One of the most difficult steps of creating a freelancer business is to set and negotiate the freelancer rates. We have summarized three tips on how to set your prices for your freelancing IT services.

1. FREELANCER TIPS
How to set your rates
as a freelancer?
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2. How to set your rates as a freelancer?
Freelancers sometimes find it hard to determine what they want
to be paid or can be paid. Furthermore, the process of
negotiating rates can be, indeed, very difficult for a lot of
people. This article provides a few tips and tricks on determining
the value of your work and knowing when and how much you
have to charge. Here are a few things you have to keep in mind
when setting your rates as a freelancer.
Price by the service Determining your MAR
Competition influence Negotiating

3. 1. Price by the service, not by the hour (1/2)
Let’s first look at how your services should ideally be priced.
Most people don’t directly jump into freelancing. Instead, they
have a working background, which gives roots to an
understanding that work is paid by the hour. Companies
welcome such prices, because it helps them keep things nice and
simple, and the way they are used to it. There are a lot of
reasons why freelancers should opt to price their complete
service, not their working hours.

4. 1. Price by the service, not by the hour (2/2)
Firstly, one shouldn’t give up of the best perks of freelancing has
– working when you want. An hourly wage is likely to reduce
your potential and motivation. Putting a price tag on your
services will turn this around and allow you to work more
efficiently towards your end goal. Secondly, if you are very good
at what you do and you do it quickly, there is no reason to
become less. If you have, say, profound knowledge on a product
you have to write an article about, you could write a three-page-
article in an hour, but a person without your knowledge will take
a lot more. That’s why you should price your complete service
and not the hours you put in.

5. 2. Competition influence
This next tip applies to almost every worker. Look at the
competition. How much do they charge? Some freelancers post
their rates online. Others you could just ask, keeping in mind
they might have an interest to over- or undersell themselves.
But it’s not just important to know what the competition gets,
more so why it gets it. Compare yourself to those working in
your field and determine how your experience and work stacks
up to theirs. Figure out whether you are nearer to the top or the
bottom of the scale regarding experience and service quality.
This will tell you if you can be aggressively raising your rates or if
you should lower them.

6. 3. Determining your Minimum Acceptable
Rate (MAR)
Once you have the first two done, you can go around
determining the minimum you are willing to receive for a certain
service. This will be very crucial in the negotiation with your
client. A simple, but good way to calculate your MAR is to divide
your current or previous salary by the work hours you plan to
put in. Or, if you are just starting, think about what your time is
worth to you. If you want to be a successful freelancer, your
rates have to be high enough to motivate you to deliver the best
you can and push your limits.

7. 4. Negotiating (1/2)
Keeping these things in mind will help you go into the
negotiation and know where to start and where to stand your
ground. You have your pricing format determined, you know
what others earn and you know what your bottom line is. When
you negotiate, a client might attempt to go below your
determined MAR. Sometimes you might want to accept,
because of so-called indirect benefits, like getting your name out
there for the first time or working for a well-known company,
which will increase your reputation a lot. You should, however,
know when to stand your ground and play hard. This has to
happen if you are certain what your services are worth and the
indirect benefits don’t outweigh the lower rates.

8. 4. Negotiating (2/2)
One last thing you shouldn’t forget – rates change, just like
people do. Every client is different and your experience grows
with each one. Don’t forget to reassess what you are worth now
and then and check in on the market developments regularly.
Other than that, even a client who refuses your rates can be
helpful, because that shows you it might be time to rethink your
demands and it helps you learn how to effectively negotiate.
Practice does, indeed, make perfect.

9. Futher freelancer tips available on http://www.freelancermap.com/channel/19-news.html
Contact
freelancermap.com
Contact person: Doreen Schollmeier - International Affairs
Mail: info@freelancermap.com
Skype: doreen.schollmeier
Phone: +49-911-37750286
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Twitter: freelancer_INT

10. Futher freelancer tips available on http://www.freelancermap.com/channel/19-news.html
Contact
freelancermap.com
Contact person: Doreen Schollmeier - International Affairs
Mail: info@freelancermap.com
Skype: doreen.schollmeier
Phone: +49-911-37750286
facebook: www.facebook.com/freelancermapInternational
Twitter: freelancer_INT