4 Signs You’re Underpricing Your Freelance Rates
When you first start out as a freelancer, it’s common to take what you can get when it comes to both work and the compensation that comes along with it. After all, you’re trying to build a portfolio and establish a reputation, so you can’t necessarily afford to be too picky. But what about when you’re an established freelancer and you’re still charging the same rates? How do you know when it’s time to raise them? In this article, we take a look at 4 signs that you’re underpricing your freelance rates, so you can start charging what you’re worth.
Projects tend to take more time than planned
Are you underestimating the amount of time that it will take to complete a project, only to have charged a minimal amount up front? If you’re charging by the hour, you may not want your client to think that you’re not working as hard or as fast as you could be, so you ask for less money than you should. The end result? You end up working twice as hard for barely any money.
Freelancer Map explains why you need to start charging more when projects are taking much more time than you’re paid for:
“The way to avoid this is to always very carefully and realistically consider how long a project will take in advance. Don’t try to impress your clients by showing them how fast you are. Ask for a fair price for the time you are going to spend and deliver a quality product – that’s the best way to impress them without charging too little.”
You’ve had a steady gig for over 6 months
Have you been freelancing with the same company for over 6 months and you’re still getting paid the same rate? Consider asking for more now that you’ve proven yourself. While you may be hesitant to ask because you’re afraid of losing your regular gig, your editor may be more than happy to accommodate if it means keeping you on.
Make a Living Writing tells us why you should consider raising your freelance rates if you’ve had a steady gig for 6 months or more:
“Your editor is happy with your performance, edits are quick and painless (if they’re painless for you, they’re painless for your editor as well), and more assignments keep coming through on a regular basis. If you’ve been working for a publication that loves you and loves your work for more than six months, it may be time to ask for a raise. If an editor has the budget, she will be more than happy to compensate appropriately someone who makes her life easy.”
You know your competitors are charging more
Are you well aware that your competitors are charging more, but you want to keep your competitive edge? While lower rates may initially attract more customers, you will quickly find yourself getting tired of earning less than your time is worth.
SquareUp.com tells us why your rates should be in line with the rest of the market:
“Know where you stand among the competition. Of course you want to be reasonable, but you also need to make sure your rates are competitive with the rest of the market. While it’s true that lower rates might win you, clients, if you’re known for having the lowest rates, clients may undervalue your services.”
Readers love you
Getting consistently great reviews about your work from readers? This may be a sign that you should be charging more. Writers who produce consistently great content are extremely valuable to publications, as they help bring in more readers and build a loyal following. If this resonates with you, make sure you’re not undervaluing yourself.
Interested in renting out a co-working space for your freelance work? We offer spaces at monthly rates, from private offices to open networking spaces. If you’re interested in working at La Collective, check out our workspaces.