Regardless if you are a Remote Working Parent or a Budding Millenial, jumping in the freelance workforce might be the best decision you ever made.
Now that you have established that freelance remote work is a viable option, have you asked yourself: “how much do you charge your potential clients?”
This question might be difficult to answer, but we are here to help you get over this complication.
Starting Out Your Freelancing Career
Knowing what to charge our clients is not as simple as it seems. We have to account the relevant market rates, our target incomes, and our skill level. Also, we have to consider how to charge (per hour vs. per project) and how to file taxes.
As a starting freelancer, charging based on our yearly desired income might not be ideal. But this doesn’t mean that you’ll sell your services for almost free.
At this stage, we should first find out the normal rates for your services from people from your field. If you are a graphic designer, inquire similar designers for their rates or ask your trusted friends in the profession for ballpark prices.
Moreover, starting freelancers might still be under a learning curve. Setting deadlines of output charged on an hourly basis might be optimistically set.
At this level, a Per Project Fee is fitting for your customers compared to a Per Hour Basis. With this, overcharging your customers can be avoided for unforeseen bottlenecks.
And you can allot more time to deliver quality work to your clients.
Getting Steady Income
Right now you have gathered a handful of loyal clients. You feel that your decision is right. And these “side jobs” are paying for your lifestyle. This is the time that you charge on a Per Hour Basis.
Assuming that your collection system is in place, you can now afford to choose the jobs that are worth it on your dictated desired yearly income.
Your reasonable desired yearly income should include your overhead costs, living expenses, and savings. And divided by the number of hours you will work for a year.
By charging a per hour amount, this will additionally make your clients respect your time. And discourage them to demand open ended and vague requirements.
You force them to use your time wisely. After all, you are paid by the hour.
With constant work, you become more adept at your craft. You can now finish an output of value in a short span of time. Charging your clients a Per Project Fee alongside Tiered Pricing will give you better income at this stage.
For example, as a video editor, you can charge a basic editing fee of $300 and $500 if with color correction.
You should not be disadvantaged just because you can deliver value faster. By charging a per project fee, you can now significantly multiply your income while doing lesser hours of work.
The more you do valued work faster, the more income you get.
Other Things to Consider
Some qualitative benefits can be taken into consideration when accepting projects and pricing. These are indirect benefits that can boost your marketability after doing a job well done.
For example, if you are a writer and one of your articles is published on an authoritative website (for a lesser fee), accepting this project has a great chance to boost your credibility in the future.
These intrinsic qualities might build new doors to clients and can justify a future higher price tag.
Charging your clients might not be easy. But do not be swayed by your client’s promise of referrals in exchange for a grossly discounted fee.
Do not belittle your profession.
Focus on delivering high-quality work. You will beat the competition if you can add more value for your customers.
Do not show desperation. Charge them with what’s right.