How to Price Your AI Services as a Beginner
AI Summary
Video Summary: AI Product and Service Pricing Strategy
Introduction
- The speaker has made over $2 million in AI sales.
- Emphasizes the importance of pricing strategy for growth.
- Aims to guide beginners on pricing AI products and services.
Speaker Background
- Self-taught in AI and software development.
- Founded Morningside AI and other AI companies.
- Started with AI consulting and YouTube, then expanded into education and SaaS.
Key Topics
- Importance of Pricing: It’s foundational for profit and reflects the value of services.
- Value Formula: Skills + Experience = Value. This determines pricing power.
- Pricing Basics: Services are typically time-based, while products are value-based.
- Starting Projects: Beginners should start with no-code/low-code tools and offer services at cost or for free to gain experience.
Getting Your First Project
- Use platforms like the speaker’s school community to find clients.
- Offer services for free or at cost to build experience.
- If hiring a developer, charge at cost to avoid overcharging clients without proven results.
Pricing Structure and Strategy
- Cost Plus Pricing: Recommended for beginners after gaining experience.
- Estimate time and resources, then apply a markup (2x suggested starting point).
- Payment terms: 50% upfront, 50% on completion, with clear definitions of ‘completion’.
Key Takeaways
- Prioritize gaining experience over immediate profits.
- Use Cost Plus pricing with a 2x markup after initial success.
- Structure deals with 50% upfront to cover costs.
- Skills and experience define value; increase rates as you grow.
- Start with simple no-code/low-code projects to minimize costs and learn.
Additional Resources
- The speaker offers a free course on starting an AI automation agency in their school community.
Final Thoughts
- Successful deliveries are crucial for building a portfolio and justifying higher rates.
- Avoid rushing to earn before gaining experience.
- The video is a beginner’s guide and more advanced topics are available for those interested.
Detailed Instructions and URLs
- No specific CLI commands, website URLs, or detailed instructions were provided in the transcript.