What Should I Charge As a Freelancer?
What Should I Charge As a Freelancer?
This gets soooo confusing. But let's break it down to simple calculations please.
Hello everyone,
After getting sad (yet amazing, yeah I am in love with Substack) news from Revue, I have finally made a move to Substack and writing my first issue here. This seems intuitive and amazing. But I am already missing my beloved Twitter widget. If you have any idea on how to get that back do let me know. And sorry about that SPAM.
THE ACTUAL TOPIC STARTS HERE…
So
If you are a freelancer who is always confused about how much to charge the clients for your services? Well, you are not alone. Trust me, I have left a lot of money on the table. And I don’t want you to do that.
One thing you should know before we get started is it is necessary to revise your previous rates from time to time in order to grow.
Why?? Grab a cup of coffee and keep reading… (It won’t be long and jarring tho.)
1. Understand Your Position and Assess Your Situation
Are you in for the long game?
If not, find clarity as to what are your goals and vision in the freelance career. Only when you are clear about the context can you proceed to the next step.
If you have spent 6 months in an industry, you must have gained a lot of insights and exposure to how things work in freelancing. Freelancing is in demand now more than ever.
With the right mindset, you can make a crazy amount of money and fulfil all your dreams.
So, be sure of your expertise and skillset to approach high-ticket clients.
2. Talk To Other Freelancers or Mentors In Your Industry
Stop living in a bubble and get out there to talk to other freelancers in the game.
The common mistake that many freelancers make is they get too comfortable working remotely that they forget to engage with other peers from their industry. Don’t be that person!
Whose better to approach than other freelancers in your industry and country to know your exact status??
Connect and engage with experienced freelancers and business coaches. Who knows, you might learn a new perspective of working and client approach.
You can exchange notes with these peers to better assess your work strategies and skills.
You can also compare pay rates to know how much you should charge your clients the next time!
3. Work On Different Projects
Do you know that it is recommended to raise your prices after every 3 projects as a freelancer?
Don’t be surprised. Experience brings Expertise. You always come out of a project stronger than your went in. You learn from mistakes and perform better the next time in less time.
What’s more??
You have more testimonials and positive results to showcase that your working strategy is up-levelling their business. Once clients know you are worth an investment, they will definitely agree to pay higher!
4. Double Down the Rates for Retainer Clients
Yes, you can 2x your rates from retaining clients!
If you have worked in an industry for quite some time and those clients want you to stay with them for future projects too, take it as a cue!
You know the client is coming back again and again for more because your skill sets are working for them and their business.
This is an indication that you are doing things right and should straightaway ask for a double paycheck to keep up with your other expenses and needs.
5. Value-Based Pricing
Have you ever worked with a startup? Do you know you can ask for a percentage share in your client’s business?
Intrigued, right??
Look, if you get an opportunity to work with startups at a very initial stage, take the decision wisely.
In case you are experienced enough to predict the future of the startup or are sure that you will be able to take it in the right direction, go for it.
As the startup grows, you will grow eventually.
Because let’s face it, it is your skills that are making their profits!
While hourly, weekly, or monthly payment systems are common, many expert freelancers prefer to keep a share in the business they are working for:
Ask for a percentage share on every sale your client’s business makes.
Ask for certain equity in their overall company to enjoy long-term gains for your hard work.
This system ensures that you are well paid for your services and also keeps you motivated to work wholeheartedly for the business.
I hope you learned something from this newsletter.
Reply back to this email to let me know - When was the last time you increase your prices as a freelancer?
Wishing you a kickass freelance journey.
Also, it would be of great help if you can share the word for this newsletter.