Hi Reader,

Happy Friday!

Hope you've had a good week.

All being well, this email is coming to you while I'm on a Greek beach, enjoying upwards of 27 degrees with (hopefully) a mojito in hand.

Despite taking off on Wednesday, I've had a bit of a manic week trying to cram in all the work I landed during my last pitching sprint. I did something I don't usually do and worked a few hours last weekend to get ahead. It's made me feel MUCH better about my commitments this month!

Here's more info about what I got up to:

👉 I wrote 5 pieces for clients (Shopify, Salsify, and Positional)

👉 I had 1 discovery call with a new client

👉 I started onboarding a new content strategy project

⏱ Approx hours spent on client work this week: ~20

⏱ Approx hours spent on non-client work: ~2

💰 Total revenue this week: £3,070

🤓 Missed the latest on the blog?

Want to know how I've never had a month with 0 work in the entire 10 years I've been freelancing? I put it down to my "marketing strategy" which, if I'm being honest, isn't really a "strategy". It's basically just a list of things I like doing.

Read: The (flexible) formula I use to market my freelance business​

Friday Freelance Tip​​ ✨ ​

Pricing is such a contentious topic in the freelance world and it can be frustrating that there’s no standardised rates system.

It’s really difficult to say “This is the going rate for X, Y, and Z” because there are SO MANY variables involved.

A confession: I arrive at the prices I charge by pure trial and error.

10 years is a long time to examine the industry to see what rates companies can bear. I’ve used a very non-scientific approach and increased my prices with every new project if clients said “yes” to my existing rates.

I’ve found there’s a sweet spot for me now, but that sweet spot was different when I had 2 years of experience and different again when I had 5 years of experience.

It’s frustrating that there’s no real conformity around this in the freelance world, but that’s the beauty of it being accessible to lots of people in lots of places from lots of walks of life!

So, how do you figure out your rates?!

I put this question to LinkedIn last week to see what tips and tricks my fellow freelancers have about setting (and maintaining) their rates.

Here’s the consensus.

And remember, there’s no “one-size-fits-all” method here. You can try experimenting with different techniques or using your own system for pricing. But, if you’re stuck and have no idea where to even start, hopefully, these tidbits will help.

Trial your rates

I recommend taking on a few projects at a rate that feels comfortable for you at the moment. This doesn’t have to be your rate FOREVER (nothing is permanent!), but it can give you a good idea if you’re way off or close.

When you’re actively working at that rate, you can see whether it feels like a good price or not. For me, the biggest indicator that it’s “not” a good price is resentment. Do I resent doing the work? Am I frustrated when the client asks for edits because I feel like I’ve done too much for the price I’ve charged?

Then, once the project has finished, take some time to reflect. Did you feel well compensated or did you feel short-changed?

Compare notes with other freelancers

I’m a big believer that we need more transparency in the freelance world (it’s why I created the Freelance Money Diaries) and I’m always open to talking about my rates with other freelancers. You can ask a handful of people in your niche to have a quick call or clarify their rates with you. Or, if you don’t feel comfortable doing that, there are plenty of freelancers who advertise their rates (or “starting from” rates) on their website.

Factor in experience

I see a lot of people telling new freelancers to “charge what you’re worth”, but what does that mean? And how do you even know what your worth is when you’re just starting out?! I always found this advice very vague and wishy-washy. It’s a cop-out really. Sure, our rates should make us feel valued, but what if I think my sales pages are “worth” £50,000? Is anyone going to pay that?

The easiest way I can think to put this wishy-washy advice into action is to factor in your experience. Someone who’s had 10+ years experience writing for industry big-names can demand a higher rate than someone who’s only been in the industry for a couple of months. It’s a no-brainer—similar to how employment works. The more experience you have, the more you get paid.

You shouldn’t just count your freelance experience here though. If you’ve worked in-house for brands or have knowledge of your niche from a previous job role, that counts too.

Offer a sliding scale

Controversial opinion: your rates don’t have to be static. In fact, I know plenty of freelancers who use a sliding scale system to set their rates. This might vary based on the size of the company they’re working with (is it a non-profit or a huge corporation?) or their familiarity with a topic or industry (are they writing about something industry-adjacent that they’re not as familiar with?).

