What To Consider When Setting Your Charges On Freelancing Platforms

Are you struggling with setting your service charges or pricing on freelancing platforms like Fiverr, Upwork, Guru, Freelancer, Workchest.com, and others?

Many people may suggest starting with low prices, such as $5, to attract initial orders. While this approach may work for some, it may not be suitable for everyone. Additionally, earning $5 per order is not substantial when you rely on freelancing as your primary income source.

To illustrate, you would need to complete 40 orders every week just to make $200. Moreover, platforms like Fiverr usually charge their fee, thus, reducing your earnings. After accounting for this 20% fee, you would receive $160. Consequently, if you consistently secure 40 orders per week for an entire month, your total earnings would amount to $640. Keep in mind that you may also have to consider taxes based on your location.

For individuals who freelance full time, this income may not be enough to cover rent and all other expenses. However, in some countries, it might be considered a livable income, and that's acceptable if it suits your circumstances.

Ideally, services priced as low as $5 should only be for quick sample tasks that can be completed within 10-20 minutes or less. I would recommend setting a minimum price of $15, although even this might still be lower than what you truly need to make. It is crucial to determine how to appropriately price your services. If you are working part-time and find it acceptable, feel free to do so. However, keep in mind that you won't consistently receive 40 orders every week. Freelancing work tends to fluctuate, and sometimes things may not go as planned.

To establish your pricing, begin by calculating all your expenses to determine your monthly income requirements. Once you have this figure, consider the value you place on your services.

Remember, it is important not to undervalue yourself and your skills. If you possess the necessary skills and relevant experience, you should be compensated fairly for your work. 

On platforms like Upwork, you have the option to charge hourly rates. However, hourly rates can be limiting if you complete tasks quickly, resulting in lower earnings compared to the true value of your work.

Lastly, it is crucial never to agree to provide free samples or work for free, unless it is for a large company where you believe the opportunity will benefit you if selected.