Online Freelancing (Part 2): How to set Freelance Project Rates?

(This article is a part of the Online Freelancing series.)

I started freelancing as a naive newbie. Six months into freelancing and I had no idea about the rates.

“Oh, wow! he wants to pay me for my words, let me send it to him and get the money!”

Well, what should have I done? I didn’t know how much I should be paid. But, even after I knew, I didn’t negotiate.

“What if the client gave the project to someone else?”

But soon it struck, I am doing it all wrong. And that deep realization happened after freelancing for a year.

So, how to get the rates you deserve?

First, find how much you deserve.

Easier said than done!

Yes, no one can tell you how much you should charge. You would have to find that yourself; others can help though. And where can you find those people?

Start with LinkedIn!

Connect with other professionals and the freelancers working in the same domain as you. And not only connect but also keep in touch. Also, should I tell you a secret here? You can ask them how much they charge.

Not everyone will be comfortable enough to tell, but you will be surprised to see how many will. However, you need to be on good terms with them. People won’t like a stranger asking details from them.

With being active on LinkedIn, not only will you be able to know their charges but also their strategy. Then, compare the level of experience and what all they do. For example, not all web content writers would be paid the same. A writer who also manages the client’s website will be paid more than the one who only provides the content.

So, once you have all the data, implement their tactics to find how much you can charge. You can ask for help during implementation too.

Next, ask for the project details

Now that you have got yourself something to start with — a price you’re comfortable selling your services at — how do you get the client to pay?

Well, don’t ask to pay! Not right away…

Ask him/her to send you the details of the project, and analyze it. See what all you are required to do and what more information you will need to get it done well. Discuss it with the client, check the deadline and when you are positive that you can do it, subtly ask for the budget.

Let the client know that you know your job well. Build the trust that you would like to get it done in the best way possible. (which, of course, should be your intention)

Then, quote your rate

Remember, you are an entrepreneur! So, always try to be in the controlling position.

And when it comes to pricing, the situation is the most delicate. Quote too high, and you may scare the client away; quote low, and the client may doubt the quality of your work.

So, knowing the client’s budget helps. Don’t force them though, to tell you. Ask for it as you get into the details.

But, what to do when the client asks you to quote your rate up front? Well, speak up!

Yep, you know how much you deserve and how much you should expect to get for the project. So, just name the amount, and be confident while doing it. Clients sometimes want to know if you’re in their budget before discussing the details. And believe me, I have repelled many clients by saying “My rate depends on the amount of research that would require for the project.”

Ask for the project details, check if you can do it and quote the amount. And keep it high enough to be negotiable.

Sealing the Deal

Now when you have quoted the price, or the client has revealed the budget, you can expect some negotiation. So, don’t be adamant about the money. Just because the client won’t pay you the amount you asked, doesn’t mean you shouldn’t take the project.

There are many other important factors which don’t involve money –

i) Adding Work to Portfolio –

Being a freelance writer, most of my works have been in the ghostwriting mode. I write pieces as per the client’s requirements but can’t claim them to be mine. It hurts, right? Well, some of my clients have allowed the ghostwriting pieces to be shared too, but you need to ask first.

While some had no problems with me adding the published article to my portfolio, others preferred the PDF mode. There were yet others who allowed me to add the screenshot of the content. So, find all the possibilities and discuss them in detail. You might get permission to include some of the works if not all.

ii) Mentioning the Company in Experience –

If the client isn’t comfortable with showcasing the work you do for him/her, you can ask for permission to add the company to your profile/resume. It can particularly be helpful for those freelancers whose work involves planning and management.

Marketers, planners, accountants, and VAs, for example, can’t show what they do for a client. But the client instead, can permit you to add that you work for his/her company as a freelancer. A testimonial would be the cherry in those cases, which brings me to the third point.

iii) Social Shares –

Publicly available feedback on your work, or a testimonial which you can show on social media, your website or portfolio, would work too. The client sharing a few words of praise about you on their social media profile or even writing you a recommendation on your LinkedIn profile can be a wonderful gift.

OK, those were the few things which I have tried until now and can be beneficial for you, apart from money.

But then, also comes the opportunity of growth and the ease-of-work. You can charge a little lower or even do a small sample for free if the work looks interesting. And not to forget long-term projects involving repeated work, which don’t require much effort once you’re accustomed to the task.

So, consider all the probable situations before setting your freelancer rates for a project and signing the agreement. Still, if the rate offered looks too low and the perks negligible, it’s better to politely decline and move on.

Read — How to create a Freelancer Contract?

Be CONFIDENT, be POLITE and remember that even a failed agreement provides you with a lot of things to learn.