Getting Your Pricing Right as a Freelancer

Getting Your Pricing Right as a Freelancer

by | Jan 24, 2025 | Blog, Resources

This guest post was contributed by Ed Deason, a business coach who helps freelancers and small business founders with their business strategy, growth, pricing, and lead generation — leaving them free to focus on their specialty. He has 15+ years of experience in corporate mentoring and coaching, and an MBA from a top UK university. Connect with him at deasoncoaching.com.

As a business coach, one of the most important conversations I have with my clients is about getting their pricing right. Nine out of every ten freelancers I talk to could be charging more for their services.

The problem? It’s not a lack of belief in the value they offer or a mismatch with their niche. It’s their mindset that’s holding them back.

What is scarcity mindset?

If you have a steady client list but you’re not making enough money, it might be a scarcity mindset that’s stopping you from earning good money.

Think back to your last few sales conversations. Did your thoughts sound something like this?

“I NEED this client.”

“If I charge too much, they’ll say no.”

“I can afford to accept X for this job.”

These are classic examples of scarcity mindset at work. It’s the mistaken belief that resources (in this case, clients) are limited. And because of that perceived limitation, you ask for less than you want or accept lower-paying work when you know you shouldn’t.

Think about it objectively for a moment.

There are more potential clients out there than you could ever hope to serve.

What’s the problem with scarcity thinking?

When you’re in this mode, it’s hard to make good decisions. It adds a sense of urgency and short-term thinking that can get you in a bind later on.

And when you’re focused on meeting your immediate needs, you’ll find it harder to picture yourself getting paid a solid rate down the line. So, you do everything you can to keep that client who’s sitting in front of you right now. Or you desperately advertise your services to anyone and everyone, even if that means accepting less than you’d like.

The Solution

To break free from scarcity mindset, you need to approach pricing logically. When emotional thoughts like “I NEED this client” creep in, take a moment to pause. Here are three tips to help you stay strong when setting your rates:

Tip 1. Work out an internal hourly rate

When you’re not sure if you’re charging enough, but you have an annual income goal in mind, use this process to set your prices. Remember, this is a rate you use internally — don’t share this with clients.

First, you need to know three things:

  1. How many billable hours you aim to work each week (not including admin, business development, or anything that doesn’t directly earn money)
  2. How many weeks you want to work each year
  3. How much you want to earn annually

Let’s say you want to spend 20 hours a week on client work, earn $100k a year and work 48 weeks (four for holiday).

Divide your annual earnings (100k) by the weeks worked (48) then divide again by the number of hours you want to work (20).

That gives you around $105 per hour.

So, when you’re next quoting a client, and you think the work will take 10 hours, then provide a minimum package price of $1,050 for the work.

If you use this tip to set your package pricing, and you consistently hit your hours, you’ll achieve your income goal.

Tip 2. Always prepare in advance

Never go into a client call without a firm idea of what you want to charge. Make sure you have a target rate in mind, and you’re prepared to field pricing objections. This will help prevent the panic-and-cave response if you’re asked to go lower than you’re willing to.

If they do ask for a break on pricing, I’d suggest saying, “I can certainly look at my prices. What would you be comfortable removing from the scope to bring the price down?” This prevents you from delivering the same amount of work for less money.

Tip 3. Think ‘value’

Instead of basing your rates purely on time or effort, consider the value you’re delivering to your client. Think about the outcomes your work creates, whether it’s increased revenue, saved time, or enhanced brand reputation.

For example, if your work helps a client generate $50,000 in new business, then your $5,000 retainer is only a fraction of the value you’re providing. This mindset helps you avoid undervaluing yourself and ensures clients see your services as an investment rather than a cost.

Foster an abundance mindset

On top of the strategies above, the most powerful thing you can do is shift your mindset when it comes to pricing.

The opposite of a scarcity mindset is an abundance mindset. It’s the belief that there are more than enough resources to go around, that you are capable, and that clients need you as much as you need them.

