Beyoncé's career in 📷 Solar eclipse guide 😎 Previous US disasters Play to win 🏀
LIGHTPOST
Lightpost Career Change

Money, money, money: How to decide on the right rate to charge as a new freelancer

Lightpost
USA TODAY Network
Yeah, we'd be smiling on the phone telling everyone we knew about how we scored an awesome freelance gig, too.

How much money should you charge? Here's how to get to a number everyone's happy with.

This article is part 6 (of 10) of Lightpost, a new USA TODAY Network series sourced by experts and focused on helping you achieve your goals. You can read this article as a standalone, or check out more of our career-focused checklists and keep developing your badass skills.

GO TO MAIN CHECKLIST | GO TO PREVIOUS STEP | GO TO NEXT STEP

✔️ Do your due diligence with online research

The rate you'll charge as a freelancer will vary per client and even per project based on factors detailed below. But first, it's important to get a general overview of 1. what you would be making if you were doing this job on a full-time salary and 2. what others in your field with your experience level are making. First, head to the Bureau of Labor Statistics' National Compensation Survey and check out salary rates. Next, go to Glassdoor and look up salaries for jobs similar to the ones you're providing. And finally, check out Upwork and see what prices your potential competitors are offering. Make sure you keep location and experience level in mind when doing comparisons. Here's a good breakdown on how to tell what you need to live, and this designers' interactive calculator from the NuSchool is pretty fun to play with even if you're not a designer or developer.

✔️ Ask your competition -- we mean, your community

"Something I teach my students is that other freelancers aren't the enemy! There is room for EVERYONE. We can collaborate with other people in our industries and work together to increase awareness about the importance of getting paid what we're worth, for example. In addition, there's a great opportunity in figuring out what our unique niches and ideal clients are by looking at what other freelancers are doing, and seeing what sets them apart from the rest compared to what sets you apart from the rest." - Sagan Morrow, small business coach and blogger

Find someone on LinkedIn or another site that does what you do. Then reach out and ask them how much they charge! Chances are that they want to help you. Another tactic many freelancers use is to post a job on a freelance listing site like Upwork and see how people with your similar skills set and experience level pitch you -- and how much they’re charging.

✔️ Turn the tables on your potential client

It never hurts to ask, “How much do you want to pay me?”

✔️ Remember: You dictate your rate

If there's one thing experts are passionate about, it's new freelancers not selling themselves short:

"Don't ask, tell. Freelancers are not second class employees. We are business owners, on equal footing with our clients. It's up to you, therefore, after talking to a prospective client, to scope the job and attach a fee. Your dentist doesn't ask, "How much do you want to pay for this root canal?"  She sets a value-based fee and so should you for the work you do. Will some people turn you down because your fee is too high?  I hope so. If you never hear a "no" based on price, you're not charging enough." - Michael Katz, Digital marketer, Blue Penguin Development, Inc.

"Chances are, you're not charging nearly enough. That's just the way we think, for all the self doubt reasons mentioned earlier. But you're not selling a gallon of milk and it's not a perfect market. Your rate is part of what people use to determine your value. The more you charge, the better I assume you must be. So try this: Double your fees for your next three opportunities and watch what happens. Remember, if you doubled your fees and lost half your clients, you'd make just as much money (and have a lot more time left over)." - Jonathan Medows, CPA for Freelancers

Don’t quote an astronomical rate, but don’t undersell yourself, either. Feel free to propose up to 10% higher a fee than you may have first landed on. If needed, negotiate. Try to do as much research as possible about the person or company you’ll be working for.

This article is part 6 (of 10) of Lightpost, a new USA TODAY Network series sourced by experts and focused on helping you achieve your goals. You can read this article as a standalone, or check out more of our career-focused checklists and keep developing your badass skills.

GO TO MAIN CHECKLIST | GO TO PREVIOUS STEP | GO TO NEXT STEP