Starting out as a freelancer, you probably have many questions on your mind: How do I start? Where do you look for clients? Or how do you manage your time? Yes, there is a lot to consider when coming into the field of freelancing. However, once you’re in, it gets a lot easy and clearer.
Got yourself a client? Perfect, you’re on the right track. Now, how much would you be willing to charge them? This is one of those dreading questions many new freelancers have to face. At no point would you want to end up overcharging your client (or undercharging for that matter). Pricing your first client can be difficult, you face the fear of either losing the client due to overcharging or to end up receiving almost nothing for a month-long project.
So how do I go about pricing my service?
How you price your clients depends on the type of project and how much you think you are worth. I have included a sample pricing model below.
Don’t overdo it.
You often read about the price of a creative artist defined by the degree and equipment they may use. While true, being a creative artist is rather expensive. However, don’t let it define the price you are going to charge to your client. While providing a service, don’t over-charge your client by providing a huge estimate for a small task. Then again, try not to sound too cheap. Keep the price to something reasonable. Over-charging will get you nowhere, you may lose the client. Under-charging however, may get you the job, but the client might rule you out as an “amateur” freelancer.
A (Possible) Pricing Model
If you’re confused about how to charge your client. Consider the following pricing model:
Start off by coming up with an hourly rate. It could be any value you feel best describes your worth.
For our example, we will use $25 per hour.
Next, you will come up with a daily rate. The daily rate is the number of hours you work per day multiplied by the hourly rate.
For our example, let’s say we work 6 hours every day. Our daily rate would be 6 hours * $25 per day. Our daily rate is $150 per day.
Finally, how many days do you think it would take you to complete the assigned project? Multiply the daily rate by the number of days you think it would take you to finish the project.
For our example, 30 days * $150 per day = $4,500.
There you go, you now have the price of the project.
While it may be awesome to receive $4,500 for your work, you may take it one step further by categorizing what you will charge based on the type of client.
Say you have the following types of clients:
- Small Business
- Medium-sized Business
We could take the pricing one step further by giving each of the client types a number. Here is an example:
- Individual: 1
- Start-up: 1.5
- Small Business: 2
- Medium-sized Business: 3
- Corporate: 4
If a startup hires you for a job, you may multiply the final price by 1.5. Similarly, if a Medium-sized business hires you for the task, you may multiply the final price by 3.
Your final price for a Medium-sized Business would be $13,500 ($4,500 * 3)