EF #6: 💵 Show Me the Money, Baby!

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And now, onto the real reason you’re here….

When I first started freelancing in the mid-1980s, I charged $25/hour for my copywriting services. I had zero copywriting experience, but I was confident in my skills and determined to earn what I thought was a competitive fee. (Keep in mind, this was pre-internet days, so I have no idea how I gauged what competitive rates were. 😂)

But, I knew I had the writing chops, and I over-delivered on my first few client projects—I turned them around very quickly and provided multiple copy options. I got repeat work on very small copywriting projects (think table tents and flyers) and started making a name for myself as a local freelance writer.

Slowly, I moved on to bigger projects, scoring work with mid-size companies. (By the 1990s, I’d moved up to charging $50/hour.) I wrote a ton of marketing materials, product copy, newsletters, and “educational materials that built trust in the brand.” I didn’t know it at the time, but I had been doing lots of content marketing before it even had a name. I’m literally an OG 😎 content marketer!

Eventually, I moved on to the charge-by-the-project model of pricing, which turned out to be a key move in earning more money, reassuring clients who feared out-of-control project fees, and ditching the monotonous task of tracking my hours. ⏰

I took a similar path with editorial projects—initially earning just pennies a word for my early articles and moving on to $1-$2/word 💵 assignments for top-tier publications and global brands. (Note, I don’t earn this for every assignment. I’ve got quite a few clients that only pay $0.50/word—mostly for digital pieces.)

This didn’t happen overnight. It took years of steadily building my portfolio and slowly raising 🔼 my rates. I earned a good reputation for the quality of my work and my professionalism. I researched what other freelancers were charging. I built up my confidence. And I learned to negotiate better. All this to say, it was a process—one I still tweak.

Today’s newsletter dives into how you can confidently ask for what you're worth.

🔍 Key Takeaways:

1. Understand Your Value: Learn how to assess your skills and experience to set fair rates.

2. Communicate Confidently: Master strategies for negotiating and discussing your fees with clients.

3. Invest in Your Professional Growth: Discover the importance of continuous improvement and self-worth in sustaining your freelance business.

Freelance Focus: Asking For What You’re Worth

Do you often feel hesitant to ask for higher rates? While some of this hesitation can realistically stem from what’s happening in your industry, the economy, or even where you live, you can’t blame it all on external factors.

It's time to change this I’m-afraid-to-ask mindset and start valuing your work appropriately.

As a freelancer, consider yourself a fearless warrior and business owner. You slay deadlines, forge creative concepts, and navigate the ever-shifting landscape of project requirements. But here's the rub: knowing your worth—and getting paid what you're worth—can feel like a whole other battle.

The Vicious Underpricing Cycle

Many freelancers fall into the trap of undervaluing themselves and struggling to price services appropriately. I’ve done this myself. 🙋‍♀️The fear of a silent inbox (or the fear of losing potential clients) can lead to underpricing. And it can make you feel desperate. This creates a vicious cycle because saying yes to lower rates makes you feel undervalued and can cause resentment. In turn, this can zap your confidence when negotiating for better pay. Before you know it, your calendar is filled with low-paying projects, leaving little room for high-paying projects.  

But, understanding this common trap marks the first step in overcoming it. By recognizing the factors holding you back, you can equip yourself with the tools you need to confidently advocate for fair rates.

And you deserve to be paid fairly for your work.

But It’s Not Just About the Money

Valuing your work correctly plays a key role in your holistic success, and here’s why:

1. Your financial stability hinges on fair pricing. Underpricing not only diminishes your income but also impacts your overall quality of life. It’s stressful to constantly worry about paying your bills or buying food.

2. Setting “I’m-worth-it” rates bolsters your self-esteem and career growth, allowing you to confidently showcase your skills and services. When your income covers your bills and gives you breathing room, you’re less stressed. This empowers you to market yourself confidently and deliver your best work.

3. The sustainability of your business depends on establishing fair rates that ensure long-term success. A few low-paying projects here and there are fine, especially if you’ve got a good reason to take on the work (like breaking into a new niche or learning to create a new deliverable). But most of your projects should earn you fair rates.

4. Finally, the way you price your work shapes client perceptions and respect. Clients are more likely to value and appreciate your work when you set rates that reflect your true worth. You don’t want to develop a reputation as “the bargain-basement freelancer.” Remember, you teach people how to treat you. Respect yourself and clients will follow. And if they don’t, “break up” with them!

So, solving this challenge isn’t just about money—it's about securing your future, building a confidence-filled freelance journey, and earning the respect you deserve.

