4min
Module 1: The Freelance Mindset
Module 2: Defining Your Service and Niche
Module 3: Building Your Freelance Foundation
Module 4: Finding and Pitching to Your First Client
Module 5: Project Management and Client Relations
Final Lesson & Assessment
Learn How to Get Started as a Freelancer
8 / 18 Lessons
Content
Assignment
Pricing your work is a critical skill for any freelancer, and it's also something many people struggle with. The key is to stop thinking about what you hope a client will pay and start thinking about the value you're providing. Your rate should be a reflection of your expertise and the solution you deliver.
1. The Three Main Pricing Models
You charge a specific amount for every hour you work.
Pros: It's simple, clear, and ensures you get paid for all the time you spend on a project. It’s a good model for new freelancers who are unsure of how long a project will take.
Cons: You can be penalized for being efficient. Clients may be hesitant to pay for a time they can't verify.
Best for: Projects with an undefined scope or ongoing consulting work.
You set a single, fixed price for the entire project.
Pros: It's easy for the client to budget for, and it rewards you for being efficient. The faster you finish, the higher your effective hourly rate.
Cons: It requires a very clear scope of work upfront. If the project grows or changes, you may end up doing extra work for free.
Best for: Well-defined projects with a clear deliverable (e.g., "designing a logo" or "writing one website's homepage").
The client pays you a fixed monthly fee for a pre-agreed amount of work.
Pros: Provides a stable, predictable income and builds a long-term relationship with a client.
Cons: Requires a lot of planning and discipline to ensure you don't over-deliver on your hours.
Best for: Ongoing relationships with clients, such as social media management or monthly content creation.
2. How to Set Your Initial Rate
Don't just pull a number out of thin air. You can use free tools to help you determine a rate that is both fair and profitable. The Upwork Freelance Rate Calculator is a great place to start. It asks you a series of simple questions to help you figure out a minimum rate that will cover your expenses, taxes, and desired income. Here is how it would look like there.
Calculate Your Ideal Income: How much do you want to earn in a year? Let's say your target is $50,000.
Add Your Business Costs: Factor in things like software, internet, health insurance, and taxes. A good rule of thumb is to add an extra 30% on top of your income goal.
$50,000 (income) + $15,000 (30% in costs and taxes) = $65,000
Find Your "Billable" Hours: If you work 40 hours a week, you'll spend about 20 of those on billable client work. The rest goes to marketing, administration, and learning.
20 hours/week x 50 weeks/year = 1,000 billable hours per year.
Divide to Get Your Rate: Divide your total annual number (income + costs) by your total billable hours per year.
$65,000 / 1,000 hours = $65 per hour.
This gives you a strong starting point and a number you can feel confident about.