Freelancing might seem fun when creatives talk about unstructured workdays and working from the comfort of home. But it isn’t all fun and games. Freelancers struggle with peculiarities that regular workers don’t have to deal with. One of them is how to price their freelance work.
Many freelancers, especially the newbies, are confused about how to set up a work rate. How much is too much? Am I too ambitious in my price range? Is there a formula to set a good pay? Am I underpricing myself? Can I renegotiate my pay? These questions and more plague even the seasoned freelancers. In this article, we’ll be sharing tips on how to price your skills just right.
Know what type of pay rate fits your needs first
In freelancing, there are two types of pay rates – hourly and fixed rates. As you already know or guessed, an hourly rate is a type of pay rate where the freelancer charges per number of hours spent on the work.
On the other hand, a fixed pay rate charges the client a fixed amount for the entire project. Both pay rates have their disadvantages and advantages. Your preferred option would also depend on the work you’re doing and how you want to get paid.
While an hourly rate allows you to spread your work time and be paid for every hour of work you put in, a fixed rate sums up the total complexity of the work and charges a fixed price befitting the difficulty level of the project.
Before you even get into talks with potential employers, it’s best to decide your preferred rate. Candidates come across as prepared and confident when they don’t fumble for an answer when pay comes up. Note that you can use both types of pay rates depending on the peculiarities of the project.
Do some research
While it’s not advisable to pattern your pricing to any other person’s own, you still need a frame of reference, especially if you’re new to this. This frame of reference would give you a range of prices that the average freelancer in your field is earning. Based on this frame of reference, you can then decide on a formula to set a suitable price for yourself.
Come up with a formula for deciding your price
In this price-fixing business, there is no one size fits all formula for determining a price tag for your services. Services vary even when the projects are in the same niche. For example, a design project has a different complexity, so the price would also vary.
Another thing to keep in mind is that your experience also weighs in on the final price agreed upon. An inexperienced writer wouldn’t charge the same way a pro would. This is why it’s essential to have a formula, which you can always amend as you grow.
Here are few things to consider when drafting a price:
- Difficulty level
- Amount of time taken for completion of the project
- Your budget and expense for the month
- The average going rate for your services
- Remember to leave a little wriggle room for negotiation when calculating your pay
It may not be the easiest decision to make, but the more you set prices for projects in your career as a freelancer, the easier it becomes. Just remember the important tips. Don’t use someone else’s price rate.
Decide what pay rate works for you and formulate your prices. Are you looking for work as a freelancer? Create an account with Brobia today and be exposed to numerous job opportunities.