Remind yourself of the following before any pricing conversations:

  • There are more potential clients out there than you can ever hope to serve.
  • You offer a service that your clients need and want.
  • You’re experienced, capable, and highly skilled, and you’ve (probably) got the testimonials to prove it.

Why it’s worth it

Still wondering if all this effort is worth it?

One of my freelance clients revisited their pricing strategy as part of our coaching program and added $10K per month to their income. Seems worth it to me.

By making adjustments to your pricing and mindset, you can create a freelance business that supports your goals and your worth.

Why Freelancers Need Strong Teamwork Skills in a Solo Career

Why Freelancers Need Strong Teamwork Skills in a Solo Career

by | Dec 19, 2024 | Blog, Resources

This post was contributed by Mike Potter, a skilled writer who brings expertise in career development and professional growth to his craft. With a strong grasp of workplace trends and hiring practices, he produces impactful content that guides readers in building standout CVs and exploring rewarding careers.

If you’ve taken the plunge on a freelance career, chances are you’ve accepted the idea of working solo indefinitely. Maybe that was even part of the draw. Working independently can be fulfilling, giving you space to call the shots and set your schedule. But if you think solo working skills are all you need to thrive as a freelancer, think again! While initiative, resilience, and drive are all essential for freelance success, teamwork is arguably just as important.

Why do freelancers need strong teamwork skills?

Even if you spend most of your workday alone, everything you do is ultimately in service of your clients. Building strong relationships with them is essential to your success. A foundation of strong teamwork helps you build trusting relationships with your clients, understand their expectations, and deliver exactly what’s required.

When you understand your clients’ needs, you can collaborate and communicate more effectively at all stages of a project. If you work with associates, suppliers, or other freelancers, this spirit of teamwork will also help you maintain healthy working relationships and deliver top-tier service.

Top teamwork skills for freelancers

There are multiple ingredients to effective teamwork. Here are some of the core skills all freelancers need to develop in order to exceed their clients’ expectations:

  • Communication: Successful freelance work depends heavily on effective communication. Whether you’re working remotely or on-site, you’ll need to be consistent and clear in your client messaging, setting their expectations and delivering on them. That’s how you build trust.
  • Adaptability: Having the flexibility to shift in order to meet your clients’ needs is essential to building productive business relationships. This could mean changing deadlines, responding to requests for work on shorter-than-ideal notice, or working to accommodate your clients’ communication preferences.
  • Problem-solving: Your clients chose to work with you because you provide a service they can’t or don’t want to fulfill themselves. You bring expertise and experience to the table, and you can solve problems for them. The more you lean into your role as problem-solver and work to make their lives easier, the more successful you’ll be in time.
  • Interpersonal skills: Soft skills are just as important as hard skills. Your ability to build relationships with your clients can’t be undervalued. While the quality of your work needs to speak for itself, at the end of the day, people want to work with people they like. Get to know your clients. Treat them with respect. And watch your relationships flourish.
  • Willingness to receive feedback: Feedback helps you grow as a service provider, and receiving it with openness is a green flag. It signals to your clients that you can adapt to incorporate their feedback, and that builds trust in time.

How to develop your teamwork skills as a freelancer

It’s easy to lose perspective when you’re working independently most of the time. And if it’s been years since you’ve worked on a team, let’s be real — your teamwork skills might be a bit rusty! That’s natural. Here are some simple ways to flex those muscles:

  • Ask for feedback: Direct feedback from clients can help you identify your strengths and weaknesses. Maybe you deliver high-quality work, but your communication could use some improvement. Open up to honest feedback and you’ll get the pointers you need to grow.
  • Define your responsibilities: Clarifying and defining your responsibilities can help you deliver exactly what your client needs and expects. Make sure you’re aligned on the key deliverables at the start of every project, then make plans to check in and discuss progress at a regular cadence.
  • Participate in a group activity: You can develop your teamwork skills outside your freelance work by participating in a group activity or volunteering on a regular basis. Collaborative activities give you regular social contact too, so you can exercise your teamwork skills in a low-pressure setting.

