Freelance work has become more and more of a norm for most Americans, with over 59 million citizens working as independent contractors across the country. There are many benefits to freelance work, but a number of challenges as well.
You run your work as your own company and as such, you have to make all the big decisions. One of the most difficult things to determine when you’re first starting out? How much to charge for your freelance services.
There’s no simple guide out there on how to price freelance work, which is why it can be so difficult for many who are new to this kind of workflow. What do you need to know about creating your own personal pricing structure? Read on.
Determining Hourly vs. Fixed Rate
Before you get into the business of deciding how much you should charge, you’ll need to decide how you want to be charged. Deciding between an hourly wage or a fixed cost will depend a lot on the kind of work you do and the flexibility you’ll have per project.
Generally speaking, fixed pricing can be easier for you and the client. You simply ask for the amount of cash you’ll want upfront, and it’s delivered upon the delivery of your services.
When might hourly rates make more sense? In situations where it’s hard to determine how long it will take you to accomplish the work at hand. For example, if you’re providing a service that might get sent back to you with notes for adjustments.
It can be hard to determine how many rounds of notes you might receive and how big and time-consuming the changes might be. Charging by the hour could help you to match the amount of effort you put into how much you get paid.
If you have more control over when, where, and how you’re doing a job, working with a fixed rate might make more sense. It will certainly be less to keep track of.
Luckily, you can find an invoice template to match whichever payment format you go with.
How to Price Services
The best way to land a price for your own services is to look at the competition. What do people who do the same work as you charge for their services? If you do a good amount of research, you should get a steady sense of how much to expect for a certain amount of work.
If you’re just starting out, you may want to pull your asking price just a little lower to stay competitive. You’ll need to build up a client base, so offering a small discount as you get your footing can be smart.
You can always push your price up later on once you are more established.
Cashing Out on Freelance Services
If you’re providing freelance services to a number of clients, you’ll want to be sure you’re getting paid what you deserve. Landing on an exact number as you’re getting started, however, can be tricky. The above info can help you determine how to go about this difficult task.
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