Pricing strategies are a huge hurdle for freelancers to overcome. Researching on Google what to charge, you’re inundated with lots of contradicting information.
Disclosure: Some of the links in this post are ‘affiliate links’. This means if you click on the link and purchase the item, I will receive an affiliate commission.
Freelancer platforms with low rates like Fiverr, just don’t help. Experts on freelancing then start telling you to charge hundreds of dollars.
I know, I was there. I was overwhelmed and burned out just with the amount of information out there.
Finally, after I put myself back together, I worked out a plan. A plan to be able to earn what I wanted to earn given the amount of time I really do have.
By the way, I am not someone who works around the clock.
I have a chronic illness and a young child, so I am always feeling knackered and cannot work 40+ hours a week.
Therefore, I have created 5 simple pricing strategies. Pricing strategies that are true for your freelance business. Also taking into account your own individual circumstances.
Step #1 What are your income goals?
Always start with this in mind when creating pricing strategies.
Whether you just want to earn enough money
- Pay the bills
- Improve your quality of life
- Earn a six-figure income.
Yeah, you know that six-figure income people are always talking about. It is all possible, but it all starts with a plan and a vision.
Vision boards are a useful tool in this step. Helping you to visualize what these goals will help you achieve. More importantly, vision boards help you to achieve your goals.
Top 5 Vision Board Apps
As with everything else there is an app to create vision boards. Here are 5 vision board apps you can do. Click on the pictures and learn more about each one. That way you can decide if they are a true match for you.
#1 Subliminal Vision Boards
#2 Hay House Vision Board
App #5 Mind Movies
Step #2 What are your running costs?
Not the costs of your running shoes, but the costs of running your freelance business. These costs are a big factor in your pricing strategies.
You want to have insurance, even as a freelancer. If you are taking on projects that have a high cost to your customer then you need to take on liability insurance as if you make a mistake they may want to take you to court over it.
This problem couldn’t be truer than freelancers who are in bookkeeping or accounting services. Freelancers in this niche need insurance that covers their arses, just in case things go wrong.
Speaking of bookkeeping services, as a freelancer it is a good idea to have a bookkeeper. Having someone being able to manage your finances and tax return whilst you are earning the money makes your time more productive. Over time you will be saving yourself hours of work that you can be using to assist your clients.
Here is a list of the top 5 tools I use to have more productivity in my freelance business, check them out.
Website hosting is a must have for freelancers. For freelancers to be successful, they need to have an online presence and a shop window for prospective customers to look at what it is you do and are an expert in.
Therefore, you need to choose a website host that is reliable and is the best for freelancers.
You can self host your own WordPress site, but this is not advisable as you’ll run into these issues:
- Piracy (hackers stealing your content)
- Run out of space – quickly
- Don’t own your own content
But with a website hosting company you will get more control, freedom, and security with your website.
Step #3 What about times you don’t work?
Planning on working 365 days a year to reach your income goals?
Avoid this by adding in how many holiday days you will have. Include any potential sick days.
Sick days may be a little bit harder to calculate. As who exactly plans on having a cold?!
If you are fortunate enough to be in good health, you can just plan on the possibility of going down with a cold. But if you have a chronic illness like MS (Multiple Sclerosis) then this can be trickier to plan for.
As a fighter of MS, I know that I am normally ill 2 days of the week. For the rest of the week I can do my work like a normal person. With this in mind I always plan for this.
Another aspect that I have to plan for is that I have a young child and she requires my attention on the weekend. Maybe you have children or family members you care for. How much time do you have to give them?
All of these other factors make up our lives and we have to add them into the calculation as to how we will achieve our goal income.
Step #4 Set Your Freelance Rates
Check out this infographic to calculate your hourly rate in your pricing strategies.
Step #5 Package Your Services
Packaging your services instead of charging per hour does tend to work out better for freelancers. What’s even better is that clients love packaged services.
Clients love packaged services because they are looking at the full service you are providing, how long it will take you to complete and what the final cost is. Hourly rates only tell the client how much you are charging per hour to work on a project, not much else
Here are some tips on how you can package your freelance services.
In A Nutshell,
Freelancers need to have pricing strategies for their services. Without pricing strategies, they do not get the income they deserve. Or even reach their income goals. So use these 5 pricing strategies to start earning what you want to be earning.
Don’t forget to download the checklist to start a freelance business and get clients by clicking the image below.