This week Cory, a designer from NJ keeps his question pithy:

How do you come up with pricing?

It’s a question that plagues most freelancers, especially when they are starting out. How do you value yourself? What if the client doesn’t like your rates? Just starting out, the key is about flexibility. Once you get a feel for your skill, and are able to estimate time, the key is confidence. Read on….

Just starting out, your rates aren’t as important as building your portfolio. In the freelance world, the portfolio is king. Because of that, you might have to sacrifice price for experience. Maybe take on a free project or two, and keep how long it takes you in mind. I know no one wants to hear that, but it’s the nature of the beast. It’s also worth going on to craigslist and checking out out some of the projects that are listed there- they are usually low budget, but you still get some experience, and a little cash to boot. Then it takes some thinking, and research.

You need to ask yourself a few things:

• How good am I, really? What’s your skill level at? In my post about determining rates, I provide some info as to how my rates went up as I got more skilled. It’s simple- the less people that can do what you do, the more you can charge. You can gauge that by looking at the free/low budget projects you took on, and see how happy the client was. If you’re unsure, ask them for feedback.
• How busy am I? If you’re not busy, start a little lower. That will increase your demand. Your demand goes up, so do your prices.
• What are other people in my field charging? This is a tough one to gauge, but the best thing to do is ask around. Get some advice from people. “What do you do and how much do you charge for it?”
• How much does my bottom line need to be so I can sustain myself? Last, but certainly not least, how much do you need to make to live? Cory mentioned he is a student, so this may not be as important at this stage of the game, but as a former student freelancer (graduate?) I am currently dealing with the transition of being out on my own. Freelance Switch’s rate calculator will help you determine what you need to make based on a whole bunch of criteria.

Once you have good answers to these questions, come up with a price and stick to it. Like I said earlier, confidence is key. If you don’t come off as confident in your skills and prices, why should anyone else? You will lose clients or lose money. Your prices project how good you feel you are. Show that prospect that you can deliver at the caliber at which they are paying you.

Tags: beginning, clients, price, rates, student | Posted in Advice, Lessons |