Freelance Pricing And Rates: Tips For Valuing Your Services

Becoming a freelancer is a simple and inexpensive way to start earning an income from home. This is especially true if you freelance with a talent that you already have. This way, you could start offering your services today.

A freelancer is someone who provides their services to various clients for a fee. They can work on one-time projects or have a continuous working relationship with a client. Ultimately, a freelancer can choose to work as often as they would like.

Freelancing is a form of self-employment, similar to running a home-based business. With that said, as opposed to a home business, a freelancer can work as a contractor. Also, since freelancing is primarily an exchange of services online, they can theoretically work anywhere in the world. To learn about setting rates and prices as a freelance professional, continue reading below.

freelancing
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Things You Need To Prepare

While you may not be creating an official company, contact your town or county to decide whether you need a freelance business license. You’ll also need a plan, detailing which service you’re going to provide, which market you’re going to cater too, and what your marketing strategies will be.

Business Plan

It would help if you had a talent that you can sell to potential clients. Many people draw on their job backgrounds, offering services based on the skills they already have. However, you can also learn a skill and begin to offer that service as you expand.

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Professional Sites

A profile on LinkedIn is also extremely helpful for a freelance career. While all social media can be an excellent resource for job networking, LinkedIn functions as an online resume on a platform where professionals are communicating. It is also an excellent resource for freelance job-finding.

Skills To Become A Freelancer

The following are skills you will need to have a successful freelancing career.

Confidence

As a freelancer, you need to trust your skills and what you can do. If you don’t believe in yourself, then neither will potential clients. Build trust in your skills by perfecting your craft and taking additional training courses where necessary.

Negotiating Skills

If you are your own boss and entirely responsible for your income every month, it is essential to persuade customers that they need your services.

You also need to be able to do that in a short time, whether it’s through writing, through a website, or face-to-face. Potential clients are going to check out several freelancers, so you need the ability to quickly make an impact. You should strive to keep their attention on you and your services.

You will need to balance looking after your current customers to keep them in the long run while also enticing potential customers at the same time.

Effective Time Management Skills

Being able to create and, most importantly, maintain schedules will determine how well you are doing. Freelancing is different from working in an office environment — no one is going to check on you, resulting in much less external pressure.

You will need to find out what works to keep your motivation up and plan your schedule with minimal procrastination. At one time, you could be juggling several different projects so it is important that you stay organized and adhere to your schedule.

Basic Business Management Skills

Whether it’s about meeting a deadline or realizing where the business is going to be heading in a few years, preparation is often what makes the difference between good and great freelancers. Not only do freelancers need to handle their own time and workload every week, but they also need to plan for the future. You should also be able to identify a long-term goal for your business.

Communication Skills

You’ll have to connect with a variety of different people and you will have to do it effectively. You should be able to convey what exactly you can deliver and under what circumstances, in a short and precise way. In addition, you will need to be able to clearly understand your client’s needs and expectation.

How To Put A Price Tag On Your Service

The most basic tip to decide if you want to charge per project or on an hourly basis.

There is not a wrong way for freelancers to price themselves. You might choose to base the way you structure your pricing on each individual project. Regardless, make sure you get paid for the time you’re employed. If the complexity of the project takes longer than expected, then make sure you are compensated accordingly.

You can start with an hourly rate of $20/hr when you are just starting out and increase your rate over time. As a freelancer, you have complete authority to set the rates you are willing to work for.

Tip 1: Add Your Expenses To Your Price

As a freelancer, in addition to your regular income tax, you are entitled to a few extra fees. Estimate that about 30% of your income will go to various taxes and fees. Hopefully, the actual amount is less than that, but overestimating is better.

If you are just getting started, you’re going to have some startup costs. A domain, website hosting, and a WordPress theme could cost around $250. Of course, if you don’t have a computer at all, you’ll probably have to pay $2,000 to get the proper equipment. In addition, depending on the industry you want to work in, you may need to purchase software to support your services.

Tip 2: Determine Your Available Hours

As a freelancer, you get to create your own schedule. That being said, if you want to be successful, you will need to devote the proper amount of time to work. However, the amount of time will vary and entirely depends on the goals you have for your freelancing career. That being said, think of your schedule and available hours when you are pricing a project.

Tip 3: Give Your Clients An Exact Amount

Don’t give a round number when you’re providing a service. Give a precise figure such as $534 instead of $550.

Why? It’s scientific; round numbers appear to be random, and shoppers are more likely to haggle over prices. In contrast, exact numbers communicate reasoning and thoughtfulness. People believe that a lot of effort goes into determining precise figures and they are less likely to argue with them.

Conclusion

Remember that you are in control of your freelance career. As such, price yourself as a valuable asset to your client. We hope these tips help you earn more as a freelancer!

For more information about freelancing, click here.

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