How much is your time worth? (Yes, I worked it out!)

bertuseng · 10-22-2009, 01:48 PM

How much your time is worth probably depends on how much you value it yourself. This is probably then directly related to how much money you are currently making with your online business.

As someone who tries to use mostly free marketing, I worked it out like this for myself:

Total hours I work online per week: 10 hours
Hits generated to my one site: 350 uniques

That comes down to 35 hits per hour and roughly equals 1 unique hit per 2 minutes.

If I would get the same amount of hits from PPC paying 50 cents per keyword I would pay $175.00.

That means that if I work 10 hours to save $175, then I basically work for $17.50/hour so that is what my time is currently worth.

Dang! And obviously all the time doesn't go into traffic generation.

What do you guys think about this way of thinking and what is YOUR time worth?

pheonix44 · 10-22-2009, 02:03 PM

How do you generate traffic? Could you outsource this so you could double productivity thusfore doubling your income?

bertuseng · 10-23-2009, 12:46 AM

Quote:

Originally Posted by pheonix44

How do you generate traffic? Could you outsource this so you could double productivity thusfore doubling your income?

I don't know. At this stage I mostly make use of traffic I generate from Facebook, forums and classifieds and some articles.

Don't know If I can really outsourse those at this stage.

homeworkin · 10-23-2009, 01:19 AM

Calculating your hourly rate is vital to scaling your business. If you know that one activity saves/makes you $20 an hour, and another one $40, you will be able to keep your 'to do' list prioritized properly.

I learned this many years ago when I was working my way through college as a nanny. I worked for some very rich people. They outsourced anything they could, such as cleaning their houses, baby proofing, painting a room, etc. If you can bill out your services at $500 an hour, why not pay someone else to scrub your bathtub?

Same principle applies to working for yourself. If you can spend 10 hours creating a website that will bring you $500 a month for the next 2 years, then your time is really worth $1,200 an hour when you are in site creation mode. So, anything that detracts from that, becomes really expensive. You can't avoid all the drudge work, especially in the beginning, but it is helpful to think it through.

Also, if you are "making" $17.50 an hour, it beats a lot of jobs.

The other crucial thing I learned from these wealthy people is that you need to be very careful about what you prioritize. Yes, my client was billing out at $500 an hour. But I saw her oldest child take his first steps. She did not. I chose not to tell her, and let her figure out 3 days later that he could walk. She never figured out that he had almost every major milestone on Saturdays. However, I made DANG sure that I was there when my daughter took her first steps.

Okane · 10-23-2009, 02:46 AM

Your reasoning reminds me of the people who don't need anything but buy as soon as they see a "discount". They then think that they saved money...

The measure that counts when calculating your "worth" is the money you make, not the money you do not spend (in your case, the $175 is the discount you get by using free methods...").

The question is:
How many sales do your 350 uniques generate?

If you are promoting an average Clickbank product that converts at 2% and if the clickthrough rate (people clicking the hoplink on your page) is 30% and if the comission for each sale is $20...

then you make:

350 * 30% * 2% * $20 = $42 per week

That's $4.20 per hour.

Hmm...

Marc

makemoney-u · 10-23-2009, 01:51 PM

I would have to agree with Marc on this one. If the traffic is not "earning" anything, then essentially you are wasting your time. I only determine value by results. If there are no results than I have wasted my time. Until there are some numbers that I can put values behind, what I have done is not worth anything. No business can sustain that.

chrisgarrett · 10-23-2009, 02:43 PM

I wrote one tweet and made $3750, I wish I was making that kind of money all the time. What, $1k a second?

10-22-2009, 01:48 PM	#1
bertuseng Internet Marketer Join Date: Sep 2009 Location: London Posts: 196 Thanks: 21 Thanked 12 Times in 11 Posts Social Networking Contact Info	How much is your time worth? (Yes, I worked it out!) How much your time is worth probably depends on how much you value it yourself. This is probably then directly related to how much money you are currently making with your online business. As someone who tries to use mostly free marketing, I worked it out like this for myself: Total hours I work online per week: 10 hours Hits generated to my one site: 350 uniques That comes down to 35 hits per hour and roughly equals 1 unique hit per 2 minutes. If I would get the same amount of hits from PPC paying 50 cents per keyword I would pay $175.00. That means that if I work 10 hours to save $175, then I basically work for $17.50/hour so that is what my time is currently worth. Dang! And obviously all the time doesn't go into traffic generation. What do you guys think about this way of thinking and what is YOUR time worth?
	*My Top FREE Offers:* 17 FREE Internet Marketing Training Courses (Valued at $520) The Gurus' Secrets To FREE Traffic (Valued at $384)

