One of the most important yet confusing aspects of working as a freelancer is knowing what rates to quote to potential clients. Nobody wants to undersell themselves, but you don’t
want to risk coming off as too expensive and deterring the clients, either.
So how can you strike the right balance? Is there a way to figure out a freelancer rate that is competitive but won’t exploit you?
There is no hard and fast rule when it comes to this, and every industry has their own common practice, but there are a couple of things you can think about as you put together your
freelance proposals.
Research industry averages
Let’s start with something obvious: research. If you’re new to the industry, it’s always best to circle the field and see what kind of offers are usually made out there. This involves more than just looking at Upwork, where an hourly rate is visible on the freelancers’ profiles.
Sites like Upwork are relatively relaxed when it comes to vetting their freelancers — meaning there are a lot of beginners who are ready to offer their services at incredibly low prices. On top of that, these rates were made to appeal to clients, so it won’t necessarily reflect what the freelancers themselves see as a good range. In other words, general freelancer sights are
unlikely to provide you with a reliable average.
Instead of browsing them, you should reach out to freelancers in your industry. Freelance writers and editors, for instance, can often be found on Twitter with hashtags like #WritingCommunity and #AmEditing. You might also find your people on LinkedIn, in Facebook groups, or on
Reddit. These are the people you want to talk to — they have the experience and insight necessary to give you a general picture of the fees and rates in the industry.
Take your costs into account
The next piece of advice is to make sure that your rates, whatever they may be, cover your costs. This applies especially to those who freelance full-time and are trying to make a living out of their work.
To start, think about your
budget: what’s the minimum amount you need to cover your rent, bills, and food? What else do you need for your work — are there software subscriptions or other material required?
The rate you set should allow you to pay for these expenses, given the amount of work you can do. Note that this does not necessarily equate to the amount of work you get since the flow of clients ebb and flow all the time. So say, ideally, you’d like to take on four projects a month — the fee for each project should at least roughly cover a quarter of your expense. It’s not clear-cut in real life, but this estimation is a good way to set yourself a price floor and prevent exploitation.
This minimum cost will vary depending on factors like where you live. An editor who lives in New York City, for instance, will most likely have a higher living cost than one residing in Tulsa — and both should account for this when setting their
freelance editor rates.
However, this method is only helpful in determining your baseline rate, which will be lower than the average industry level. The next tip will help you see what else you should consider when setting your freelance fees.
Evaluate your expertise
With a base ready, you can begin to work your way up to your desired rate by thinking about your experience and expertise. All of the work or training that you’ve done previously has given you knowledge that can help you succeed in whatever task your client has for you — and this knowledge is very much part of the service they’re paying for. Your rate should reflect this.
If you’re moving from full-time employment to freelancing, you might be able to charge a little higher than the average since you have professional experience. If you don’t have any experience yet but are well-trained, you can also take that into account — the theoretical knowledge could be of great use once you get to apply it practically.
So know your worth, and don’t let the pressure to win a bid for a job devalue your expertise. You can expect the client to negotiate the fee down just a little, or you might make exceptions for special customers. But underselling yourself regularly will not get you close to high-profile clients that can take your career to the next level. Be unwavering in charging what you’re worth, and you’ll get job offers that match your level.
Revise your rates regularly
Finally, to stay in the game in the long run, you have to revise your rate regularly.
Industries change and grow all the time, meaning the demand for your services and the importance of your work can also shift through the years. Subsequently, freelancers’ rates will adjust to reflect their value.
This is also not to mention your own growth as you take on more projects — with more experience, your service is bound to be more valuable than before.
As such, adjusting your rate as you go is inevitable. Stay in touch with fellow freelancers to keep up with industry trends to see if their rates have changed. You should also do a thorough
assessment of your own costs and rates every six months or so.
Another rule of thumb is to rethink what you charge when your clients stop complaining that the fee is too high. Always expect negotiation from your clients. It’s part of running a
freelance business! When the client feels that there’s no need for a discussion, then what you offer may be better than what they expected.
That being said, if you feel like what you’re charging is fair, feel free to keep things as they are — this tip is only a reminder that you don’t have to stick to a single rate forever.
With these tips, you can set up a basic system to assess, review, and set your freelance rates to remain competitive and avoid getting less than what you deserve. Freelancing can be rewarding if you know how to look out for yourself!
Thao Nguyen is a writer with Reedsy, a publishing marketplace where authors and freelance publishing professionals can connect and collaborate. 
