Categories: Business

4 Considerations To Make When Setting Your Rates As A Freelancer

Working as a freelancer can open up a world of possibilities and gives you the freedom to pitch for the sort of work that you want to do, but it is not without its challenges. One of the key aspects of going freelance is your ability to work on your terms and earn a reasonable rate of pay if you get your pitch right when competing for business.

Having access to Freelancer payments options will also help as you need to make it as convenient and straightforward as possible for anyone to pay you for your work. Here are some pointers on how to set your rates as a freelancer and grow your network of clients.

IMAGE: PEXELS

Do Your Research

It can be quite daunting when it comes to setting your rates correctly, especially when you first start out as a freelancer. You don’t want to go in too low just to win the business, especially if you haven’t done your calculations correctly, and you struggle to make a profit as a result of not charging the going rate.

On the other hand, if you go in too high with your pitch, you run the real risk of not getting the work because your prices are too high. There is no substitute for doing the groundwork and thoroughly researching what other freelancers are charging.

It also helps to know what sort of prices clients are prepared to pay, which you can often discover by searching through various project listings. Armed with that market intelligence, it should help you to stay competitive with your rates.

Work Out Your Costs

Even when you are working for yourself as a freelancer and don’t have too many overheads in terms of rented office space and other costs, you will still have expenses that you need to account for when working out your rates.

Work out how much you need each week to pay your household bills and factor in any additional costs so that you can charge a rate that allows you to cover all of your expenses as well as calculating a profit margin.

Always Focus On Value

The way to grow your freelance business is through keeping your customers happy, and the way to do that is to deliver value. When clients perceive that you are going the extra mile and delivering additional value for money, it makes it grow your earnings organically.

Don’t Stand Still

Another major challenge for freelancers is when and how to raise their rates of pay. There is always the fear that if you implement a price rise, your client might decide to look elsewhere. However, if you have delivered value and proved that you have the skills and experience they are looking for, your clients should withstand a tactful and justified rate rise.

It can take time to build up your freelance business, but if you manage to put in some solid foundations and learn how to set your rates successfully, it should allow you to grow in line with your ambitions.

If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.