Price Freelance Services · BestStartBiz.com
How to Price Your Freelance Services (Without Underselling Yourself)
If you’ve ever agonized over what to charge a client — typed a number into a proposal, deleted it, typed a lower one, deleted that too, and eventually settled on whatever felt “safe” — you are not alone.
Undercharging is the most widespread problem in freelancing. Not a lack of skill. Not a lack of clients. Undercharging. And it’s rarely about the numbers — it’s about the story freelancers tell themselves about what they’re worth.
This guide gives you three concrete pricing methods, a packaging strategy that increases your income without adding more work, and a script for raising your rates with existing clients. By the end, you’ll have a clear, defensible number to put in your next proposal — and the confidence to stand behind it.
The three pricing methods every freelancer should know, how to package your services for higher earnings, and exactly what to say when it’s time to raise your rates — with a real email script you can use today.
Why Freelancers Chronically Undercharge
Before we get to the numbers, let’s talk about why smart, talented people consistently price their work too low. Understanding the root cause is the first step to fixing it.
Fear of rejection
When your rate feels like a personal judgment of your worth, rejection stings more than a simple “no thanks.” So freelancers lower their prices pre-emptively to avoid the discomfort — and end up undervaluing themselves before the client even has a chance to respond.
Imposter syndrome
The internal monologue goes something like: “Who am I to charge $100 an hour? There are people with more experience doing this for $50.” This comparison trap ignores the unique value you bring, the specific outcomes you deliver, and the real cost to the client of not solving their problem.
The counterintuitive truth about low prices
Here’s something most new freelancers don’t expect: low prices often repel quality clients rather than attract them. When you charge too little, experienced buyers assume your work is lower quality. Premium clients — the ones who pay on time, respect your process, and refer you to others — are accustomed to paying premium rates. Price yourself out of the bargain bin.
When you charge less than your work is worth, you have to take on more clients to hit your income target. More clients means less time per client, lower quality work, faster burnout, and — ironically — less ability to charge more. Undercharging is a trap that gets harder to escape the longer you stay in it.
Method 1 — Cost-Plus Pricing: Your Absolute Floor
Calculate what you must earn before you set what you want to earn
Cost-plus pricing starts with a simple question: what does it cost you to exist and run your freelance business? This gives you your floor — the minimum you need to charge to stay solvent. Everything above this floor is profit.
Most freelancers skip this step and pick a number from thin air. That’s how you end up working 50-hour weeks and still struggling to pay rent.
Monthly business expenses: $300 (software, subscriptions, equipment)
Self-employment tax set-aside (25%): $875
Desired take-home salary: $3,500/month
Total monthly need: $4,675
Realistic billable hours per month: 80 (not 160 — admin, marketing, and unpaid time eat the rest)
Minimum hourly rate: $4,675 ÷ 80 = $58.44/hr
That $58/hour is your floor. It is the absolute minimum you can charge and still cover your costs and hit your income target. Do not price below this number for any client, ever.
- Be honest about your real monthly expenses — include software, equipment depreciation, health insurance, and professional development
- Use 60–70% of your working hours as billable — the rest will always go to admin, pitching, and business development
- Revisit this calculation every six months as your expenses and income targets change
Method 2 — Market Rate Pricing: The Benchmark
Find out what the market is actually paying — then position yourself within it
Once you know your floor, the next step is understanding where that number sits relative to what the market actually pays. Market rate pricing gives you context so you can make an informed decision about how to position yourself.
How to research market rates
- LinkedIn: Search for freelancers in your field, filter by location and experience level, and look at the rates listed on their profiles or websites
- Reddit communities: Subreddits like r/freelance, r/freelanceWriters, r/graphic_design regularly feature rate discussions and salary threads
- Glassdoor and Payscale: Useful for understanding what full-time employees earn in your field — freelancers typically charge 25–50% more to account for self-employment costs and the lack of benefits
- Upwork and Fiverr: Scroll through profiles in your category — note that rates here skew low, so treat them as a floor, not a ceiling
Adjusting for experience and specialisation
Market rate isn’t one number — it’s a range with multiple factors that move you up or down within it:
| Factor | Effect on rate |
|---|---|
| Years of experience | +10–20% per tier (junior → mid → senior) |
| Niche specialisation | +15–40% (e.g. general copywriter vs. SaaS email specialist) |
| Proven results / case studies | +20–50% |
| Fast turnaround | +25–50% rush premium |
| Revision rounds included | Build into base rate or charge separately |
Working remotely doesn’t mean you must price to the lowest global market. If your clients are primarily US or UK-based businesses, price for that market — not for what a freelancer in a lower cost-of-living country charges. Clients hiring from your region expect to pay regional rates.