Common Pricing Traps

Many freelancers fall into common traps when setting their rates. Any of these look familiar?

• Lowering rates to win clients might seem like a quick fix but ultimately undermines your value and leads to burnout. Plus, it’s not sustainable for long-term success.

• Imitating competitors' prices without considering your unique skills and market can misalign your rates. The reality is, if you’re early in your career, you likely won’t command the higher rates that a seasoned pro will. And if you write parenting articles for local consumer magazines, you won’t earn as much as a freelancer who writes white papers for the tech industry. There’s nothing wrong with either—just know that your rates must align with your unique background, skills, and industry.

• Avoiding discussions about fees often results in miscommunication and undervaluation. Be clear with clients about your fees.

• Ignoring market research leaves you out of touch with industry standards and client budgets.

Recognizing these pitfalls helps you set fair rates that reflect your worth and sustain your business.

A Better Approach to Pricing

Mastering the art of valuing your work starts with a comprehensive strategy.

1. Know your value. It starts with a self-assessment. Look at your skills and experience objectively to help determine what fees you could command at this stage of your career. We were all beginners once! (Keep in mind that, even with years of experience, you might also be somewhat of a “beginner” if you’re pivoting to a new industry or adding new services.) Know that it takes time to get up to speed and gain experience. Build confidence with practical tips and resources to fuel your growth. Start where you are, with your eyes on the next level up. The key? Don’t stay at the “beginner level” too long. As you learn more, improve your skills, and gain experience, you can charge more.

2. Get market intel. Don't guess! Conduct thorough market research to understand fair rates. (Know that rates can vary widely by industry and geography.) Leverage industry resources, like the freelance rate databases I listed below. Tap your network and freelance groups for accurate benchmarks. Even after 35⁺ years of freelancing, I still occasionally pop into online writer’s groups to ask, “What would you charge for this project?” It’s a great way to validate whether or not you’re fees are still realistic.

3. Craft your strategy. Create a pricing strategy that reflects both your value and current market demands. Consider everything from per-project rates and per-word fees to bundled packages and monthly retainers to find what works best for you and your clients. (Generally speaking, writers should avoid charging by the hour. But sometimes, especially when working with agencies, this approach can work.) Over the years, I’ve offered a mix of pricing approaches, depending on the situation. There’s no “one right way.”

4. Communicate confidently. Negotiate your rates from a stance of self-assurance. For instance, with new editors, I almost always ask for more than they offer. Sometimes it works, sometimes it doesn’t. But you never get what you don’t ask for! And once you start working at a lower rate with new clients, they’ll expect this rate moving forward. (You can raise your fees later. But start strong.) Also, learn strategies to handle pushback professionally. This might feel uncomfortable, but you need to be assertive and professional as you look out for your own best interests. I’ve often found that, when I turn down a low-paying project, a high-paying project soon comes my way almost every time.

5. Invest in yourself. Strive for continual improvement by investing in ongoing professional development. I make a point every single year to take courses, read books, attend webinars, and seek other educational opportunities—some free, some paid. I never think I know it all! Plus, things change all the time so you’ve got to keep adapting, upskilling, and staying abreast of industry changes. This shows clients you're dedicated to growth. Boost your self-esteem to radiate confidence—clients can sense it!

This multifaceted approach ensures you not only ask for what you're worth, but do it with confidence.

Start Today

Ready to stop settling for less? Start today by learning to embrace your worth and transform your freelance business. Remember, valuing your work not only paves the way for financial stability but also leads to long-term success and personal fulfillment.

Take this first step towards recognizing and earning your true value—you deserve it.

High/Low

⬆️ High: One of my regular editors—pleased with the work I’ve done so far—just gave me additional assignments through the end of 2024. #editorlovestory

⬇️ Low: I cannot seem get my foot in the door of a dream client I’ve been trying to work with for the past year. #feelinglikeaPITA #somanyfollowups

Up Next

• Behind-the-scenes peek at how I use LinkedIn to win clients

• Choosing or changing niches

• How to gain momentum

Thanks for allowing me into your inbox!

I look forward to sharing my freelance journey with you, and I look forward to hearing about yours. I’m just here as your guide. Take what works for you, and tweak it to your needs. Rinse. Repeat.

In the meantime….

Be kind. Do good. Give thanks. 😊

With gratitude,
Lisa

P.S. I would LOVE to hear how you’ve implemented any of the ideas in Expert•ish Freelancer and found success. Please share your win with me! I’m at [email protected].