The Foolproof Formula for Calculating Your Price
Last week, as I was doing research for an article on freelance projects for beginners, I realized something. I had been charging way too little for my work.
When I first started doing freelance web design only a year ago, I was AMAZED that people wanted to hire me. They were willing to hand over the reigns to ME? They trusted ME with their businesses? Their brands? Their incomes?
I knew I could do great work, even if I had to get a little help here and there from friends and mentors in the tech field, but I was still nervous about putting a price on my time and expertise. In the back of my head, a little voice told me that these clients were taking a gamble on me, and they deserved a good deal.
While I still think it makes sense for beginners to charge less for their work than more experienced freelancers, I think I was taking it to the extreme. When I calculated all the hours I put into the projects, I was hardly profiting at all.
Sometimes the hardest part about freelancing isn’t the wireframing, the responsive design, or the SEO optimization. And sometimes it’s not even client interaction that stumps freelancers the most.
For me, it was learning to be confident that my time and work is valuable.
But what next? How could I go from lowballing my clients to making a case for a much higher price than I was used to pitching?
Even though there’s no one-size-fits-all method to setting a fair price on your freelance projects, there IS a simple formula that can help you land on a dollar amount you’ll be confident about pitching to a new client.
I put together a guide I wish I had when I first started out, complete with formulas for setting your price, tips on calculating your hourly rate, and industry secrets for getting your clients to warm up to your quotes instead of running the other way.
And good news! Unlike installing Ruby on a Mac, the formula only involves a few variables: your hourly rate, your project scope, and the secret trick to making your cost palatable to clients.
And don’t worry if you have NO IDEA how to calculate your hourly rate or if the term “project scope” makes you all nervous. You’ll find everything you need to stop thinking about how much you’re worth, and start thinking about growing your business.