Time is the most important asset you have. Not only does the use of your time have potential monetary value, but it has personal value as well, so it’s important to find a balance between engaging the two aspects.
Valuing time effectively is also an important step in treating your affiliate site as a business. Before you can do that, however, you need to be able to assess quantitatively what your time is worth.
In this post I’ll talk about how to determine the monetary value of your time using two approaches.
The first approach I use when trying to determine my time value is to understand what it means to me personally. This number changes over time as you progress (or regress) financially and have differing personal influences that are more or less valuable.
For example, an hour taken away from a father spending time with his kids is likely to be more valuable to him than an hour taken away from watching tv. Additionally, time will have a different value if you’re absolutely desperate for additional capital and struggling to make ends meet as opposed to trying to save enough for an extra purchase that may be nice but not essential.
So, given the fact that it changes, the question becomes: how much is your time worth to you right now?
To answer this question I use a simple thought experiment. I ask myself: how much would someone need to pay me to stop doing my current activity and instead do a job I don’t really want to do?
This is the personal value of your time.
The second approach to valuing your time is to think about the market demand. You might think your time is worth $200 an hour to work on your site, but reality dictates that blog posts are usually worth $10-30 apiece, especially with easy access to outsourcing. There’s a huge disjunct here; you can’t simply proclaim your time is worth something it clearly isn’t.
Not surprisingly, the market rate of my time also changes depending on what task I’m completing. If I’m working on social media promotion for the blog the time-value is different than if I’m programming a new plugin to use.
Again, I use a simple thought experiment to help determine a value: assuming I could find a skilled worker, how much would it cost to pay someone else to complete my current task?
One caveat I want to point out with this approach is that the market value of your time has to do with what you could reasonably pay someone else to complete the same task. Many people make the mistake of thinking about the possible return on investment their time will yield. While it’s important to think about your “return on time”, this is not the market rate of that time.
Finding the Balance
Realistically, the true value of your time lies somewhere in between the personal and market assessments. You’re probably more likely to place a higher personal value on your time than what the market truly demands, which is why it’s important to look at both sides of the spectrum.
The more you can close this gap, the better off you’ll be in aligning your priorities and developing an effective implementation process for your affiliate site.