Freelance Rates Explained (Charge What You’re Worth!)

– I have a question for you. What’s your house worth? According to my realtor mother, the answer is the same for
every single one of us, whatever someone is willing to pay for it. The same is true in freelancing and when it comes to setting
your freelancing rates. And by the end of this video, you’ll know how to set your
rates as a virtual assistant. (cheerful music) Oh my God, I can’t talk. (mouth noise) I don’t even know how to– Ahh, my skin itches. Oh my gosh, nah. Do you see how red that is? Geez! It like, stings. I think
I cut my skin open. Anyway, moving right along. Redo, all over again, ready? Try that again! One moment. I’m back, okay. Hey mama, Lauren Golden
here with a new episode of Free Mama TV showing moms like you how to start and run a successful freelancing business from home. Subscribe to my channel and
hit the bell to be notified when I post a new episode of Free Mama TV, right here each and every Tuesday. If you’re struggling with
figuring out what to charge in your freelancing
business, you’re not alone. Oftentimes in our Free
Mama Facebook group, a Mama will make a post after getting off the very exciting discovery call, looking for help with pricing
the services in her proposal. I get it! When you’re brand spanking new
to the world of freelancing, you have no idea where to
start with setting your rates. Now, unfortunately there isn’t
a one size fits all approach when it comes to pricing a service. However, there are three
things that you should consider when determining the right rates
for you and your offerings. The first thing that you should consider when it comes to setting
your rates as a freelancer, are the services you’ll provide. And once you know, you have a little bit of
clarity on those services, whether it’s general
administrative services, organizational tasks, or something a little more specialized like social media management, or something really specialized like being a Pinterest manager. The first thing you need to
do is some market research. Now, market research is just fancy talk for go out there and figure out
what other people are doing. Figure out what other
people in your market, meaning people who are
offering something similar to what you’re offering. Go figure out what they’re charging. Here’s what I want you to know: There’s going to be a range. Just like you can get a
cheeseburger at McDonald’s for $1, or at a steakhouse for $20, not all cheeseburgers are created equally, and not all virtual assistants
are equally as well. What you’re just looking
for: a range to get started, because if you’re expecting to make hundreds of dollars an hour
doing a particular task, but market research is
telling you that people are charging somewhere between
twenty and thirty dollars, you’re going to be pretty far off and you’re going to have an uphill battle when it comes to finding
clients who are willing to pay above and beyond what the going rate is for a comparable service. The second thing you need to do when it comes to figuring
out what you’ll charge as a freelancer is determine
your own hourly rate based off of your financial goals. So you’ll need to take
things into account such as your experience and the services offering, but this is also to make
sure that the whole reason you started freelancing
in the first place, which is probably to make money, actually ends up happening
in a way that allows you to reach your financial goals. Calculating your hourly
rate is the second step in knowing how to establish
your pricing structure for your virtual assistant business. There’s a worksheet I
actually walk moms through in the Free Mama Movement 12-Week Program, but here’s the gist: you are
going to need to calculate your current annual income. So what are used to making, or what do you need to be making, plus any potential business expenses. Now one of the reasons I love freelancing, especially as a virtual assistant, is that you have no overhead costs. You might choose to
invest in some software, for example I really recommend
signing up for G Suite, and purchasing a domain name so that you can have a professional
business email address. But these things cost
less than $100 a year. So account for your current annual income plus your business expenses
and you will arrive at your total desired income. Protip: remember that as a freelancer, that you are responsible paying taxes. It’s not going to come out of
a paycheck like an employee. So be sure that this annual
income you are establishing also includes the amount that
you will need to set aside to pay taxes each year. Now that you’ve got your
total desired income, it’s time to figure out
those total billable hours! That’s just fancy talk for how much do you actually plan to work this year? As a Free Mama, obviously the goal is to
make more while doing less, because we want to be
able to spend that time with our babies when we’re not working, and know that when we’re working, we are doing the best possible
job at serving our clients. So you’re going to need to figure out how many hours a day
are you going to work, how many days a week you’re gonna work, and how many weeks a
year you’re gonna work. Think about: are you gonna
take a vacation this year, is there gonna be time that
you’re not gonna working because again, you’re not an employee, so that won’t be built in
to your time freelancing. You won’t be able to get paid time off specifically the same way
you would as an employee. Now that you’ve got your
total desired income and your total billable hours, you are going to divide the two to come up with your minimum
hourly rate requirements in your freelancing business. Remember, this is just a kicking off point for your future proposals. It isn’t necessarily what you’ll charge, nor is it reflective
of the number of hours you’ll have to work to
achieve your desired income. Here’s another protip for you: just start. Here’s what I want you to
know about being a freelancer: things can change super quickly, in fact, in next week’s
episode of Free Mama TV, I am going to teach you
the Staircase Method so that you can learn how to
raise your prices quickly. Now the third and final thing
that you need to consider when determining the right
rates for you and your offerings is switching out of the hourly mentality into a retainer mindset. Here’s what I mean by that: using an hourly rate puts a big limitation on your earning potential in the long run. We want your future clients to pay for the value of your
services as a freelancer and not the perceived value of your time. But we all have to start somewhere, so we start with the hourly
rate that you came up with, combined with the market research, to make sure that you are in alignment with other people
offering a similar service that you provide. If you’re new to the idea of a retainer, it’s essentially an agreement
between you and a client where you agree on specific
services that you’ll provide and they pay you a set
fee, per month for example, to retain you for your
time to do those services, over the course of that month. For example, most social media
managers are not paid hourly, they are paid on a monthly
retainer to complete all of the social media
agreed upon services during the course of that month. Now, the reason that retainers
are so valuable to us as freelancers is that we
don’t have to track our time. Again, we’re being compensated
for the value that we provide and not simply for the time
that it takes us to do it. We’re able to utilize software
that helps us automate things or streamline things, meaning we can get faster as freelancers at doing the task the task
that we have been asked to do while keeping a really high quality. We’re getting more time back in our day, to spend time with our family, or taking on new client work and ultimately making more
money in our business. The last thing that I want
you to know about retainers, is while this might be the end goal for us as virtual assistants
or whatever services we are freelancing, it might not always be where we can start. And that’s okay! Even though that’s the ultimate goal, in a lot situations it’s actually better to start with an hourly rate. The reason being, if you’re paid to do a task
that you’ve never done before you have no idea how
long it’s gonna take you, and by guessing, you could actually be
shooting yourself in the foot if it actually takes you
twice as long to do a task than you were anticipating and you were being paid on a retainer. You’re not going to make as
much money as you would’ve if you would’ve stuck to an
hourly rate as you’re learning how to navigate certain tasks
in your freelancing business. And now you know how to set your pricing as a freelancer with confidence! If you’re new to freelancing
and you want more information about how to find retainer
clients versus hourly or one off projects, check
out my free training. The link can be found below. Also, if you want to join a
community of Mamas just like you I have a Facebook group
where thousands of Mamas come together and action
taking tips and motivation. If you liked this video
and feel more confident about your pricing, please let
me know by liking it below. Subscribe and share with your fellow Mamas and comment below with #IAmAFreeMama if this video helped you.

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