How to Price Yourself as a Freelancer: Find Out the Best Way to Set Your Rates

According to Payoneer, freelancers charge an average of $21 per hour on a global scale. So, let’s assume you’re a freelance writer. A client approaches you to write a detailed long-read article for their blog, and you complete the task in five hours. If we are to go with the average hourly charge, you earn $105 for the five hours. Sounds great, right? 

But here’s the kicker — Upwork says the average writer charges up to $250 per 1,000 word article. That’s two times more than what you were paid when you charged hourly! Now, imagine your client is very happy with the result they got for way less and would’ve paid even more for the same. If you had known how to price yourself better, you’d have earned more. I learned how I priced myself as a writer the hard way, too. But don't worry; I’m here to share everything that will help you avoid the same mistake. 

We also have Kartik Ahuja, a freelance growth marketing expert with more than 7 years of experience, 300+ websites, and 50k+ designs, from whom we will get firsthand expert input throughout the article. 

Understand the Worth of Your Work

To set the right rate, the first and most important thing is to understand the value of your work. Here’s how you can figure it out:

• Check client feedback. If clients often praise your work or leave positive reviews, it means you’re delivering quality they appreciate. This is a strong sign you can charge more. Also, note that some clients may not have time to leave feedback, so you need to ask them for their honest review.
• Look at repeat clients. When clients keep coming back to hire you, it’s proof that they value your work. Repeat business shows you’re reliable and producing high-quality results.
• Evaluate your portfolio. A diverse portfolio with impressive projects adds to your credibility. If your work stands out and reflects a range of skills, you can justify higher rates.
• Gauge demand for your services. If your calendar is packed or you’re turning away projects, it’s time to increase your rates. High demand means clients see your work as valuable.
• Consider your investment in skills. Have you learned new skills, earned certifications, or taken courses? These show growth and make your work more valuable, so raise your rates to reflect that.
• Assess your work’s impact. If you go beyond basic tasks — like solving complex problems or helping clients achieve big results — you should charge accordingly. High-impact work deserves higher pay, so don't be afraid to ask for more.
• Highlight your unique value. Do you work faster than others? Have a unique style? Your strengths can set you apart and justify premium pricing.
• Test rate increases. Try raising your rate with a few clients and see how they respond. If most of them agree without hesitation, it’s a clear sign you can confidently charge more. 

Early in my career, I faced a deciding moment that changed how I valued my work. After completing my 58th website project and receiving glowing feedback about how my integrated marketing approach increased client conversions by 44%, I realized I was severely undercharging at $1,000 per website. Clients weren't just getting a website, they were getting years of marketing expertise and proven growth strategies. I tested raising my rates to $3,500 with the next three clients, packaging it as a “Growth-Optimized Website Solution” that included marketing automation setup.

Crazy, but all three agreed without hesitation. That's when I knew my initial pricing wasn't reflecting the true business impact I delivered. Today, after more than 1k websites and marketing automations, I regularly assess my rates based on client results, not industry averages.

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Decide Between Hourly vs. Project-Based Pricing

The decision about whether to charge hourly or per project is tricky, but it all depends on the type of work you do and the specific situation. When I first started freelancing, I went with hourly rates because it felt safer; I mean, that’s how most freelancers charge. If the job took longer than expected, I’d still get paid for every hour. But I quickly realized it wasn’t always the best choice. You must not stick to a one-way pricing method. Check this out.

Hourly Rates

Charging by the hour works best for tasks that have unpredictable timelines, like consulting or ongoing projects. The minimum hourly rate on the popular freelance platform Upwork is $5. However, depending on your niche, you might charge much more. 

For instance, freelance full-stack developers often charge between $16 and $35 per hour, while freelance writers charge between $20 and $80 per hour, depending on experience. In my case, I went for hourly rates when I wasn’t sure how long a project would take, like editing and proofreading lengthy manuscripts, and it worked great.

Project-Based Pricing

On the other hand, project-based pricing is ideal for well-defined tasks. For example, if you're a freelance photographer, it makes more sense to charge per photoshoot. 

A single event shoot could cost anywhere from $150 to $300, depending on the duration, location, and what the client needs. Project rates give you more control over your income because you can factor in all elements — time, expertise, and value to the client. 

