When it comes to charging clients, there are no fixed rules and no fixed formula that will compute how much to charge. Each client or each project will command different pricing. It’s a case-to-case basis, and it will depend on several important factors.
What kind of value are you offering? How much are your competitors charging? Is there a great supply and demand for it? Wondering how to charge clients for freelance work? Here are some things you need to consider when charging your clients for your work, which will benefit both new and seasoned freelancers.
Hourly and Project-Based Fees
If you’re only just starting your career as a freelancer, charging hourly can be the best way to go. You are paid by the number of hours you work, which means the more hours you log in, the more money you can earn. You just need to set a minimum acceptable rate (MAR) that will cover all your expenses.
However, this can also mean less time to spend with your family or simply do things that you love in your free time. More hours worked also means you will feel tired more often.
However, if you charge per project, you can still earn the same amount of money, maybe even more, but in less time. If you work fast, you can finish a project in just three hours and be paid for a hundred hours’ worth of work.
On the downside, projects with fixed fees can limit your earning potential, no matter how long you work on them.
How much you like your client will also figure greatly in your decision on how much to charge them. Bear in mind that you will be spending hours, weeks, or even months with them. It’s important to have a good working relationship, no matter how brief. It’s great to collaborate with clients who share the same vision and enthusiasm. It will make your work more enjoyable!
You don’t charge a client who runs a small startup the same price you would charge a Fortune 500 company. Try to ask some probing questions to know if they have a specific budget for the project. Try to work with the budget. Don’t charge less than the budget, either, because you also don’t want to undermine the value of your work.
If they’re not ready to state a budget or if they’re vague, you can always give them a ballpark figure. Give them a general answer like ‘It can range from $1,000 to $9,000, depending on the scope of the project.’
You are doing something for your clients that will help them improve their business, drive their sales, strengthen their online presence, or win new customers. Your work will help them find their niche in the industry, build their brand, or advertise their product. Make sure that you are being paid according to the value that you are providing them.