If you work as a freelancer or on contract basis, your pricing policy will help you build or break your work. Many freelancers end up losing out on the pay value because they do not charge correctly or they do not follow up on payments. Money is an important consideration for both the payer and the payee! As a freelancer, along with building your profile and improving on your skills, you have to know how to charge your clients in order to sustain yourself.
Things to keep in mind
Here are a few things to keep in mind as a freelancer when trying to create a rate card or pricing policy of your own.
Try to be on par with fellow freelancers. Compare what other freelancers in the same industry charge. If you believe you have more skills or more experience, add a small margin to what other freelancers are charging. Keep in mind that it is easier to charge lower fees at the start and then once you build a rapport with a client, you can increase your price. Do not overcharge unnecessarily. There are several freelancers available for companies to hire. Your aim should be to create a network first above all else.
Deciding a fee structure
You should always have a fee structure in place. Calculate a base fee which covers initial support costs – like your electricity or internet charges. Add a small margin as a profit for the time you have spent on an assignment / assignments. These three parts should form the fee structure. You can play around it depending on the type of work, time required, extent of research and so on.
This is the world of the digital. Your payments terms and conditions should be convenient for you and the payer. You can choose to charge a client on the basis of ‘per assignment’ or ‘total number of assignments’. If you need a monthly income, opt for a per assignment payment term.
Furthermore, ensure you set-up your net banking so that you can receive and make payments conveniently online.