time not getting results and so on and focus, only on that 20%. That are the best clients that are the clients you actually want to work with once, you have that once you've niche down then, the real fun can, begin then you can start giving, away parts. Of the processes, that you're running so you're doing things every day you're doing lead generation you're doing sales calls you're doing delivery. Of all kinds of stuff client management started, with the easiest skills first or, the right are the easiest, processes, first let's, say it lead generation give, that away to a VA go. My r1 they're, not that expensive and. Once. You have VA doing lead generation shoot for example presto. You suddenly have five to ten hours extra per week to work on your business instead of being a lead generation employee in your own business alright so your is that for five to, fifteen dollars an hour suddenly. You have a bunch, of time right. Users the next thing let's say it's delivery, let's, say you're running a Facebook Ads agency what can you do to outsource delivery how can you find. Experts. That, are doing. Facebook, well you, give, them 30%, of the. Project, fee and you say you are in charge of delivery, here okay for this need to be able to charge a lot of money obviously, if 30%. Is barely. Any money no one good is gonna work when I work with you so once you have that figured out you have lead generation and you, have delivery. Outsource. You have a tiny. Little team, like two people working for you that are doing those two things suddenly, you have 25, hours a week extra spend, on your business instead, of being an employee in your own business then you go and do. The same thing with client. Management and eventually. Even with sales so, what are you doing then once, you have those four or five things once they're, handled, by virtual, assistants, or staff. On location, what, do you do with your time your, building your business and. You're. Not running, around extinguishing. Fires all the time you're actually you're. Overseeing, and you're managing a process that works and you're improving that process but most of your time is spent on creating.
Your Processes, new funnels scaling. All the cool fun stuff that gets people from doing $5,000, per month as a freelancer, to 50k, and above as a business, owner so, that's like the super, fast summary of how to do it I love, it and I love the process and we actually have a lot of freelancers, on the free app platform that are also clients, of the free app platform and they're hiring virtual assistants, for lead, generation or, to handle certain parts of their business they're obviously upfront, and transparent for with the client if they're going to be outsourcing. Anything but we encourage people to kind of make that transition from a freelancer, to agency, assuming, the clients are good with that and they are being transparent, let's talk about pricing how does someone go about pricing. Themselves, accordingly, and talk about both let's say someone, who's just getting into freelancing, for the first time how do they figure out their prices opposed, to someone who's really becoming a specialist. An expert. So. Someone who's a complete beginner and they, want to freelance. The. Solution, is relatively, easy so go look at the other freelancers. That. Are performing, the same service, and just. Go, down, the middle. In terms of average pricing, so if they're charging in real world right not what they're saying other profiles or whatever like in the real world they're, charging $25. An hour just start. Charging $25, an hour right as a freelancer. So, don't, charge less than that don't charge less, than the average of, people. Working from Western countries and doing, the same type of service you're doing that's for beginners, and that's only for beginners okay so once. People come to me and they want to learn how to build a business I say absolutely under, no circumstances. Do. What I just said in fact do. Exactly the opposite don't, look at anyone else and start. Charging, fees. That, are not hourly, at all and start charging fees that are monthly recurring, based, on a contract, so start locking people down in a three-month contract or so I've seen if people even do 12 months okay, if you're delivering an awesome, awesome service that delivers results there's nothing wrong with that in fact increases, client results so, start, locking clients, down for on three-month contracts. Or more and, start. Charging thousands, of dollars. Thousands. Of hours and that's for a single, service. So if you do one service a good, example is Facebook, Ads if you know that in the, industry, decent. The agency, charges 2.5, k. Then. You can charge 2.5. To 4k as. Long. As you deliver great results and, you. Can keep increasing that as the results, improve, for your clients, you can even attach to things like. Profit. Shares you, know revenue, shares or even, equity, so I've even seen some. Insanely. Good media buyers get equity in some, businesses so that's. How you do it as an intermediate, or advanced so, make sure that under no circumstance. You.
