204: How Much is Your Time & Knowledge Worth?

What does value mean? How do you create valuable content?

My Podcast:
Mike Murphy Unplugged

Show Notes for Ep129:
The Value Show

EP129: The Value Show (Podcast)

How much is your time and knowledge worth and how do you make content or products and services that are valuable to others?

A lawyer’s time and advice are his stock in trade. –Abe Lincoln

Episode Summary:

What is the definition of value?
What is value based or perceived value?
How do you create valuable content?
How do you figure out how much your time is worth?

What is Value?

1. Economics (Monetary Value):
   Value is the amount of money that can be received for something. What is the maximum amount of money you are willing and able to pay for a good or service?
2. Ethics (Core Values):
   How useful or important something is to you.Ethics or core values and beliefs are important to how you live and have tremendous value to most people.

Nothing has a fixed value…”One man’s junk is another man’s treasure.”

What is Perceived Value or Value-Based Marketing?

Value is a buzzword online and everybody is always talking about creating value and podcasters and content creators are supposed to over-deliver on value to their audience. You do not determine what is valuable- your customers, clients or audience do.

As Gary Vaynerchuk often says, the market-not you decides how valuable your content is in the form of likes, shares, comments, etc.

Question:

Have you ever made a video or a podcast episode that you were so proud of and that was awesome, but the response was silent?

Or the opposite when you hit publish on something you considered sub-par work and everyone seemed to love it?

How Do You Create Valuable Content?

Create content with the end-user in mind. What’s in it for them.

Does your content do what it says it will? Is it functional?
Is your content worth paying for?
Is there a a community or tribe included with your content?
Does your content motivate, inspire, entertain or make people happy?

There are 4 Types of Value:

1. Functional Value: This is the solution you offer. Does it work and will it solve the problem they are having. If I create a tutorial and someone searching on Google watched it and it fixed their issue, then they will deem my tutorial as valuable because it did what it said it would.
2. Monetary Value: Is the functional value worth paying for? If I create a course or product that teaches you a skill you need to learn to get a promotion or to improve your business in a fraction of the time it would take you to learn on your own, that would likely have perceived value to you, right. You may want to learn how to do something, but when the want becomes a need, the value or the amount you are willing to pay increases.
3. Social Value: Does your content or product or service allow the consumer to connect with others. Maybe you have a paid membership site or Patreon community that brings people with similar interests together and while there may not be any functional value per se, the communal and social value is high and very important to some. This is your tribe or community and podcasting and Facebook groups are great ways to generate social value. Depending on your target audience and nature of your business, this could be one of the most valuable pieces to your brand.
4. Psychological Value: Sentimental value falls under this category. Does your content or product and service make people feel better or happy? I do a lot of Facebook Lives of the sunsets from the beach and people tell me they love them because it makes them relax and listen to the sounds of the water and birds.

How much is your time and knowledge is worth?

Note:
There is no magic formula and it is always changing depending on the situation. The important thing is your mindset. Just like creating content, put yourself in the end-user’s mind. Is what you are providing solving their problems or transforming their lives for the better? You get what you pay for in life. Are you a Hyundai or Mercedes? Maybe you are not experienced yet and you are more like a Lexus? It doesn’t matter where you fall in the spectrum, but be honest and believe in yourself. Charge accordingly and keep in mind that all the years of working and learning and practicing are part of your value package and what you bring to the table.

Personal Note:
I struggle with charging people. I give too much away for free. I get a knot in my stomach when I send an invoice. Just being honest. I am very confident in my knowledge and skills. I am trustworthy and reliable and am a really good problem solver. I know I can charge premium prices, but the reality is I do not, but here is how I am working it out.

Steps to Know How To Charge

1. Figure out expenses. Know your numbers inside and out (I hate accounting, but this step is critical).
   -How much do you need every month to live and run your business.
   -Use a freelance calculator To calculate the rate you need to pay expenses and make desired salary.
   -This is a good starting point at determining how much your time is worth by knowing that you need to create a product or service that people are willing to pay in order for you to cover your expenses and generate a profit for you.

My freelance calculator rate came to $67/hour to make $75,000 per year.
I charge $75/hour for my freelance concierge business
I charge $75/hour for Photoshop work
I charge $150 for one-hour brainstorming sessions
I charge $250/month for coaching
I charge $250/user for G Suite setup
I charge $750 to setup a basic website

Step 2: Practice Your Craft

Hard work matters. There is no easy button or shortcuts. Most people are not willing to stick it out as long as it takes to be successful or the best. It’s a long, tiring grind that often feels thankless and endless. Do you have what it takes? This is not about getting praise from friends and family and people online for how hard you work. This is really putting in the time over and over to be the best. Yeah, it can suck. It will pay off.

The better and more skilled you get at whatever it is you offer, the more valuable your time and knowledge is worth. I have put in many years learning and practicing tech and creative skills, I make daily videos and content to distinguish myself from than those unwilling to put in the hard work and just like honest Abe, my stock in trade is rising in proportion to how many people are seeking my time and knowledge.

Step 3: Tell Your Story

This is where I think the magic happens and something I am still working on, but I know it is the key ingredient. The clearer you can communicate your message and how you can help people, the more valuable your services become. People connect with people and business who they think understand them or know exactly how they feel. Your story builds relationships and establishes trust.

Who you are, what you do and how your content or product and services can do for those who consume it.

How can you help them? What’s in it for them?

How can you solve their problems or help them make more money or lose weight or be happy?

First steps for me:

1. Simplifying My Website
   I want my website to tell my story. My story, portfolio and resume told like a story that is easy to follow and understand. Those who like me an my style will want to join my community and tribe and maybe do business with me. Not all will like me and that is okay.
2. Documenting my Journey
   Creating videos and articles to tell and share my story and goals and journey to creating the life I want. I do this in video, podcasting and writing articles. The more I tell my story and verbalize why I do what I do and the direction I am headed, the more I believe it and it builds my brand.

In Conclusion:

Money is no object when you have something people need to help them achieve their own goals or fix their problems, so if you figure out what people need from you, you have figured out how to make a living helping people.

As soon as you stop making it about you and start making it about how what you do can change or transform the situation of others, then you will gain the confidence to raise your rates and make a good living with happy clients.

#youarevaluable

#soami

Questions, Comments, Feedback?

Email me: mike@mikemurphy.co

Can I Help You?

I create content and help people figure things out.

I make podcasts and videos that teach people how to make better content.

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My name is Mike Murphy, I’m a one man band and podcaster.
Learn. Create. Move Forward.
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