At GrowthScribe, which I founded to help businesses scale through data-driven marketing automation, I shifted from hourly to project-based pricing for our website services after noticing a pattern. While building 300+ websites, I realized that charging per project allowed me to package my expertise better. Instead of selling “50 hours of work,” I now offer a “Complete Growth-Optimized Website Package,” which clients understand and value more readily.

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No one method works for all. In the end, it’s about knowing what suits your work best and what helps you grow with confidence.

Know the Market Rate for Your Services 

Once you’ve decided between hourly-based and project-based pricing, the next thing is to research the market rate and match what others are charging for similar work. When you know the market rate, you can set your rates to be fair and competitive.

To get a feel for the market, start by researching on platforms like Upwork or Glassdoor, where you can view typical rates in your field. If your rate is far above or below others, you have to reconsider it. If the rate you want to charge is too high, you need to adjust your expenses or maybe reduce your salary goals. On the other hand, if your rate is too low, remember why it's important not to undercharge — you deserve fair pay for your work and skills.

Track Your Time and Calculate Your Rate 

One of the first things I learned as a freelancer was the importance of tracking my time. It’s hard to set the right price when you don’t know how long tasks take. I used to guess my working hours and ended up charging way less than I should have. That’s when I started using Toggl to track my time. I can track the time I've spent writing a long-form blog post, and that will include research, drafting, editing, and formatting. Apart from Toggl, there are other time-tracking tools like Hubstaff and Clockify to monitor precisely how long each project took.

When you track your time, you will see how much time you actually spend on each project. For example, if you thought a task would take 3 hours but ended up taking 6, you’d need to adjust your rates to ensure you get fair compensation. 

Let’s say you charge $25 per hour. If you’re not tracking time and work twice as long as planned, you’re making half of what you should. I learned this the hard way when I undercharged for a project because I missed to account for revision time.

I severely underestimated time tracking during my early days of scaling Instagram accounts. Growing an account to 500k followers taught me that every minute counts — from content creation to engagement monitoring. I now use detailed time tracking to understand that what seems like a “quick post” actually involves 2 to 3 hours of strategic planning, design, and optimization.

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Apart from knowing when to charge hourly or project-based, setting your rate to align with others, tracking your time, and knowing what clients will likely pay will help you price yourself better. But how do you know this?

Evaluate How Well You Connect with the Client

While it might seem odd, whether I like a client influences my pricing. Freelancers build relationships with clients, so it’s essential that you enjoy working with them. For instance, if an artistic client like a musician or a visual artist approaches you, they may have a smaller budget, but the project might offer creative freedom. 

You might accept a lower rate for such projects simply because of the creative satisfaction. Meanwhile, a corporate client might offer a larger budget, but the work might not be as stimulating.

In my experience designing thousands of marketing assets, I've found that project alignment matters more than just the budget. One of our most successful case studies was with a high-end fashion and accessories brand that had a very specific about creative vision. While their initial budget was lower than some other leads, we connected deeply with their brand identity and creative direction. This turned into a long-term relationship and referrals, which are invaluable for sustainable business growth.

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Also, some clients are more picky and demanding. If a client seems likely to ask for many revisions or has an eye for the tiniest details, you have to price the project higher, knowing it’ll take more of your time and energy.

How to Find Out What Clients Will Pay

When I started freelancing newly, one of my biggest struggles was figuring out what clients were willing to pay. It felt like I was guessing each time, and sometimes I charged too low. With time, I realized that finding out what clients will pay is more about research and communication than guesswork. Here are a few strategies that have worked for me:

1. Ask Directly

One of the simplest ways to find out what a client will pay is to ask them upfront. When I get a new project inquiry, I often say, “What kind of budget do you have set for this project?” This cuts straight to the point and helps avoid unnecessary back-and-forth. Most clients appreciate when you are direct; even if they don’t give you an exact number, they might provide a range. This way, you can quickly tell if their budget aligns with your rates and save both parties time.

When they tell you their budget, you can then decide on your next move. Imagine two clients come with the same project scope. One is a startup owner with a $5,000 budget, while the other is a corporate client with $10,000 in mind. Ethically, you might feel you should charge both the same, but underpricing can harm you. If you tell the corporate client you’ll do the job for $5,000, they might think your work isn’t of high quality. It’s better to align your pricing with the client’s budget to meet their expectations and avoid undervaluing your work.

