Are You Still Charging Your Clients Hourly? (Here's Why You Shouldn't)
Ditch the grind and get paid what you deserve
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Let's be real – talking about money can be really awkward. Many of us undervalue our skills and services, fearing that charging what we're actually worth will scare off clients. I’m still struggling with this over five years later 🤐 and was seriously debating lowering my rates recently for a client I was excited about (I’m so glad I didn’t!)
But here's the thing: pricing confidently is the number one thing you have to work on if you want to build a sustainable and thriving freelance or small business career.
So, the first question you ask yourself is, are you stuck in the hourly trap?
While hourly billing might seem the safest and clearest option, it often limits your earning potential. You trade time for a set amount of money and end up with an income ceiling. It's much harder to scale your business significantly without sacrificing your work-life balance.
This can be a mistake for many reasons, but if you have a neurodivergent brain (like mine) and it can take you a long time to do things, it can be a real financial trap. I didn’t like to charge clients the full amount of time it would sometimes take me to do things because it felt unreasonable…but I was working.
Instead of focusing on time, shift your mindset toward the value you provide your clients.
Different pricing models: understanding your options
Hourly: Makes sense for short-term, unpredictable projects or when you're still defining your process efficiency.
Project-based: This approach is ideal for well-defined projects with a clear scope of work. It sets clear expectations and protects against scope creep.
Value-based: This is where the magic happens! Your pricing is based on the outcome or transformation you deliver, not the hours invested.
Read More: Unlock Higher Earnings: How to Set and Boost Your Freelancer Rates
Example 1
A freelance copywriter, was billing hourly and struggling to make ends meet. After switching to value-based pricing and focusing on increasing website conversions for her clients, she tripled her income while working fewer hours!
Conveying your value proposition
How do you shift to value-based pricing? Understand your unique worth! Answer these questions:
What problems do you solve for your clients?
What results can they expect by working with you (increased revenue, time saved, brand recognition)?
What makes you stand out from the competition (your expertise, process, client experience)?
Example 2
Instead of advertising "website design packages," a web designer switched to "websites that boost lead generation by 20%." This attracted clients who value growth and the designer’s experience.
Negotiation: You Have Power
Don't be afraid to negotiate. Here's how:
Be Confident: Know your worth and project your expertise.
Listen: Understand the client's needs and budget before presenting your price.
Offer Options: Have a few pricing packages ready to present flexibility.
Get It in Writing: A clear contract protects both you and the client.
Read More: How to Create a Freelance Portfolio That Stands Out (+ 6 Examples!)
Bonus: Overcome Your Pricing Mindset
Many of us have internal blocks around money. Ask yourself:
Do I believe I deserve to be well-compensated for my expertise?
Am I afraid of rejection if I raise my prices?
Addressing these beliefs is crucial. Imposter syndrome is common, but don't let it hold you back! Here are some money books and freelancing books that can be very helpful for this.
Are you ready to take charge of your pricing? Here are some points to consider :
Identify your top 3 client results.
Craft a value proposition statement highlighting those results.
Pick one past project: Could you have charged based on value instead of time?
Struggling? Get in touch, and we can figure out a personalised action plan.
Remember, you are a skilled professional. Make sure you get paid accordingly!
Nomad Favourites
Check out our favourite books, media, articles, and products this month.
I wanted to share this super interesting research project by
which dives into 1 million remote job openings, interesting trends in remote work, how salaries for remote workers compare, and what countries are the most popular for remote work.
Good With Money by Emma Edwards
I’m just about finishing this book and have found it really enjoyable Good With Money will change the way you think about budgeting and consumption (and yourself) with very real and practical advice presented in a funny and non-judgmental way.
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