There are very many options that freelancers can use when pricing a contract. Although options are many, most freelancers still have uncertainties about the fees they charge clients. For freelancers who have been in the industry for some time, using a basic formula is a starting point for setting rates.
Other strategies that freelancers use include
– Project rate
By charging your clients at project rates, you are committing to work on their projects in advance without having the full details of what the project entails. This can have the effect of being disastrous to the freelancer as the actual work may be demand more than the actual pay provided.
– Hourly rate
For projects that you are not sure about or the information provided is not enough for you to make a verdict adequately, charging an hourly rate is the best pricing strategy. Working on an hourly rate also has an added advantage in that you get paid for all the work you actually do. Working on an hourly rate is also ideal for slow freelancer
– Piece or word rate
Charging for work per piece in the case of designers or as per the number of words written for content writers is an excellent strategy used by top freelancers. Although the interpretation of what makes a page may differ amongst writers, charging as per the number of words is ideal where minimal research is required or where the work is ongoing and you are already well versed in the job.
This mode of charging clients is ideal for some freelancers but may not be ideal where research is needed since this is not covered in the pay.
– Expertise pricing
This is where you charge clients as an expert. Experts normally charge clients more based on their knowledge as well as the wealth of experience that they will share with the client as they undertake on their project. Clients are willing to pay more for experts as the quality demanded from them is also expected to be above reproach.
To be able to charge as an expert, one needs to have positive reviews from past clients as well as having credentials and a resume to match. The downside of expert pricing is that some freelancers will opt to work with other lower priced freelancers
Benchmarking involves getting to know the average rate that other top freelancers are charging. This will then guild you as you decide what rate to use when charging your clients. The advantage of this strategy is that it ensures that your rates are as per the industry best.
All in all when coming up with a pricing formula or strategy it should be guided by the abilities as well as the demands of the task that you are to undertake and should always be fair to both you and the client.