It's completely fine to have different rates for different projects. The real trick is knowing which rate to offer to which client. The more you understand the landscape you’re working in, the better you’ll get at matching your price to the opportunity.

Who Are You Actually Working For?

Even within the same client or market segment, your rate can shift based on the project’s end audience. For instance, if a client needs design work for a speculative pitch, they might ask for a reduced rate. The trade-off is often a promise of getting the full-priced project if they win the bid. These can be fantastic ways to build a stronger relationship with a client by helping them out. Just be careful—you don't want to get stuck with a client who only hires you for pitch work that never materializes into paid gigs.

Your actual worth is tied to how much value a client sees in what you offer. Think about buying a designer handbag. You know the production cost is a fraction of the price tag. A huge part of that markup comes from the value you place on owning it. The same logic applies to your services. As you think about your pricing, you should be figuring out how to position yourself closer to that "designer" end of the market. This is a core part of your Entrepreneurial Development.

Consider a wedding photographer whose business was so successful she was booked solid a year in advance. She realized that with the wedding season being so concentrated in the summer, especially on Saturdays, she had a very limited number of high-demand slots—maybe thirteen prime Saturdays a year. She couldn't create more Saturdays, but she could definitely control what she charged for them.

She took a step back, assessed her market value, and decided to double her prices. The bookings kept coming in just as before. So, she raised her prices again. Soon, she was earning more than double her previous income and could even be selective about which locations she was willing to travel to. She understood her value and used that knowledge to maximize her earnings. This is a masterclass in Freelance Business Management.

Are You Charging Too Much or Too Little?

Figuring out if you're overpricing can be straightforward: you’re not getting enough work. You have meetings with new clients, send out proposals, but nothing converts into a paid project. Overpricing doesn't always mean your rate is too high in a vacuum; it might just mean you're pitching to clients who can't or won't pay what you're worth. This all ties back to your values. Are you targeting clients who see the same value in your work that you do? It might be time to refocus your Marketing & Sales efforts on those who will.

On the other hand, a key sign of underpricing is being offered too much work. It might feel great at first—work is pouring in, and you’re not worried about paying the bills. But you risk becoming a "busy fool." It's possible you’ve just hit a feast cycle, but it's more likely that clients see you as a bargain and are rushing to get a piece of the action.

If you’re just starting out, you might be tempted to underprice yourself to build a portfolio. That’s a valid strategy, but don’t expect those initial clients to stick around as your rates increase. They’ll quickly move on to the next freelancer willing to work for less. Still, the experience you gain can be leveraged to land bigger clients at higher rates, contributing to your Professional Growth.

If you do offer a lower introductory rate, make sure you frame it as exactly that—an "introductory offer." Otherwise, clients will assume you’re always cheap, making it incredibly difficult to charge your full rate later on.

Being seen as cheap can also negatively affect how clients perceive the quality of your work. When you're shopping, what do you think of the cheapest item on the shelf? You probably assume it's cheap for a reason—that corners were cut somewhere. That’s not the impression you want your services to give.

The simple rule is this: if you're too busy, raise your prices. Yes, you might lose some clients, but the ones who stay will be paying more, meaning you’ll do less work for the same or even better pay.

Don't Get Trapped by Low Pay

Exploitation is a tricky subject that usually revolves around low pay. When is working for free "valuable experience," and when is it just exploitation? There’s no single answer—it’s a personal line you have to draw.

This isn’t just an issue for beginners. Experienced freelancers often find clients playing on their good nature, asking for "just one more thing" long after a project is finished. It’s important to ask yourself if the request is actually a new piece of work that you should be paid for. If it is, you can politely point out that it will take time to complete and will need to be billed accordingly.

If you find yourself constantly working for low rates, you need to figure out why. Often, the reason is a lack of confidence. Freelancers worry about losing work if they charge more, focusing too much on how the client values them instead of how they value the client. As you grow, your client roster will naturally change. The clients who were great when you started may not be a good fit for your more experienced services, and that's okay.

As for working for nothing, you need a very good reason. Be clear with yourself about what you expect to gain and for how long you're willing to do it. Think of it as a transaction where the value isn't monetary. For example, if you do pro bono work to build your portfolio, make sure you can get testimonials and recommendations in return.

Knowing When to Walk Away

Turning down low-paying work is tough. There's always a fear that nothing better will come along. But if you keep accepting low-ball offers, you’ll just end up busy and broke, with no time left to focus on your Marketing & Sales strategy to find better clients. It's a vicious cycle that's hard to break.

So, how do you actually raise your prices? The simplest way is to just tell your clients your rates are increasing. They’ll either agree or they won’t. You need to decide beforehand what you’ll do if they say no—stick with the old rate or walk away.

Different Ways to Charge for Your Work

Your Financial Planning will depend on how you structure your rates. Here are the most common models:

• By the Hour: Common for graphic designers or virtual assistants who often juggle multiple clients with ongoing needs.
• By the Day: Often used by workshop facilitators or film crews. It’s crucial to define what a "day" means—it could be anything from six to sixteen hours.
• By the Week: This might apply to TV production or event planning, often structured as a short-term, fixed contract.
• By the Project: This involves a fixed sum to complete a project by a deadline. You need to be careful here; underestimating the time required could mean you end up working for far less than you intended.

The Final Reality Check

Now it's time to put it all together and see if the numbers work. Do you have one rate or several? If you have multiple rates, estimate the percentage of your work that falls into each category over a year.

Let's say a workshop facilitator plans to work 120 days a year and needs to make $40,000.

• Rate 1 ($500/day): 20% of work = 24 days = $12,000
• Rate 2 ($250/day): 50% of work = 60 days = $15,000
• Rate 3 ($300/day): 30% of work = 36 days = $10,800
• Projected Turnover: $37,800
• Required Turnover: $40,000
• Shortfall: -$2,200

In this scenario, the facilitator is close but not quite there. However, working just eight more days at the middle rate would close that gap. This kind of Financial Planning is essential for sustainable Freelance Business Management. If your numbers don't add up, you either need to spend less or earn more. It’s that simple. This reality check should be something you revisit regularly as your financial situation changes.