Let’s talk about money. More specifically, let’s talk about the process of setting freelance rates.
Groan, right? It’s a sore spot for many freelancers—mostly because it’s undeniably tough. Aim too high, and you’re worried that you’ll send prospective clients running for the hills. But, quote too low, and you feel like you’re leaving money on the table.
As a result, knowing just what price to spit out when a client asks that dreaded, “So… what are your rates?” question inspires plenty of second-guessing and sweaty palms.
And, the worst part? It’s an issue that’s hard to get advice on. Money is still a pretty taboo topic for most people—which means you can’t very well ask someone, “What would you quote for this project?”
Well today, my friends, we’re going to talk about it. Here’s my very best advice when it comes to setting your own freelance writing rates.
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Let’s first touch on a trap I see way too many freelancers fall victim to. When asked about their fees, they sit there slack-jawed for a minute and then pull a price out of the air—something that sounds good for that prospective client.
Here’s the thing (although, you already know this): That’s not a smart strategy.
Why? Well, not only does that willy-nilly approach hold you back from ever coming up with an actual fee structure that you can lean on for each and every project, but it can also limit you from reaching your income goals. When you fire off individual prices without an overarching strategy in place, it’s hard to know how those different pieces fit into your overall freelance business.
This is why a better strategy is to set an income goal for yourself—whether it’s a goal for each month or even the entire year.When setting your #freelance rates, start with an income goal. Click To Tweet
When you have your objective in mind, you can better figure out how much you should be charging (within reason, of course)—rather than just relying on what sounds good in the heat of the moment.
We’ll look at a simple example to add some clarity here. I’ve set a hypothetical income goal for myself—in the month of December, I’d like to earn $3,000 freelancing.
I already have three client projects in the hopper for that month. Two of those clients want four blog posts for the month each, at a cost of $200 per blog post. The other client has a larger project (a thoroughly researched ebook) that they’re paying me $1,000 for.
Let’s crunch those numbers:
2 clients X 4 blog posts each = 8 blog posts
8 blog posts X $200 = $1,600
$1,600 for those blog posts + $1,000 for the ebook = $2,600
So, I’m at $2,600 so far for the month—meaning I’m still $400 off from my income goal.
When another potential client asks me how much I’d charge per blog post? I know that I can stick with my $200 rate and mention that I’d need at least two assignments for the month in order to honor that price. With that in mind, I’d meet my income goal exactly!
See how this helps you to better keep your finger on the pulse of your business overall? Start with your goals—rather than pulling random prices out of thin air. It’s a much better way to go.
Some of you might’ve taken one look at that $200 blog post price and thought, “That’s it?! That’s a really cheap project—that’s way less than I charge!” And others? You might’ve rested your eyes on those digits and thought, “$200?! I can only dream of the day I charge that much for a single blog post!”
That’s the thing with freelancing—there’s no black and white formula that will guarantee that your own rate is the widely-accepted standard. It’s really all a crapshoot and prices run the gamut from freelancer to freelancer.
However, it can still be helpful to do your research to get a better handle on what might be considered a more reasonable and realistic price for your project.
Here are a few places to start:
While research can be helpful, it’s important to remember that it doesn’t always make up the entire story. There are other factors you should consider before landing on your own rate.
For example, maybe that freelance writer on Reddit is able to charge $350 for a 500-word article—but she’s also been a freelancer for 25 years and has numerous bylines in The New York Times. Much like with a traditional career, she’s able to justify a much higher rate than someone who’s just starting out.
Other things—like the scope of the actual assignment or the size, budget, and reputation of the company—should also come into play when landing on a price quote. A well-established corporation, for example, will have a much higher budget for freelancers than a startup that’s still bootstrapping.
So, remember not to take all of your research as gospel truth. There are other factors you should weigh before settling on a rate that makes the most sense for you.
Are you ready for a bit of a reality check? Ultimately, quoting your freelance rates involves a lot of trial and error. There will be times when clients walk away because your price was too high—just like there will be times when you realize you could’ve asked for far more.
That’s OK. It happens to all of us. Even after freelancing for over three years, I still have rates that are somewhat all over the place—and, yes, I still get a little clammy when it comes time for me to quote another price.
Go through the steps above to arm yourself with as much information as possible and then take a deep breath and have some confidence. You’ll win some and you’ll lose some—that’s just the nature of the beast.
Don’t forget to grab these email templates to make those money-related conversations less stressful!
I wish I could tell you that there’s some sort of tried and true formula that will help you land on a freelance rate that will appease every client everywhere. But, that’s not the way things work.
The important thing is to find something that works for you—which the above steps will help you with. It might be higher or lower than what another freelancer would charge, but in the end, that really doesn’t matter. It’s all about what pushes you and your business closer to your goals!
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