How to Determine Rates and Pricing as a Freelancer

Are you confused about how to set your rates or pricing as a freelancer? I think this question hits hard.

Aarzoo  has experience working as a content writer, When she discovered the rate as a freelancer, she knew she was on the right track. We caught up with Aarzoo to find out how she grew as a freelancer. She has shared her experience in the freelancing industry, how to determine your rate as a freelancer.

How to set your rates as a Freelancer? I get asked this question a lot. It isn't straightforward, and I struggled with this myself as well. When I went to freelance, it's tough to know what to charge you don't want to undercharge, but you also don't want to charge so much that you're lessening your chance of getting a client, so it's essential to kind of find that good spot, so today I am going to go over with you a few things not to do.

I want to go over first how not to set your rates. I see a few different ways people are trying to figure this out, and it doesn't work. And there are specific reasons why it doesn't work, and then I will talk about what my experience was as a beginner freelancer and what I do to set my rates, and hopefully, it'll help you.

How Not To Set Your Rates or Pricing As A Freelancer

1. Stop Asking In FB Groups Without Complete Info

Okay, the first way I see people trying to set their rates is by asking other people in Facebook groups what they charge. No, I don't know if you're part of these groups or not. If you're a freelancer or hoping to go to Freelance, the likelihood is that you're in a Facebook group for this type of community. So I'll see this almost every other day, and somebody will post. Hey, XYZ, this side, I'm a beginner level Freelancer somebody please help me figure out how much should I charge as a freelancer?

Freelancer? Okay, now do I have to ask you by commenting on which niche you are talking about, hmm? Nope. At least you could have mentioned your service. It could be of anything like web development, logo designing, it can be content writing whatever so that they(FB group members) can get ease and share their experiences with you.

Ø  Reason Why It Doesn't Work

This doesn't work because there are so many other factors you should keep in mind. So if you're going to ask this in a Facebook group, you need also to ask, like I have other things which people just aren't doing they're just asking the one question, and then whatever the answers come in, that's what they're basing it off of, maybe. But it doesn't make any sense because you're not asking them how much experience they have.

How much experience they have, what kind of results they have got for their clients. You're not asking them what market they're working in. You're asking them where their clients are from. You're asking them how in demand they are. There are so many factors that really go into setting your rates and just simply somebody else. Hey, what do you charge? That's not going to cut it.

2.     Don't Demand Rates Like A Pro When You Aren't

Now the 2nd mistake, which many beginner freelancers make, asks your clients to pay you an amount that can't be negotiable. See what sometimes happens when you started demanding as much as an experienced Freelancer does, then you may have high chances to lose your business. So firstly settled then hassle. Okay, I am not saying that it's wrong. You can if you're eligible enough. But constantly evaluate yourself first before you demand rates as a professional one. Yep, you'll get to receive many harsh words like you're destroying the market by working at a cheap rate. But let them speak; you build your portfolio firstly.

The most important thing is, to be honest with your clients. You have to send them a message in advance and tell the truth straight away that I am working at this price because I am a beginner freelancer and currently want to build my portfolio. I Will does not work on this price onwards.

Now by saying this, you have cleared three things to the client.

⇒  Despite having experience, I am working at this rate in the beginning because I want a portfolio (This will show your worth).

⇒ The second thing you cleared to your client is that this offer is for your limited time. And It will make your client think twice that if I have not hired him now, maybe he will increase its price in the future—this technique called scarcity which most of the big companies, brands, service providers use.

⇒  3rd thing that you'll clear your client is you're working only for star ratings. This will make your client clear, and he has to give you good ratings to create a good base.

Rates You Should Go With As A Beginner Freelancer

When your ratings and revisions are good, and you have an excellent portfolio build, now you should determine your price, like how much you should charge from your clients.

Firstly, you must have known what you can do, like what is your worth. How good are you in your skill? And the quality you can provide your client. By keeping all these things in your mind, you may save a reasonable price according to your industry and client budget. But if you're still confused with this, go through with the best content. Have mentioned some techniques which you can use to determine your price as a freelancer.

1. Go Through With the Freelance Platforms

It's a great way by which you can have an idea of your pricing by going through the profiles of your fellow Freelancers on the different Freelance platforms. Go with the famous one first, like Fiverr or Upwork. And look out what other Freelancers are charging for their services. By doing so, you'll get to know that each freelancer has their demand. It would be better if you'll go through with the categories searches.

For example, visit Fiverr, search for your industry in the search bar, and take two profiles from the highest-paid section and the lowest-paid section. And compare both of the profiles closely. And once you're done, lookout where you are and calculate what your price range should be. Remember that this trick is only for beginner Freelancers because, based on my experience, I have seen many experience Freelancers working on freelancing platforms at a very cheap rate because of the competition on these platforms.

2. Opt For Freelancing Tools

You may use Freelancing tools to compare or determine your rates as a freelancer. This tool will tell you what other Freelancers of your genre are charging. It'll help you to figure out the competitive prices which you can offer to your clients. Can use the following freelance tools to do so.

LinkedIn Salaries

This tool lets compare the job salaries from all over the world, which gives you an extra benefit like comparing the rates from different regions and countries.

There's an added advantage for software engineers here. As a software engineer, you can use reports from triple byte to determine your price as a freelancer.

Bonsai

Bonsai is another tool by which you can calculate the rates as a freelancer. It has shown you a big picture in the genres of web design, and graphic designer rates hourly rates based on your skill set, experience, and location.

Glassdoor

Glassdoor has the almost most advanced tool for calculating Freelance rates based on genuine Freelancers and location feedback.

3. Ask From A Pro

Okay, still confused? Do one thing to ask from a professional. If you know someone who is a pro in your field, you may ask him or her to help you further in clearing your confusion regarding what rate you should take as a beginner Freelancer. And what to do if you don't have anyone like this in your contacts, hmm...? Okay, so it's time to recall what you read initially (how not to set your rates or pricing as a freelancer) to recognize its first point, yep, the FB one.

I thoroughly explained the mistake you make while asking experts to set your rates or price as a freelancer. And also explains the things you can do to correct those mistakes. So this is my other suggestion to join a professional services provider group. And create a post, and do not forget to mention the things I told you earlier. Now move on, and let's see what I experienced as a beginner freelancer while determining my rates according to my skill.

My Experience As A Newbie Freelancer in Determining Rates

Like you, I faced this problem in the starting phase of my Freelance career. Because I was also new to the world of Freelance, moving forward, as soon as I completed my course, I start looking for work, and with this thought, I get enrolled in a FB group that is reliable to my skill set. I took this decision at the suggestion of one of my close friends. Then I saw a post there that someone is looking for a Freelancer with this and these conditions.

And I thought this is all relatable I must go for it. Then I dm the recruiter along with my cv and cover letter. After waiting a while, I got a reply that it's better to tell me your rate. I way like rate? What should I suppose to say? Trust me; I got blanked that time. But thankfully, I have a tutor who helps me in solving this query. And I'm doing good at it. So this is what experience was as a newbie freelancer in the genre of rates.

Last Words

I thought the best way to determine your prices is to watch out for everything carefully and look at your position (I mean the quality of your service, deadlines you can meet, how client-friendly you're, etc.) and then decide yourself what you should charge. And another my favorite way to come out with this situation is to ask a pro. I think this one would be better for you as a beginner freelancer. I hope this blog helped you.

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