The best part about being a freelancer is that you can set your own price for the services you provide. However, it is easier said than done! After all, every freelancer wants to earn what they’re worth, and for that, he/she needs to set their price smartly. Unfortunately, there’s no perfect way to do so as every freelancer is different and what works for one won’t necessarily work for another.
In this article, you’ll find a few ways on how to set your price as a freelancer. Let’s get started!
Before you decide which pricing strategy will be the best for your freelance services, ask yourself these questions. Reflecting on these answers will identify a few key factors that can help you define your pricing strategy:
- How much money do I need to make to support my lifestyle?
- What is my monthly/annual goal for earning?
- What do other freelancers charge for similar services?
- How much money would I make as a full-time employee?
- What expenses do I have as a freelance business owner?
- Are my skills in demand?
- How much value am I bringing to the client?
Now that you have the answers to these questions, let’s take a look at a few ways to set your price as a freelancer!
1. Price Per Project:
This is a great way to price your services if the project is big and a one-time thing. Understand the scope of work and calculate the time that you’ll be spending on the project. Charge a fixed price for a fixed outcome. Be as clear as possible with what work you’ll be providing and what it’ll cost the client. The key to this method is to go about it systematically, rather than quoting some random figure.
2. Price Per Word:
This method of pricing is most useful for freelance writers. If the length of the content is not clear, it is best to charge per word. This method is also less intimidating to clients who don’t understand the value of freelancer’s time i.e. If it takes you an hour to write a 500-word article, and you charge $0.20 per word, quoting your per-word cost is likely to be less intimidating than a rate of $100 per hour. It works best when you have to write blogs, articles or books.
3. Retainers:
This method means charging a monthly fee for a certain amount of work. It is best to be clear about the scope of work when choosing retainers as your pricing method or else you might end up working for more than what you’re being paid for. This method of pricing can be a safety net for freelancers as it guarantees a certain amount of work for an agreed amount of time.
4. Package Price:
This method works best when you are offering a client various services such as Designing, Content Creation, Research, etc. Design various package combinations and give a flat price for the package.
5. Hourly Fee:
As the name suggests, you can charge a client based on how many hours you spend working on their project. It will reinforce the value of your time to clients, and will also help you ensure that you are paid for the time you spend communicating with the client aside from actually working on the project.
6. Value-based:
This is a method where you charge based on the value it creates for the client rather than charging hourly or per word. This method may work best for those who work in advertising as it requires less content but the impact it has is huge. It also works well within sales as salaries and bonuses of salesperson are decided by how many deals they closed. The price will be a certain percentage of what the client earned as an outcome of your work.
General tips on setting your freelance rates:
- Keep your rates flexible, adapt them as you gain experience
- Don’t choose the same pricing for every client. Choose different pricing strategies for different clients, based on the work scope
- Research and talk to other freelancers in a community to get real market insights, before deciding the price structure
- Do not reduce your price unless the project scope is reduced too
- If a client wants to get the job done quickly, charge extra for rush projects
- Always ask for a deposit for fixed-projects
- Make sure you set a profit margin too, for the growth of your business
- Lastly, trust your value even if there are cheaper freelancers out there
Wrapping Up
As a freelancer, the way you price your services has an impact on everything — from marketability to sustenance. The right pricing will determine whether your career as a freelancer sinks or swims. To determine the correct pricing method for your services, refer to this guide to setting your price as a freelancer!
These methods may save you from hard bargains, being jobless, or feeling overworked or underpaid. Also, keep experimenting with your pricing method and reassess your worth now and then. It is not necessary to charge the same for every project. With experience, you can change your rates and select a pricing method that suits the type of project you take on.
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