Blog Archives

Value pricing for freelancing and consulting: Please explain it to me

I’ve been reading advice on value pricing for awhile and I admit I still don’t get it.

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The case for pricing your freelance and consulting work by the hour

I tend to prefer by-the-project pricing when I have a rather firm idea of the time and resources a project will require. This may happen because the project is so clearly defined—500 words on how to save on household expenses—or because I’ve worked with the client several times already. However, hourly rates are preferable when it’s difficult, if not impossible, to predict with any accuracy how long a project will take.

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Freelancing and consulting: Overcoming pricing paralysis

Common sense for the unemployed or underemployed freelancer / consultant can mean selecting a mid-range rate and going for it. Allowing pipe-dream prices or ultra-low rates to substitute for judgment can paralyze you and prevent you from marketing your services effectively.

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Hey, freelancers and consultants: No, I STILL don’t care if you can pay your expenses

Experts often recommend that self-employed people determine how much money they need to meet expenses and then adjust their rates to cover these expenses and ideally make a profit. I disagree. Yes, there is a problem if the service provider walks off the project for pricing it too low. It is their problem for being either unethical or simply stupid and the client is merely suffering the fallout.

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Hey, freelancers and consultants: No, I don’t care if you can pay your expenses

In setting freelance and consultant rates, it doesn’t matter to the client what the service provider’s expenses are. Nor should it matter.

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Freelance and consulting: what exactly does “negotiable” mean?

Which would you rather pursue, a freelance/consulting assignment with a set offering price, even if it is a bit low, or one that is negotiable?I strongly prefer the former; the latter often proves a waste of time.

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Why setting freelance and consulting rates is like selling your house . . . and what to do about it

A solopro is speaking with a prospect who asks his rate. The solopro really wants the assignment. He blurts out a rate per hour, lower than what he desires. The prospect says “yes.” The solopro immediately regrets what he said and rues the low starting point in future negotiations ever after. The problem is that the freelancer / consultant can never know that the client would have accepted the higher rate. Unless you are in a very narrow, specialized niche, there is no market rate to which you can compare yourself. Here are six ways to prevent the problem.

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What the heck is “value” in determining freelance and consulting rates?

I have been reading an awful lot lately about how we freelancers and consultants should base our fees on our “value.” However, these same articles rarely define the word or even hint at what it means. When I try to tease out a definition by re-reading for context, it often seems like “value” is a synonym for “high self-esteem.”

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Freelancing and consulting: How long will the project take?

When you estimate the time required to complete a project—especially important when you are proposing a flat fee rather than a per hour rate—it is important to calculate a rate that is fair to both parties. It is impossible to know in advance exactly how long a project will require. There are two circumstances in which this determination is especially challenging.

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Freelance and consulting rates: From A to Z (minus B to Y)

In considering pay rates for freelancers and consultants, I propose a middle ground between very high rates and very low rates that is based not on what we are “worth” or how low some would like to pay us. I propose that this middle ground is based on what our work is worth.

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