TJM Product Owner: Determining your daily rate
Setting an adequate average daily rate (AMR) is of crucial importance for product owners working as freelancers. As a reminder, the TJM is the amount you charge per day for your services. We are going to look at the various parameters to take into account to calculate your TMR and discover the average of TJMs on the current market.
Calculating the TJM of a product owner: Parameters to take into account
The product owner experience
The experience you have accumulated as a PO is a key factor in determining your TJM. The more experience you have in the field, the higher your TMR can be. Customers are willing to pay more for experienced professionals who can bring real added value to their projects.
The consultant's level
The level of skill and expertise you have achieved also influences your TJM. Junior consultants tend to charge a lower rate than experienced, senior, or expert consultants. The more you improve yourself in your profession, the more you can justify a Higher TJM. We will come back to this point in more detail later in the article.
The service requested
The nature of the service you are supposed to provide plays a role in calculating your TMR. Some complex and specialized tasks may require a higher TMR, while other more common tasks may be priced at a lower level. Assess the complexity and scope of the mission to determine a fair TMR.
The geographical location
Geographical location is also an important point to take into account when setting your TJM. In some regions where the demand for product owners is high and the supply is limited, such as in the Paris region, you can charge a higher rate than the average. On the other hand, in areas where competition is fierce, you may have to adjust your TMR downwards to remain competitive.
Average TJM for product owners
The TJM range for OPs is between 200 and 930 euros per day. This range is actually quite broad, but depends a lot on seniority. The average is generally around 650 euros per day.
It is important to know the average TJM practiced by product owners to assess your position in the market. PO salaries vary considerably depending on seniority and expertise:
- Junior: around 400 euros per day
- Confirmed: around 560 euros per day
- Senior: around 700 euros per day
- Expert: around 800 euros per day
If you convert to an annual gross salary, you get a range of 50,000 to 90,000 euros.
What is a PO exactly?
Before determining your TJM, it's important to understand the role and responsibilities of a product owner. As a PO, you are the essential link between the customer and the technical team in a project. Your main objective is to define product requirements and functionalities, to divide and prioritize development tasks, and to optimize the added value of the final product.
The average duration of an assignment generally varies between 3 and 6 months, depending on the complexity of the project and the needs of the client.
The missions of a PO
As a PO, core missions include:
- Be the communication link between the customer and the technical team
- Divide and prioritize development tasks
- Accelerate the development phases of a project
- Optimizing the added value of the final product
By completing these missions, you contribute to the success of the project and to customer satisfaction.
Training and skills
To become a product owner, it is recommended to have a level of studies ranging from a Bac +3 to +5, with a specialization in digital marketing or a certification course in project management. However, it is important to note that practical experience and domain knowledge are also essential assets.
In addition to academic qualifications, some key skills are essential for success:
- Listen to the needs and expectations of the customer
- Know how to communicate in a simple and effective way with all stakeholders
- Have a technical appetite to understand the technical aspects of the product
- Be able to withstand stress and manage difficult situations
- Be responsive and adaptable in the face of changes and unforeseen events
By developing these skills, you will increase your value in the market.
Do not hesitate to call on a qualified PO to carry out your company's projects successfully. You can find your next product owner by clicking on the link.
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