006. How to Make a Clear and Transparent Rate Deck

By the end of this lesson, you can start making an effective Rate Deck even as a beginner.

Part 6 of the Freelancing Series

Not just a buzzword

In the world of freelancing and business, being open and honest isn’t just a buzzword. It’s the foundation of trust and lasting connections. When it’s about the services you offer, having a clear rate deck is crucial for earning your clients’ trust. In this guide, we’ll assist you in putting together a rate deck that highlights your worth and promotes transparency and integrity in your professional life

1. Clearly Define Your Services.

Make a comprehensive list of your services in a bulletproof format. Include the details that you could think of. Then divide them into categories. For example, if you’re a Social Media Manager who’s also the Content Creator, here’s the list of services that you could offer:

• Profile Audit
• Social Media Strategy
• Content Research
• Content Writing
• Photography
• Graphic Design
• Videography
• Video Editing
• Hashtag Research
• Keyword Research
• Post Scheduling
• 2 Hour Daily Engagement
• Customer Service
• Monthly Insights Report
• Weekly Video Calls / Brainstorming Session

You could divide them into categories like Content Creation, Social Media Management, and Community Management.

You could add or deduct some services depending on your package, which is also dependent on the cost. You can also explain in detail every service you provide in an overiew. For example, Post Scheduling — “I will schedule the posts one month in advance using Meta Business Suite.” If you’re using a paid app for scheduling posts, make sure to mentionn that there’s a suscription fee. Decide who pays for the subscription — you or the client.

2. Offer Tiered Packages

Consider presenting your services in tiered packages to provide clients with options. Each tier can include different levels of service or additional features, allowing clients to choose the package that best suits their needs and budget.

For example, you could offer a Basic Social Media Management Services by removing all the Services related to Content Creation. You cold also reduce the Daily Engagement into 1 hour instead of 2, and lessen the Video Calls from weekly to monthly.

Here’s an example of Tiered Packages for a Social Media Manager:

3. Transparent Pricing.

Transparent pricing simply means not having hidden charges. It helps clients understand what they can expect to pay. It also allows clients to make informed decisions about whether your services align with their budget and needs.

Examples of hidden charges are: Rush Fees, Revision Fees, Subscription Fees, Taxes, Bank Transfer Fees, Add-ons, and Upgrades. For example, I needed to buy a typeface/font for a client’s Brand Identity Design. They agreed to pay for it without issue because I was transparent about additional costs beforehand. Another client refused to pay my bank transfer fees. She informed me about it in the beginning of our collaboration so I adjusted the scope of the package she availed.

If you’re a beginner, look at Rate Decks of experienced freelancers. You can check #jobopp posts on Facebook Groups. Freelancers usually post links to their portfolio websites in the comment sections. These Rate Decks can give you insights and inclusions that you might have failed to anticipate because you’re new.

4. Provide Examples or Case Studies.

Give clients a concrete understanding of the value they receive by including examples or case studies. Highlight past projects and the results achieved. Emphasize the return on investment to illustrate the real impact of your services. This is the easiest way to convince a client to avail your services.

If you’re a beginner, make a project for an imaginary client and use it as your portfolio. If you’re a Newbie Social Media Manager, grow a Personal Branding account in a relevant platform. Track your progress and make a case study out of it.

5. Set Expectations.

Manage client expectations by clearly outlining what is and isn’t included in your rates. Detail the scope of work, timelines, revision limits, and any specific terms or conditions. Discuss the deliverables they can epect from you. Also include the input that you expect from them.

For example, if you expect the client to provide high resolution photos, please inform them of the specifications of what a high resolution photo means to you. Tell them what you expect from their end and when you expect them. This prevents misunderstandings and sets the stage for a smoother working relationship.

6. Be Clear About Payment Methods.

Include your preferred payment methods in the contract. Specify whether you require an upfront deposit or not. Offer installment plans if applicable. For example, get 40% deposit, 40% upo submission of final draft. 20% after submission of final artwork.

Being upfront about payment expectations avoids surprises down the road. If you’re not on Upwork or other Freelancing sites, I suggest you always ask for 50% upfront deposit before you start working.

