# Understanding Freelance Pricing: Strategies and Insights for Success
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Chapter 1: The Challenge of Setting Rates
Are your rates for freelance writing so high that you’re losing potential clients? I faced this dilemma too. After dedicating two decades to freelancing as a ghostwriter and web designer, I transitioned to full-time writing on Medium and my personal blog. I take pride in my ability to tackle various subjects, from technical programming to artistic endeavors. I had a handful of fantastic clients who supported me for years.
However, when I turned my focus to Medium, I anticipated generating significant income with minimal effort, which didn’t materialize. In hindsight, maintaining a few clients might have been the wiser choice. The silver lining of my Medium and blog publications is that many individuals looking for writers discover my work, often reaching out via LinkedIn.
I receive at least one job offer weekly. Some offers are laughable, like a mere few dollars for a 1,000-word piece, with promises of future better pay based on “exposure.” I’ve learned not to accept low or unpaid work, so that’s not my concern. The real issue arises when potential clients inquire about my rates.
My only reference point for pricing is what I previously charged clients: a little over $0.20 per word or $50 per hour. When I quote this figure, many potential clients are taken aback and look elsewhere. Fortunately, a few clients recognize my worth right away and have no qualms about paying my rates, often questioning why I am so affordable.
Prospective clients only see what’s available in my profile or writing samples. They are unaware of my reliability or ability to meet deadlines. Lacking familiarity with my work, why would they agree to what they perceive as premium rates?
I’ve lost numerous opportunities because clients deem my rates too high, prompting me to question whether my ego is influencing my pricing. Or, am I simply encountering too many who seek cheap or free talent?
Section 1.1: Market Insights on Freelance Rates
Freelancers know how challenging it is to pin down pricing. Clients often hesitate to disclose their budget, fearing that we might offer a lower rate than they’re willing to pay. They want to minimize costs rather than compensate us fairly for our expertise.
Other freelancers often refrain from sharing their rates to avoid being undercut. So, what’s the solution?
In my quest for guidance on pricing, I briefly scoured the internet. I could have purchased "The Writer's Market," but at that time, the cost was beyond my budget. Even though $30 may seem trivial, it was significant for me.
So, I typed “how to set freelance writing rates” into Google and embarked on my research journey. Initially, I didn’t dedicate enough time to research, which might have been a mistake.
The first video titled "Here's how to charge your freelance clients to make more MONEY" offers valuable insights on pricing strategies that could reshape your approach to client negotiations.
Section 1.2: Evaluating Your Worth
According to FreelanceWriting.com, “Some writers choose to charge by the word, with rates varying based on the type of content produced.” If you opt for a per-word fee, establish a consistent rate across different projects. They also suggest considering the time invested in creating your work and recognizing that an educated writer can realistically earn between $30 and $75 per hour.
This aligns with my current rate of $0.20 per word for 250 words per hour, totaling $50. While my self-assessed rate isn't exorbitant, it may not be optimal, especially as I recognize that I am not among the top-tier writers.
Another source, AllFreelanceWriting.com, confirmed that my hourly calculation of $50 is reasonable for my skill level. However, I can’t shake the feeling that others are laughing at my rates on LinkedIn.
By the time I reached Location Rebel, I discovered a seven-step framework for establishing freelance rates. Let’s utilize their formula:
- Monthly income goal: $3,000
- Realistic working hours per month: 80
- Base hourly rate: $37.50
Adjust this rate based on job duration and include a buffer for unforeseen expenses. It appears I’m not far off from an appropriate rate.