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Method 3 — Value-Based Pricing: The Upgrade
Price on the outcome you deliver — not the time you spend
Value-based pricing is the highest-leverage pricing model available to freelancers — and the least understood. Instead of charging for your time or matching the market rate, you charge based on the value your work creates for the client.
Here’s why this matters: a two-hour task might be worth $150 at an hourly rate. But if that two-hour task — say, rewriting a sales page — results in an extra $30,000 in revenue for the client, charging $150 is leaving an enormous amount of money on the table.
“Your price should reflect the size of the client’s problem, not the size of your effort.”
How to uncover the value of your work
The key is asking the right questions in your client discovery call:
- “What does it cost you when this problem isn’t solved?”
- “What’s the revenue opportunity if we get this right?”
- “How long have you been dealing with this, and what has it cost you in time and resources?”
- “What would it mean for your business if we achieved [desired outcome] in the next 90 days?”
Once you understand the dollar value of the outcome, pricing becomes much clearer. A project worth $50,000 to a client can reasonably command $5,000–$10,000 in fees — not $500.
A freelance email strategist charges $2,500 to set up an automated welcome sequence. The client’s email list has 8,000 subscribers and their average customer is worth $200. Even a modest 1% conversion from the sequence generates $16,000 in revenue. The $2,500 fee is a bargain — and the client knows it. That’s value-based pricing working exactly as intended.
How to Package Your Services for Higher Earnings
Hourly billing is the default for most new freelancers — and it’s also one of the most limiting models available. When you charge by the hour, you’re penalized for getting faster and better at your work. Packages break that link.
The 3-tier offer structure
Instead of quoting a single rate, present clients with three options. This does two things: it shifts the conversation from “should I hire you?” to “which option should I choose?” — and it anchors the middle option as the obvious sweet spot.
The middle tier is almost always the most popular — and it’s the one you should design first, then build up and down from it. Most clients default to the middle option because it feels balanced and reasonable.
How packages reduce scope creep and increase predictability
When you charge hourly, clients often treat your time as elastic — adding “one more thing” with no awareness of cost. Packages define scope clearly. Both parties know exactly what’s included, and anything beyond that scope is a new conversation with a clear additional cost.
The most financially stable freelance arrangement is a monthly retainer — a set fee for a defined scope of ongoing work. Even one $1,500/month retainer client provides a predictable income base that makes your other client work feel less pressured. Actively pitch retainers to clients whose needs are ongoing, not project-based.
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How to Raise Your Rates Without Losing Clients
If you’ve been undercharging — and most freelancers have — there will come a point where you need to raise your rates with existing clients. This feels terrifying. It rarely needs to be.
The 30-day notice rule
Give existing clients at least 30 days’ notice before a rate increase takes effect. This is professional, considerate, and almost always appreciated. Clients who respect your work will almost always accept a reasonable rate increase with sufficient notice.
Frame the increase as added value
Don’t apologize for raising your rates. Instead, connect the increase to your growth, the results you’ve delivered, and the continued value they’ll receive. Confidence in your delivery matters as much as the wording.
Hi [Client name],
I’ve really enjoyed working with you on [project/work], and I’m proud of what we’ve accomplished together — especially [specific result or achievement].
I’m writing to let you know that starting [date — 30+ days from now], my rates will be moving to [new rate]. This reflects my continued investment in my skills and the quality of work I deliver.
I wanted to give you plenty of notice so we can plan accordingly. I’d love to continue working together under the new rate, and I’m happy to discuss any questions you have.
Thank you for being such a great client — I look forward to what we’ll build next.
Warm regards,
[Your name]
Most clients who value your work will accept the increase without negotiation. Those who don’t may be the right long-term fit — and that’s useful information too.
Putting It All Together: Your Pricing Decision Framework
Here’s a simple framework to determine the right rate for any new project or client:
- Start with your floor — calculate your minimum hourly rate using the cost-plus method. Never go below this.
- Check the market — research what comparable freelancers charge. Position yourself relative to your experience and specialization.
- Assess the value — during the discovery call, ask questions to understand the outcome’s dollar value. If the value is high, price accordingly.
- Present a package — whenever possible, offer three options rather than a single rate. Let the client choose their investment level.
- Stand behind your number — quote with confidence and then be quiet. The first person who speaks after a price is presented typically makes a concession. Let the silence work for you.
Your rate is a fact, not an apology. Present it the same way you’d say today’s date — clearly, without hedging, without “I was thinking maybe around…” The moment you sound uncertain about your price, the client becomes uncertain too.
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