In an earlier blog, I asked – rhetorically – if you were worth $40,000 an hour (or up), the amount that a top professional speaker can earn in an hour giving a keynote speech.
But what should you actually charge for speaking? Most people at the early end of their speaking careers probably respond with “Gee, thanks!” when someone calls them to ask them to speak. That doesn’t put you in a very strong negotiating position. What should you ask for?
And indeed, if you’re speaking primarily to promote your business – say, you’re offering a seminar on tax preparation in hopes of generating new clients for your accounting firm – then you should speak for free.
But if you decide to make a paying business out of it, then you have to figure out what the market will bear, where you stand in that marketplace, and what you will charge so as neither to drive too many people away nor to leave too much money on the table.
Here are some guidelines to help you do that, in the US market at least, as you get started.
Think like a real estate agent, especially at first. Real estate agents are forever facing the delicate task of explaining to the proud homeowners that the home that they love isn’t worth as much as they want it to be on the open market. Especially when you’re starting out, you don’t have much experience, and you haven’t established a track record of successful speeches, it’s better to begin on the low end.
The issue is that if you price yourself too low, you’ll send out a message of low quality. One way to get around that is to say, early on, “I don’t charge for my speaking, per se, but I do get paid an honorarium of $X,000 plus expenses.”
When you’re ready to start really charging, then I would recommend beginning at the $5,000 level (plus travel), because that’s the level that serious speaking commences.
Then publish your book. As I’ve blogged about before, a book is still necessary to sustain most professional speaking careers. Once you’ve got a traditionally published book out, then you’re in the $10K and up category.
If the book sells well…. You’re ready to move up! New York Times bestselling authors regularly command fees of $40K and up, which is where I began.
Then think like an airline. Separate out travel expenses from your fee. You might also discount specific amounts for book purchases, or add the book purchases to your fee. I tried to start a movement of giving out a comprehensive fee, since it can take time and bureaucracy to get your travel fees reimbursed, but the movement didn’t get very far. People are so used to paying travel that I couldn’t persuade them to do without. So instead, break those out of your fees.
Finally, measure your fees by the market demand. If people are coming to you to ask you to speak, that means there’s market demand. That’s a far more persuasive position to negotiate from than if you’ve started the conversation. Once you’re getting calls, then keep raising the fees until you get pushback more than, say, 20 % of the time.
Please take these numbers as guidelines only. For a whole host of reasons, this is not an exact science. Any market in which one former president commands fees of $250K and another of millions is one for which money in the end is not really the motivating factor. It’s the desire to have the face time with the speaker. And that’s not about an hour’s work, or enough money to buy a car, or a really expensive house. That’s about the right person providing an experience of the right kind for the right audience.
What are your experiences charging for speaking? How did you decide upon your fees? I’d love to hear from you on this tricky pricing question.
One of my early mentors used to do it like this:
He’d start by setting a number, for example your $5000 one, Nick.
Then every week, he’d look at a rolling 12-week average of how many bookings he had. If he was ‘full’ or at his target level, he’d immediately increase his fees by 11 per cent.
And he’d continue that religiously each week.
The trick was, of course, NEVER to reduce them even if he wasn’t full or at target.
Interesting.
And it’s not JUST the fee — it’s how you articulate it. Long ago I learned to say, after the appropriate amont of questioning on audience size, content and so on, ” Your investment in the session is xxxxx and that includes some very specifc things. Can I just explain what they are.”
You’ll ALWAYS get a ‘yes of course’ on this line — well at least I always do. And what happens is you end up talking about all the inclusions and you blow them away with how much value they’re actually getting.
More if you need it, Nick. (Mind you, I’m off-line for 2 weeks in Kenya delivering 1396 goats and — believe it or not — taking 50 villages out of poverty thanks to http://www.b1g1.com).
Hi, Paul —
Great, as always, to get your insights! I like the specificity of your early mentor’s approach — it puts numbers on what I was talking about generally. And you’re right about “takeaways” — that’s something that’s only increased in importance since the downturn of 08. You have to be able to articulate what your speech will deliver to an audience. I do have some reservations about the true utility of all that, but that’s for another blog, and in any case the market demands it.
Most importantly, good luck in Kenya — your work is inspiring!
I love this advice, Nick:
“The issue is that if you price yourself too low, you’ll send out a message of low quality. One way to get around that is to say, early on, ‘I don’t charge for my speaking, per se, but I do get paid an honorarium of $X,000 plus expenses.'”
Having been an agent and manager for speakers for many years, I can vouch for the fact that your fee DOES says something about your credibility (rightly or wrongly). Better to speak for free than to speak for “cheap.” Then when you are ready to attach a fee to your name, as you said, make sure the fee says “professional.” (And of course you have to be able to deliver on that.)
Hi, Shawn —
Thanks for the comment from a pro. You’re absolutely right about delivering — that’s the key. The public speaking world is a surprisingly small one and word of quality (or its opposite) travels fast!
That is Great Information, Nick!
Thank you for the Post!
Very, very nicely done!
When I am asked to speak in front of the public, I just don’t give them price. It’s not my forte to give the charge. They now and should know my worth before inviting me to speak.
hmm it will be proud for me if someone invite me for public speaking, it is a great plessure.