I left development to start consulting, and in the beginning I still had no idea of a competitive but profitable price stack. However I was very business minded, a week prior to leaving my field I just finished reading Dale Carnegie's book "How to Win Friends and Influence People".

Before I go further, let's stop and take a pause: this is a book that everyone needs to read, especially freelancers. I say especially these individuals because your livelihood is predicated not on a parent company managing image and taking a considerable chunk of the impact if you mess up. That being said, it is vital that freelancers read this book page for page, front and back to get a firm grasp of how to interact with people beyond "Do you need a website? Here's your website. Here's an invoice, alright have a good one". I read this book four times, and I'm reading it once more because in addition to being incredibly insightful: Dale Carnegie has a very conversational way of writing that makes this book an absolute joy to read.

Alright, ready for part two?

I had no idea of a profitable price stack, but after reading this book I had a good idea of how to approach people, propose ideas, listen to their needs and collaborate on a service that I could provide them. Still, I was stuck on what to charge. An idea came into my head, an old one that I'm sure is all over the web, debated from both sides, but an idea none the less. And this is what I told my first client:

"Before I quote you on this project that we're working on, I want to know what you think of the idea of free".

He was hooked, I had his attention. Free is an incredibly powerful word provided your ulterior motive is just. We worked together for three weeks as I helped him build his business, and as the time grew near for my involvement to end I gave him another incentive.

I offered him 5% on the next sale if he recommended a client that signed a contract to procure my services. By this point, I figured out that working on a retainer after concluding a 'sale' and ending a contract with a very happy client would be easier to secure than a rate structure that was predicated on the idea that I might end up having to bill more hours than was anticipated. The caveat was that he give no indication to whoever he would refer to me that he got free services, that was up to his discretion. I did not give him a line, a pitch or any sort of script. He ended up with $375 in his pocket, and a new customer.

He ended up becoming my personal accountant.