Best Strategies to Determine Your Service Rate as Freelancer
Setting up the rate when you are a newbie in freelancing industry is quite difficult. If you charge too high, you might miss job opportunities because other freelancers charge lower than you. If you charge too little, you will be considered as an amateur and your earning will not be enough to make a living.
So, the question is- how will you determine the price of your freelance service?
Cost Plus Pricing
You charge an extra amount on top of the material cost. This is usually used by freelance artists, videographers, and photographers, customer service representatives, and transcription services online providers.
While for the freelance writers and web designers, it is more varied. They charge per number of words or per project basis.
Independent contractors like graphic designers start with flat rate and charge add-ons for the client’s request.
Market Rate Pricing
Check how much other freelancers are charging for the services they rendered. Compare their rates. Take note that professional freelancers who specialize in their niche ask higher price compared to beginners.
Other Pricing Structures:
- Fixed Rate – This is per project basis. For instance, as a freelance digital marketer you ask for $1,500 per month. However, you need to determine the time and effort that you are going to spend on the project and then propose your monthly estimate. This is important because the job might take more time if it is a bit complicated. To gain mutual benefit, it’s best to compromise with your client.
- Per Hour Rate – Freelancers bill their clients for the hours used to complete the tasks or project.
- Daily or Weekly Rates – This is convenient for starters who work for a number of days or one week only. Most clients prefer this rating system because it assures that you will be focusing on the project and deliver it on time.
When you are just beginning your career in the freelancing industry, it is fine to undercharge a little. Then as you build your online portfolio and your clients are giving you positive reviews, you can start charging the ongoing rate or how much you think you deserve for the effort you spend for each project.