2. Use the Ballpark Strategy

Sometimes, clients ask for a “ballpark” estimate (a rough estimate or general price range), without giving away their budget. In these cases, I respond with a wide range, like, “this project could cost anywhere from $500 to $5,000, depending on the scope.” This way, they understand that the price depends on the details. After giving a range, I ask them if they have a specific figure in mind. This tactic has worked well for me because it encourages clients to reveal their budget while showing flexibility.

When scaling GrowthScribe, I developed what I call the “3-tier strategy”. I present three pricing options: basic, premium, and complete growth solutions. Most clients instinctively gravitate toward the middle option, giving me a clear understanding of their budget while making them feel in control of the decision. This approach has significantly improved our client conversion rate.

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3. Negotiate Based on Value

Negotiation is a part of freelancing, but I always negotiate based on the value I bring, not just to lower my rates. For instance, if a client pushes back on my price, I’ll explain why my services are worth the cost by highlighting the results they can expect. 

For example, when I worked on a marketing campaign, which included writing some copies for a client, I was able to show how my previous copies increased leads for another client. I showed them measurable results, like how a landing page copy I wrote boosted conversions by more than 25%. This approach helps the client understand that paying more upfront could lead to greater returns later.

When discussing rates with clients, you don't say "the more you pay, the better I’ll work." Instead, you need to explain why quality work often costs more. For instance, a client who paid for a cheaper writer may have received generic, error-filled copy that didn’t engage their audience. In contrast, high-quality writers deliver polished, well-researched content that connects with readers and achieves business goals, like boosting sales or brand recognition. You can point out your specific strengths — such as writing engaging headlines, tailoring content to different audiences, or delivering consistent results — so they understand what they’re paying for.

If you're new and charging less, focus on clients who need entry-level work, and emphasize how you're willing to put in extra effort to build trust and deliver excellent results. To showcase your skills, you can also create sample projects on your own, like blog posts, ad copies, or case studies. Then use these examples to persuade clients that even at a lower rate, your work stands out from others in the same price range.

Generally, if you're new to freelancing and don’t have much experience or a portfolio yet, it is better to set a lower starting rate — not too low than the average rate. Since you do not have a proven track record, clients might hesitate to pay higher. Instead, offer competitive rates to build trust and focus on delivering great results. Positive client reviews at the start often bring in more work than setting high prices right away. Once you've established a solid reputation, you'll find it easier to gradually raise your rates.

Tips to Increase Your Value as a Freelancer

Raising your rates as a freelancer often comes down to the value you bring to your clients. If you want to charge higher rates, you must deliver more value. Here are some ways you can do that:

1. Build a Strong Personal Brand

Your personal brand is how clients see you, and it’s vital to attracting better-paying projects. With a professional website, for instance, you can showcase your work, client testimonials, and a clear description of what you offer makes a big difference. You can also use social media to share your work and insights. Posting regularly about industry trends, tips, or behind-the-scenes of your projects helps establish authority. 

Content creation transformed my personal brand. My home office setup, which I've optimized over years of remote work, includes a professional recording space where I used to create daily social media content. This consistent visibility helped me grow my then LinkedIn following to 40k+ and positioned me as a thought leader in growth marketing. Remember, your personal brand is your most valuable asset.

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2. Deliver Quality Work, Consistently

Nothing speaks louder than high-quality work. Over time, I’ve learned that clients are willing to pay more for reliable, top-notch results. Whether it’s meeting deadlines, communicating clearly, or going the extra mile in your projects, when you deliver consistently, you build trust. With a few extra revisions to a project, a client can come back with more work and even refer you to others. High quality means satisfied clients, which often leads to repeat business and higher rates.

But how do you ensure you deliver high quality work? How do you improve your ability as you go? Here are steps you can take:

• Invest in skill development. Take courses, attend workshops, or read books to stay updated in your field. For instance, as a writer, you can take courses like “The Complete SEO Content Writing Course For Web Promotion" to learn SEO strategies to enhance your work.
• Always meet deadlines. Late work harms trust, so make time management a priority and use tools like Trello or Asana to stay organized.
• Invest in tools that'll help. As a writer, I use Grammarly to check my grammar, Advego to check uniqueness and SurferSEO to check keywords. But there are many tools for different niches.
• Pay attention to details. Double-check your work for errors, be consistent, and ensure the work aligns with what the client instructed.
• Document clients’ feedback. Keep a log of feedback to identify patterns or areas you can improve on. For example, if clients frequently suggest simpler language, adjust your writing style accordingly.
• Do more than you are asked to. If feasible, include small extras. I always add catchy headlines even if not requested to demonstrate initiative and add value.

