What exactly is a Fair Rate when it comes to freelancing? This has been a timeworn question that is endlessly debated over the web. One of the toughest decisions any freelancer can make is setting how much his or her time is truly worth. If you make the wrong decision, you are in for bigger troubles or worst, going broke. Remember the rule of the thumb when setting work rates as a freelancer: No One Rate Fits All! Your may charge more or less than your competitors. This will actually depend on your skills, years of experience, reputation, or even your location. It all comes down to the art of selling yourself well to service buyers.
How to Set Your Rates for Freelance Work
Setting your desired work rates will really take some time, which will include:
1. Knowing Your Needs
Are you freelancing full-time? Chances are, you need to make ends meet for you to be able to keep living the lifestyle that you have right now. You need to compute your monthly living expenses, together with your freelance projects’ overhead costs. Don’t forget to include your personal insurance, health care, and taxes in the list. Is your pay more than enough to give you a decent wage?
2. Making a Research
Learn how much your competitors are charging and make sure your data is current. The freelance market rates are highly volatile and you need to keep a good eye for changes. You can scour the web for freelancers with the same skills and services so you can have a pricing model to help you set your rate. Learn how much top earners in the same industry earn. Will you do a gig for the lowest rate? How low?
3. Improving Your Skills
The law of supply and demand doesn’t only apply to the principles of economics, but to freelancing as well. The more surplus there is of a certain skill set, the tougher the competition is, where prices can hit an all-time low. Find a specialty where competition is less so you may demand for higher work rates.
4. Setting Goals
How much do you fancy earning in a year? You can set a break-even point for your rate, which means going lower than that is not even worth the risk. There are plenty of freelance rate calculators that you can use online to help you reach your income goals.
5. Personal Branding
Let’s say you are a prolific internet marketer with a stellar reputation and great testimonials. Chances are, you’ll get more job offers than your average counterpart. Strive to create a more-than-the-usual presence on the web. Even a simple blog or website can do wonders, where potential clients can see samples of your works.
6. Comparing Hourly vs. Fixed Rates
Both options come with pros and cons. It will always be the client who will benefit in your choice, specially when there are rush works and revisions to face. You need to steer clear from scope creeps, and quote your fees on the time and difficulty of a certain task. Give your rate an extra 20% for research time and changes. You don’t need to charge all of your clients the same rate. You can lower it or raise it depending on how the work will be done.
Overall, there is no perfect pricing model when it comes to working for your freelance gigs. The good news is that you can always try and learn. The more projects you will handle, the better you will learn about what rate is best. Remember that your clients won’t flinch at your rates if you have a phenomenal portfolio to back it up. Start building that experience now. Always Ask for What You Truly Deserve!
How To Set Freelance Rates: