Your pricing is a critical part of your freelance strategy and setting up a baseline will be one of the most important steps you can take as a worker who’s walking away from employer dependence.
This post will help you better understand why $100/hr (USD) is the absolute least you should be charging…and it will help you get there.
Adjusting for Your Situation
I’ll be talking in American dollars and an overall average across skill sets and niches, but this post really applies to everybody.
You can crunch the conversion numbers, but the big takeaway is that you should be charging significantly more than what you consider a “normal” salary for what you’re doing.
Did you hear that? Significantly. More.
That’s because you’re not just charging for your labor.
You’re a business.
Every other business out here includes expenses for materials, admin, accounting, marketing, sales, etc. in their prices…and you should too.
That’s why you’ll hear advice from OG freelancers to “take your old salary and double it”…and then maybe even add more. In the U.S. especially though, we have healthcare and self-employment taxes to cover, so if you’re sweating the cost of non-employer insurance, the most important step is passing the cost on to your clients…through that $100/hr minimum rate.
Things vary a lot by region (even within the U.S.), but for most of us, $100 is a safe starting point. It’s a number you’ll often see pop up for graphic designers, proofers, and web designers, so while your ideal or final goal rate might be higher, if you need a general benchmark, that magic number is a good place to start.
(Side note: Personally, I think you should be working to average $100/hr for all the work you do in your business but starting with production or what you invoice hourly might be a more comfortable starting point for you.)
Getting to 100
Alright. Now that that’s out of the way, let’s talk about how to get to that $100/hr mark.
If you follow me on Twitter or hang around the BF community, you know I talk about charging more pretty often. The thing about that, is raising your rates isn’t just about slapping a higher price tag on your services (though sometimes it is, especially if your niche will tolerate more).
It’s mostly about strategic choices you make over time that put you in a position where $10 is your norm, your floor, or maybe even your basement…so let’s do this!
Work with Businesses That Get What You Do
The one thing you don’t want to get stuck doing as a freelancer is teaching a client why they should pay what you’re worth.
I do believe there are a handful of exceptions, but if you want to hit $100, exceptions shouldn’t be your whole world (or even most of it).
Keep in mind that these businesses come in a lot of different ages, sizes, and profiles, but ultimately, you’re looking for someone who appreciates what you offer and doesn’t have to be wrestled into understanding that they need you.
So if you offer something like social media support, it’s probably going to be easier to sell into businesses that already either have a decent (but lacking) social media presence, or who already gets the power of social and just needs some support.
Those are the people who’re less likely to try to talk you down on your rate by letting you know that they currently use interns to manage their FB feed.
(Real talk: this pretty much eliminates most publications and media platforms. I’m at the point where I believe they’re perfectly fine as goals, but they’re a weak foundation for a sustainable, life-enhancing freelance career.)
Look for Larger Orgs
This one isn’t universal, but it’s generally easier to get higher rates with bigger companies that have more cash flowing in.
These relationships can be very different than working with smaller companies, and whether you want to work with them might be a matter of preference, but don’t be intimidated by organizational size. You’d be surprised at how many holes even huge companies have (especially when it comes to moving into fast-changing spaces like digital media and marketing) and the relationships can often be more similar to employment.
Ready to start setting your own pay rates?
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Seek Out Expensive Problems
If you want to make $100/hr (or honestly a lot more), set your sights on companies that take on challenges that require a lot of cash.
That might be hard to identify on the surface, but it’s probably easier than you think.
Check out the price of what they sell (i.e. cars vs. magazine subscriptions) and who they sell to (B2B problems tend to be pretty expensive just by their nature.)
Again, there’s no guarantee here since some companies are just out to get work as cheap as possible, but if you want to boost your rates, consider shifting your perspective a little in the direction of pricey problems. (Think enterprise sales/marketing or software.)
Choose A Niche with Cash
One of the simplest ways to boost your earning is to align yourself with a niche dimension that has some juice behind it.
Already into pets or parenting but not getting paid? Think about adding tech to your niche mix. Keeping things local? Consider focusing on real estate agents, attorneys, or medical professionals who are high earners themselves (instead of restaurants or “small businesses”.)
Sometimes getting more out of what you do as a freelancer doesn’t require a complete revamp. Sometimes a little tweak really is enough.
Leverage Your Experience
Ok, so Black freelancers are REALLY missing out on this one.
If you’re trying to walk away from corporate like I did, or even just get some miles out of a degree you aren’t using, don’t go reinventing the wheel.
I tried that and burned a good 5 years trying to make freelancing work in the combat sports niche (my “passion”). The whole time I was turning my back on my background in healthcare and missing out on a really lucrative opportunity and faster freedom from employment.
