How to Make $100,000/Year as a Freelancer

How to Make $100,000/Year as a Freelancer

  • Don’t rely on referrals
  • Don’t race to the lowest price
  • Start with your yearly salary divided by 2080 and that’s your goal, so $100k = $48.08/hour
  • Now go 30% over because assume you have to prospect and you won’t’ get every hour of every day filled, so charge 30% more than that, so $62.50/hour
  • Now get clients. You need $8,333/month to make $100k/year, so you’ll need 4 clients a month paying you $2,083 on average. Assume that you can hold a client for 3 months on average, this means you’ll need 16 clients a year. Assume your conversion from phone call to a client is 1:3, that means you’ll need to talk to 48 people. Now get on Upwork and get 48 people on the phone with you! If you can’t do that try other avenues (social media (LinkedIn), PPC, inbound marketing, etc)

Raw Transcript

Get ready for freelancing strategies, hacks and tactics to help you skyrocket your success brought to you by Freelancer masterclass calm. You’re listening to freelancing school with your instructor Mike Volkin.

Welcome to another episode

of Freelancer school. I am Mike Volkin. Today we’re going to be answering the age old question. How do I make $100,000 a year as a freelancer? I don’t know why I get this question all the time. And I don’t know why $100,000 is used as a benchmark because, you know, frankly, it’s really not that hard to make $100,000. as a freelancer, all you need is a little bit of expertise and a little bit of know how, and then a little bit of persistence and $100,000 can be easily reached. But for some reason $100,000 maybe it’s because just a nice round number. It’s a nice six figure round number. But I get this question every single week. If Not more than that. So I just want to break down the math and show you what it takes to make $100,000 as a freelancer so you can see how attainable It really is. But first of all, before I start breaking down the math, I want to talk to you about realistically what it would take from a business practice standpoint. First of all,

I know a lot of freelancers, too many

that rely on referrals. And it’s really hard to make $100,000 a year consistently relying on referrals. Many people actually become a freelancer because they get a referral or two and then drop out very quickly having to get another job because they didn’t realize that hey, the referrals aren’t going to be very consistent. You cannot rely on referrals and make $100,000 a year consistently unless you are very well connected. Another tip is don’t race to be the lowest price leader. It’s so easy and common to know that there’s other freelancers bidding on the same job that you are especially on these platforms like up work and freelancer. They encourage multiple freelancers to submit bids. And then to think that clients really only care about money in terms of being the lowest priced freelancer. That is not what clients care about, at least the ones that you want. So don’t be chasing the lowest price. You don’t have to offer your services for $8 an hour and try to compete with India or the Philippines or something. You’ll never make a good living and you’ll never like freelancing, if that’s the case, that

is if you’re in the US.

Another tip is start with your yearly salary and divide it by 2080. So where does that number come from? 2080 is a normal amount of work hours in a year. In this case, we’re using $100,000 as a benchmark.

So if you divide $100,000 divided

by 2080, which is the work hours per year, you actually have $48 and eight cents an hour that doesn’t seem that unrealistic that somebody would pay you $48 and eight cents per hour for something that you are a specialist at. But this is what I want you to do. Because it’s not just like a full time salary job, you just go to work and you’re going to get paid from minute one, you have to consider all the other stuff as a freelancer you have to do to maintain your business. So if we’re at $48, and eight cents an hour, and we want to go 30% over, we’re now at $62 and 50 cents an hour, which is still very reasonable. Now it’s time to get clients. Let’s figure out if we have $100,000 as a goal, that means we’re going to divide that by 12. To get the month that means we need $8,333 a month in order to make that hundred thousand dollars a year. So you’re going to need four clients a month paying you 2083 on average, where’d I get that number I just divided 8033 by four $8,333 divided by fours 2083. So you’ll need four clients a month, paying you $2,083 on average. Now assuming you can hold a client for about three On average, and if you can’t and that’s a problem, okay? There’s something wrong with your service or your work. If you can’t hold a client for three months or your or your clients, there’s, there’s something wrong with the way that you’re the type of client that you’re attracting, okay? But you should be able to hold a client for three months. So assuming that’s an average, that means you need 16 clients a year. Okay, so four clients a month, you can hold a client for three months on average. That means you need 16 clients a year to make $100,000. Now, let’s assume that your conversion from phone call to client that means Hi, my name is Mr. Freelancer or Mrs. Freelancer don’t need to be sexist here. You get them on the phone. Here’s my services. I like you a lot. You’d like me this is a good fit bone. Let’s sign agreement. Let’s go. That conversion rate is 123. So assuming that you’ve got your pitch down, you’ve got your USP which we teach you about and Freelancer masterclass. You got all that down and they can’t possibly say no, because you’re such a great guy or girl that you can close one out Every three prospects you get on the phone. That means to get 16 clients a year, you’ll need to talk to 48 people in one year, that’s 365 days, all you need to do is talk to 48 people. Where’d I get 48? Well, you just multiplied 16 times three, because your call ratio to close this 123. Okay? So now what I want you to do to get those 48 people on the phone is get on Upwork get on Freelancer get on these platforms where these jobs are just ready and waiting for you. Get them on the phone with you. And if you can’t do that, or you don’t want to do that, then try other avenues. There’s lots of other avenues what what in freelancers do before Upwork was here. They use LinkedIn and social media and paper click and inbound marketing techniques. There’s tons of ways to get clients. It’s just there’s almost too many ways in this connected world. It’s there’s so many ways that you can almost lose yourself by diluting yourself with too many activities. So you want to stay focused on one get really good at it and then get a pattern down and then really Repeat and get another pattern. So now you eventually just build up so many clients you’re picking and choosing which ones you want to work with. So what I asked you that when you ask me the question of how do I make $100,000 a year freelancing? That’s the answer I would give you is you gotta backtrack, dad. Okay, 2018 hours, that means $48 and eight cents 30% upcharge to cover various hours of your time that you’re not going to be filling servicing clients. That you know, that’s, that’s $62 and 50 cents an hour and then your close ratio, that means you’ll need 48 people to get on a phone with you, and then you to start prospecting. And that’s really much, you know, you just break it down into simpler components. And that’s how easy it is to make $100,000 a year. as a freelancer. I

hope this helps. Have a good day.

Thank you for joining us for freelancing school. Be sure to subscribe and get the latest updates on the show. Go to freelancing masterclass.com to become a master freelancer.

Transcribed by https://otter.ai

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