How Much Am I Worth? A Freelancer’s Dilemma
So you’re now a freelancer and you’ve got your first job lined up. Then they ask the question:
“So, how much would this cost?”
Enter panic mode.
Pricing yourself is one of the most difficult task all freelancers face, regardless of industry. At first you feel like you’re literally picking a number out of thin air, and imposter syndrome sets in rapidly. So how exactly do you work out how much your skills are worth? Here are a few tips to help you work out exactly how to put a number to the job.
Chat to your peers
Likelihood is you know other freelancers in your industry. If you’re a freelance illustrator, say, it’s important to remember that all other freelance illustrators are not your competitors but your colleagues. Ask around to see what others would charge and get second opinions. If someone with a few more years experience suggests an amount, work out how much you should charge relative to that amount. If you don’t know people directly, find Facebook groups or forums for your industry and ask there. You’ll be surprised how willing people are to help. Ultimately how much you charge directly affects how much your peers might be charged in the future.
Work out an hourly and daily rate
You always have two options when pricing a freelance gig: charge by time or charge per project. If you go for the former, you need to have an hourly and daily rate that should increase as the years go on and you get more experience. If you go for the latter, however, you should still have a hourly/daily rate in mind with which you can work out how long the project will take and therefore the rough amount per hour/day you should charge.
Do you live in a city? How much do you need to live?
The reality of the situation is that your work is your means to paying rent, paying for food, and generally having enough money to survive. Whether or not you live in a big city will play a sizeable factor on the amount you charge. The cost of living is much greater in a city than it is outside, and so your price should reflect that. If you’re concerned that you’ve found someone online with a lower rate, try and find out where they’re based. If they’re based in a rural area, then no cause for alarm!
Does your industry have a union / central organisation?
A lot of industries have unions or organisations which offer a lot of advice when it comes to pricing yourself. For example, the Musicians Union offers guides on how to price commissions. These can be great starting points.
Who is the client?
Knowing your client is very important when pricing up the work. If you’re dealing with a big company, the likelihood is that they’ll have a bigger budget and will also be less tight with the purse strings. However, if it’s an individual working on an indie project, for example, they likely won’t be able to pay the full commercial amount. Your rates should reflect these realities, although you should never feel obligated to work for less than you are comfortable with just because the client doesn’t have the money.
Be confident
The most important thing when it comes to offering a price is to be confident. If you feel like you’re highballing, then do so with confidence and be ready to defend the number. As with any negotiation, you don’t want to show and weakness or self doubt, so be strong but fair. The client will always look for a bargain, so the moment they sense you would work for less, they will push for that.
Remember that you’re under no obligation to take the work, so if you feel you’re being encouraged to work for less than you are comfortable with, be confident in the knowledge that you are worth more, and only work for an amount you are happy earning.
