{"type":"video","version":"1.0","html":"","height":864,"width":1152,"provider_name":"Loom","provider_url":"https://www.loom.com","thumbnail_height":864,"thumbnail_width":1152,"thumbnail_url":"https://cdn.loom.com/sessions/thumbnails/7586f37b30c34d5d8844323b2a7d4d39-1656082044892.gif","duration":233,"title":"How to Set Your Rates as a Freelancer","description":"Welcome to Pangea Academy Trying to figure out how to price your services as a freelancer can be very tricky. So let's break it down. Here's how to set your rates as a freelancer.\n\nSetting your rate as a freelancer has a lot of flexibility around it, which can be freeing and very scary at the same time. If you price yourself too high, it could be a potential detractor for clients, but if you price yourself too low, you could end up low-balling herself and that could lead to inconsistent income.\n\nSo how do you actually determine your rate? You should base it on five main factors: experience level, industry, pricing model, taxes, and confidence.\n\nAs you can imagine, the more experienced you are, the more you can charge, but don't underestimate your experience. Any courses you've taken related to what you want to freelance, that counts, make sure that you factor that in when determining your experience level when pricing yourself.\n\nNext is your industry. Certain industries will pay more simply due to the nature of the work. For example, engineering tends to be higher paid than writing. Look for databases of recorded rates, and don't be afraid to ask fellow freelancers what they charge.\n\nNext up is your pricing model. In an hourly pricing model, you will charge X dollars per hour. This is based on the time spent. So ,for every hour you dedicate towards a project, you get paid X dollars. This is a great option for beginner freelancers because it's very simple to understand, but as you get more experienced, you should consider shifting to a value based pricing model.\n\nValue based pricing is based on the overall value of the project. So, instead of charging X dollars per hour, you would charge X dollars per deliverable or project. Let's break this down a little.\n\nIf you were offering social media services for 10 hours a week, you may charge X dollars per hour, but as you get faster at what you do, doing that same amount of work, that same deliverable or project, may take you only five hours, but then you're only getting paid for five hours worth of work.\n\nSo what's the incentive to improve or get faster as you get better if you're making less? So, instead you would charge X dollars based on that deliverable so that as you get faster and better, you're still making that much. This is a better option for more experienced freelancers.\n\nNext up is taxes. And before you get nervous at saying the word taxes, just know that freelancers should save at least 30% of their income for taxes. So if you were to charge $30 an hour, once you save 30% for taxes, you're going to net $21 an hour. Make sure to factor this in when pricing yourself so you can figure out what you would actually net. \n\nAnd last is confidence. This might be the most important factor in setting your rate because if you aren't comfortable with your rate, it will show to potential clients. Make sure that you're picking a rate that you are comfortable with and confident in. If you need to practice saying it out loud, do it.\n\nSo what do freelancers actually charge? These are three real Pangea freelancers and what they charge. As you can see, their rates vary quite a bit.\n\nAnd Trey, for example, has a negotiable base rate. If you're unsure what you want to charge, you can list your rate as negotiable.\n\nSo to recap, what you charge is ultimately up to you, you should consider factors such as experience, industry, pricing model, and taxes, but ultimately it go with the rate that you are confident."}