Rates and Billing

Discuss setting rates and find billing resources and information.

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Old 09-20-2008
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Default How to Bill an Account Doing AutoResponder Work
I work in Aweber for a client that I've had a while through an agency and now I am out on my own. I bill about 5-10 hours a month putting her info into a webeditor, proofing, adding images, etc. and then I copy into Aweber and send out the newsletter to her subscribers. I do other things for the newsletter but that's the gist of it most months. When she's on the speaking circuit I do other things as well as the newsletter.

I now have an outside client I've gotten on my own who is interested in Aweber work but she doesn't have a webeditor. I suppose I'll have to use one of Aweber's templates and work in Aweber directly, which I don't like to do because of the limitations of the size of the viewing box. Otherwise, I really like Aweber. Using their templates will take me longer to do than using the webeditor.

I don't know how to bill this client. I don't have a minimum with the other client as that is how it was set up for me by the agency but now I know better.

Should I charge at least 1 hour a week minimum or would this be considered a project case where I only charge for the time I am working on the newsletter? I hate to set this up without a minimum because there are many times with the agency client that I do other things for her when I am not doing the newsletter such as maintain the database, work on her website and edit some of the articles she has written.

How would I set up billing for this new client? I don't have any contracts right now to send her.

Thanks.
Jan
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Old 09-21-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
I bill all of my services on an hourly basis with a one hour minimum.
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
Hi Rebecka,

I suspect that with this newsletter job, I will not have work every week, so that is why I am having trouble with a minimum. Newsletters usually take me 5-10 hours and I do that within one week's time.

I don't see how I can charge a minimum for a once a month job.

That's the conflict I am having.
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
I don't understad the conflict. Why would you charge a minimum per week if no work is being done? A minimum is not something you charge as a regular charge on a weekly or monthly basis. It is not the same as a retainer fee.

A minimum is charged to protect your time. For instance, I have a few project clients and if I had one who called me and just wanted some reports printed and it only took 30 minutes to do and I didn't do any other work for him that month he would get charged the one hour minimum rather than just 30 minutes. I do not charge him a one hour minimum each week when no work is being done.
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
Ok, that makes perfect sense. (I should have had a V-8!) So you are saying that I should only charge the minimum for the weeks I am working for them. I know that sounds like I don't know what I am doing.

With the current client that I have that uses Aweber, she sends me things all week and since she doesn't have a minimum, I just bill for the time I use for her. So it could be 15 minutes one week and 3 hours another, all through the month.

So I would need to make it clear that in the weeks the new client sends me work, that would be the weeks I would bill for the minimum, even if she send me work on the 'off weeks' the minimum still applies.

Got it.

Thanks. You're the bomb!

Jan
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
Have you considered having her sign a small 5 hours per month retainer agreement?

That way she can send you work throughout the month and if she goes over - you just bill her for overages at the end of the month. So, if you work 7 hours - you will bill her for 7 hours the next month - this includes the new month retainer plus the 2 hour overage for the previous month.

Now, you will need to decide if you will carry unused hours over - for example, she signs the 5 hour agreement, and you only work 3 hours -she will have 2 hours remaining - you can carry that over to the next month like a credit - most clients appreciate that - It's purely a business decision on your part. I just place a minimum 3 month carry over so clients do not take advantage of that system.

Basically, you can offer her a 5 hour retainer agreement - she pays you upfront - and you do her aweber work - or any other work - during the month - at the end of the month you send her a new invoice reflecting the next month 5 hour retainer minus any credits or plus any overages.

Nancy
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
That's a great idea! I just sent her an email with my hourly info billable 2xs per month. But the retainer idea is great. My downfall is my accounting could be better. I'm just starting up this business on my own so I'm really behind on what needs to be done. This client came as a referral from another client so it came at me fast and I had nothing ready.
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
Please tell me you did have her sign a contract? That's really important as it protects you and the client - no matter what terms you agree on. If she hasn't - I would just tell her that you have one more item that needs to be taken care of before work officially begins. Most clients are fine with signing contracts, if they aren't, I don't work with them.

Nancy
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
Nancy, no contract. I gave her an overview via email of what my rates were, hours, minimum, etc. No contract yet because she was still wondering what my availability was and my rates. I did mention I had a contract, but I don't have anything right now. In fact, I am headed to the document library here to see what I can put together.

Jan
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Old 09-22-2008
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Default Re: How to Bill an Account Doing AutoResponder Work
Jan,

That's good, what I usually do once I have had a phone consultation with a client is send them a proposal/agreement combination. It works great. The proposal is usually just one page and outlines everything discussed with the client in regards to services and rates or monthly packages. Then of course the agreement is the agreement that they sign and fax back to you.

Nancy
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