Pricing?

Cierra, I don’t think you were asking this, but just to get it out of the way for anyone else reading: we CAN discuss actual dollar amounts with individuals, but not at any AADMM gatherings – and these forums are considered a gathering. So we won’t talk about actual fees, but that still leaves a lot to be said and shared.

Discussions about the merits of hourly rates vs package or project pricing or flat monthly fees is fair game in this forum (again, as long as dollars & cents aren’t included). I’m now in my 10th year as an organizer (member of NAPO) and/or DMM (AADMM member) and I still do everything by the hour. I’ve never convinced myself that I wouldn’t end up feeling that I was either cheating or taking advantage of a client (or myself) using another method. The downside is that I spend more time tracking and calculating hours than is probably necessary, but it’s my comfort zone. Virtually all my clients purchase pre-paid packages of 20 or 40 hours (for a 5-10% discount); that’s easier and less awkward for all concerned.

A couple of suggestions for you: some people include rates on their websites. It can be very helpful to explore other’s websites, not only looking for rates, but to see how they present information overall.

Another thing you can do is research what other service providers in your area charge e.g., massage therapists, personal trainers, etc. Look into professionals with comparable level of education, training, and work experience you have in regards to providing DMM services.

Best wishes for success!

Others have given you great information. There are a combination of factors in determining rates. I mostly do hourly fees, but for clients who have basically the same work load month after month, I will do a flat rate. It make billing a lot easier for me and there is a clear expectation from the client on how much it will cost each month. I won’t do a flat rate, however, until the client has been a client for 3-6 months so I have been through whatever clean up and set up time I need and then I have time to get a good feel of the work load. I always still explain that if there are any large projects that come up and the workload spikes, there will be an hourly charge for that time. I think the actual rate will be dependent on the types of clients you serve and the level of sophistication in the services you will be offering along with your geographic area. One bit of advice though is to know your worth. Don’t feel guilty about your rates and don’t undercut yourself. Good luck!

Hi Cierra,
I am also fairly new to DMM business but I do have a CFP designation so I had checked with other professionals in my area including Private Health Care Advocates. My hourly fee is inline with them. I hope that helps.

I went to a workshop at a NAPO conference years ago where the speakers encouraged us to figure out what we wanted to earn a year. Then divide that amount by number of weeks (excluding vacation weeks). Then divide by number of hours per week we can bill clients. I came up with an hourly rate that I felt was acceptable. In my 17th year as a DMM, I now charge more than double that starter rate. They also said to be confident about your rate! It is what you think you are worth. I’ve always compared my rate to what accountants charge for non-tax work. I try to be a bit below that rate. And I try to be in line with what others charge in my area. My rate now is comparable to what others in Atlanta (where I used to live) charge, but well below what my colleagues in Phoenix charge. BUT I work remotely so it’s not as relevant now. Last thing: I always charge hourly. I use QuickBooks to track time and have never been comfortable with a flat rate. I never know what new thing my clients will want. Best of luck!