{"id":36867,"date":"2024-11-28T15:45:35","date_gmt":"2024-11-28T02:45:35","guid":{"rendered":"https:\/\/www.nzie.ac.nz\/?p=36867"},"modified":"2024-11-28T16:36:17","modified_gmt":"2024-11-28T03:36:17","slug":"blog-setting-prices-as-a-freelance-digital-marketer","status":"publish","type":"post","link":"https:\/\/www.nzie.ac.nz\/blog-setting-prices-as-a-freelance-digital-marketer\/","title":{"rendered":"Setting Prices As a Freelance Digital Marketer"},"content":{"rendered":"\t\t
Of all the things involved in setting up a business as a freelance digital marketer, working out pricing that will net you a profit but won’t send potential clients running for the hills is often the trickiest\u202fof the lot. So\u202fhow\u202fdo you come up with that elusive figure?<\/span>\u00a0<\/strong><\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Simple! Put a dollar figure on an hour of work – your rate x the\u202fnumber of\u202fhours you\u2019ve worked.\u202fThis\u202fis a fair way to get paid for\u202fthe work you\u2019ve done, but some clients get put off by hourly rates as they think they may overpay.\u202fAs you get more efficient in your work, you may also lose out by using an hourly\u202frate\u202fas you\u2019ll get the job done quicker. An hourly rate can\u2019t disguise that\u202fbut\u202fa project fee can. Hourly rates are usually good for a new freelancer digital marketer who is still getting established. It can also be good for those working with clients\u202fwhose\u202fworkload varies\u202ffrom month to month.<\/p> Instead of charging by the hour, you decide on a fee for the whole project and charge that\u202fas\u202fan\u202fagreed rate.\u202fThe rate\u202fis fixed\u202fno matter how\u202fmuch time it ends up taking\u202fyou.\u202fIf you choose this method, make sure you have a good idea of the complexity and scope of the project and keep good control of it so it doesn\u2019t\u202fend up taking\u202flonger than planned. It\u2019s a good idea to\u202fagree on\u202fa contract and scope of work before starting the project so you know what’s expected. Project rates work well for an established freelancer digital marketer who’s more efficient in their tasks and knows roughly how much time they take to do things. It\u2019s also easier to sell the value you offer when you have more experience and examples\u202funder your belt!<\/p> This concept puts work into packages\u202fwith fixed prices, or\u202fcharge\u202fa fixed price for each week or month of work. For\u202fexample,\u202fyou might offer\u202f3\u202fblog posts and\u202f5\u202fsocial media posts for a package price. You might also offer a certain number of social media posts and one\u202fresults report each month. Packages are good if you know you can complete tasks efficiently. They can also be a good way to attract new clients because they can\u202fclearly\u202fsee what you’re offering\u202ffor the money. Fixed fees can be useful for planning because you know how much money will\u202fbe coming\u202fin and what you need to produce each month.<\/p> In this scenario, you agree a set number of hours or projects per month for a set fee\u202fwith the client. You agree to\u202fset aside the required time each month and they agree to pay you the fee each month regardless of whether they use any or all of the assigned workload.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Before<\/span>\u202f<\/span>you set<\/span>\u202f<\/span>a<\/span>\u202f<\/span>price<\/span>\u202f<\/span>you need to<\/span>\u202f<\/span>think about what<\/span>\u202f<\/span>your minimum income and your desired income<\/span>\u202f<\/span>is<\/span>.<\/span>\u202f<\/span><\/p> Remember that\u202fas a freelancer or contractor,\u202fyou won\u2019t get sick pay or annual leave, so you want to factor in some additional income to cover days when you may not want to or\u202fbe able to\u202fwork.\u202fYou\u2019ll\u202falso need to consider things like insurance, additional equipment and utilities to do your job at home.\u00a0<\/p> You need to consider how many hours you can\u202frealistically\u202fwork each week or month. Think about this carefully\u202fand\u202fdon\u2019t overcommit yourself.<\/p> When you know your income and your available<\/span>\u202f<\/span>hours<\/span>\u202f<\/span>you can calculate what your hourly rate needs to be<\/span>\u202fto\u00a0<\/span>achieve your desired income in the time available. <\/span>You can work out two figures here if you like – the minimum hourly rate you need to cover your bills and the hourly rate you need to achieve what you<\/span>\u2019<\/span>d<\/span>\u202f<\/span>\u202f<\/span>like to earn each year.<\/span><\/p> If you’re going to charge hourly, then use this rate when you quote.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t To charge project fees or package rates, you need to consider how much time each project or package\u202fis likely to\u202ftake. Then\u202fcome\u202fup with a total figure using your hourly rate. Your project rate should include time for all parts of the project and some extra\u202fas an allowance in case things change.\u00a0<\/p> If you’re registered\u202ffor GST, clearly state\u202fwhether your price includes or excludes this.\u202fIf it is\u202fexclusive\u202fthen list this separately on your invoice.\u00a0<\/p> Once you\u2019ve set rates for yourself, decide how open\u202fto\u202fbe about them. It can be help to show clients upfront how much you charge. Listing them on your website is a good idea, but high prices can put some clients off before you\u2019ve had a chance to talk to them and convince them you’re worth it. Conversely, low prices can put some people off because they equate them with low quality.\u00a0<\/p> Another reason for not showing your prices is if you work for a variety of clients and you are happy to negotiate different prices with different people.\u00a0<\/p> One of the keys to setting any price as a freelance digital marketer, whether\u202fit\u2019s\u202fhourly or\u202fproject-based, is\u202fto clearly articulate the value you are bringing to the client.\u202fGet them to focus on the value of your expertise and experience and the results you will bring.\u00a0<\/p> Lastly, remember rates\u202faren\u2019t set\u202fin stone.\u202fYou can review them each year, or even review them\u202fbefore you take on a new client if you think you\u2019ve gained experience since last time and want to raise them. Or you might consider a\u202fone off\u202flower rate because you really want to work with a client.\u00a0<\/p>Four Types of Pricing Options to Consider\u00a0<\/h4>
1. Hourly Rate<\/strong><\/h6>2. Per Project Fee<\/strong><\/h6>
3. Set Packages or Fixed Fee<\/strong><\/h6>
4. Retainers<\/strong><\/h6>
\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
Things to Think About When Setting Your Rates\u00a0<\/h4>
Key Steps in Setting Your Prices\u00a0<\/h4>
Be Realistic<\/h4>
\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
Your Time is Worth Something<\/h4>
Prove Your Value<\/h4>