HOW TO PRICE FOR FREELANCE WORK

I so often get asked “How do I figure out pricing” from all kinds of freelancers I run into and it’s an area I’ve struggled with most of my career since college. Working in weddings was simple because I knew how many weddings I would book annually, so I would just figure my annual income I needed for it to be worth my time, the taxes would taken out, and then divide those numbers by how many weddings I would have yearly. That would be my median price (so if a 6 hour coverage package was my most booked, then doing 15 of those a year needed to make sure my bills were paid and I wasn’t starving).

However, that got tricky once I started getting approached for branding work, working with commercial clients, etc. And honestly, it was a pretty bad system to begin with! Because the truth is it doesn’t account for differentials like commuting to different wedding venues and didn’t account for what different clients were wanting at the end of the wedding day (such as how intensive they wanted input on editing).

I’VE LOST COMMERCIAL CLIENTS FOR NOT HAVING A WAY TO VALUE MY TIME!

So yes, this really does matter. I had a great client I was working with a few times each year, and I clicked with the marketing team so well. But their accounting team was looking at my invoicing and seeing so many differentials with billing invoices. See, I would just ask what the marketing director what their budget was for the shoot. And that was a great agreement, but the accountant’s whole job is to find these differentials and snuff them out - i.e. make the business as profitable as possible. So, I was kicked to the curb.

One thing I learned from my friend Chris Fox was that I needed to start valuing my time and that really revolutionized how I quote inquiries for projects of all kinds!

So let’s break this down. Let’s say you’re shooting a promo video for a business, how much should you charge? Well - here’s some factors that should not apply at all, and I’ll explain more later. 1. It should not matter what their budget is (one it’s either devaluing your worth or making you extremely opportunistic) 2. It should not matter how much money you have coming in. You need to objectively evaluate your time. Because truth is, if you’re taking jobs on for less than you’d make working at McDonalds, then you got some financial problems you need to get sorted out and probably need a stable paycheck of any kind (part time work, bart tend, pick up Uber, etc.).

Alright so for me, with my business degree and years learning the in’s and out’s of Adobe Suite, SEO, website building, how to operate equipment, buying high end professional equipment - how much is my time worth? I sat down and started thinking it through. I spend X amount of money monthly on services to maintain my business (Adobe Suite, Pixieset, Honey Book, Sound Stripe, Cox Home Internet, Squarespace, etc.). I also spend X % of my annual income on taxes considering how much I get to write off monthly. So here’s the level of monthly income I’d need to make after those two things working a 40 hour work week. That gives me my hourly number.

So next time I get approached by a client about doing a project, now I have to consider those things listed above: consultation time, prep work, do I need to commute, how much time will the project itself take, do I expect to need to make revisions, what will following up look like to make sure they’re happy with the end result. That gives me an hour total to the project.

So now that I know how many hours I expect the project to take and I know how much an hour of my time is worth, I can multiply the two to find my price for the project. Then, I’d multiply by another 125% to account for those things that I would skip on (because as freelancers we’re all hungry and usually undersell ourselves). I can outline all of this easily in an invoice or proposal for my clients so they can understand too - which builds trust and active communication.

BUT



What really grinds my gears is hearing freelancers start with a “BUT” after I spell it out for them. There’s so many myths I keep hearing so I want to take a minute to dissect them here instead of having to get angry with so many talented people underselling themselves and devaluing the market.

“This one project seems really great but they don’t have a big budget”.

Okay this one I hear a ton. And it’s usually from freelancers so hungry to make sure their phone bill is paid that they will do anything. The problem here lies with 1. the fact there’s not a steady stream of income and we really need to stop creating illusions that “full time freelance” is somehow better than bartenders, uber drivers, etc. hustling it out there.

Next, I’m willing to bet that you’ll end up taking lots of underpaying clients on, get frustrated with your craft because those tend to be draining projects since you’ll feel undervalued, and you’ll probably quit. And guess what? They never learn the real value of talented services you’re trying to offer. So - do the market a favor. Say no! The only exception I can think of is if there’s some kind of trade involved.

For example, I did a project for the OKC Art Council well below my rate - but it was for the OKC Art Council. That’s a great connection and addition to my portfolio, plus a super fun project! I wanted to do that project period, so giving a discount was no problem. And also, saying here’s my rate and the discount I gave you makes sure future referrals don't assume your rates are lower.

“I’m still building my portfolio.”

This one really gets under my skin, because there’s so many amazing ways to build a portfolio besides on someone’s budget. For weddings, there are so many couples that’d be willing to step in front of the camera for you to help get you comfortable, have great content to post, and build your website! And it’s way, way easier to create a specific look for your portfolio when you recruit friends to help or just do your thing as examples for potential clients. Rarely is paid work some kind of creative dream, especially in commercial fields.

If you feel uncomfortable or not confident then practice some more before stepping into the field! But most likely, if they’re reaching out to you, just be confident and charge a rate that makes sure your field isn’t devalued to where you’d make more money clocking in at Walmart than creating original art.

“I’m new to this”

Once again, this goes back to the whole glorifying full-time work. It’s not easy to get there, but really we need to be celebrating the people doing side hustles to support their dreams. If you’re new, then consider doing some more workshops, taking more classes, and practicing with friends to build your confidence and portfolio. Or if you are being approached, again just be confident! The worst thing that can happen for your future career in any market is you helping devalue and undermine the expected rates of the people you’re working against.

I hope this is of some help for anyone starting off in a new field! Like I said, this came from a lot of hard lessons I had to learn trying out new things in a variety of creative fields. But once I landed on a set rate for my time, the doors suddenly opened! Feeling confident in how to outline my pricing in invoices changed a lot for me, and then also made me realize how I was undervaluing my work in areas like Fall Minis.

And if you need a good pep talk, watch some Kid President then get back out there showing everyone what you can do!