Interested in Freelancing? Here's how you set your price 💸💸💸
Everyone is jumping on the "side hustle" and freelancing train, and I have to say, I think it is fantastic! Freelancing can be a great way to earn some extra cash to reach your savings and investing goals. However, setting your price as a freelancer can be tough with sites like upwork.com that offer huge ranges. It can leave you scratching your head where to start. Here's my guide for establishing your price as a freelancer:
1. Do Your Research
Before you set your price, do your research! Is there anyone else that provides your service? If so, what are they charging? If there is a considerable variance start focusing next on skill level and geographical location. What someone might charge in NYC may not be what you can charge if you live in North Carolina. Try to identify at least five individuals or companies in your area with the same service. That way, you can get an idea of where you should start. Doing your research helps you identify who your competition is and takes away some of the leg work for your own business.
2. Ask Ideal Customers
Asking your customers their opinion is the most overlooked step but easily the most important. Curious what you're worth? Ask! Identify at least ten individuals or companies that you believe are your ideal customers and ask them what they think your work is worth. By doing this, you are validating your pricing structure and getting yourself some free marketing! When I did this to determine my consulting pricing, I even found some clients! This process may be the most beneficial one to you.
3. Adjust Accordingly
If you found that none of your "ideal customers" were willing to pay your prices or were ready to buy your work, maybe you have the wrong demographic. Try a different age range, geographical location, or gender for your work. They may be more receptive. When you start freelancing you may find who you think is perfect for your service isn't so, keep an open mind. Testing your assumptions is essential in finding your ideal audience. Marketing may be one of your most costly items, and if you are marketing to the wrong people, that is money that you can't get back.
4. Volume Over Price
Set your price low to start based on the feedback you have received. You can always raise your prices, but it is much harder to start high and lower them. You are looking at this stage for volume of inquiries rather than a dollar amount. You want a broad pipeline of people you can work with, and if you are overpriced, you aren't going to see that. By starting low, this also gives you experience as a freelancer. The more people who have had a positive experience with you, the better. Word of mouth is still a valuable tool!
5. REALITY CHECK
If you have done 1-4 correctly, it may be time to sit down and be real with yourself about what you are offering versus what you are asking others to pay. For example, I see freelancers who are providing a service that many other people do, and due to this, they cannot charge a high price, even if they are incredibly talented. However, remember that when you are going out on your own that YOU are the most important product or service. Do not take a "no" as a personal insult but an opportunity to perfect your product or service to fit your clients' needs. Finding your ideal customer and pricing may take time, but if you keep an open mind and adjust, you will be on your way to earning money in no time.
Want to validate your idea? Product? Service? Contact me!