Showcase your teamwork skills to land prospective clients

Here are some simple steps you can take to make sure your teamwork skills shine through when pitching new clients:

  • Ask for client testimonials: Feedback and testimonials are the best way to demonstrate credibility. If you have a positive working relationship with your client, politely ask them to provide a brief testimonial that you can use in your applications and proposals.
  • List teamwork skills on your resume: If you have a resume that you share with prospective clients, you can showcase your teamwork skills there. Use resume templates from sites like CVwizard.com to make a good impression.
  • Showcase finished work in a portfolio: Most freelance work requires collaboration with an internal team or other freelancers. Adding examples of finished projects and highlighting the folks you collaborated with can help demonstrate your teamwork skills too.
  • Leverage your LinkedIn: LinkedIn is an invaluable resource for freelancers. It acts as a networking tool and a site to showcase your industry knowledge, and it can double as a career portfolio, featuring client feedback and examples of successful working relationships. Use the skills section to gain endorsements from previous colleagues and clients, and your recommendations section to list testimonials.

Flex those skills

Consider your freelance career an ongoing opportunity for skill development and personal growth. None of us are stagnant — we’re constantly evolving in our personal and professional lives. You can lean into that growth by intentionally working on your communication and collaboration skills. With time, you’ll notice your relationships improving and your business blossoming. Good luck!

 

Managing Inconsistent Income as a Freelancer

Managing Inconsistent Income as a Freelancer

by | Oct 10, 2024 | Blog, Resources

This is a guest post contributed by Indiana Lee. Indiana is a freelance writer from the Pacific Northwest who often writes about business, leadership, and marketing. Connect with her on LinkedIn.

Freelance work is becoming increasingly popular, and it’s no secret why. Contracting yourself out as an experienced knowledge worker with a refined set of skills essentially makes you your own boss. You can make a living off the work you do best. You choose the projects, you fulfill your obligations on your schedule, and over time, you build a brand for yourself that draws new clients in.

However, what often gets undersold is how difficult it can be to work as a freelancer, at least initially. The market is crowded with would-be freelancers looking to trade on their skillset. Standing out amidst the herd isn’t easy without a detailed resume of accomplishments and references. Plus, work can be inconsistent in both pricing and quantity — some clients want their contractors to heft the world on their shoulders for pennies on the dollar, while others pay well but provide work only seasonally.

If you truly want to become a full-time freelancer, you have to prepare for the inherent uncertainty. You need to ensure that when work isn’t available consistently, you can still cover expenses and live semi-comfortably. If you aren’t sure how to do that, you’re in the right place: This article will give you tips and tricks you can leverage to coast during financial uncertainty and, through diligence and perseverance, realize your dream of full-time freelancing.

Create a Budget

Your very first step is a basic but often overlooked one: Know how much you need to make. Creating a budget will give you a month-to-month breakdown of finances based on your total net income, obligations, and expenses. Ideally, your budget should act as a continual reference point to track your financial health, especially for freelancers whose income may vary week to week. You can check your budget to identify and plan for months when your income after expenses is lower.

However, a budget is only useful if you keep it realistic and stick to it. And let’s be real — the average person isn’t great at following a diligent budget. But it’s an essential admin task for freelancers. Best practices for budget maintenance include:

  • Projecting income based on available tasks
  • Eliminating unnecessary expenses, like digital subscriptions and takeout
  • Automating utility payments and estimating future ones by tracking changes over time
  • Leaving room for payments on credit cards or other outstanding debts
  • Putting money aside monthly for health and transportation emergencies

Keeping a consistent eye on your budget as income varies is the best way to ensure your bills will still get paid, even during economic stress.

Minimize Your Expenses

But how do you deal with it when monthly expenses, like internet bills or utility payments, become unbearable? With inflation on the rise, chances are your expenses will also rise over time. Unfortunately, utility bills are a necessary expense, not just for comfort, but for work too — especially for those of us who work from home.

