So you want to be a freelancer? A report shows that “some decide to do it as their full-time job and others as a supplementary part-time job. Nevertheless, a small segment (about 7%) of the top freelancers earn more than US$1,500”.

You may ask:

• How much do I charge so I do not “scare away potential clients”?
• How do I compete with other freelancers?
• Can clients understand that my price is really not that expensive?
• If I keep my prices low will I earn more projects?

Your mindset

Many freelancers think that the cheaper their price, the more clients and income they will receive. They also think it’s easier to earn a client by charging lower rather than higher prices.

These beliefs are more effective for positioning yourself in and growing within the market, rather than finding valuable clients.

A valuable client is one who will become loyal to your services, which means a constant income for you and whose relationship will allow you to grow and feel good.

A freelancer must feel good about what they do, have freedom, develop their best talents, and have the time to continue growing their skills, among other things.

So why undervalue yourself with prices way less than what you should really charge?

1: Describe who you are and why they should hire you

It’s like training to enter the ring and doing more than just lasting each round – it’s training to win. So, don’t give up before the bell rings.

Clients are not going to deny you based on the price of your service, they will do so because they feel you’re not the appropriate professional for the project.

Keep in mind that your benefits specific to them are part of your unique and valuable proposal.

Here is a list you can use as an example to explain why they should hire you:

• You are a professional.
• You are dedicated to achieving perfection and completing client satisfaction.
• You have experience.
• You can advise them on how to achieve more clarity about the project.
• You are responsible and will deliver everything on time, and even before deadlines.
• You have great communication.

2: Find your differentiating factor

A differentiating factor is “that something” that sets you apart from the competition.

And “that something” is what the client you are looking for needs – those who will also pay whatever it take to have you work on their project.

3: Think long term

Some freelancers get tired of being rejected and feel like failures, giving their services away at very low prices.

The truth is that you are not a failure. It’s actually a victory.

Formula for pricing projects: Time + Energy + Money

Studying the competition is the base for establishing a price.

• Identify your competition according to your characteristics as a freelance professional and the quality of services you offer.

• Investigate how much the competition charges for a typical job.

• Compare what the previous competition charges against what freelancers charge within your category.

These steps should provide you with a standard price for your services in the market.

The question now is: is that standard price more or less what you should charge? The answer is NO. It’s simply a base measurement.

The best way to know how much to charge is by calculating how much time, energy, and money will be invested with respect to the specific services you will charge your clients for.

1. Time

Time is the most valuable resource you have. That is why you must calculate how much time you will invest in your potential client and include that in the price.

You can calculate this based on the number of hours of operational service and include additional time for advising your client.

2. Energy

There are clients that will warn you they need to make some adjustments as the project develops, or who require you to always be available for directions.

Therefore, you should calculate the energy, effort, attention, and dedication you must invest in the project.

3. Money

You need to consider the money that you have invested into your training to acquire the skills that allow you to provide your client with the perfect solution.

Similarly, it’s important that during negotiations you explain to your client that the price of your services includes:

• Guaranteed attention to details, quality of the project and client communication.
• Your availability to work the hours needed to deliver on time, availability to make adjustments during the project, and focus on the client’s objectives.
• Your efforts to obtain the best result possible in their favour.
• All of your acquired knowledge and experience, for which you have invested time and money at their disposal.

As a result, your client will recognise the value of your work and know that the price is fair and reasonable.

Negotiation techniques: Choose your best option

Here are the best negotiation techniques to use:

• Proposal technique: Centre the negotiations around the price. This only works when you clearly state your benefits and differentiating factor. You can offer a better price, keeping in mind the discount taken from the standard price as a percentage.
• Package technique: It’s a summary. You present your services, their benefits, and at the end you summarise everything along with the price, as if it were a unique package.
• Prize technique: This technique revolves around you. Upon presenting them the benefits, features, and price, you talk about your responsibility and commitment.
• Intrigue technique: With this technique, as you’re negotiating with your client, letting them know your skills and whatnot, you can ask them questions about their project that allow you to demonstrate your expertise and at the very end provide a price.

Click here to find out more about Workana to start hiring or enlisting as a freelancer.