Hey, that’s a lot to pay to someone from… India!
Right. I charge $55 an hour on Upwork. And if I had a dollar for each time I’ve heard a client try to shortchange me because of where I live, I’d probably be able to halve my rate and still make similar money.
It also means I get questioned about charging a rate that will get me to earn more than the per capita income of India in about half a week.
I teach a freelancing class where I’ve been asked this multiple times too. “When do I reduce my rates in response to this?”
Short answer: NEVER! (Okay, almost never)
Read on for the long answer:
1. Pricing varies (even within the same country)
There will always be those folks who are ok with charging $7 per hour or $30 for something like a change management strategy. (Or $5 for a 700-word article)
No hate towards you if you’re one of them — and possibly thinking of ‘establishing’ yourself before hiking rates. (It’s unlikely to work and I can suggest at least 5 different pricing strategies if you ask me!)
2. The market is different too…
There’s space in the market for Ferraris as well as for Volkswagen hatchbacks. Of course, you would need to sell a lot of Volkswagens to generate the same amount as a Ferrari.
Ensure that you’re looking at the right target clients. Are you looking at business owners and leaders or at people who have taken work from them (at hefty prices) and are trying to palm it off to you at lowball offers?
3. Value yourself
Before expecting others to value your skills, make sure you value them yourself.
Be prepared to highlight your knowledge, skills, and experience if a client asks you about the additional value you provide, in exchange for your higher cost.
4. People DO pay!
You may look upon freelancers who command upwards of $100 an hour or a few thousand dollars per project as alien creatures, but they probably started similar to you. Don’t be intimidated by their rates but don’t lowball yourselves either.
Create materials that explain your process, highlight your creative potential, cite (genuine) reviews and references and offer to do a PAID trial with clients, if needed.
Conclusion
It’s not about you being wherever you are. It’s about the skills you bring. Would you reduce your rate to one-seventh if you’re an American freelancer working from India (based on purchasing power parity)?
There will always be $7 freelancers and $700 freelancers too. But you need to find your sweet spot based on the ideas you have and the value you can bring.
Here are some things you can do to get valued for your work:
Ask the client what they gain: Check with the client on what benefits they expect as a part of what you are doing for them. Help them understand that by partnering with the right professional (AKA you!) they can unlock those gains.
Prepare in advance: Think about your ‘rate card’ and be prepared to offer a ‘nice person discount’ or charge an ‘asshole fee’, as required. Think of 2–3 alternative pricing models based on project scope.
For example, if you are a logo designer, can you offer options of a hand-drawn logo, a 3D logo, and/or other elements such as a brand gallery and business cards?
Or, if you are a writer, can you create pricing options that vary based on number of focus words included, article length, number of revisions, and days taken to deliver?
Offer a guarantee: During the proposal stage itself, I challenge clients by telling them that unless they’re delighted (not satisfied, DELIGHTED) with the output, I don’t really care about getting paid.
Don’t worry about those rock-bottom rates. People will continue to offer them, and clients will continue to quote them. Make sure you price well and get paid enough to keep you motivated to do a quality job.
Every. Single. Time.
I write about freelancing and how to succeed while doing so. Enjoyed reading? Leave me a note and stay tuned!