Charge. Like. Make sure you're always charge enough so 30 percent of the money can go to amazing, delivery. If you're outsourcing it ok so, whatever. That number is that you pay your outsourcers, make sure that's no more than 30% so it definitely means charge it enough and trust. Me people almost, never charge. Enough they always think oh but, everyone else is charging like, $25, an hour everyone else is charging 700, hours per hour I can assure you that is not true I can, you dad once, someone. Who knows what you're doing gets, a great, lead on a call they. Could figure out that that's a great lead and the. Great bleed is gonna pay them more than anything they've listed on any profile, anything they've posted. Publicly because. What. You need to be doing is value-based, pricing, so, how much value can deliver, you, use that as a number uh, as. A base number on to calculate how much you could charge so, if you deliver let's, say ten. Thousand dollars for, a thousand, our ad spends guess, what that is a huge, or way that the client is getting so. You can charge a lot more than a year delivering, you know one to one if you're breaking even for them so, once, tarnishing, down of course once you start figuring out your ideal kind of avatar you can very, easily figure, out delivery, right you're simplifying your life you're simplifying your service you're simplifying your business and you're. Improving your results once, you have that figured out pricing, just goes through the roof and that's how you you, see agencies, go to, half a million dollars a year and over, a million dollars a year it's not easy to do but once you've figured it out it's like magic really especially. As, your portfolio, and your proof grows, because smart. Buyers they, depend. On proof who did you work with there's only two real, questions, that matter alike right, so who, do you work with and what are results, that's, what smart buyers want to know buyers with money I love. It I think that's a lot of great advice I want, to talk about customer, service because in my opinion this is where I see a lot of freelancers, go wrong I mean you might get nine out of ten clients being awesome and one's, a little bit difficult but it's how do you deal with that difficult, issue how do you deal, with maybe you made a mistake or clients not getting the results that you want what's, your mentality in, dealing, with those issues as they come up so. This. Depends there for, me there are two business, models that agencies. Succeed, at it's, the McDonald's business. Model and a highly customized, very, high ticket business model so the McDonald's business model is Ray offer relatively. Cheap services, with, limited. Customer, support so, if a client does not happy just dropped immediately don't, talk to them more than a little bit of chatting just talk, to them a tiny little bit if they're being fickle just dropped if now getting results just dropped them but, have a lot of clients that's. The McDonald's model, and if. You deliver most, clients will never even talk to you they don't meet you you're getting their sales they're getting the results, there's no need for like, advanced customer support people, think that every business needs customer, support this is not true in fact, most. Businesses, don't focus on customer support it's not necessary, right, then there's the other model, and that is the highly, customized, super high a ticket, business, model so let's say you offer three.
Services You do seven hundred fifty thousand dollars a year and you charge five. To seven point five K for, both Facebook, ads and Google Ads for example right as a service on a monthly basis plus a small, profit. Share on the back ends so how. Do you price it how, do you do customers for it then let's say a customer has an issue what, people do is they have, these. Email, back and forth and to have these angry, message. Exchanges. And all this kind of stuff forget, all that in the beginning when you're closing the contract, make sure that the client knows exactly, how. The communication, is gonna happen when, the communications gonna happen who the communication, is gonna happen with and, your. Which situations, the, communication, happens so it doesn't mean you know if they want some random advice on some random little thing that they get a sale that they get another you know when I recall or something like that it means if, a, serious, issue arises, that where the account gets shut down or something like that then within 48 hours a call, can be arranged, for example, right let's. Say they want to call every, few days at random times and the contractor would say the, calls happen, on, Tuesday. At 5 p.m., every. Single. Week and we, have it all in our calendar as we show up on time and that's where, we discuss all the issues we, don't chat, throughout, two week we discuss it all on this calls right on everything or put, them in our ticketing system and then on Tuesday, at 5 p.m. that is when we discuss everything if, people. Break the rule then, you're constantly running, around and extinguishing, fires if, people adhere to this it can. Be all done a hundred, times more efficiently, so, it doesn't mean never, be available it, means, have, clear. Boundaries. Okay clear, boundaries, with clients because it's in their benefit, if you, as the business, owner have to be available on whatsapp phone calls Skype, 24/7. You're not going to get any sleep you're not gonna be able to focus on results, you're not gonna be able to focus on, executing. Your strategy, that has been proven to work for dozens of clients you're gonna be running around and doing random, stuff I, don't know if I can use expletives, on your podcast here but you're. Gonna be running around and doing stuff that just doesn't produce any results, and at the end of the day. Clients. Hire you to get results and you. Are supposed to be as the agency owner the expert, you are supposed to be guiding, them through the, process, that includes communication that includes, expectation, management and so, on so that's for the high tickets, business. Model two very very different business models, with very different focuses, here I love. It I mean I think you and I disagree on some, stuff in terms of dropping client and customer service which is totally fine but, I'm a hundred, percent on board with the expectations. And when I see clients, and freelancers, having, issues or freelancers, coming to me saying oh this, clients, like bothering me too much they're texting me after dinner it's always like what expectations did, you set up front did you establish when. You're gonna be meeting when they can and can't contact, you what, your communication, is and the answer is almost always no and once, you start giving a client a little bit of leeway it's very tough to reel, them back in and reset, those expectations right, from the beginning let's. Talk about scaling the agency so let's say you you. Have a smaller, team you you're giving away that 30% what's, the next step from there to really take your agency, let's say to a half, a million or the million dollar plus business. So. To get to half a million is one thing beyond a million we'll, talk about it then in a second right so to, get it to half a million again, ultra. Neesh down you, can have a funnel, running. Let's, say you sell ads depends, on the type of agency right so if you're an adze let's, say you go from doing, retainers.