Fortunately, in some circumstances, you can negotiate your bills down, making them more affordable. Your internet plan, for example, may included unneeded features or a higher-than-necessary data cap. Try conducting research on competitor pricing and calling your provider to negotiate your monthly price based on market rates. You might get a lower offer or find a plan that better suits your needs — all without spending extra on “features” you don’t need.

Utility bills can be negotiated similarly, as utility providers are also guilty of including “services” and fees you don’t use. Keep a close eye on the services you’re paying for and make sure to reach out if something seems amiss.

    Diversify Your Income Streams

    Finally, if you find it challenging to secure a steady stream of clients in your niche, try expanding your service portfolio. Look into other markets that might fit your particular skillset. Ask existing clients if there are adjacent projects or tasks you can help with. And dig into unexplored niches in your field. These tactics can help you widen the net and find new income streams when your main sources dry up. Creating multiple income streams is also one of the best ways to create a freelancing career that endures. Once-in-a-while major projects will only carry you for so long. Building a steady foundation takes time, but it’s worth it in the long run.

    Future You Will Thank You

    Making your way as a freelancer is an exciting and sometimes daunting adventure. It pushes you to think more strategically and creatively about all facets of work. And that’s part of why we choose this path, right? We get to call the shots. That includes the day-to-day choices that might seem small, but that add up in the long run. Make sure you’re setting yourself for success by thinking of future you. Follow the steps above, and you’ll gain a bit more control over your financial picture and prepare yourself for a more easeful work life.

    Creating an Effective Out-of-Office Strategy for Freelancers

    Creating an Effective Out-of-Office Strategy for Freelancers

    by | Sep 5, 2024 | Blog, Resources

    This is a guest post contributed by Indiana Lee. Indiana is a freelance writer from the Pacific Northwest who often writes about business, leadership, and marketing. Connect with her on LinkedIn.

    Freelancing gives you the freedom and flexibility to set your own working hours and take time off when you need it. You don’t have to ask your boss for a lunch break or get vacation time approved. You can devote as much time to leisure as you’d like, so long as you get your work done. The flexibility can be incredible. And if you want to maintain positive relationships with your clients, an effective out-of-office strategy is key.

    Letting your clients know when you’re unable to work will set their expectations and safeguard your reputation as a trusted freelancer. And it doesn’t have to be difficult. Adopting technology like automated emails and virtual assistants can help you “work” when you’re away from the desk too, with little to no oversight. This is key if you rely on a regular flow of new clients and need to keep communication constant, even when you’re on break.

    Below, we’ll explore some of the basics of a solid out-of-office strategy.

    Planning a Break

    If you’ve been working for yourself for some time, you know that taking a true vacation is easier said than done — particularly if there’s good money to be made at work. Freelancers don’t get PTO or sick days, so every day you take off can put a dent in your income.

    However, failing to take breaks will only lead to burnout, reducing your passion for work and damaging your health. Burnout can be a serious issue, particularly if you work in a creative field like graphic design or content writing, where you need to be firing on all cylinders.

    Rather than waiting until you fall ill, get proactive about taking vacation as a freelancer. Plan a trip weeks or months in advance. Start by creating a calendar based on your upcoming project deadlines, then work backward to identify the best dates for you to travel or rest.

    You can mitigate any negative consequences with effective project management skills like:

    • Communication: Send out an email letting your clients know that you’ll be away from work for a while, so they can plan accordingly. You may not be an employee, but giving them a heads up is a great way to foster transparency and build trust.
    • Time Management: Once you’ve set your dates, work to wrap up any projects and key tasks ahead of schedule. This reduces your stress and gives you some wiggle room to complete the last-minute work that inevitably crops up before you step away for an extended break.
    • Organization: Be kind to future you. Organize your existing projects so you can hit the ground running when you return to work. With a clear picture of what’s waiting for you post-vacation, you’ll be able to stress less and relax more.
    • Budgeting: Make sure to invoice your clients before you leave, or schedule invoices in advance before you take time off. Ensure that you have a steady inflow of income by planning a vacation budget too, so you don’t have to worry about over-extending.

