The Value of Expertise
How much is an hour of your time worth? This is a question that's been hotly debated and is often a stumbling block for many in the helping professions in general and those in working in the areas of coaching and consulting in particular.
I have never liked the idea of "hourly rate". Even as a consultant with Accenture I struggled with this idea. We all have the same amount of time in each of our days...86,400 seconds to be precise. Ultimately, worth is the value that we place in each of those seconds, minutes, and hours that we are able to give to others.
I recently spent approximately one hour working with an entrepreneur attorney friend who was needing expertise in crystalizing in her mind multiple aspects of the strategic direction of her firm, options for revenue generation that were not tied directly to her activity (in other words, how can she earn money while she is asleep) and the development of her business plan. At the conclusion of our conversation, we talked about the concept of "hourly billing" versus "value based billing". While the hourly billing paradigm is alive and well in the legal field, I discussed the approach I use where cost to the client is based on the value received.
We talked about this approach. I asked her the question "How much is the last hour worth to you when you think of what we accomplished together to put actionable ideas for your business plan, revenue generation, and the direction of your firm?". She knew that she now had the plan and direction to begin the process of building a million dollar practice in the next year.
So, what was the value of the last hour spent together? What would she pay for the clarity and direction she now possessed? $5,000? Absolutely! $25,000? Definitely! $50,000? Probably!
Now the question for you...Do you view the work you do through the lens of value given or time spent. It is a different paradigm to be sure. Most have a difficult time breaking free from the traditional. But from a results-based standpoint, is there really any other way?
Live Your Life of Purpose with Passion!