Wow, what a great article. This website is just amazing!

Thanks for the article! This is something I’ve struggled with since I started freelancing. Too often, I’ve accepted projects at lower rates because I was worried I was charging too much (even though I knew I wasn’t). I’ve got some steps to take to turn myself around now.

Thanks for this article. Apart from the great suggestions, I really like your caveat at the start:

“If you’re struggling to make ends meet, I’d suggest building a stable financial base before attempting to charge your dream rates.”

That seems to be something often forgotten when teaching others how to earn top money.

I’d like to hear from others about how a potentially deep recession could affect this position. Am I overthinking this when I fear that it will allow those who are willing to take pay cuts to get an edge on assignments because so many companies will be cutting their budgets? How do people feel about that?

You’ve got to take a real confident approach when talking rates with a client. When mentioning your rates, you’ve got to speak in a way that you’re expecting them to pay it without a second thought. If you act as if the situation your in is the norm and you do this all the time, then the client will most likely take your word for it and figure thats the way these things go.

I’ve gotta agree with Michael Martine. I handle business that same way. If you take the perspective of a client, its unacceptable to expect a freelancer to work any other way and ask them to potentially do work for free.

One way I get an idea of what I can charge a client is to ask them what kind of budget they have. I don’t just come out and ask this but instead have a form on my website that they can fill out if they are interested in working with me. The form takes information like name, company, locale, budget, etc. and asks for some information on the project. This makes the first phone call go a smoother too as I already have knowledge of the clients needs.

I just got shot down for quoting a client more than usual. Looking back, I should’ve known he couldn’t afford it, but I’ve been trying to raise my prices for a month now. Luckily, I get to try again tomorrow on a new client.

Great tips. This is a particular useful strategy for when your current workload is has your schedule at max. In this scenario, you propose your dream rates and if they accept then great, if not then your too busy anyway!

I would like to know how much is charged in the industry for this or that.
Is there such a thing as a going market price for. . .

how much would you charge for a project like this for example:
http://www.saatchi-interactive.co.il/2007/HO/summer2007/editor/

i know its in hebrew but theres a button in the middle of the page that takes you to the online video editor. I think the buz word is rich internet application.

How much could I have charged for something like that?

Yet another very helpful article from FreelanceSwitch. Thanks for taking the time to share Skellie!

Great article, Skellie. One thing to also note is that your rates are actually part of your marketing message — a higher than average rate “must mean” you are a higher-than-average freelancer. Not always the complete truth, but it’s still marketing and it’s still an effective message for many of your potential clients.

A higher rate also helps weed out cheap clients, because they don’t pay as reliably as clients who can afford to pay the bigger bucks.

On the other hand, I know a freelancer who is definitely undercharging, because she wants to work with Mom&Pop shops exclusively and if she raises her rates, she’ll price herself out of her desired target market. Something to think about. How much do you like your current set of clients?

As always, thank you for the wonderful tips & articles.

When a client insists that a quality web developer is only worth 30/hr. or so, I kindly ask them what they paid their last mechanic to work on their car. In my area that’s usually between 65-75/hr so it helps a little to put your rates into perspective, especially when their website is a serious outlet for their business.

Wow, thumbs up mate, You have done it again. Another great insight into taking freelancing to the next level.

I have to agree with Myke: One way I get an idea of what I can charge a client is to ask them what kind of budget they have. I don’t just come out and ask this but instead have a form on my website that they can fill out if they are interested in working with me.

I think it is a good idea to get some background information from the potential client at first so that you can have an idea of the kind of work that they would like done and what budget they have.

Nonetheless, this should be accompanied with a great portfolio that showcases your work and separates you from the Tom, Dick and Harrys out there. Once they get to see the quality of your work and hear your cost, then they will reconsider making the next move.

Good stuff Skellie

Awesome article. One of the most common initial responses I get from potential clients is that they have received lower quotes from other developers. I have a “you get what you pay for” response ready to go, explaining how going for the lowest quote will end up costing you more money in the long run trying to fix what was done by an inexperienced, non-reliable developer.

It helps, as others have mentioned, to relate it to other industries - you wouldn’t hire a dentist, or doctor who has no diploma up on the wall, to operate on you just because he would do it for 30/hr.

So far as I’m concerned, my project quotes are non-negotiable. Once you start “bargaining” with clients over your payment scale, you’ve immediately lost respect. This article is dead-on.

That said, there are some key components that entitle a contractor to charge on a higher payscale:
1) Years of experience
2) A portfolio that reflects those years of experience
3) Continually researching, studying and learning new technologies, practices and tools

When I first began my web dev business 12 years ago, I charged modestly, as is fitting. With experience and improvement at my craft, I began charging more. It’s like anything else, really.

In all these years, I can only remember a few times when a client actually asked for a reduced rate, and in every case these were friends or relatives. My best advice is to never, ever engage yourself in an argument with a client who tries to talk you into charging less. If you are charging a fair rate in accordance with the items above, then you do not need to defend your rates to clients. Simply move on with grace. If your experience and portfolio merit it, you will not have trouble finding work.

Excellent article!

Skellie,

You made some great points here. I think Rich McCoy’s comments hit it squarely, also. Let the client see all the elements, then they can discuss removing elements, just as they would if building a house (”oh I guess I don’t need the granite countertops after all”) or even at the grocery store (”I’ll skip the filet mignon this week”). Plus, seeing all the elements involved, time and “deliverables,” tells the client that you don’t just sit on your behind until an hour before a project’s due at the printer’s or wherever and then whip it out of your genetically-amazing creative mind; you sweat your work just like they sweat theirs.

It is also critical, in this day and age, to show them the ROI. If there is any way for you to quantify: money saved; time saved; or best yet, money made, by using your services, DO THAT in your proposal. Nobody likes to leave money on the table.

Shh!! Promise you won’t tell–

The secret to charging your dream rates, which I was given long ago by a colleague is this phrase, to be used in your initial meeting (data-gathering, pre-presentation) with client: “I’ll put food on the table next week whether we do business or not, so I want you to make sure you feel we’re a good fit.” Use it and mean it. When you don’t sound desperate and do sound busy, clients want to work with you.

Regards,

Kelly