Two things will happen once you decide to jump into the wonderful world of freelancing:
- You’ll be overwhelmed with excitement (and maybe a little bit of fear).
- You’ll be faced with a variety of questions, all of which need to be addressed immediately.
Here is one of the most important things you can do from day one: make sure you’re charging what you’re worth
It’s easy to set low prices, knowing that this will help you attract business. It’s even easier to offer to work for free.
While there are times when both of these strategies make sense, you don’t want to get into the habit of working on the cheap (or for free). Instead, you always want to charge what you’re worth.
Do These Things
As a freelancer, it’s hard to put financial concerns out of your mind. Even when you’re doing well, you still worry about where your next project will come from. You still worry about earning enough money.
Fortunately, there are a variety of financial tips you can follow to ensure that you remain on the right track. Below, we’ll discuss five ways to make sure you’re charging what you’re worth;
1. Know Your Industry
Regardless of your industry, you’re sure to have quite a few competitors. How much are these people charging? What are they offering in return?
When you know your industry like the back of your hand, it becomes much easier to make informed decisions regarding how much you should charge for each service you provide.
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2. Track Everything
How will you know if you’re charging what you’re worth if you aren’t tracking the most important details related to your finances?
Some of the things you should track include:
- The type of project and work that goes into completing it.
- The amount of time it takes to complete the project.
- Follow up work, such as edits and revisions.
Furthermore, you should never forget about your operating expenses. Without this, you may not charge enough to keep your business afloat.
3. Ask for Feedback
If you don’t yet have a system in place for requesting client feedback, now’s the time to change your ways.
Not only is this a good way to see if you’re meeting expectations, but it will play a big part in your pricing model.
Ask your clients this question: are you happy with my current pricing structure?
If you find that the answer is “yes” across the board, you’re doing something right. You know that you aren’t charging too much, and that’s a good thing.
With this in mind, you can then decide how to move forward, such as by slowly increasing your prices for future clients.
4. Make Changes as You See Fit
Let’s face it: things change over time. Your industry changes. Your business changes. Your financial situation changes.
You need to adapt over time, which often means bumping your prices as you see fit.
If you aren’t charging what you’re worth, continuing down this path will only make things worse. Don’t shy away from change. Embrace it.
5. Regular Review of Your Fee Schedule
When was the last time you reviewed your fee schedule? What did you find?
If you charge clients without thinking about what you’re doing, you could find yourself earning less than what you’re worth. Don’t slip into this habit. Instead, make it your goal to review your fee schedule several times per year and then stick with it when providing quotes.
There is no denying the fact that freelancers face a variety of challenges, many of which are related to finances.
If you take steps to ensure that you charge what you’re worth, you’ll feel better about your freelance career and your ability to reach your future goals.