There are No Secrets to Earning an Above Average Income and everything you need to know how its done is right here in my Income Producing Website.

Tri-Liminal Phenomena will Crank Your Mind Into High Gear. Attract Financial Success, Achieve Personal Goals. Eliminate Negative Habits and Behaviors.

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Triliminal Phenomena Part 1

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Clickbank, Amazon and Digital River pays me Commission Directly.


Please Buy Something From my Clickbank Marketplace Here

Please Buy Something From my Amazon Webstore




Please Buy Something From my REG_NOW Webstore

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Subscribe Here For Your Automated Clickbank Recurring Income Website The Ultimate Home Income

Dynamic Content

click here to see The Dynamic Content in Action

How To Realistically Set Your Fees - Part 3

presented by the home income builder

How To Realistically Set Your Fees - Part 3

by: Sue and Chuck DeFiore

Effect of Benefits

We have previously examined realistic billable hours and the effect of business expenses on your hourly rate. Now we'll look at the effect of benefits.

Once upon at time, when we were employed, we received a benefits package from our employer.

This usually included health, life and disability insurance.
Many firms also had available pension programs, profit sharing, dental and vision coverage. In addition, one-half of your social security was paid by your employer.

As self-employed individuals, we have to provide these benefits for ourselves. This means an additional boast to the hourly rate we've calculated so far.
For the sake of argument, let's figure a standard benefits package consisting of health, life, disability, pension and profit sharing.
Let's figure health insurance costs at $300 per month; life at $50 per month; disability at $150 per month; pension (a SEP-IRA) at $500 per month and about 10% for a profit margin.

If we total these up we get a yearly figure of $12,000. Now keep in mind, that most of these will be paid for in after tax dollars.

So, we need to add approximately an additional 30% to this number, for a true total of about $15,600 per year. The 30% represents the amount of taxes you need to pay to end up with the net amount of money needed to pay for your benefits package. Keep in mind that I chose 30% as a completely arbitrary number.
Your own tax situation may be higher or lower.

How does this effect our hourly rate, let's see.

Last article we left off at $56 per hour.
This represented a yearly salary of $42,000 plus annual business expenses of $15,000. If we take the $15,600 in benefit costs and divide by our billable hours of 1100 per year, we get approximately $14 per hour.
This brings our total hourly rate to $70 per hour.

Now, we need to factor in our profit sharing percentage. Once again, I choose 10% as a representative number. Your targeted profit could be higher or lower.

If you take your $70 per hour rate, multiply by 10%, you end up with $7 per hour. Your total hourly rate comes to $77 per hour.

This is the amount you need to charge to cover all we discussed so far.

Compare this to the approximately $20 per hour you would need to get paid by an employer to earn our hypothetical $42,000 per year.
And yes, I know today many employers require a co-payment on their benefits package. I stated it this way for simplicity sake.

So, you need to charge almost 4 times what you would earn in salary to end up at the same place.

Don't be discouraged, there are many people out there that are charging a lot more than this and getting all the business they can handle.
Remember, these numbers are hypothetical, your situation may be much different.

About The Author

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 17 years, and we can help you too! To see how, visit http://www.
homebusinesssolutions.

com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses.

No time to visit the site? Subscribe to our FREE "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.
com

coaches@homebusinesssolutions.
com

There are No Secrets to Earning an Above Average Income and everything you need to know how its done is right here in my Income Producing Website.

Tri-Liminal Phenomena will Crank Your Mind Into High Gear. Attract Financial Success, Achieve Personal Goals. Eliminate Negative Habits and Behaviors.

Fall Asleep Faster, Fall Asleep Deeper, More Restful Sleep, Deep Zen Meditation States - Merge With The Universal Mind.

Triliminal Phenomena Part 1

An extensive survey on treating anxiety . I am pleased to bring you Professional Reviews and Personal mutimedia views on treating anxiety , including the most current products online for treating anxiety from clickbank, amazon and reg_now .

To Boost my Daily Sales.

Please Buy some Bidvertiser Advertising from me.

The Landing Page is content rich with

Product Feeds and I get paid directly by them.

My Income Producing Website is Automated For Daily Income equipped with an Automated Clickbank Weekly Paycheck Generator

Every Day Thousands buy Clickbank Products, Amazon Products, Digital River Products from me right here.

Clickbank, Amazon and Digital River pays me Commission Directly.

Please Buy Something From my Clickbank Marketplace Here

Please Buy Something From my Amazon Webstore

Please Buy Something From my REG_NOW Webstore

Swarms of Hungry Shoppers come right here (as well they also visit my 143 Income Portal Locations Worldwide) to buy, and every penny in commission is paid directly to me.

How To Realistically Set Your Fees - Part 3