10-22-2009, 02:03 PM	#2
pheonix44 Robin Abernathy War Room Member Join Date: Mar 2009 Posts: 555 Thanks: 0 Thanked 57 Times in 45 Posts	Re: How much is your time worth? (Yes, I worked it out!) How do you generate traffic? Could you outsource this so you could double productivity thusfore doubling your income?
	Mock my words, I will be a millionaire someday or die trying. I'll do it by doing what others don't won't or can't.

10-23-2009, 01:19 AM	#4
homeworkin Warrior Member War Room Member Join Date: Aug 2009 Location: Rocky Mountains Posts: 28 Thanks: 2 Thanked 9 Times in 7 Posts	Re: How much is your time worth? (Yes, I worked it out!) Calculating your hourly rate is vital to scaling your business. If you know that one activity saves/makes you $20 an hour, and another one $40, you will be able to keep your 'to do' list prioritized properly. I learned this many years ago when I was working my way through college as a nanny. I worked for some very rich people. They outsourced anything they could, such as cleaning their houses, baby proofing, painting a room, etc. If you can bill out your services at $500 an hour, why not pay someone else to scrub your bathtub? Same principle applies to working for yourself. If you can spend 10 hours creating a website that will bring you $500 a month for the next 2 years, then your time is really worth $1,200 an hour when you are in site creation mode. So, anything that detracts from that, becomes really expensive. You can't avoid all the drudge work, especially in the beginning, but it is helpful to think it through. Also, if you are "making" $17.50 an hour, it beats a lot of jobs. The other crucial thing I learned from these wealthy people is that you need to be very careful about what you prioritize. Yes, my client was billing out at $500 an hour. But I saw her oldest child take his first steps. She did not. I chose not to tell her, and let her figure out 3 days later that he could walk. She never figured out that he had almost every major milestone on Saturdays. However, I made DANG sure that I was there when my daughter took her first steps.
	Cash Generating Sites Awesome Domains~Finished Sites~Unique Content www.cashgeneratingsites.com

10-23-2009, 02:46 AM	#5
Okane Active Warrior War Room Member Join Date: Jun 2009 Posts: 79 Thanks: 19 Thanked 23 Times in 13 Posts	Re: How much is your time worth? (Yes, I worked it out!) Your reasoning reminds me of the people who don't need anything but buy as soon as they see a "discount". They then think that they saved money... The measure that counts when calculating your "worth" is the money you make, not the money you do not spend (in your case, the $175 is the discount you get by using free methods..."). The question is: How many sales do your 350 uniques generate? If you are promoting an average Clickbank product that converts at 2% and if the clickthrough rate (people clicking the hoplink on your page) is 30% and if the comission for each sale is $20... then you make: 350 * 30% * 2% * $20 = $42 per week That's $4.20 per hour. Hmm... Marc
	"You can get anything in life you want if you will just help enough other people get what they want."

10-23-2009, 01:51 PM	#6
makemoney-u Warrior Member Join Date: Jul 2009 Posts: 24 Thanks: 0 Thanked 2 Times in 2 Posts	Re: How much is your time worth? (Yes, I worked it out!) I would have to agree with Marc on this one. If the traffic is not "earning" anything, then essentially you are wasting your time. I only determine value by results. If there are no results than I have wasted my time. Until there are some numbers that I can put values behind, what I have done is not worth anything. No business can sustain that.

10-23-2009, 02:43 PM	#7
chrisgarrett web geek War Room Member Join Date: Aug 2008 Location: Yorkshire, England Posts: 205 Thanks: 4 Thanked 82 Times in 25 Posts Social Networking	Re: How much is your time worth? (Yes, I worked it out!) I wrote one tweet and made $3750, I wish I was making that kind of money all the time. What, $1k a second?
	Chris Garrett http://www.chrisg.com/ \| http://twitter.com/chrisgarrett FREE WSO: Sneak a look at ALL my new products in 2010 Get Your Free 102 Proven Headline-Writing Formulas Now, Because You Know Headlines Matter!