If you are starting out as a freelancer, knowing how to set your freelance rates will give you an edge over your competition. By setting prices, you will pre-qualify customers that want to work with you. The Law of Attraction works in this area. It works when you are clear on your goals and expectations. You set limits and expect clients to cross the line to pay you what you are worth.

There are ways to make this a good process to set your freelance prices. Make sure you know these before thinking that you have to reduce rates to get clients.

1. Find out your skills and services. If you are just starting to become a freelancer, list your strengths and weaknesses. Having this analysis will help you put a better price on what you do well. Give examples of your work in a portfolio online or send to your potential clients through email.

2. Check out your competition. Depending on your strengths, you should check into the prices your competitors offer currently. Search in Google using keywords that describe what you do. Look at all the major chains and individual small businesses.

If you are a freelance writer, you probably are aware of the existence of content mills. These organizations use many people to write articles using search engine optimized content. Often, the workers receive a small payment and do not have formal writing skills. You might also notice many freelancers from other countries that list their services for $2 per 500 words. This is not normal.

These providers typically do not have the same strengths that you have. Compare your rates with small businesses that have the same strengths you have and set similar pricing levels. If you are starting out and have no testimonials, you might want to work at a lower rate. Once you receive testimonials, raise your rates to match your competitors. Dropping the price works for the short term. You want to make sure that you have enough to cover your bills and not burn you out.

3. List features for your services. Once you have the rate set at what you believe it should be, list all the features and benefits for using your freelance services. Remember that you attract more flies with honey, so be positive! Do not point out faults with your competitors either. Politicians may use this strategy, but it is not good business. Besides, if your competitors have comments open on their website, you can always post there about your features and benefits to engage in conversation.

Make sure your website copy engages and causes the reader to act. You want your potential client to click “buy.”

4. Do a survey. If you find that clients are not buying your services and you are getting plenty of traffic, try a survey. By doing a survey, you invite the potential client to give you the answers you need. They can tell you more about why they do not buy compared with watching Google Analytics and interpreting the data. That way you can see if it is the pricing, website copy or even the samples used in your portfolio.

5. Set up your sales funnel. When you set your freelance rates, make sure you have various products to offer. If you are Bob Bly, author of The Copywriter’s Handbook, then sure go ahead and charge a large amount. He has earned the credibility and you will too as we mentioned in the testimonial section. But, he also has many lower priced items. Many of your customers that come to you online will want to buy lower priced items from you first.

They want to make sure that you resonate with them. Offer them a free e-book or a small writing piece or graphic design work for a low price. You can always have a standard piece or website template to sell. When the client wants it customized, that’s when they hire you at great set rates to perform that work for them.

So, you do not have to work for $1 for 500 words if you are starting to set your freelance rates. You can charge what you are worth. How will you apply these strategies to your freelance rates? Please comment below and let us know! We’ll be glad to answer any questions you have too!

photo credit: {Guerrilla Futures | Jason Tester}