Wether you are a freelance designer or a freelance developer, finding the right rate may be difficult. Your calculation can depend on a number of factors, like experience level, the freelance market conditions, and
Later in this article we will look at the most common pricing strategies, like minimum hourly rate, project rate, or other fixed rates. We will also compare these different pricing practices, and give a definite answer as to how much you should charge!
Here are the most common freelance hourly rates according to UpWork. The platform is the largest freelancing marketplace on the internet, and it serves as a pretty good indicator as to what kind of freelancer rates can we expect.
Treat these as indicators, suggestions, and set your rates in accordance to these! Remember, setting a lower rate is not always better, as a higher rate can indicate value, so I suggest you avoid the race to the bottom!
When you ask freelancers how they price their services, chances are they will describe one of the following pricing methods:
These pricing models, when boiled down, serve as your business model. All of these are valid pricing models. There is no right or wrong approach, since many of them can work for specific business cases.
Ok, but what now, where do we start? And wait, you can get 15k for a Wix site, is this even real life?
Here's a quick comparison of the most common pricing practices for freelancers. The more emojis we have, the better!
When should you choose daily rates?
Downsize to day rates:
When should you pick package pricing?
What are the downsides of package pricing or having flat fees?
When should you actually consider doing hourly rates?
On the flipside, what’s wrong with hourly?
When should we have those?
Here’s a handy chart to summarize what we learned here today.
Where does value come from? How do you determine the price of a service? And how can we establish a mindset that will make you a successful freelancer?
In pricing, a value based mindset means always keeping an eye on what kind of value you provide to the client. This can be time saved, revenue increased, or risk avoided.
Let’s look at this from the perspective of a business owner.
Providing value and solving problems usually have a very tangible and measurable impact on a business. Most of the time, business owners are quite aware of how much time you are saving them and how many dollars of revenue your work will bring in.
For them, your work equals more money and less pain in the backside.
But funnily enough, freelancers don’t always see this. In fact, freelancers are oftentimes completely blindsided to the value they create when solving a problem. Why? Because the greatest adversary of a value based mindset is the curse of knowledge.
And freelancers are so, so cursed.
A freelance developer already knows that setting up a Wordpress website is no big deal, because they have done it dozens of times.
A freelance writer already knows that writing a blog article is not the end of the world, because they have a talent for words.
A freelance marketer already knows that setting up a Google My Business account is just a couple clicks, because, firstly, they know that Google My Business exists, and secondly, how super important it is for a local business.
The freelancers know, and thus they think it’s no big deal. After all, it only takes a couple of hours to complete. They don’t see the value. For the business owner, it’s black magic fuckery.
The client is looking at a project from the perspective of value, how much money they will make, and how easier his life will be. The freelancer is looking at the project from a perspective of time. How many work hours will it take to finish the project, and how much are those work hours worth.
There is an obvious disconnect here. A disconnect that some clients like to exploit as freelancers remain in the dark, wondering why they can’t make ends meet at the end of the month.
So our first step is to join the client on the other side of the conversation and always look at projects from the perspective of the client.
From the client’s perspective, it is always about value generated.
For the freelancer, it should not be about how much effort or time is put into the project, it doesn’t matter. The freelancer should be looking at the project from the same perspective as the client, which is, again, how much value is generated for the business.