When freelancers are entering the jungle of freelancing, they often feel lost. They see freelancers charging 100$ per hour and freelancers charging 5$ per hour for the same services. At the first glance, this disparity can be disheartening and confusing. But let us consider some essential factors that will bring clarity to the subject of pricing freelance services.
Do your research
Do research among freelancers in your country that make a good living providing the service that you want to offer. How do they manage their expenses and rates? You will find people similar to you in Facebook groups or freelancer hubs of professionals providing services like yours. This way you will get a rough idea of the bid range you can request from your potential clients if you want to sustain yourself with freelancing only.
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How to start
If you are new to freelancing and you are just starting with the service you want to provide, you want to start on the lower end of the price range, in order to gain experience and feedback on your job. Once you feel confident and you have some happy clients that can provide you with good testimonials and referrals, you can start increasing your price rate and start charging more for your work.
Set clear goals from the beginning
It is good to set a goal from the beginning. What is the per-hour rate that you want to receive in order to provide for your expenses so that you can have a decent life? It is good to calculate your bills, accounting expenses, taxes, and professional subscriptions. Consider also your other expenses for health insurance, family care, savings, and funds for the days you will be on vacation or on sick leave. When you have all these figures black on white, this will give you a clear vision of your financial situation and how much money you will need to derive from your professional services. Make a calculation of how many hours you need to work per day – and the rate you need to request for your services.
Freelancing Services Calculator
A great tool you can use for calculating your current costs and establishing your hourly rate is the Payoneer Hourly Rate Calculator created by Payoneer. There you can add your current income and expenses, and also the percent by which you want to increase your earnings. This calculator considers operation and communication costs, vacations and sick days, and also how many weeks you want to work in a year. In the end, you get an estimation of the average price per hour you might consider charging your clients. It could be very helpful if you are just starting in the world of freelancing.
Upgrade constantly your skills and profile
In order to attract clients that are willing to pay higher fees, you may want to continuously upgrade your skills and abilities. Make sure you list all relevant projects you complete in your portfolio. Also, you want to make sure that all aspects of your freelance profile look professional and the job proposals you are sending are skilfully explaining the value you can provide. Experience shows that a great profile picture and a persuasive job offer are crucial to winning the desired freelancing project. So have all these aspects in check and you are certain to start attracting the clients you need to skyrocket your freelance career!
It Is Not About The Price, It Is All About The Value
Some freelancers fear to request a fair rate for their services. This may be due to many social factors. They might be scared that requesting a higher fee might scare the clients. However, this is very far from the truth. It is true that your bid range is a factor your client will consider while estimating whether to hire you or not. But it is important to remember that what you are providing your client is a service that brings value to his business or life. So never under-price yourself!
Do Not Set Your Rates Low Expecting To Get More Jobs
Good quality clients are actually willing to pay higher rates if they are sure they will achieve the desired results from the project. They do not want to lose their time and money with cheap people that do a poor job. This is why quality clients often select freelancers that are charging higher rates, but they are experts in their field, and they are sure to receive excellent service.
HIGHLIGHT THE VALUE THE CLIENT IS GETTING
This is why you need to keep in mind the value that you are bringing to your client and to highlight this to them when you are making your offer. At the very start of your career, you do not have the experience and reputation to charge high fees. But once you get established on the platform – make sure to know your value well and start increasing your rate according to the goals you have set.
DO NOT CHARGE ALL YOUR CLIENTS THE SAME RATES
Not all clients you will encounter in your freelancing career will be the same. Some startups, for example, have a limited budget. Working with them can be uncertain as they are not established on the market, and they do not have a steady stream of income. You may decide to help them and charge them a rate that they can afford.
However, when you work with a multinational well-known company that is already steady on the market, you can comfortably ask them a higher fee and they will be willing to provide for your expenses, as long as they get their required service and outcome. So, before you start working with a client or company, do your research beforehand and adjust your rates based on your research!
PER HOUR AND FIXED PRICE
In the freelancing world, projects can be priced per hour or by fixed price. Some freelancers prefer per hour pricing because it is easier for them, and they have the guarantee that each hour worked will be an hour paid. This is very good if you are a beginner in freelancing and you want to explore the market and your industry.
However, experienced freelancers prefer working per project. This way they focus on the value the completion of the project will bring to their client and not on the hours that they need to create it. In fact, you can offer a project and charge for it thousands of dollars, if you are sure it will make or save tens of thousands of dollars to your client! You can complete it in just one or two hours, this is not important to your client. What matters is the result or outcome you are providing!
Remember, your services are making or saving money for your client. So, consider the solution you are providing from the client’s perspective and value your work accordingly!
Tips on establishing your price:
- Do research among other professionals in your industry
- Do a calculation of your expenses and needs
- Set clear goals of your rates
- Start on the lower range and gradually increase
- Use an online calculator as a reference
- Research your client and their business beforehand
- Keep in mind the value you are providing
What to avoid:
- Setting a low rate for your service can turn off good potential clients
- Charge all clients the same rates
