How to earn more as a freelancer

Picture this:

You’re at a beautiful networking lunch surrounded by the brightest and best female founders, freelancers, side-hustlers, and sole-traders. 

As you sip your complimentary bubbles on entry and network your heart out, you connect with two incredible ladies. You’re instantly inspired by how much knowledge, experience, and value these women hold. 

But what if we told you that of the three of you standing there, two of you aren’t charging your worth? And you both know it? 

The truth is undercharging and undervaluing our worth isn’t an imagined scenario. 

This is the reality for two in three freelancers who are knowingly underpaying themselves according to the latest findings of our Women on the Rise survey. We already know the corporate world will leave a woman with $530,000 less in her purse throughout her lifetime, and while it may seem like the better alternative, the gig economy isn’t much better. Despite being highly educated, backed by a strong network, and an even stronger work ethic, these freelance women are just as susceptible to the gender pay divide. Only this time, they’re the ones intensifying it. 

So why won’t women give themselves the pay rise they deserve? And with so many women ditching the toxicity, inflexibility, and monotony of their 9-to-5 to become their own boss, how can they ensure this move is a financially sustainable one? 

Why are women underpaying themselves?

80 cents to the dollar. That’s how much a woman earns in comparison to her male counterpart in an equivalent full-time role. Take this entrenched disparity to the gig economy and the findings aren’t much better. Couple this with the fact women are more likely to shy away from their accomplishments, and it’s unsurprising there’s a negative stigma around self-employed wealth. It’s a stigma so prevalent many of our Freelancing Gems acknowledge they’ve succumbed to undercharging, including those who would seemingly have unlimited earning capability like the mature and tertiary educated.  

“No one will pay that”
“I can’t charge more than my competitors”
“No one knows who I am”

These stand among the biggest excuses women have when it comes to giving themselves a pay rise. And they have now manifested across the gig economy, where women are charging up to 57% less per hour than men, due to low confidence, fear of losing clients, and not knowing their industry. 

But it’s never too late to change the narrative. Here’s how. 

3 tips to earn more as a freelancer

We know the stats, we know the cause, but how do we set change in motion? Here are our top three tips for freelancers to start owning their worth and charging more for the value they bring. 

Tip #1 Discount with strategy
Set a non-negotiable ‘floor price’. 

Ladies, we get it!  No one likes talking price. 

And while there are bills to pay and financial goals to reach, your sanity and mental health come first. This is why we recommend setting a non-negotiable minimum rate you’ll accept for any job. Setting a minimum means when faced with an extra frugal client, you’ll become a better negotiator than Miranda Priestly, and maintain an outcome that favours both your and the client’s needs. Time to get that calculator out and find a rate that delivers value to any ‘bargain-hunting’ client while ensuring a substantial profit for you. 

And if that’s not your style, instead of shaving dollars off, add value on. This could be in the form of a free downloadable resource (you’d typically charge for) or jumping on a complimentary 30-minute strategy call. 

These are two great ways to navigate the awkward topic of discounts, without devaluing your work or stripping your paycheck! 

Tip #2 Know your rates

If you don’t know your industry landscape, how can you know what to charge? Stalk your competitors, dig up some data and review what you’re currently charging to give your rate card the ultimate glow-up. This could include a review of how you charge. Depending on your industry and workflow, this could be a combination of the following structures:

• Day rate
• Week rate
• Hourly rate
• Package-based
• Monthly retainer

When it comes to any of these rates, the saying, “a builder charges $5 for hammering, $95 for knowing where to hit” is all too true.  Every freelancer is different when it comes to how they price themselves, and so will every project. Having in-built flexibility to change the way you charge to best suit you and your client is ideal. Some great questions to ask include: 

1. How much do I want to work with this client?
2. How much is the work worth to me (will I enjoy it)?
3. How much is the work worth to the client?

Sometimes, the answers to those questions will guide you to a package, others will necessitate an hourly or day rate. A good rule of thumb is:

1. Charge hourly: When the scope of work is loosely defined and the client has ongoing needs. 
2. Charge package-based: When the scope of work and timeline are clearly defined. 

The most important thing is to find the ‘sweet spot’ between remaining competitive, sticking to the client’s budget, and ensuring a good kickback for you. Our all industries rate card can be a great place to find that spot! 

Tip #3 Showcase your worth

According to our Women on the Rise survey, 1 in 5 freelancers struggle with imposter syndrome, despite being highly educated and experienced. This lack of confidence translates into self-imposed earning limitations (to which we say nuh-uh honey!). To navigate this, back yourself with an authority-building portfolio of work experience, projects, numbers, references, and testimonials. 

Value-adding in the lead generation and onboarding stage can also add to a client’s investment in you, and encourage them to pay you more. Mastering simple things like prompt replies, professional templates, and even a complimentary initial consult can go a long way to boost your credibility and have prospective clients opening their wallets willing to honour your worth. 

Better yet, there’s no better confidence boost than learning a new skill or tool to add value to your existing product or service. Investing in a refresher course or upskilling in a new area of your industry can help you feel more knowledgeable, and equipped to charge more. We’ve got a bunch of courses and downloads to kickstart your upskilling journey on the Freelancing Gems Business Tools shop.

Picture this:

You’re at a beautiful networking lunch surrounded by the brightest and best female founders, freelancers, side-hustlers, and sole-traders. 

As you sip your bubbles and network, you connect with two incredible ladies who share how they’ve recently increased their rates. They now feel completely grounded in their worth and are successfully running a sustainable, profitable business. 

Once upon a time, they were knowingly underpaying themselves. But now, with a few simple tweaks to how they do business, they’re doing what they love while earning what they deserve. 

Ladies, it’s time this became your reality. 

You entered the gig economy with a desire for more flexibility, freedom, and wealth. Achieve it with a plan to discount strategically, know your rates, and own your worth. Plus! Give yourself the ultimate promotion with a Freelancing Gems membership to start charging your worth, and connecting with employers who embrace your value.  Girl, you’ve earned it.