Many freelancers struggle to scale up their businesses or even take the leap of faith because they can’t price their services correctly.
Imagine for a minute that you overcame all these, and you had 10 clients who have you on a monthly retainer of 3 hours at $100 each. What would you do with that extra $300 a month? Now picture this, you going all in on freelancing? What difference will that make to your life?
The following guide will help you overcome the challenges that you might be facing and get you a step closer to the life you deserve.
Let’s explore some of the reasons that might be holding you back from starting your freelance journey.
Reasons Holding You Back
1. Thinking You’re Not Experienced Enough
You can beat this mindset by preparing yourself and taking the time to learn. Remember, an opportunity is where luck meets preparation.
Take the time and learn. As they say, if you’re capable of learning, then you are capable of teaching.
There is a story that I love to tell all my friends and family. This story has been passed around I’m pretty sure you’ve heard it a few times.
If you spent three months locked in with experts who talk about nothing but coffee, you’d likely emerge as a coffee expert. Apply this approach to any niche you want to enter: immerse yourself completely, learn as much as you can, and start from there.
2. Clients Will Not Pay
It’s not uncommon for freelancers to worry about clients not paying, especially if you’ve heard stories about scams. However, there are several effective ways to protect yourself and ensure you get paid for your work.
- Use Contracts: Always have a clear, written contract outlining the scope of work, payment terms, deadlines, and deliverables. A contract not only sets expectations but also provides legal protection.
- Request Deposits: Require an upfront deposit before starting a project. This practice secures partial payment and demonstrates the client’s commitment.
- Milestone Payments: Break larger projects into smaller milestones and request payments upon the completion of each stage. This method ensures you receive regular payments and reduces the risk of non-payment.
- Invoice Promptly: Send invoices promptly upon project completion or as per the agreed schedule. Clear, detailed invoices help avoid confusion and delays in payment.
- Use Escrow Services: Consider using escrow services where the client deposits funds upfront, and the money is released to you upon project completion. Platforms like Upwork offer built-in escrow systems to protect both parties.
- Legal Recourse: If a client refuses to pay, be prepared to pursue legal action. Small claims court or a collections agency can be effective ways to recover unpaid fees.
By implementing these strategies, you can minimize the risk of non-payment and safeguard your freelance business.
3. Why Choose Me Over Other Qualified Freelancers?
Imposter syndrome is rampant, and we all have such days when you think you’re not good enough.
Remember that even the pros started somewhere, and you’re not the exception. We live in amazing times, and all the info you need is just a quick search away.
4. Clients Can Just Get a Subscription to AI Tools.
Of course, they can, but the one thing that is missing is the human touch. Since time immemorial, humans have learned through storytelling.
This is the one aspect that AI tools haven’t yet mastered.
Even though there are tons of these tools, many people prefer humans to inject some personality, and that’s why this mindset should not make you lose the chance to turn your life around.
5. You Have No Testimonials.
For this, you can always try to ask former colleagues or bosses to write you one. You’d be surprised by how many yes you’d get if only you asked for one.
6. Nobody Will Hire a Newbie.
It’s a common concern among new freelancers that clients won’t hire them due to their lack of experience. However, it’s essential to remember that everyone was once a newbie in their field.
Remember, every freelancer started somewhere. By showcasing your passion, dedication, and willingness to learn, you can overcome the challenge of being a newbie and build a successful freelance career.
If you resonate with any of the above, then you’re in the right place, as I aim to help you eliminate these money mindset issues. You’d be surprised at how many freelancers before you had days that they felt the imposter syndrome.
You have to believe that you’re worth that price or life.
There is no right or wrong way to price yourself, but here are a few guidelines to help you along the way as you figure out your sweet spot.
Tips on How to Price Yourself as a Freelancer
Setting the right price for your freelance services can be challenging but is crucial for your success. To help you navigate this process, we’ve compiled some practical tips on how to price yourself competitively while ensuring you receive fair compensation. From comparing yourself to similar freelancers to confidently presenting your value, these strategies will guide you in establishing rates that reflect your expertise and attract the right clients.
Don’t Suggest an Hourly Rate.
I want to share a story with you.
Susan and Mary both take on a project. Susan’s rate is $20 an hour, but it takes her 10 hours to complete the project. So her pay for the project will be $200. On the other hand, Mary is also getting the same rate, but it takes her 2 hours to complete the project.
The moral of the story is, before pricing yourself, look at the value and level of expertise you’d be providing.
Compare Yourself to Similar Freelancers
To gauge where you stand in the freelance market, it’s helpful to compare yourself to others in your field. Start by reaching out to freelancers who are already doing the work you aspire to do. Platforms like LinkedIn are great for connecting with professionals and seeking advice.
Don’t be shy about asking questions or requesting guidance; most freelancers understand the value of networking and are often willing to help.
When it comes to pricing, always start with a higher quote. Clients often negotiate, so setting your initial rate higher gives you room to adjust without feeling like you’ve undersold your services. This strategy ensures you receive fair compensation for your work and maintain a professional stance in negotiations.
Be Confident
Confidence is key in freelancing. Clients can easily pick up on uncertainty, which can undermine your position. It’s essential to know and communicate the value you bring to a project. Highlight your skills, experience, and the unique benefits you offer. When you believe in your worth, it translates into your interactions, making clients more likely to trust and invest in your services.
By understanding your market position and confidently presenting your value, you’ll attract the right clients and secure better opportunities in your freelance career.
Research Market Rates
Conduct thorough research to understand the current market rates for your services. Websites like Upwork, Fiverr, and Glassdoor can provide insights into what other freelancers in your niche are charging. This information helps you set competitive yet reasonable rates.
Consider Your Experience and Skills
Take into account your level of experience and the specific skills you bring to the table. If you have unique expertise or advanced qualifications, you can justify higher rates. Conversely, if you are just starting, you might need to set more modest prices initially and gradually increase them as you build your portfolio and reputation.
Factor in Your Costs
Don’t forget to consider your business expenses when setting your rates. Calculate the costs of software, equipment, marketing, and other overheads. Ensure your pricing covers these expenses while still providing a profit margin.
Offer Different Packages
Here I’d encourage you to borrow a leaf from course creators. Always have different tiers to allow the client some room to choose what service will suit their budgets. Doing this will kill two birds with one stone. The client cannot say they don’t have a budget because you’ve presented them with choices to suit their pockets.
If you are still unsure how to price yourself, you can also try asking the client about their budget and work from there. Don’t be afraid to walk away if you feel you’re underselling yourself. Hey, at least you tried.
Review and Adjust Regularly
Pricing is not a one-time decision. Regularly review and adjust your rates based on changes in the market, your growing experience, and the value you provide. This continuous evaluation ensures you remain competitive and fairly compensated as your career progresses.
Final Thoughts
With pricing, there is a lot to be factored in. If you undersell yourself, you always work extra hard around the clock to make ends meet, but by implementing the right pricing strategies, you’ll see that you’ll start attracting higher-quality clients. So don’t be afraid to price yourself according to the value you’d be providing your client with. Doing this can create a work-life balance and allow you to enjoy your freelancing career without burning out.
Increase your income while decreasing the amount you need to work.