Unpopular opinion: Contracts are hard to enforce especially if your client live in different countries. Freelance contracts are based on relationships and word of honor.

7. Keep it Simple and Accessible.

A transparent rate deck should be easy to understand. Avoid jargons or overly complex language. Remember that you’re not talking to a fellow freelancer who might understand your language. You’re talking to a client who probably have no idea what hashtag research is, for example.

My first client as a Social Media Manager didn’t know what Instagram Highlights were. She asked me what those circles are for. Put yourself in the shoes of your ideal client and look at your Rate Deck from their perspective. Is it clear, transparent and convincing?

Use a format that is visually appealing and accessible, making it easy for clients to review and comprehend your pricing structure. Rule of thumb: Make it simple, less is more.

8. Regularly Update Your Rate Deck.

As your skills, expertise, and market conditions evolve, so should your rate deck. Regularly review and update your rates to reflect your current value and updates in industry standards.

Every time you finish a project, add it to your portfolio. Each time you gained a new skill, add it to your resume and rate deck.

Conduct some research on Freelancing Sites to keep abreast of the current rates in your industry and adjust accordingly.

Keeping your rate deck current ensures that clients are getting an accurate representation of your worth.

9. Encourage Questions and Communication.

Transparency is achieved through open communication. Encourage your client to ask questions about your rate deck. Be responsive and willing to discuss any concerns or queries.

Now that you finished your Service Packages, it’s time to decide how much you get paid.

How to Compute your Rates

Here’s a step-by-step guide on how to compute your package rates as a freelancer:

1. Determine your hourly rate. This is the most important factor in determining your package rates. Consider your experience, skills, and the market rate for your services.
2. Estimate the project scope. This involves defining the deliverables, the timeline, and the milestones.
3. Assess the project complexity. Take into account the technical difficulty, the number of revisions, and the potential for unexpected challenges when computing your rates and laying out the Project Scope.
4. Consider your experience level. Junior freelancers typically charge less than experienced freelancers.
5. Use a formula to calculate your package rate. Here’s an example of a formula you can use to calculate your package rate:

Package rate = Hourly rate * Total hours * (Project Scope * Complexity * Experience)

Where:

• Project Scope — Multiply by 1 for small projects, 1.5 for medium projects and 2.0 for large projects
• Complexity — Multiply by 1 for low complexity projects, 1.5 for medium complexity projects and 2.0 for high complexity projects
• Experience — Multiply by 1 for Junior Freelancer, 1.5 for Mid-level Freelancer and 2.0 for Senior Freelancer

For example, if your hourly rate is $50, you estimate the project will take 100 hours, the project scope is medium, the complexity is high, and your experience level is mid-level, then your package rate would be:

Package rate = $50/hour * 100 hours * (1.5 * 1.25 * 1.0) = $9375

Please note that these are just examples. Your actual package rates may vary depending on the project, skills and experience.

Here are some additional tips for computing your package rates:

• Get feedback from other freelancers. Talk to other freelancers in your industry to get their feedback on your rates.
• Consider your overhead costs. This includes things like your health insurance, taxes, and software subscriptions.
• Don’t be afraid to negotiate. Be prepared to negotiate your rates with potential clients. Have an absolute minimum rate and never go lower than that. Lowering your rates just to get the client lowers the value of, not only your work, but of all other freelancers in your niche.

By following these tips, you can compute your package rates in a way that is fair to both you and your clients.

If you’re a beginner, you probably don’t know about how long it takes for you to finish a project. In order to do so, make a sample project for your portfolio and track your time using Toggl or Clockify. Make sure to track individual tasks in addition to the total hours it took you to finish the project.

For example, as a Social Media Manager, it takes you 2 hours to make a Seamless Instagram Carousel. When tracking your hours, make sure to record how long it took you to research the content, make the carousel template, take the photos, write the caption and hashtag research. This way, you can itemize your rates per task, and easily adjust the total project cost.

Now that you have your list of services and rates per package, it’s time to make a pitch.

