How to price your freelance services without underselling yourself.

When you’re just starting out as a freelancer, pricing can feel like one of the hardest parts of the job. Go too high and you risk scaring away clients. Go too low and you devalue your work (and yourself). The good news: you don’t need to guess your way through it. With the right strategies, you can confidently set rates that reflect your skills, attract quality clients, and keep your business sustainable.

1. Understand Your Value (Not Just Your Hours)

Freelance work isn’t about trading time for money—it’s about trading expertise for results. If a client is paying you, they’re really paying for:

• The years you’ve spent building your skills.
• The speed and efficiency you bring compared to someone less experienced.
• The outcomes your work will create (higher revenue, stronger brand, better systems).

👉 Instead of thinking, “How much is my time worth per hour?”, ask: “What value does my work create for this client?”

2. Research the Market

Every industry has benchmarks. Do a quick survey by checking:

• Freelance marketplaces (Upwork, Fiverr, Contra) to see what others charge.
• LinkedIn profiles of freelancers with similar skills.
• Industry reports or niche communities where people share rate ranges.
  

This doesn’t mean you should simply copy other rates—but it gives you a reality check. If you’re charging $20/hour in a market where experienced peers charge $100+, you’re signaling “inexperience” even if your work is stellar.

3. Factor in Your Costs of Doing Business

Freelancers don’t get benefits, paid vacations, or employer-covered taxes. Your rate should reflect that. When calculating your baseline, include:

• Taxes and business expenses (software, equipment, health insurance).
• Non-billable time (admin, marketing, sales, professional development).
• Desired income and lifestyle.
  

👉 A common formula is: Target Annual Income ÷ (Billable Hours per Year) = Baseline Hourly Rate.

If you want to make $100,000 and realistically bill 1,000 hours in a year, that’s $100/hour minimum—before adding any value-based adjustments.

4. Choose a Pricing Model That Works for You

• Hourly: Good for small or open-ended projects, but can cap your earnings.
• Project-based: Lets you charge for outcomes, not just time. Clients like the predictability.
• Retainer: Provides stability with ongoing clients, great for cash flow.
• Value-based: The most advanced—charging based on the measurable business impact your work creates.

Pro tip: The more you lean into project or value-based pricing, the less your income is tied to the clock.

5. Learn to Communicate Your Rates with Confidence

How you deliver your rate matters just as much as the number itself. Say it clearly, without hesitation:

“For this scope, my fee is $3,000.”

Don’t over-explain. Don’t apologize. Just state it. If a client pushes back, you can negotiate scope—but not your worth.

6. Revisit and Raise Your Rates Regularly

As your skills grow, so should your rates. A simple rule: review your pricing every 6–12 months. If you’re fully booked, getting repeat clients, or delivering high-value results, it’s time to raise your rates. Quality clients expect it.

Final Thought

Underselling yourself doesn’t help anyone—not you, not your client, and not the freelancing community as a whole. The right clients will respect fair pricing, because they know it leads to better results. Start with confidence, know your value, and remember: you’re building not just a career, but a sustainable business.