As a freelancer, the nature of your work makes landing contracts and getting paid properly a top concern. You’re not like a regular employee who works a steady 9-5. You must be very familiar with the best practices of getting paid your due for your hard work and talent. You also need to be confident quoting your price, this is one way you show prospective clients that you are professional, experienced and, ultimately, the right person for the job.
Payza is a preferred payment platform for freelancers around the world, so we want to share 10 tips for pricing your freelancing services to ensure you get paid what you deserve:
- Quote your fees based on quality, not quantity: If you are really good at what you do and have the portfolio and references to prove it, there’s no reason to feel uncomfortable factoring that into your quote, even if it’s for a one-time project.
- Think about your expenses: If you are new to freelancing you might forget to think about how much your projects will actually cost to complete. Make sure to charge an amount that covers your expenses and still leaves some profit at the end so you actually come out ahead.
- Know the scope – the whole scope: In a contract, the entire scope of the project should be put down in writing so you can name your price appropriately. If a client keeps throwing new requirements at you that aren’t stated in your contract, this is called scope creep, and it really means more work for less pay. Doing some extra work is fine, but all those little extras add up, and take away from your bottom line.
- More pay for more work: This goes hand-in-hand with the last point – if a client adds more tasks to your contract, you should charge more. It’s best to make this clear when drawing up a contract so your client understands your rates will go up accordingly. If your client isn’t being shy about asking you to do more, why should you be shy charging for it?
- Know what the competitors are charging: This will help you to name your price and give you an edge when there is a lot of competition. Keeping your rates competitive could mean the difference between landing that contract and losing it. You also want to make sure that your rates are in line with your competition, rates that are too high and even too low could be a red flag for your prospective client.
- Know your tax liability: You are responsible for putting aside money to cover your income tax on what you earn, so make sure that you factor this, and other expenses, into your quote.
- Charge late fees: We all have bills to pay and other financial obligations, so if a client is late in paying you, you could find yourself in a delicate position. Don’t be afraid to stipulate in your contract that they will have to pay a late fee if you don’t get paid on time. Think about the companies you deal with, what happens if you’re late paying a credit card or cable bill? There’s penalties and interest added on. Why should your services be any different? Just make sure you disclose this to your client up front.
- If your clients don’t argue with your rates, they may be too low: If you name your price and your prospective client takes it without an argument, you might not be charging enough for your services. It’s better to start high and work your way down to a rate you’re happy with. Clients are used to negotiating with their contractors; if they don’t negotiate with you, it could mean something’s wrong.
- Know when to charge by the hour and when to charge by project: This one is tricky since the pay structure you choose depends on the variables of each project. It might be a good idea to talk to other freelancers to get their opinions on this issue so you can decide on the most appropriate pay structure.
- Work for money – only! Some clients will offer things other than money for your services, like exposure or bartering. Don’t do it. You are a professional with bills to pay. If you really needed the exposure, this client couldn’t have found you in the first place!
Pricing is a difficult endeavor for any freelancer, but hopefully these tips have helped clear things up. Remember, Payza has many great features and services for freelancers. If you haven’t given us a try, sign up for a FREE account today!