How day rates are transforming my business (and how it can for you too!)
*this post contains affiliate links which means I may receive a small commission for any purchases you make at no additional cost to you
Finding packages that meet more of our potential client’s needs is an ongoing development as a small business owner. For my business, discovering the benefits of day rates has helped me meet a demand that I previously was not able to fulfill and also has given me an excitement boost in my business.
In my web design business, my focus has been on helping entrepreneurs with Squarespace websites who need completely custom website designs. When I first started out, my work mostly consisted of small hourly jobs as I gained experience and a client referral list.
The more time I spent on hourly work though, the more issues I saw with that offering.
Here are the issues I identified with hourly jobs in the past:
These fixes often provided a “band-aid” fix that I knew was not overly beneficial to the client. I knew they needed more help.
There was a huge expectation from the client of what could be accomplished in a very short amount of time and they were often left feeling like it was not enough
It was very hard to estimate how much time multiple fixes and design additions would take, especially when the client requested changes
And most of all, I found that there were often significant time delays between when I did the work and then heard back from the client with feedback. So then each time I went back into the project, I had to reacquaint myself with where I left off and this added to the project time.
So, after some consideration, I decided to stop offering hourly work.
That is until I heard a presentation by Sarah Masci. In this presentation, Sarah talks about how day rates have become the primary offering in her business and how successful they are.
Once I heard how these were set up, I was hooked.
How a day rate works
With day rates, the concept is that the client purchases a block of time for a day. They select a day on your scheduling calendar that works for them to also be free. They need to be virtually available to quickly answer questions and provide feedback in order for the day to be a success.
When the client books a day, they are sent some homework to help them prepare for the day and gather any content they will need to have. Just prior to the design day a strategy call occurs where we go over the list of items on their to-do list.
On the day of the design, you work closely together and chat via messenger to share files and links and hop on a video call if needed to work through ideas in real-time.
The idea behind a day rate is that the client is purchasing a day -
not a deliverable.
The benefits of day rates
There are just so many benefits that I have already seen to the day rate model that excites me so much.
Less time spent estimating - more time spent doing
First of all, I love that when someone reaches out with so many random requests and a long to-do list that I no longer have to take the time to “guestimate” how many hours those changes might take. Instead, I can direct them toward booking a day and give them a broad overview of how much of that to-do list we will likely be able to get through.
Bookings occur in the “near future”
My custom web design projects are often booked out months in advance, but with a design day, I have allocated a few days each month so that the turnaround time is much quicker. In fact, I have had 2 people book who wanted to work with me ASAP and I was able to move my schedule around to accommodate them in a timely way and they were thrilled.
Efficient use of time
Having my client on deck for instant feedback and answers to questions makes my workflow so efficient. I work quickly anyway, but this also allows me to proceed without any delays and not waste any effort going in a direction that they may not approve later. And my clients love that they have my undivided attention for the day!
The service is in demand
Before I even put my new Squarespace Design Day service on my website I had booked 3 of them. One client emailed me and even used the words “Can I use hire you for a day to help with my website”! I have worked with many DIYers and designers who have expressed an interest in this type of service. They need someone to come in and work their “code magic”.
Now that I have this service set up I am able to fill a void I previously had in my offerings.
Day Rates are rewarding and don’t drag on forever
With a finite number of hours, there is an efficient use of time to accomplish goals that the client can view in real-time. In one day their site can undergo a very dramatic transformation. For me, I love how the project is not long and dragged out over what can be months for some custom website projects. It is so rewarding for both myself and the client.
Here are some message snippets from a happy client during a design day:
A day rate is less expensive than hiring me for a custom website design
Not all clients have the budget for a complete website design, nor do they all need one. Their needs are met quite adequately with hiring me for the day to help pretty up their site and guide them with any issues they are struggling with. Many DIYers already have a good base for their website and just need help with some final strategy and help with getting the site to look more like their dream vision of their website. A design day is a perfect fit for this.
It’s a more profitable model then full project model
Clients are willing to pay more for the benefit of having your undivided attention for the day and being able to jump the queue. This allows you to make more money in a day then you might make in a week for a long drawn out project.
Less hours working - more profit
There is a defined start and end to the project
Both you and the client are aware of the defined number of hours for the day. Whatever is not done can either be tabled for another design day or the client could tackle it themselves if they need to. Having a finite end means no more scope creep. The time is done at the end of the day in terms of the design. I do spend time the next day wrapping up any tutorial videos or instructions for the client, but no more design work is done.
The creation of A new day rate service
The perfect service for a day rate for me was to create a Squarespace Design Day where I come in a “pretty up” a Squarespace website and make it more effective in reaching my clients dream clients. This filled a void in my business where people previously reached out to me not needing a completely built from scratch custom web design, but just needed help with their existing one.
Think of a void in your package offerings right now. What service have you been unable to provide to past inquiries that might be a good fit for a design day?
Note: the course I mention below also has some training to help you figure out your day rate offering could be.
Why I took a course to set up my day rate service
I am always a fan of learning from the experts. If someone can help me create a system or product in less time and that will run smoothly, I would rather invest in learning from them then struggle on my own and get frustrated.
Since Sarah has been offering day rates for a while, she has a lot of experience with what is required to send clients in terms of communication and homework. Having these scripts and plans laid out is such a timesaver.
Also, I use Dubsado for my client management tool which allows me to automate so much of the workflow for my design day. There was an entire lesson in the course on how to set up the process in Dubsado and again this save me so much time!
Sarah has lessons on onboarding your client, the strategy call, marketing your service and how to handle any issues that come up. So many good trainings in this course! There is a helpful facebook group as well to post in with questions and learn even more.
Sarah also offers live calls to go over questions and more strategy. There is just so much value in this course and when you implement your design day you are able to recoup your investment quite quickly!
Would a day rate model work for your business?
A day rate model would work for most service based businesses. It works beautifully for web designers, but it would also work for many other services such as:
Interior designers
Social media managers
Copywriters
Graphic designers
Coaches
Etc.
Most industries where you work 1:1 with a client in close collaboration would be a good candidate for a design day.
Does a 7 hour continuous day of working sound awful to you?
Not everyone is wired to work with the day rate model.. If you do not like to work for long stretches at a time without a break you would need to adjust your offering to allow for that. So, if you offered a 7 hour service, maybe you break it up over 2 afternoons (especially if you are not a morning person). Or perhaps you offer a 5 hour day. Come up with whichever option will work best for you.
The key is that your focus exclusively on one client in the allotted time and work in collaboration with them. However you set it up is up to you.
I have my service set up as a 7 hour day. I turn my timer on and start working between 8:00am and 8:30am and continue until I have logged 7 hours. I take the occasional break to move and eat and that’s about it. I am wired to work this way so I don’t mind at all.
I just love how efficient the process is and that I am able to accomplish so much in one day!
The other reason I love it is that it involves less hours of my week doing client work and frees up more of my time to invest in passive products and my Squarespace templates allowing me to diversify my income.
If you are ready to ditch the long drawn out projects, and the hours spend estimating and writing up proposals then consider adding Day Rates to your business! Explore the possibility of adding this offering to your business.