What’s your gig?
Is your gig a service or a product? Gigs exist in many forms and every gig is different.
Service gigs involve labor and must generate revenue to compensate for all the time required to complete the gig. Ultimately, everyone is compensated for their time. Professionals charge hourly or for a procedure, employees are paid by the hour.
When pricing a gig consider the preparation time (getting everything together for the gig), travel time (to and from the gig) and the incidental expenses incurred. These small, seemingly insignificant, expenses will add up during the course of a year. If you were to add up the total of your seemingly insignificant expenses and divide them by your hourly compensations you will begin to see how important tracking expenses make a difference in your profitability.
Gigging a product is much different than gigging a service. Product gigging can be passive, (listing products and letting them sell themselves), or active, (promoting and demonstrating them to potential clients). Product gigiging is usually easier to determine profitability because product costs are fixed with packing and shipping the main incidental expenses. When selling a product, compensation for time is still part of the equation, although to a much lesser extent.
Compensation follows either the service being rendered or the product being received. With a service gig when the gig stops so does the revenue. Product gigs can continue to provide a stream of income long after the promotion and demonstration is completed.
In closing have both types of gigs, both have their benefits and shortfalls. I would encourage everyone to find a gig and join the world of entrepreneurs. It is the most rewarding while challenging aspect of business.