Pricing Strategies for Freelancers: Stop Undervaluing Your Work

Freelancing gives you the freedom to set your own rates, but for many, that freedom quickly turns into uncertainty. You wonder: Am I charging too much? Too little? Will clients even hire me at this rate? If you’ve ever felt stuck pricing your work, you’re not alone.

The biggest mistake freelancers make—especially beginners—is undervaluing their services. You might think lowering your rates will attract more clients, but in reality, it often does the opposite. Underpricing signals inexperience and desperation, attracting difficult clients who demand more for less.

This article will help you break out of the “cheap freelancer” trap and confidently charge what you’re worth using practical pricing strategies. If you’re looking to scale from a gig worker to a full-fledged business owner, check out how to transition from gig worker to business owner.

Before setting your rates, you need to know what others in your industry are charging. Here’s how to find out:

• Check freelancing platforms (Upwork, Fiverr, Toptal) for professionals with similar skills and experience.
• Ask in industry groups on Facebook, LinkedIn, or Discord.
• Look at job postings that list budgets for projects.

If you’re consistently charging far less than the market average, it’s time to adjust. If you’re significantly above the market rate without a strong portfolio, clients may overlook you for someone with more experience at the same price.

Finding high-paying clients outside of Fiverr and Upwork can also help justify higher rates. See where to find high-paying clients beyond Fiverr and Upwork.

Freelancers often price their work using one of these methods:

Hourly Pricing (Good for ongoing work)

Best for projects where the scope isn’t fixed. If you go this route, use time-tracking software to ensure you’re paid for every minute you work.

Project-Based Pricing (Best for defined projects)

You charge a flat fee for the entire project. This works well for web design, writing, or development projects with clear deliverables.

Value-Based Pricing (Best for high-impact services)

Instead of charging for your time, you price based on the value you provide. If your work directly helps a business earn money (e.g., an ad campaign that generates $50,000 in sales), you should charge accordingly.

For beginners, a mix of project-based and hourly pricing is a good starting point, but as you gain confidence, shift towards value-based pricing. Some of the highest-paid freelance skills aren’t what you’d expect—learn about the one freelancing skill that pays the most.

A common pricing mistake is basing rates only on time spent working. Your rate should also cover:

• Skill & expertise – Years of learning and practice.
• Software & tools – Any subscriptions, software, or equipment you need.
• Taxes & fees – If you’re using PayPal, Stripe, or Upwork, fees eat into your earnings.
• Revisions & communication – Time spent emailing clients, making edits, and explaining your work.

Many freelancers undercharge because they don’t consider these factors. If a project takes you 5 hours but also includes 2 hours of revisions and client calls, your rate should reflect all of that time. To work smarter, not harder, consider AI-powered business ideas under $50 that can supplement your income.

Clients who choose freelancers based on the lowest price are often the worst to work with. They haggle, demand more work for free, and don’t respect your expertise.

Instead of competing on price, compete on quality. Here’s how:

• Build a strong portfolio – Even a few well-done projects can justify higher rates.
• Highlight results – If you helped a business increase sales, traffic, or conversions, showcase that.
• Show expertise – Have a professional website, testimonials, and case studies to build trust.

Clients who value quality over cost will pay more for someone they trust.

Freelancers often fear raising prices, but if you’re fully booked, handling too many low-paying clients, or feel resentful about your workload, it’s time.

Here’s how to do it:

• For new clients: Simply quote your new rate without over-explaining.
• For existing clients: Give them notice (e.g., “Starting next month, my rate will increase to $X to reflect the value and time I dedicate to your projects.”)
• If a client pushes back: Offer a smaller package at the old rate instead of lowering prices.

Most freelancers find that good clients stay even after a price increase, while the difficult, low-paying ones leave. If you need a quick boost in earnings, check out how to make $500 in a weekend with a freelance speed-run.

Your pricing isn’t just a number—it reflects your confidence, skill, and the value you bring. If you consistently undercharge, you’ll struggle to grow, burn out faster, and attract the wrong clients.

Instead, price based on the market rate, the value you provide, and the lifestyle you want to sustain. The right clients will respect that—and pay you what you’re worth.

Next Read: If you’re ready to charge what you’re worth but need a steady flow of high-paying clients, see why freelancing in 2025 will be nothing like today (and how to prepare).