When you’re needing to make more money in your freelance business, our first impulse is to get more clients. But there’s actually a strategy that often goes overlooked.
It’s unfortunate that most freelancers greatly undercharge their work. Their logic is that if I lower my costs I’ll be able to get more clients who can afford my work. But what ends up happening is that you get more clients, get overwhelmed with the amount of work on your plate, and you’re STILL struggling to make ends meet. It’s a terrible vicious cycle that had me trapped for the longest time.
So how do we break this cycle? A cycle that has freelancers charging less, working more, and feeling overwhelmed, stressed out, and even resentful?
It’s easy… Raise your prices!
I’m already hearing all the annoying, negative voices inside your head making excuses why you can’t do that. I get it. I know exactly where you’re at. But I’m here to tell you it’s not as hard as it sounds.
And you’d be surprised what clients will pay you if you only just asked.
So I’m going to share with you the 4 steps I took to help me raise my prices my charge my clients what I’m truly worth.
Step #1: Understand The Value You Bring To Your Clients. Do you ever get the sense that your clients have locked you in as being worth a certain amount? If you price by the hour, then there’s a good chance that they do.
A better approach is to think about what you do in terms of the value delivered. Your value is the “so what” of what you do. It could be solution that has a direct impact on your client’s bottom line or a task-based service that frees them up to focus on their priorities.
The best cure for underpricing is not an indiscriminate rate hike; instead think about the problems you solve and the impact you bring.
Step# 2: Stop Charging By The Hour. This was a game changer for me. Once I started quoting clients by the project rather than the hours it would take, I started closing deals faster. You have to think about it from your clients perspective.
When you work hourly, it’s really a shot in the dark. It could take 3 hours or maybe take 10 hours. And that idea from a clients perspective isn’t very reassuring.
But if you quote a client a specific price, knowing the resources you’ll need and how long the project will take, it’s easier for your clients to digest.
And when you’re pricing your work always consider there are things that pop up you didn’t anticipate. So when you have a number in your head, add a little more to have that buffer for the unexpected.
Step #3: Build Your Brand. This is one of the best things you can do for yourself and your business. And it’s also one of the hardest. We spend so much time working IN our business that we don’t devote our time and creativity to work ON the business.
How you show up online says so much about you, your values, and quality of work. It’s a great way for your ideal clients to start building a relationship with you before even meeting you.
When it comes down to it, people like buying from people. So the more you show yourself, share your process, and offer valuable content, it will be a no brainer for them to hire you.
Offer so much value in the beginning that they feel they’re already working with you. Let them be part of your creative process and allow them to see the behind the scenes of your work.
Step #4: Share Case Studies and Client Testimonials.
It’s not enough to show you CAN do the work. You have to show how your work has made your clients life and business better. The more you share client case studies and customer testimonials, the quicker you’ll be seen as an authority in your industry.
People are visual. And we have the advantage of showcasing our work in a way that tells a story. Identify the clients pain points before working with you. Document the process from beginning to end. And highlight how your services has impacted your clients.
Storytelling is our greatest asset. And using testimonials and case studies is a great way to tell the story of our clients. What makes storytelling so powerful is that as people hear our story, they are experiencing the journey along with the client. Therefore already experiencing what it’s going to be like working with before even meeting you.
Just follow these four steps and you’ll start attracting quality clients who value what you’re truly worth. And remember, underpricing doesn’t just affect your cash flow, but also affects your clients perception of you. Do you want to be perceived as a run of the mill freelancer who’s desperately seeking work? Or are you ready to position yourself as an expert who knows their true value and work with clients who will pay for your worth.