    A little planning and preparation can meaningfully improve the quality of your time off. Knowing what lies ahead will help you truly rest and recover, so you’re actually nourished and revitalized by the time you get back.

    Automating Key Tasks

    Automation is foundational for freelancers who want a life outside of work. Simple tools like out-of-office replies can keep your business humming along even if you’re thousands of miles away. Plus, the consistent communication shows your clients that you’re serious, dependable, and trustworthy — all important green flags in a freelancer.

    Automating basic tasks offers peace of mind for you too. You don’t have to worry about returning to full inbox, neglecting client requests, or going cold on social. You can set up a chat bot on your website to answer FAQs, include proactive answers and resources in your auto-reply email, and even schedule social posts in advance, so you don’t miss a beat. Automation reduces the usual disruption of going offline and keeps the lights on.

    For some added help, you could even hire a virtual assistant to:

    • Answer client questions while you’re decompressing
    • Complete administrative tasks like invoicing, scheduling, and social media monitoring
    • Gather and analyze industry data relevant to your field
    • Complete website maintenance
    • Create content while you’re away

    Managing Your Workload

    Let’s be real — most self-employed people struggle to take time off at a regular cadence. Juggling multiple clients with little support often means you’re busy year-round. But again, failing to take time for yourself will only exhaust you in the long run. Here are some ways you can reduce your workload when you’re wearing multiple (or all) hats:

    • Delegate tasks to trusted subcontractors and virtual assistants
    • Use time management techniques like Pomodoro timers to stay on task
    • Block time to work on high-pressure projects that must be completed in advance
    • Set clear, time-oriented goals

    If you do decide to work with subcontractors, be sure to give them a monthly checklist to ensure they’re up to speed on all of the essential tasks that need attention during your leave. This should act as a guide in your absence, so you’re less likely to get stuck fielding calls and emails when you should be lounging on the beach.

    Enjoy your vacation!

    Creating an effective out-of-office strategy may require more upfront work, but it’s worth it if it means you get to enjoy your downtime. A good pre-plan helps you maintain solid relationships with your clients too. As a client, it’s refreshing to know exactly what to expect when a freelancer is out of office. And as a freelancer, it’s relieving to know you can operate a business without being available 24/7. We all need breaks. Give yourself the gift of some serious, uninterrupted time off this year by planning for it. You’ll thank you later. Happy vacationing!

    7 Must-Have Skills for Building a Thriving Creative Business

    7 Must-Have Skills for Building a Thriving Creative Business

    by | Sep 3, 2024 | Blog, Resources

    This is a guest post contributed by Sophia Bennett. Sophia is a skilled chronicler of the world of business and real estate. With a sharp eye for detail and a passion for these subjects, she provides valuable insights and inspiration to her readers through her writing. When she’s not working on her craft, Sophia can be found seeking new experiences and adventures, always on the lookout for the next great story to tell.

    Ask any freelancer who’s built their own creative business how incredibly fulfilling it is. Then, ask them how challenging it was. The answer is likely to be 50/50 — half gratifying, half grueling.

    It’s a fact. Whether you work in graphic design, copywriting, illustration, photography, interior design… building a business from the ground up requires grit, determination, and a mix of hard and soft skills to see you through.

    While employees at conventional businesses may wear a few hats, creative freelancers wear all of them. They’re responsible for day-to-day operations, client work, marketing, finances, and more. It can get overwhelming at times, and sap the energy you’d normally devote to your creativity, originality, and inspiration — the stuff that makes your business truly unique.

    Juggling all these skills and priorities can be difficult, especially in the context of an ever-evolving landscape that affects you and your clients. That’s why we’ve created this list of must-have skills to cultivate as a creative entrepreneur. You can use this as a development roadmap to bolster your skills with time and build a thriving, independent business that’s harmonious, productive, and, most of all… profitable.

    1. Innovation

    In the entertainment industry, they say you’re only as good as your last performance. In a creative business, you might say you’re only as good as your last great idea. Part of what makes a truly successful creative business is the constant pursuit of fresh ideas, original concepts, and unadulterated innovation. Creatives make the choice to push on with the belief that there’s a better, clearer, or more impactful way to deliver a message, market a product, or share a vision.