Use time tracking

It can be really hard to put a price on something if you have no idea how much effort and investment you put in. A useful tip is to time-track everything you do when you’re starting out so you can see how long it takes you.

I’m very vocal about not charging hourly or for your time in general (the more experience you have, the faster you get, the less you get paid blah blah), but it helps to know what time commitment you’re looking at for each project.

Learn and be flexible

I’ve underestimated many a project in the past and I’ve learned a lot by raising my rates, testing new prices, and experimenting. The most important thing to remember is that the rates you set now aren’t your forever rates. In fact, they probably won’t still be your rates in three months if you’re diligent at upping your prices.

Trust me when I say you’ll learn from each project that you underquote on. It happens—we live and we learn, but at least we won’t make the same mistake again, right?!

The “sphincter method”

I love this contribution from Michelle Martin, who said she uses the sphincter method for setting her rates. Basically, if quoting a rate doesn’t make her feel immediately ill, it’s not high enough. I’ve felt this too. The more uncomfortable I feel sharing a rate, the more likely I am to be in the right ballpark. It’s the best feeling ever when a prospect comes back with a quick “yes” to a rate you thought was outlandishly high… until you start wondering if you could have charged more.

Bonus: Consider FU pricing

Here’s a little tip. If there’s a client you don’t really want to work with, or you don’t need the work, or it’s not of interest to you, consider charging an FU rate.

In the past, I’ve added a not-tiny percentage to my rates in the hopes that a prospect will say they’re too high. On the occasion where this hasn’t happened, I’ve been happy to work on the project because I’m getting paid a higher rate.

And, look. For real now—rates are incredibly personal to each freelancer. My “comfortable” might not be your comfortable and vice versa, so also consider the kind of lifestyle you want too.

You don’t have to charge what others are charging. What feels right for you might not for others. It really is a game of trial and error. I wish I could tell you there’s an easy-peasy formula you can put in place but, like most things in freelancing, there’s not.

Let's talk more about money, shall we? 😉

This week, we have Rachel Meltzer — a freelance writer and writing coach 👋

Where are you based? Amherst, Massachusetts, United States

How long have you been freelancing? 6 years

What do you do? My writing niche is Tech (mostly SaaS but also hardware companies like Lenovo). Although, I also do work for small outdoor businesses.

Plus, I help new freelance writers jumpstart their careers with online bootcamps and community memberships.

What was your 2023 revenue? $74,037.90 (for writing).

I also do coaching, and this brought me another $40,179. This was my highest-earning year to date.

Rachel operates as a sole proprietor.

How much did you take as a salary? $57,659

I pay myself anything that doesn't go into my taxes, health insurance, home office expenses, or retirement.

How much did you pay in taxes? $5,685

What are your business expenses?

For my writing business about $70 per month.

I also made some bigger purchases last year. Got a walking pad and new desk chair this year ($550 total). I also moved, twice, once halfway across the country (which cost about $8,000).

Also, I spent $2100 in total on an assistant.

Do you contribute to a pension?

Yes, I have a Roth IRA and contributed almost $4,000 last year.

What do you do with the money you earn freelancing?

If I have anything leftover in my high interest tax savings after I pay my taxes, I move it over to my emergency fund, also a high interest savings account. Eventually, when I have more saved, I'll start investing more.

Do you have any hot money-management tips?

I use a Proportional Paycheck Method, where I have different spending categories. Each gets assigned with a percentage of my paycheck. Then I automatically allocate appropriate percentages of my “paycheck” into these categories.

As always, happy freelancing :)

Lizzie ✨

P.S. What steps can you take next?

Arm yourself with the resources, templates, and tutorials you need to find and pitch high-paying clients in 2024. Get £20 off the Pitch & Prosper program.

​Get Workflow Wizard, your handy library of freelancing templates, tutorials, and email scripts to help better your business.

Want to learn the exact process I use to write £1,000 posts for the likes of Shopify, Hotjar, CoSchedule, and Sprout Social? Access Create Better Content here.​​​

Follow me on Instagram and on Linkedin, where you can see the behind-the-scenes of my business.