How to price your freelance services

[Cedric]

One of the most critical aspects of being a freelancer in our dynamic industry is determining how to price our services effectively. Whether you're a programmer, SEO specialist, web designer, or content writer, setting the right price can make all the difference in attracting clients and running a successful freelance business. In this discussion, let's share our experiences and insights on the various pricing models and how we arrive at the perfect fit for our services.

Hourly Rates: Finding the Balance

Setting an hourly rate is a traditional and straightforward approach to pricing freelance services. Many of us prefer this method, as it provides a clear, time-based compensation structure. However, determining the ideal hourly rate can be a challenge. How do you strike the right balance between charging enough to be financially sustainable while staying competitive in the market?

• Have you used any strategies to calculate your hourly rate, such as factoring in living expenses, business costs, and desired earnings?
• How do you handle situations where clients may question or negotiate your hourly rate?

Project-Based Pricing: Defining Scope and Deliverables

Project-based pricing allows freelancers to quote a fixed price for specific deliverables or a complete project. This approach can be attractive to clients, as it provides a clear understanding of the total cost upfront. However, it requires accurately defining the scope of work and potential changes that may arise during the project.

• How do you estimate project costs and ensure that you are compensated fairly for the work involved?
• Have you faced any challenges related to scope creep or additional client requests during the project? How do you handle such situations without compromising on your compensation?

Value-Based Pricing: Aligning with Client Goals

Value-based pricing involves setting rates based on the value your services bring to the client's business. By understanding the impact your work can have on their goals, you can negotiate a price that aligns with the benefits they will gain from your services.

• Have you successfully implemented value-based pricing in your freelancing business? How do you determine the value your services provide to clients?
• What strategies do you use to communicate the value proposition to potential clients effectively?

Hybrid Models: Customizing for Different Projects

Some freelancers prefer to use a hybrid pricing model, combining aspects of hourly, project-based, and value-based approaches. This allows for flexibility, especially when working on diverse projects with varying scopes and objectives.

• How do you decide which pricing model to use for each project? Are there specific criteria or considerations that guide your choice?

Addressing Industry and Geographic Variations

Freelancing often involves serving clients from different industries and geographic locations, each with its own market norms and price expectations.

• How do you adapt your pricing strategies to cater to clients from diverse industries and regions?
• Have you encountered any challenges or advantages when pricing your services for clients in different parts of the world?

Curious to hear everyone's experience.

 

[Paul]

I just chose to undercut my competitors

 

[Nomad]

My services are based on the amount of work I need to do. For the task that requires a lot of work, I will charge higher fees. However, it is really difficult to get freelance work on a consistent basis, therefore, I also end up accepting what the client is willing to pay.

 

[Shortie]

I am always told by people that I undercharge for my services and that I should charge more after they have seen my work. The problem is, because the freelance world is so big, sometimes you have to make your prices low to stand a chance of getting any customers.

It's a shame as I know with my skill of writing, I could make so much more but it's not always easy to be able to charge more.

I tend to charge per word or per post if I post on forums, never tend to take the time it would take me to complete the work and charge per hour but many have told me I should.

 

[Ravenfreak]

It depends on how much work needs to be done and what work needs to be done as well. I never offered my services for a fee though, but if I ever do so I'll probably charge low for each post and topic to get things started. However if I'm needing to install forum software for someone, I may charge a little bit more but still not too much. I know companies will charge over $100 to get things installed, which I think it's a bit excessive IMO. I'd probably only charge $30 at max.

 

[TwitchisMental]

I think there a few things to think about when offering services.

1. The general cost of the service in the free market. You don't want to rip someone off, but you don't rip yourself off either.

2. What do you want to include with your service? Is it a one time service and nothing more? Or is it a project where you would support it for x months?

3. How long will this project take to complete? If it is a small 1 week project you wouldn't charge as much as a project that would take months to complete.

4. How much freedom do you have in the project? Do you need to meet certain specifications or are you free to do whatever?

 

[Kennysplash]

If one is a newbie it is important to start with lower fees first. Then as you get more offers and experience you can gradually raise your fees.
At the same time if you know the quality of what you offer you should not undercharge your services.

 

[John]

If one is a newbie it is important to start with lower fees first. Then as you get more offers and experience you can gradually raise your fees.
At the same time if you know the quality of what you offer you should not undercharge your services.

Of course, but don’t under price your services. For example, if I’m looking for, say, a logo, I would never pick a $5 option, even if it was a newer freelancer providing me with $100 worth. As a new freelancer, your best bet is just to do free or low cost work for your friends. That helps you build your resume, allows those people to rate you honestly, and shows someone like me that you can do high quality work.

 

[Tracy]

Since I really no longer desire to do it, I simply quote an obviously outrageous price. If they want to pay that., then it's payment in advance.
Considering that when I was doing it professionally my base rate was $125 an hour (more for AS/400) - and that was a few years ago....... you can guess what I would quote now.
I still help folks out for free.. but not NEAR as many as I used to... got abused to many times.
Of course... my area is not "how to generate more content/visits" but more in line with "how to keep your "stuff" running. Honestly.. the latter is rather more important to me... as if your site is "dumping" on itself regularly.. you can have fantastic content... but if it's not available.. it might as well be a section of toilet paper.

I do find it rather amusing that many/most concentrate on "generating content", not realizing that there are (and were) many of us that provided services to keep the site that the content was generated on up and running.

 

[Heatman]

I just chose to undercut my competitors

😂.. You're a thing but in reality, that's what's happening now. You will a freelancer selling short a service that's meant to be $20 for $5. It makes me fume!!

 

[Empire]

I always thought that you priced it based on how good your content is and also to get it started you price it based on getting people interested then as you learn and build your skills and get busier then you up the price.

Not to mention you need to look at the game and match other people's prices.

 

[Millie]

I always thought that you priced it based on how good your content is and also to get it started you price it based on getting people interested then as you learn and build your skills and get busier then you up the price.

I think this is a good tactic. It can be difficult finding clients at an early stage, and sometimes even as an established freelancer.

As others have mentioned I think it's a good idea to build up your portfolio through free/low cost jobs initially and then once you have a bit of a portfolio and reputation together to up your price accordingly.

 

[Empire]

Once you build with your client you can also makes deals with make them happy and they will say positive things. ALso if they buy in bulk you cut the price down a little.

 

[Millie]

Once you build with your client you can also makes deals with make them happy and they will say positive things. ALso if they buy in bulk you cut the price down a little.

That is very true as well - especially for content like posts/threads and blog articles, it's often easier to negotiate a better price through ordering in bulk/regular quantities. It gives you the stability with content, and the freelancer stability of income for a fixed period.