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 our 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 huge 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 5 individuals and/or companies in your area with the same service.
2. Ask Ideal Customers
This is the most overlooked step but easily the most important. Curious what you're worth? Ask! Identify at least 10 individuals or companies that you believe are your ideal customers and ask them what they think your work is worth. This serves two purposes: 1. Validating your pricing structure 2. Free marketing - you may even get some clients out of this process alone.
3. Adjust Accordingly
Did you find that none of your "ideal customers" liked your work? Maybe they aren't what you had in mind. Try another demographic for your services and see if they are more receptive. When you start freelancing you may find who you think is perfect for your service isn't actually so, keep an open mind. Testing your assumptions is important in finding your ideal audience.
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 dollar amount. You want a large pipeline of people you can work with and if you are overpriced you aren't going to see that come in. This also gives you experience as a freelancer. The more people that can give you a good review the better.
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!