As you incorporate these habits into your routine, you’ll continuously improve your quality and set the right price too.

3. Specialize in a Niche

Specializing in one area makes you stand out from the crowd and allows you to charge more. For example, instead of just being a general graphic designer, you can decide to focus on UX/UI design for mobile apps. With this specialization, you can target a specific group of clients who value your expertise in that field. 

After struggling in general digital marketing, I niched down to focus specifically on growth marketing for established businesses. This specialization allowed me to develop deeper expertise in marketing automation and data-driven strategies. My rates increased threefold because clients saw me as a specialist rather than a generalist marketer.

Clients often pay more for someone with in-depth industry knowledge rather than a freelancer offering generic services. If you can hone your skills in one area and market yourself as an expert, you can charge higher fees.

Why Pricing Yourself the Right Way as a Freelancer Matters

Below are some of the reasons you must price yourself the right way as a freelancer:

1. Impacts Your Business Growth

For the sake of this article, I will address what you are doing as a freelancer as “your business.” So, how you price yourself directly affects your business. If you charge too low, you're not just losing money — you’re limiting your growth. What do I mean? When clients see low rates, it is only normal for them to question your quality or experience. 

On the other hand, if you price yourself fairly or even slightly higher, they will see you as a skilled professional, which helps you attract better-paying projects. I learned this early on when I realized that higher rates brought in clients who valued my work more. 

I learned this lesson when scaling GrowthScribe. Initially, I charged $50 per social media post, struggling to get clients. After researching my target market and repositioning my services as “growth-driven content creation,” I started charging $250 per post. Surprisingly, I got more clients — serious business owners who valued strategic marketing over cheap content. Your pricing literally filters your client quality.

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2. Boosts Client Satisfaction

Clients often associate price with value. If you undercharge, even if you deliver fantastic work, clients might feel it’s not worth as much. When you set a higher price, clients not only see you as more professional, but they also tend to appreciate your work more. Clients who pay more will likely value and respect your time and effort.

This resonates deeply with my experience in marketing automation. When I charged $500 for email sequences, clients would constantly request changes and question every detail. After raising my rates to $2,500, reflecting the true business impact of my successful automations, clients became more collaborative and respectful. I believe that higher prices convey the true value and expertise you offer. Clients who pay premium rates are more focused on the end results and business impact rather than micromanaging the work process. They believe in the expertise behind the service and are willing to trust the professional's judgment.

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But at the same time, you must not overprice since clients are likely to feel they’re not getting enough value for their money. When you overpice, it can lead to mistrust, dissatisfaction, and lost opportunities as clients may turn to competitors who offer perceived value for a fair price. You need to strike the right balance to ensure you attract clients who respect your work while feeling confident about their investment.

3. Affects Your Self-Worth

As freelancers, it is normal that we sometimes doubt what we’re worth. But you build confidence when you price yourself right. I felt more empowered when I started charging rates that matched my skills. 

I used to take on blog posts for as low as $5 per 1,000-word article. For me, that was fair. But when I sat and factored in the hours I spent researching, editing, and revising, I realized I was actually earning less than I should. 

I felt more empowered when I finally started charging rates that matched my skills. Instead of $5 for a 1,000-word article, I began asking for $25. The confidence boost was real — I knew I was earning what my work deserved, and that kept me motivated and excited for each project.

Knowing you’re earning what you deserve is a huge motivator and keeps you invested in your work.

When you are ready to price yourself as a freelancer, it’s not just about picking a number — you have to understand your value, the market, and your clients. Whether you charge by the hour or per project, track your time, consider value-based pricing, and align your rates with client expectations. 

Always factor in the effort, creativity, and value you bring to the table. Keep adjusting your rates to reflect your experience and skills as you grow. With the right pricing strategy, you will be sure that you're fairly compensated, and this will help you grow a successful freelance career.

It is important to price strategically because it sets the tone for your professional journey. When you price correctly, you will earn what you deserve and also signal the value of your work to clients. A well-thought-out pricing strategy leads to long-term success, helping you grow both your skills and your business relationships.

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