How to set your freelance consulting rate

How to set your freelance consulting rate
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One of the main things people ask before they go freelance is how to work out their freelance consultant rate.

Setting your freelance consultant rates isdifficult. Set your day rate too low and you have to work longer and harder to make a decent income. Set your day rate too high and you risk putting off potential clients and not seeing you have a full portfolio of work.

There are several strategies you can take to find an hourly rate, day rate or project rate that your clients are happy with and enables you to make a comfortable income.

Before You Set Your Freelance Consultant Rates

Theres a few things you can do to get a good idea of what to charge as your rate before you start to take on freelance projects:

  • Get comfortable talking about your rate:Therell be situations where youll have to negotiate with a client on your fee. You have to get comfortable at discussing this with them and not be afraid to push back on a price to get your true worth from a project.Negotiating withclients on your rate takes confidence, but once youve done it a few times youll be more comfortable having that discussion with them.
  • Ask other freelance consultants what they charge:Youre probably nervous about sharing how much you get paid with other freelancers.What if youre charging too much? Too little?What if others copy or undercut your rate? Sharing whatyoumake with other freelancers can have a huge impact on your rate. If youre newto freelancing andtry tosetyourratewithout knowing whatother similar freelancers have set theirs at,you willprobablyprice at a low rate to play it safe.This pushes rates down and means that you wontearn as much as you potentially should.
  • Ask an HR professional what the going rates are:Im luck enough to have a friend in Soraya, who is a freelance HR consultant.She gives great advice on what others are charging for similar projects, so I can always ask her when Im not sure what I should set my rate at. Dont be afraid to ask any friendly HR contacts you have, or get out there and make a friendly HR contact if you dont have one already.
  • Ask the client for a budget:Although you shouldnt use this as the basis for yourrate, you can use the budget set by a client as afigure to get started with. You can either negotiate this figure or use it as a benchmark for future projects.
  • Seta benchmark:Read books and articles related to your industry that contain information aboutpricing. Some freelancersdo talk abouttheir rates online and thatisa great place tobegin. Also check forumsand networking sites in your industry, as posting for advice on these sites can leadto you getting lots of helpful advice back on where to set your benchmark.

Pricing Strategies for Setting your Freelance Consultant Rate

There are several strategies you can take for setting your freelance rate, each with their own benefits and disadvantages:

  • Time-Based Pricing
  • Project-Based Pricing
  • Value-Based Pricing

For more information about how to start up a freelancing business contact leon@stephenakintayo.com or call 08135385919.

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