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Setting your rate can be a really difficult challenge for freelancers and being a freelancer you get to set the prices for your clients and mind you whatever way you decide to charge them, know that there is no wrong or right way. This can be a struggle for especially new freelancers who are trying to find the best rate that doesn’t undervalue their work because If you set your rates too low, you could be leaving money on the table and not getting paid for the value that you offer, at the same time, if your rates are so high, then clients end up walking away.
So in this article, I am going to give you some tips that will help you set the right price for you and your client and also why it is important to set a rate that reflect the skills you have as a freelancer.
- RESEARCH: The first thing is for you to do your research and kind of find out the standard rate in your industry. Knowing this helps you have a frame of reference when you are setting your price. You have to find out your competitors or colleagues rate in the business or ask friends you trust about their freelance rates or how they established them, then if the rate you have in your head alligns with the informations you have gotten, you can now go ahead with putting it out there but if it doesn’t, probably it is too high or too low, then you have to do some reevaluation.
- HOW WILL YOU CHARGE: As a beginner in the freelancing game, your first pricing model should be set either at pay by hour, by the day, by the words, revenue sharing or a retainer packages, while others might prefer a particular huge sum per project, and other options. There is no right or wrong answer here. All you have to do is figure out which one you prefer, and what’s common in your field, and also the one that works for you then go for it. However, be open to the other payment methods if your client is insistent.
- EXPENSES: Another thing to take into consideration is your expenses. A lot of freelancers make the mistake where they just throw out a number and they forget to factor in the expenses of actually delivering the project. For instance, if you are a web designer, you should take into consideration who will pay for the domain, the hosting, etc. If you do a content management system like WordPress, you should be thinking about the theme and the plugins; are you going to use premium plugins, and again, how is that going to be paid for? So you would also want to consider expenses like taxes, training and professional education, office space and rent and also marketing fees or advertisement fees before setting your price.
- SKILLS AND EXPERIENCE: The next you would want to consider is your skills and your experience. Do not be shy or afraid to charge what you are worth, you have to think about how much you’ve spent in acquiring your skills, you also have to think about the amount you have spent in acquiring the tools of your trade and really factor it into your prices. Always remember that expertise is an investment not an expense. When trying to pitch your price to your client, you can most importantly talk about the value you possess and also emphasize the results the value will be to the project. Don’t ever get lost in imposter syndrome.
- SCOPE OF THE PROJECT: Another thing to consider is the scope of your project. This involves you basing your payment on the result you can deliver instead of basing it on the number of hours spent on the project. All projects are not going to be the same so you would want to look at how difficult is it going to be for me to deliver this particular project and charge accordingly. One benefit of this, is that you and your client agrees to a budget before you start working on the project amd this helps to avoid any falling out or unpleasant surprises at the end of the day. Just ensure you get your quote right for the project.
- TRANSPARENCY: Finally, you would want to be transparent with your clients, like communicating clearly how your rates are set with them because if you can get them to that place of understanding, you can get them to easily pay the price. Even if they can not pay the price, they will understand with no hard feelings that you are just above their budget.
SUMMARY:
In conculsion, one thing you should never forget as a freelancer is that prices change so don’t forget to reevaluate your worth and also to always know the developments in the market prices. Also understandig the project helps you choose the best pricing rates because every client and projects comes with different choices and plans.
