There are all types of freelancers out there. Photographers, designers, writers, reporters, web builders across the country are all competing to drum up new business and carve out a living. Sometimes a lower rate than the competition means landing a job, but at what cost?
There are as many different markets and niches as there are freelancers trying to fill them, so setting your rates is an extremely personal exercise. But there are a few factors you need to consider when deciding what to charge for a job.
photo credit: photosteve101
There’s nothing wrong with cutting a client a break on price if it’s a gig that will only take you a few hours. A small job can be a great way to fill down-time or spark a relationship with a new client you’ve been wanting to work with.
On the other hand, a low paying job likely won’t be worth it if it’s going to take you more than a day or two. There are far more productive things you could do to fill your time. Find a new way to promote your business, write a new blog post or find an in-person networking group.
If you don’t treat your time as valuable, your clients never will.
Has the client worked with a freelancer before?
When I first started my business I looked at everyone as a potential client. I figured all business owners would be interested in my services if I could just explain how valuable I could be to their company. But sadly, I spent more time trying to convince people to hire me than I actually spent writing.
It’s important to show potential clients what kind of benefits you bring to the table, but you have to qualify the prospect first. A car salesman knows better than to try and sell a Ferrari to a grandmother. As a freelancer you need to have the same mentality. Find clients that understand the value of bringing in a hired gun.
A client looking to pay as little as possible probably won’t feel they’re getting their money’s worth, no matter how awesome your work is. If the client is a tough sell up front, they’ll likely be a pain to work with on all aspects of the project.
Does your price affect how prospects see you?
Some freelancers post their rates on their website. Most won’t. Why? Because most prospects start out as tire kickers. Many will want the lowest possible price and will never reach out if they perceive your rates as too high. Others might see your rates as too low, and wonder why you aren’t worth what the rest of the market charges.
Clients that have experience working with freelancers understand the value they bring, and know you do really get what you pay for. Sometimes they get more peace of mind by paying more, because they feel they’re working with a professional.
I’ve heard countless stories of freelancers landing more work immediately after raising their rates. The logic is, the more you charge the better you are at what you do. Of course you still have to deliver professional work, or your reputation will take a hit and won’t last long.
What do you think? What type of variables do you use when it comes to setting rates?
