The Exact Formula I Use to Price Every Commission

Business-focused summary (commission pricing strategy)

The presenter outlines a repeatable, math-based pricing “formula” to help artists avoid two common traps:

• Undercharging (which leads to burnout and income that’s too low)
• Overcharging without confidence (which creates negotiation anxiety)

The system treats pricing like an operations framework: set a measurable hourly floor, calculate per-commission labor cost, add overhead, validate against market pricing, and then dynamically adjust based on real demand.

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Pricing playbook / framework (the “formula”)

Step 1: Set an hourly rate floor (income target → capacity)

1. Calculate how much you need per month to feel “okay” (sustained living, not necessarily rich).
2. Divide that monthly goal by realistic commission hours per week × 4.

Hourly rate floor = Monthly goal / (Hours/week available × 4)

Rule: Do not price below this hourly floor.

Example (given):

• Monthly need: $2,000
• Available hours/week: 20 → monthly hours: 80
• Hourly floor: $2,000 / 80 = $25/hour

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Step 2: Track actual time per commission type (stop estimating)

• Choose common commission categories (e.g., headshot, half body, full body, VTuber model).
• Time yourself with a real timer to determine actual labor hours.
• Price per commission using:

Base price per commission = (Hours actually spent) × (Hourly rate from Step 1)

Recalibration rule: Re-run this time-tracking exercise about every 6 months, since skill improves and time-per-piece usually decreases.

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Step 3: Add overhead / “sneaky extras” buffer

Include costs such as:

• Software/tools (e.g., Clip Studio, Procreate, Photoshop)
• Hardware + electricity
• Internet
• Platform fees (e.g., VGen/Ko-fi/PayPal cuts)

Add a buffer of 10%–15% over base price.

Example (given):

• Base price: $150
• With overhead: ~$170

Also, check your platform fee percentage and incorporate it into overhead.

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Step 4: Market check (floor vs market reality)

Compare your prices to:

• Artists at a similar skill level (calibration)
• Artists you aspire to (ceiling/target)

Purpose:

• Detect if you’re charging too low (your market value may be higher)
• Detect if you’re charging too high (you may reduce demand)

This isn’t about copying—it’s about positioning and targeting.

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Demand adjustment (dynamic pricing based on fill speed) — “secret ingredient”

Adjust prices based on how quickly commissions fill.

Trigger rules (described):

• If slots fill in under 24 hours, your prices are too low
• Increase the next round by ~10%–20% (not aggressively)
• Continue adjusting until slots fill in a few days to about a week
  • Goal: increase earnings without creating overload you can’t handle

Concrete outcome described:

• The presenter previously had overwhelming demand and had to pause/close commissions to catch up.
• The fix was raising prices, not permanently closing commissions.

Conceptual goal: Move from “low price due to vibes” to “price aligned with demand,” enabling large long-term jumps (e.g., $20 → $300).

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Key metrics / KPIs mentioned (and how they’re used)

• Income sustainability target (monthly goal)
• Available capacity (hours/week realistically usable)
• Actual time per offer type (hours)
• Base price = time × hourly floor
• Overhead rate: 10%–15%
• Market positioning: comparison to
  • similar-skill artists (calibration)
  • aspirational artists (growth target)
• Demand / throughput signal: commission slot fill time
  • < 24 hours → raise prices
  • Target: a few days to ~1 week to find balance

No explicit marketing metrics like CAC/LTV/churn are used. The core system relies on capacity, labor time, overhead, and demand fill-speed.

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Concrete recommendations / actions to implement

• Replace “feelings-based” pricing with a repeatable calculation.
• For each commission type:
  • run a timed trial with a real timer
  • log hours and use them for pricing
• Re-time commission categories periodically (every ~6 months).
• Add overhead buffer instead of assuming tools/platforms are free.
• Do a quick competitor/market scan regularly to confirm where you sit.
• When demand is hot:
  • raise prices in 10–20% increments each commission round
  • until slot-fill timing matches your target range
• If someone says you’re “too expensive”:
  • treat it as a market-fit signal, not personal failure
  • your client base is the segment that can afford your value

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Example scenario (why the system mattered)

• The presenter describes underpricing caused by poor time estimation:
  • believing a complex piece would take ~5–6 hours
  • but it actually took ~9 hours
• This led to commissions that were “basically for free,” causing financial instability and burnout.
• After implementing the formula, she reports increased confidence that raising prices won’t kill demand because there are people already waiting for commissions when slots reopen.

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Presenters / sources

• Presenter: Athalie (named as “Athalie” in the subtitles)
• External sources: No specific external publications or third-party experts cited.