According to a new survey from the American Staffing Association (ASA), 64% of employed American adults plan to start a side hustle or seek another job within the next year. While starting a side hustle can help you boost your income, you want to ensure that you find a gig that leads to significant revenue so that you don’t waste your limited time and energy.
Read More: 12 Best Things To Sell at a Pawn Shop for Extra Cash
Find Out: 6 Unusual Ways To Make Extra Money That Actually Work
Nicaila Matthews Okome recently posted a YouTube reel advocating for new side hustlers to know their worth when they’re getting started so that they can charge the correct amount right from the start. The goal is to earn what you’re worth from the beginning so that you don’t devote yourself to a side hustle that barely earns you any money.
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
What New Side Hustlers Need To Know
When starting a new side hustle, it can be intimidating and overwhelming to decide on a price for your coaching or consulting services. Here’s the advice from Okome on how to determine your worth and charge accordingly.
Try This: Get Paid To Watch Videos: 11 Easy Ways
Leverage Your Experience
Okome stressed that trying to figure out how much to charge as a new coach or strategist is part of the journey. However, she also pointed out that you weren’t born yesterday, which means that you have experience and intellectual capital. Just because you’re starting in a new field as a coach, it doesn’t mean that you can’t charge more. You possess skills and experience that can be leveraged for coaching, as potential clients are seeking the solutions you offer.
You’re Not Starting From Scratch
The video notes that there’s a misconception that new entrepreneurs or coaches feel that they have to start from the bottom since they’re just getting their foot in the door. You have to ensure that you’re charging in proportion to your experience based on the problem that you solve.
The main theme of the video is the importance of charging what you’re worth based on your experience. For example, your experience in design work could help you create custom projects for brands, or your decade-long career in management could lend itself to consulting services.
How Can You Charge More?
If you’re worried about charging higher rates since you’re a beginner in this field, here are some tips that will help you.
Charge For the Problem You Solve
“If you know how to fix someone’s problem, then you can get paid for it,” said Shay Kent, an author and business consultant. “The bigger problems you fix, the more you can charge.”
The key takeaway is to remember that people will pay for the value of the solution, so you’ll want to focus on solving crucial problems. For example, someone looking for a wedding photographer, a business consultant, or an accountant would likely be willing to pay for quality services.
Learn How To Listen To Client Concerns
Kent emphasized the importance of learning to listen to clients and their concerns so that you can address them accordingly. She added, “You have to be focused on what they’re saying, not thinking about what you’re going to say next.”
The best tips for addressing client concerns are:
Use their language back to them.
When they’re telling you their problems, repeat them back to them the way they’ve told you.
Ask how long they’ve been struggling with said problem.
When you listen to a client’s concerns and ask about their problems, it prompts them to consider how much they want to address the issue now. Then you can attach your solution to their problems.
Kent shared a specific example of how, when she was selling home staging services, she found out that a potential client wanted to sell the home quickly because they had inherited it. It was an emotional pain point, and the client wanted someone who understood how quickly they wanted to sell it, rather than getting caught up in the technical details.
Never Compete On Just Pricing
Kent stressed that low prices will attract low-paying clients. When you only compete on price, you’ll continue to lower your rate as you discover that competitors are doing the same. This could turn into a race to the bottom where you’re barely scraping by as a coach. Another issue with this is that you could attract low-value customers who ask the world of you and are challenging to work with. You could end up spending more time on their accounts than what you charge.
Kent suggests that you make your own business model and stick to it. Sometimes, other coaches with lower prices could be relying on volume. As someone with a new side hustle, it’s likely not sustainable for you, and it could lead to burnout.
Test Your Pricing Out
A simple way to test what you can charge is by experimenting with the price point. Kent noted that if you get a few clients at one price point, you’ll want to raise it and see if you can get more clients. The goal is to raise your prices until you’re not getting clients. You’ll always stay competitive and in line with market value with this approach.
Clarify Your Offering
Kent wants you to ensure that you clearly state what you’re offering because you don’t want to confuse your clients. A few questions that you want to be able to address are:
What do you sell?
Who’s it for?
What does it do for them?
Once you figure these details out, it’s time to become more visible. This could include attending networking events, posting on social media, or just spreading the word in person. You can’t be afraid to tell people about what you do because you’ll want to get the word out if you’re going to build your coaching side hustle.
Kent concluded, “Selling is as simple as three steps: Find out what they want, what has been stopping them from getting it, and then show them how you get them what they want.”
More From GOBankingRates
7 McDonald’s Toys Worth Way More Today
4 Companies as Much as Tripling Prices Due To Tariffs
Use This Checklist to See if Your Family is Financially Secure
7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: Just Starting a Side Hustle? Nicaila Matthews Okome Says Know Your Worth — and Charge It
