Create Your Rate! Time is Money

My belief is that we make our own value.  “Create your own Rate”

We all assert and demand our worth.  My value as a television host, public speaker, and interviewer is largely determined by what I can contribute . . . but the ability to understand how to create my rate is a balancing act that is important to understand.  It can be a tricky see-saw to have a company or organization recognize your talents & then have to negotiate your rate, but (the way I see it) there are two ways of theorizing how to approach payment.  

I think of determining your own rate, like this:

Consider any big star who has inherent known celebrity.  For example, Britney Spears.  Lets say a little rink dink used car lot in her hometown wanted to do a local commercial.  Maybe the owner contacts Britney’s manager and begs her, as a small-town favor, to be featured in their little commercial.  

There are two different scenarios that I consider:

Lets say Britney Spears’ usual rate for an appearance is $500,000.  In the first situation she might say, “Aww, they’re just a small, little business!”  In this scenario, she graciously she agrees, saying “Ok, even though my usual rate is $500,000 . . . for them I’ll do it for $10,000 as a favor.”  The car company would be thrilled . . . but, knowing that she’s willing to work at a significantly lower rate, they’re likely to say, “well, we’re so small!  Can’t you just do it for $8,000?”  Her acknowledgement that, for the particular segment, she will accept a lower rate of return, gives the small company more bargaining power.  They already know she’s just doing the segment for the spirit of it, and therefore are able to heighten their argument as a bargaining chip to get a better rate for themselves; if she is willing to do something and undercut her value by such a large amount, why not ask her to do it more, saying that they could use the break?  In reducing her rate, she actually will be pressured and valued likely in the future to do the same segment at even lesser a rate.

 

Michelle Smoller, knowing her worth!

Michelle Smoller, knowing her worth!

The second situation also says that Britney Spears’ usual rate for an appearance is $500,000.  In this example though she says, “But they’re just a small, little business!”  So she says, “Ok, since my usual rate is $500,000 . . . I can’t be affiliated with this project, unless they increase my rate to $750,000.”  Here, she asserts her worth.  She acknowledges her overall value and therefore realizes that, if a group really wants her to be onboard with them, that they ought to rise to her level of expectation and recognize her overall ability to benefit them and their product.

We must know our worth!  It is not easy to assert that we are valuable sometimes.  After all, if people don't know or trust you already, then how can they consider your assertion of value to have authority?  Respect yourself enough to have faith that your word itself is inherently valuable.   If they don’t know the source, how can they trust your appraisal of the value you bring to a situation?  Think about what you have to offer other people!

You have got to understand that your work—no matter what it may be—has a fiscal value.   Command the respect you think your work merits.  Determine your own worth and then assert yourself in order understand to get what you want.  In a situation where you refuse to accept a lower value (knowing you are a valuable asset), companies will have to acknowledge that you have the important skills and the significant talent that they deserve and seek.  In agreeing to rise to your rate, they validate you and understand that what they are getting is worth the price.  

Understand that your time is money and create your own rate!