5 Reasons Freelancers Undercharge
Many freelancers begin by undercharging for their work and then get stuck in an endless cycle of mediocre gigs. This is because when they’re just starting out, getting gigs is more important to them than finding the right clients who pay them what they’re worth. And so they get trapped – both financially and professionally – because they’re settling for less interesting projects and lesser right clients.
Here are 5 reasons freelancers get stuck in undercharging mode.
1. They’re stuck in the 9-5
Most new freelancers think their price per hour should be what they got at their 9-5 job. Not so fast! While that may serve as a useful baseline, it should not be the final price. Read on to find out why.
2. It’s awkward to talk about money
They’re probably nervous about sharing how much they charge with other freelancers. What if they’re charging too much or too little? But sharing what they make with other freelancers can have a huge impact.
If new freelancers try to price in the dark, they tend to price low and this pushes the market’s rates down.
3. They tend to underestimate how long things take
There’s definitely going to be some trial and error while figuring things out. Undercharging for one project and their frustration will motivate them to charge more next time.
4. Not seeing the value of networking with other freelancers
Many freelancers have mastered networking with clients and people in their industry and it’s easy to see the value of connecting with future clients. But connecting with other freelancers and talking honestly with them about pricing really allows to protect themselves. There’s tremendous value in freelancers sticking together.
5. They tend to meet their financial obligations and not their financial desires
Think of all the angst employees face around negotiating their salary. Freelancers have to go through that for every project. Especially when they’re in a dry spell, they tend to undervalue themselves, thinking some income is better than none. This is why they need to learn to price with pride and confidence – as professionals, not as technicians.
SOURCE: Freelancers Union