Figuring the exact twist on your experience can take some time and is definitely NOT something you should do alone. If you want some input, consider swinging by the BF community boards to talk with me and other community members.
Offer Value
Value is everything in freelancing (and it’s getting that way in employment too).
Leading with value in your marketing emails, website content, pitches, and even networking introductions is a great way to make $100/hr an easy decision for your prospects.
Think about it. If you can earn (or save) them more than what they pay you, then your hourly rate isn’t a big deal to them (even if it feels high to you.)
Refining and understanding the value you offer (and what your niche needs) is a process, so if you don’t know where to start, this post on value should help.
One of the biggest benefits of aiming for $100 though, is that it’s a sign of quality. Sometimes we thinking pricing low will encourage more people to work with us, but low prices can also turn off great clients who now distrust the quality of your work and professionalism because you aren’t charging professional prices.
That’s why this year, I want to see EVERYBODY in the BlackFreelance community making big strides to get to and PASS $100/hr.
Want to raise your rates this year but still have questions? Let’s talk in the comments.
You’re blogs give me life and hope that I’m capable of being a successful freelancer. Is $75 realistic for a beginner freelancer?
Hi Allison!
You probably won’t be making $75 right out of the gate, but it is a reasonable target, even for a beginner. If it feels too high though and you start to feel discouraged, shift it down to $50/hr — just don’t stay there too long. What kind of freelancing are you doing?
Thank you for posting this article. I am currently in the process of editing my 1st book and becoming a freelance writer. While I have published numerous pieces online I have not been getting paid. I am a full time case manager but want to write full time. I have a work history which includes experience in social work, education and retail. However, I want my niche to be in new age and wellness. I am also a self taught Astrologer and tarot card reader who collects crystals. My fear is that I won’t find clients in the niches I like willing to pay me $75 an hour.
Hi Mika!
I’ll tell you that there is work in those niches that pays that much and more, but you have to be strategic about it.
Education and retail are probably your best bets. Social work and wellness can work, but you’ll probably need to intersect with another niche dimension like tech or B2B to push your earning. It’s all about who you work with.
Hi,
This is good, solid advice here. Especially the section on choosing a niche. A great, comprehensive read.
By the way, I have featured your site on my blog for Black History Month (Pen & Prosper). If you get a chance, please stop by and say hi!
Thanks.
JENNIFER BROWN BANKS
Thanks for the feature!…and for reading!
Thanks for this post! I am brand new to freelancing and feeling some type of way about pricing my services with no freelance experience. My services include proofreading, revision, rewriting, and ghostwriting. I’m kind of stuck on determining my niches though. I’ve thought about academic and technical writing, as I have a BA in English and an MS in Criminal Justice Administration, and have extensive experience in technical writing. I’m also a creative writer, so I’ve pitched fiction and nonfiction writers as well. Professionally, I’ve worked in fraud investigations for nearly a decade, so there’s yet another avenue as a niche. I’ve got options, I guess, I’m just not sure how to find or market to these areas to get the $75/hr. Please halp!
Hi Trish!
The best way to test a niche for price is to basically get out there and test it. I personally would take each niche, possibly two at a time, start building prospect lists of writers, and see where you get a response and what their price tolerance is.
My first thoughts are that creative writing is going to be low yield, but that fraud investigations and academic tech could be stronger in terms of what you get paid. Tech especially needs high-level accuracy so it wouldn’t be a bad idea to start there. Have you been building relationships with writers? Maybe through tech or legal writing orgs and social media groups?
This is such a good resource for black freelancers. This whole website, I mean.
Thanks, and thanks for the heads up on the link!
Great content there! I’m a content and copywriter in the health and tech niche, although I have work experience as a health professional (lab research). I joined Upwork 11 months ago, became top-rated after 7 months into it. I know it’s real getting paid $75/hr, I been wondering if this applied to Africans? And also how to opt my price to atleast $50/hr without feeling bound by my geographical location.
Hi Adeola!
The regional equivalent applies, but you do have an opportunity to market yourself in higher-paying regions to take advantage of currency differences. I do it within the US (I live in an area with moderate cost of living) and have done it a little internationally. It comes down to researching where your skills will be valuable outside your local region and marketing them there. It can be harder depending on your skillset and relative location (i.e. if you’re looking to work with clients in an area who expect you to charge less because of your name, race, or location), but you can still use that difference to push your rates some. Are you marketing yourself in North America? Have you looked at international health and tech hubs where companies might need your support? A lot of these companies aren’t necessarily on Upwork or any platform and you might need to hit them up directly. I would try branding myself with a more “international” flavor and see how that goes over when contacting companies directly.