What to Charge Clients Part I
A few of you have asked questions about how much to charge clients as a freelancer. Before I delve into this, let me point out a couple things:
*Rates for freelancers vary - there is no definitive rate set. Rates can vary based on industry, project, location, client’s budget, etc.
*Only you can determine exactly what you are worth.
In order to figure out what you should be charging, ask yourself the following questions:
1.) How much is your time worth? As a freelancer, you know that one of the key benefits of being one is your ability to have control over your schedule, your time. You are at liberty to decide which projects are important, and how much time and effort to put into each. If you are selling yourself short by working day and night for significantly less than what you’d make in a regular, 9 to 5 job, you must then ask yourself why you are freelancing in the first place. Maybe it is because you were tired of commuting? Wanted to stay home with the kids? Whatever your reasons - decide how much YOUR time is really worth. And work with that. It may take some time. I started out charging clients considerably low prices, and the more I did it, the more I figured out what I really should and could be charging. I kept rates lower for loyal clients, but any new clients, I increased my rates.
2.) Is your dream rate realistic? Meaning, if you charge $75/hour, how many clients are you REALLY going to get at that rate? Versus if you charged $50/hour? You need to be realistic when setting your rates, without selling yourself short. As you become more comfortable as a freelancer, comfortable in the industry you are in, adjust your rates to higher ones then.
3.) How much money do you need to survive? Or how many clients do you need to have to survive? No matter what industry you may work in, no two projects are exactly the same, and no two clients have the same requirements or budget. But you CAN get a general idea on what to charge for certain projects by networking with other freelancers. Join some freelancer boards, dig around for some research on the going rates in your industry. (On Friday, I will post some resources for you.)
By researching and networking with other freelancers, you can get an approximate idea of what to charge. BUT do keep in mind the following tips:
*Don’t focus on job boards that use bidding to secure freelance contracts. Unfortunate for freelancers who need to make a decent living, these websites drive prices down to the bare minimum, forcing freelancers to take on several other jobs in order to thrive.
*If you are just starting out, don’t charge super high prices just because you’ve found in your research that experienced professionals do. Remember, you need to establish yourself first.
4.) What about clients that state their budget and it’s way off from what you charge? Well, this is up to you to decide to take the project or not. What you can do is get the details about the project and estimate the timeframe. Add a week or two for delays and interruptions. Then work out what the hourly rate will be based on the budget. If it is considerably less than what your time is worth, don’t apply. There are always other jobs. On the other hand, if you are just starting out, perhaps it will be wise to get a couple projects under your belt while you build your portfolio. (But remember, don’t do anything for free!)
On Friday, I will post information regarding freelance rates in popular industries, as well as some resources you can use for determining your rate. But remember, you’re the person most qualified to decide the rate that works best for you!
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That was an awesome article and is really good advice. I have struggled with this in my business and am finally coming to a place where I am getting my rates where they make the most sense for me. Your article points out exactly the steps I took to figure out what worked for me and my customers.
Thank you very much, Suzanne! It’s always great to hear about articles that really hit home with readers. I’m glad everything is working out with your business and the rates you are charging. Keep it up, girl!
Jan 25th, 2008 at 3:53 pm
[...] promised, in addition to my advice on What to Charge Clients Part I, here are some helpful resources to turn to when deciding your own [...]