To. Selling leads so, if you want to get to half a million once you do, settling. Leads instead of selling, you know retainers, essentially, it's selling a service then. Scaling. Becomes much less of a problem because you're always your. Always have funnels running so you're always funnels, running there's always beats coming and when, you get a client a prospect, on a sales call it's, not about proof, to me this proof to me that it's like here are deletes do you want n to see if they're good quality here, you go you, like them okay do you want to buy a hundred a week yes. Sign. Up there you go done so, that's how you scale to half a million like complete, automation. Almost, hands-off. Experience, and, scalability. Because the funnel is always running you're not constantly, building, a new funnel for every single client let's, see a skill to half a million now you can scale, this to beyond a million but, currently. Actually recommend, something else and I don't know if you're going to like this Nathan Theotis so, the thing I recommend to scale past the million is drop. The agency so. Instead of running an agency beyond. The. $1,000,000, learn, from your clients, and learn the business model that they're running and, keep. Running the agency with. A manager, you give another 20% to and they. Run the agency and they bankroll, your next business model, so I don't just work with people who have, agencies. Because, we found that, oftentimes. When someone has run an agency for long enough to get up seven figures they don't have to run an agency anymore and again. I don't know if you're gonna like this but. Are. You talking about like stealing the clients business model not. Stealing, anyone's business models if you work with twenty, 30 clients let's, say who are running, ecommerce, brands, for. Two years and you know exactly what works you know exactly. What. Type of targeting, works you know exactly what. Is in demand on the market you can make deals with your clients, where they get a small percentage of your business I've seen people make 5%, deals equity. Deals and that. You can use, their teams you can use their marketing, strategy everything, and you can build a type of business that the clients, are running so. You can do this if you have enough experience by working with a few dozen clients and if you have great marketing, skills and so on you can just do that and to. Be perfectly, honest with you once the agency hits, half a million and you're, taking, thirty, to fifty percent of that as your profit would, a manager running the agency that's, enough to bankroll, your next business model depending on what it is of course right, and oftentimes. Those, are more scalable, and explosively, scalable, business models and again I don't like that it's that way I would just like to just say oh just do agency, forever but, we found based, on cold, hard, data that. Going. To the next business model simply works better and for you Nathan, you know if someone would go from running, an agency or being a freelancer, to becoming a client, on your on, your platform of course and hiring a bunch of agencies of their own so it's it's good for everyone so, you're really talking about creating. A business partnership, with, that client. Either. Creating. A business partnership, with the client and building, a similar business that doesn't compete with them or just straight, up building, a whole business like what they have without of course feeling, anything, no no borrowing, lists. Or retargeting, none of that stuff I'm talking about doing, it ethically and you know morally. So got, it so you're saying if you if you work for an e-commerce client, and you get so good and where you're growing at am, as an agency. For e-commerce clients to also run as e-commerce business. To go along with that agents absolutely. Examine, these acts yes, exactly. Awesome. Well this has been great Alex, where can people find out more about you so. We. Have a huge. Amount of key, studies, so for anyone interested in any of these methods or, business. Models that have discussed if you go to business Manfred comm and you. Click on reviews, or if you go to business men who have come forward slash client. -. Results. Then, you will find two. Hundred, plus case, studies, of how people have done exactly what I've been talking about here so take, a look at that and if. You want to reach out to me personally you can actually reach out to my personal, Facebook profile and that is a Alexander. Vidkun so Ellie gasps and ER and then vit ki, n on Facebook and I'll personally reply to you oftentimes. Also. We'll have links there Alex, thank you so much for joining us this was awesome I know a lot of the freelancers are, definitely gonna appreciate this and I look forward to working with you in your community going forward.
Thank. You again Nathan thanks, for your time and everyone listening, to this Thank You phone see you see, you around on the Internet. Hey. Everyone thank you so much for watching did, you enjoy this content if so, click like leave us a comment and subscribe to our channel so we can continue bringing, you great content all about, higher.