What Price Should I Charge for This Gig?

Last week I was on my Peer Call for this month. I had written a blog here on this site last November about my having created those and what they are. And one of the discussions this time around was someone asking what they should charge for a potential opportunity they were in talks with a potential client for.

I wasn’t surprised that this individual had already done some research, sharing those findings with us. That said, our feedback was, see what the market will bear, try to find out if the company publishes their salary information (look to see if they’re non-profit), and consider where this could go if you do so good that they want to make more out of it.  Meaning, if you set an hourly rate, thinking that it might be just, say, 15-20 hours a week, what if they want to double that?

The point here is that there are a number of factors that you need to take into consideration when setting your price for work you’re attempting to secure.  This applies to performers, freelancers, and more, in a variety of situations.

For instance, while I was surprised to encounter an artist in Nashville that said they wanted to go out on the road yet didn’t have rates set, I tried to explain that it’s not difficult to decide how much you want to charge.

While most artists have a lump sum amount that they want to get paid for a show, the perspective I was trying to provide was, “Back into it.  Flip the formula around.  Think about if you considered it as an hourly rate.  Divide the lump sum by how long you’re going to play and see if you would be okay with what that came out to per hour.”

Now, let me stop here because I know the question is, “But how do I even know what that lump sum OR hourly rate is to start with?!”  And I get that, so here are some steps you can take to try to make that determination.

One is, ask your colleagues.  I know it’s not a comfortable conversation, asking someone how much they get paid, but think of it more this way.  If you’re going to perform somewhere that you’ve never played at before, either (a) ask someone who has played there before, “How much do they pay,” or (b) ask a colleague who has played somewhere similar (in the same market), “How much does (venue B) pay, because I’m about to get booked at (venue A) and I’ve got to believe they’re pretty similar.”  Of course, the wildcard here is that the venue will probably tell you, THIS is how much we pay (take it or leave it).

Another part of all this has to do with where you are financially.  Are you in dire straits and need and will take anything?  Or are you in a position where you can and will walk away from an amount that’s just too low?  You might also consider flipping the script from the scenario above, meaning, if someone asked YOU how much you got paid at a certain venue, would you be embarrassed to tell them what you settled for?

As mentioned above from last week’s Peer Call, do your research.  Join a Facebook group where people in your position hang out and see what people might share in there.

It’s also important to know what the market will bear.  What someone gets paid in Orlando is going to be different from what someone gets paid in Dallas and even that’s going to be different from what someone gets paid in Seattle.

To avoid embarrassment, you should know that participants aren’t getting paid at all when they perform in a writers’ round in Nashville.  Talk to people first in major entertainment meccas like that (i.e., New York, Los Angeles, Las Vegas) so that you know which opportunities don’t have any pay attached to them.

If you’re a freelancer (designer, writer, etc.) there are lots of platforms (Upwork, Thumbtack, Fiverr, etc.) where the rates are posted, so it’s pretty fast and easy to see what you can charge.  However, if you’re looking to jump from a permanent, full-time career into something else that’s in a completely different industry, don’t let your emotions get the best of you.  If you hate the job you’re in, don’t think, “Anything else has got to be better,” but take a pay cut just to move on.  I recently advised someone in that scenario who was just so giddy about what they hoped to move into, “Take the emotion out of it.  Yes, it would be a totally cool gig to get, but, once the honeymoon period is over and you’ve still got the same bills to pay, you’re suddenly not going to enjoy it as much when you realize you totally undervalued what you should’ve asked for pay-wise.”

We see a whole lot these days how much mental health is truly a factor.  You don’t want to end up miserable doing work that you aren’t really enjoying for a price that turns out to be too low and now you’re stuck doing work you’ve contracted at a rate you’re not happy with at all.

Always keep in mind your level of experience, however.  If you ask a performer how much they charge to play a three-hour gig and they say 100 dollars an hour, don’t be surprised when a place offers you half that because they know you’re just starting out.  Similarly, freelancers should be prepared with samples of their work that they’ve done for other people to show that they are experienced.

Pricing is important because you can always go up, but once you tell someone, “Okay, wait, what about (lower rate),” now you’re compromising your own value AND jeopardizing trust as they think, “Hm, why not have just quoted me that in the first place?”

Know your value, put in the time, and get paid what you will be happy with.

I have been helping independent artist, authors, entrepreneurs, and podcasters from around the U.S. for 18 years.  Let’s have a private, one-on-one, online video consultation so we can talk about where you are and any challenges of yours that would benefit from my experience.  Our call is totally confidential and is aimed at keeping you moving forward in your career.  Book time now and I’ll look forward to connecting with you.