How to Present your Rate Deck

Your Rate Deck should include the following:

• Cover Page — Title, Logo, Brand Name
• About Me Page — Professional Photo and About Me Article
• Portfolio and Case Studies
• Overview of your Services
• Pricing Structure
• Value Proposition — Explain how your services can help them achieve their goals and objectives. Use case studies, testimonials, or data to support your claims.
• Call to Action — Encourage them to contact you.
• Contact Details / How to Connect with you — Social Media, Email, Link to your Appointment Calendar like Calendly

Make sure the design and layout of your Rate Deck adhere to your Visual Branding. Use Color Palettes and Font from your Branding Guide.

Use consistent templates throughout your Rate Deck. Include High Quality Photos and Images that represent your brand.

Use storytelling to connect with your audience and make your presentation more memorable. For example, you can use storytelling in your About Me Page and Case Studies.

Prepare your Rate Deck in a PDF Format. When making your template, consider that your client might be looking at your Rate Deck through their phones or tablet. Layout your Rate Deck in Portrait to keep it mobile-friendly.

Keep a copy of your Rate Deck in your phone or tablet so you can easily share it every time you come across an opportunity.

If you’re not a Graphic Designer, you can make your Rate Deck in PowerPoint using the ready made templates in the software.

If you know how to use Canva, find a Presentation Template that resonates most with your Branding.

Should you include your prices in your Website?

Some freelancers advice not to include your pricing in your website because every client has different requirements. They advise to jump on a Discovery Call first before you present the price.

I don’t agree with this. I include my rates in my website so my prospective clients have an idea of my rate even before the Discovery Call. It’s a waste of time if we jump on a call and it turns out we don’t align in terms of budget and scope.

I just added a disclaimer that final rates will depend on the client’s requirements. Based on my experience, the clients usually understand that the prices in my website are ballpark figures.

Rate Deck Canva Template

I made you a Freelancing Portfolio whcih includes a simple Rate Deck. It’s a Canva Template that you can customize according to your color palatte and font. It’s drag and drop and fill-in the blanks.

Download it here.

More tips

1. Make 3 packages, a Basic one to get your clients into your world, a Premium one, which will be your bestseller and a VIP one, which is expensive but includes everything
2. Be creative when naming your packages. I saw someone name their packages after Starbucks drinks and another one based on their favorite cities. I name my packages based on the transformation I offer. For example, my Refresh Package is for someone who wants to improve and elevate their social media presence. My Reset Package is for someone who wants to start or start over their social media journey. My Makeover Package includes Brand Identity Design + the scope of the Reset Package.
3. Do your best not to charge hourly if you’re a creative professional. It’s difficult (impossible?) to track our conceptualization process because ideas come to us wherever and whenever, sometimes even in when we’re sleeping. (Some of my best ideas were hatched in the bathroom! Are you the same?)
4. Include the revisions in your package. I offer up to 2 revisions and require additional payment for every revision after that. This keeps the client more mindful when communicating with us about the changes they want.
5. Factor in your bills (Internet, Electricity), Health Insurance, Subscriptions, Taxes and Contingency Funds when computing for your Rates.
6. Include the payment terms when submitting your rates. Payment could be per milestone, upfront or after the submission of the final draft.
7. When submitting a custom-made quote for a client, include an “expiration date.” “This quote remains valid up to 30 days.” This means you will submit a new quote if the client didn’t purchase after 30 days. Aside from giving a sense of ugency and scarcity, your circumstances may change 30 days from now. You may have a new client or the project may move into the “Rush Project” category, in which you need to add a rush fee.
8. Include your work hours in your Rate Deck to let the client know when you are available. Make it clear that you won’t reply to their emails after a certain hour. Create a healthy boundary between your work and personal life to maintain a balanced lifestyle.

Honesty and Professionalism

A transparent rate deck is more than just a list of price and services. It’s a marketing tool that should showcase your value and expertise to potential clients. By clearly defining your services, breaking down costs, and offering flexibility, you not only empower clients to make informed decisions but also set the foundation for a positive and transparent working partnership.

Are you a New Freelancer? My next blog is about how to set your rates as a freelancer with zero experience.

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Happy Freelancing!