freelancer rates and how to set them

Let's start off with something other freelancers aren't talking much about: how to choose and set your freelancer rates.

But first, story time!

When it all began

When I first began freelancing, fresh out of grad school, I took a temporary contract job where what I was doing, when and where I was doing it, and how much I was paid was laid out for me in the job description.

I didn't know the first thing about being my own boss. That's why I took the job. Someone I was connected with on LinkedIn reached out with this job opportunity and I thought, "I should probably take this. I mean, it's not exactly what I want to do, but it's the first thing that came up when I announced to the universe that I was going to be a freelancer."

It made sense to me then. And that's fine. It was exactly what I needed to do at that time to get started. But, what happened was, I didn't set my own price. I was paid by the day, for a certain number of hours. Basically, hourly pay (what I was trying tot get away from as a freelancer). It wasn't great, but it was my first freelance job. So, I was thrilled.

After the fact

Now, I no longer take on clients like my first gig out of college. No shade to the company, the experience I gained there was irreplaceable, but it wasn't what I envisioned for my life as a freelancer. I wanted to be my own boss. I wanted to decide what clients I wanted to work with and what work I wanted to be doing for them.

That leads me to my first point about setting your freelance rates.

1. You have to decide for yourself if you're going to be a gig worker or a freelancer.

Are you going to apply to every job board posting looking for an independent contractor (IC) or freelancer to do a random project with an organization where their rates are already set? Or are you going to market yourself and your rates as is and gain clients that want your specific services and are willing to pay what you’re charging for them?

It's a huge difference. Gig workers use platforms like Fiverr and Upwork to score random projects based on a wide array of skills they possess. Freelancers join networks and communities to build relationships with REAL people, small businesses, agencies, and companies. They market themselves to a narrow audience and set their own rates.

This can be a tough pill to swallow when you first start out. I know I was asking my favorite Facebook group communities about the realities of working for gig sites like the ones above. The main consensus: it's not worth your time.

Speaking of worth, let's discuss point number deux.

2. Your rates are a reflection of your own ability and self-worth.

This wasn't a fun pill to swallow, let me tell you. After 100's of hours of researching terms like ⁠— freelancer writer rates, how much do copywriters charge, freelance rates, how much to charge as a freelancer — I finally settled on one thing. Freelancer rates are purely subjective.

Bet you didn't see that one coming.

This was insane for me to think about, but the more I researched, the truer it became. One day, I came across the website of a freelance copywriter. Perfect. I checked out her rates page and she was charging $2,000 a month to create social media copy. I did some more snooping and found out a friend of mine charged $5-10K for the exact same thing.

My first thought was, FINALLY SOMEONE PUT THEIR RATES ON THEIR PAGE. My second thought was, WHY IS THE PRICE SO DIFFERENT FOR THE SAME THING?

The answer's pretty clear. It's the value the copywriter provides to their client. Their expertise matters, sure. But in the end, it's what the freelancer can justify to themselves. What do you truly believe your time and effort is worth to the client for the product or service you produce? Charge for that. Not by the hour.

3. Charge based on the TYPE of client and the SERVICES you offer.

Okay, well, I truly wish setting your freelancer rates could be as easy as deciding you're worth $8 million a month and charging that, but... it's not. Duh.

Realistically, your rates are a combo of what you are willing to charge for a specific service, and what clients are willing to pay for that.

Last week, I FINALLY set my freelancer rates and services. I created a spreadsheet of my services in one column and my rates in subsequent columns. I broke up the rates into 4 sections: $$$ (agencies)$$ (solopreneurs + small businesses), $ (nonprofits), and One-time (clients not on retainer).

Still with me?

Then, under my services offered, I wrote IN DETAIL what exactly that meant. For example, one of my services is writing blog posts. So, under that service, I wrote, "Writing copy for a ~900-word blog post." Easy.

Basically, the spreadsheet makes it easy to see what you're offering and for how much. As for deciding on your rates, it's really up to you. When I first started out, I charged $150 for a newsletter for small businesses. Now, my rate is $300. You gain experience, knowledge about a platform, and more confidence from practice. To me, that's invaluable.

Just be sure to put yourself in your client's shoes when it comes to pricing. Don't lowball yourself (YOU'RE FUCKING WORTH IT), but remember that nonprofits may not have as big of discretionary spending as, say, a media giant like Forbes.

4. Beware the hourly rate like the plague.

This is purely my own philosophy to freelancing. Although to be abundantly clear, I can't say I'm at the point where all of my clients are project-based or value-based. I still have 2 clients that I work for an hourly rate. That's fine for me, right now. Later down the line, I'd like to be working only based on the project, but it's not always possible right away.

Take that to heart.

You don't have to be making beaucoup bucks right off the bat to be successful or say you're a freelancer. Just do what feels right for you. If you have to work for $20 an hour when you first start, so be it. I made $300 a month when I first began, now I'm making over 10x that!

Go at your own pace, but keep this point in the back of your mind. It's an important one.

P.S. Everyone has a dream. If you're here, it's likely that freelancing is yours. If you need a dose of inspiration and encouragement to live the life you've always wanted no matter the fear, come hang out on Instagram with me.