    This pursuit of innovation has defined many of the world’s most iconic and memorable creative brands. It takes a sort of brilliance to sustainably connect with changing audiences, meet shifting client needs, and keep up with endless technological advances. Creative professionals (that’s you!) who can rise to meet the moment in the face of immense change will always have an advantage.

    2. Time Management

    Time is of the essence in just about every industry. But time management is a real struggle for many creatives, who tend to take a less linear approach to their work. With evolving project scopes and goals, plus different creative visions fighting for the spotlight, knowing when to put the ideation hat down and focus on simply getting the work done is critical.

    Strong time management skills help creative businesses structure their workflow more effectively and tackle both big and small projects in a more methodical way. Conceptual agility is still important, but so is a degree of rigor when it comes to managing work hours and meeting deadlines.

    3. Communication

    Clear communication and understanding with your clients is crucial for a thriving creative business. When your goal is to bring a client’s creative vision to life (be it a book, website, restaurant plan, or fashion editorial), communication allows for free-flowing collaboration between the contributors and stakeholders. Creative entrepreneurs need access to a central digital communication platform, where they can discuss progress and keep up with client feedback.

    If there’s a brick-and-mortar office, regular in-person meetings with clients and a culture of open communication can resolve misunderstandings and setbacks between collaborators. If real-life face-to-face meetings aren’t possible, use one of the many online collaboration and communication tools available. Slack, Zoom, Teams, Google Meet… there’s no excuse not to communicate these days. Even good old email works, too!

    4. Empathy

    Empathy is the hardest soft skill in any industry. However, it plays a particularly strong role in the creative sector. An empathic approach makes for more cohesive working relationships. And it allows you to deliver more engaging and impactful work. When you practice empathy, you can see the situation from another’s perspective. You can understand where your clients or collaborators are coming from and what their deeper goals and needs are.

    This is an incredibly useful heuristic for creative projects, such as developing a new marketing campaign, designing a website for a niche audience, or collaborating with difficult or particularly needy clients. Plus, transcending the superficial helps you forge healthy, lasting, and mutually respectful relationships.

    5. Diversity

    When you’re entering uncharted creative territory, thinking outside of the box and opening up to a range of perspectives can be a game-changer.

    As a creative freelancer or entrepreneur, your pool of perspectives might be limited. After all, you’re probably a team of one. But you can still expose yourself to diverse style, culture, industry, and people by working with clients and brands from varied backgrounds and niches. Collaborating with other creatives can be a great way to hear unique perspective, get inspired by fresh thinking, and learn new skills.

    6. Adaptability

    It’s impossible to discuss creative success without touching on adaptability. All businesses need to be adaptable to survive the notoriously changeable landscape — digitally, culturally, technologically, and otherwise. But creative brands, in particular, need to adopt an agile mentality.

    Without strong adaptive skills, creative businesses might struggle to keep up with the popular trends, audience patterns, and informational currents of their industry. You might need to pivot your product offering as behavior changes, update your online portfolio or social media pages, or add new services to your list. If you feel the tug to change, do it!

    Adaptability is the gene of a surviving business.

    7. Problem-Solving

    What is a creative brief if not an abstract problem to solve? Having comprehensive problem-solving skills is one of the most important aptitudes for a creative entrepreneur.

    Problem-solving is an invaluable tool for navigating complicated briefs, dealing with difficult clients, working on tight deadlines (and tight budgets!), and finding new ways of connecting with new audiences, clients, and collaborators. Build up your gumption for facing challenges, and even learn to take pleasure in it. The more courage you have to face obstacles, the more gratifying this work will become.

    The Takeaway: Use Your Skills to Find the Right Balance

    Striking a balance between innovation and efficiency is not always easy in the creative sector. For every project to truly flourish, soft skills are needed. Nurturing client relationships and creative visions calls for a mixture of all of the above. And with the right skills, your freelance creative business can do more than just survive; it can thrive.