This post is about pricing and is primarily aimed level 2 and TRS sellers. The aim is to help you grow towards sustaining yourself as a freelancer and really making it possible to make an actual/better living from it!
Others may find it useful too but new and level 1 sellers are really in the beginner phase and often need to do more work for less money until they become established.
Grab a coffee and get comfy.
Your price is an extremely important part of your business and what you offer. It can be the difference between success and failure here all on its own.
There are a number of things to remember when pricing your services and unfortunately many of us do not consider them enough. The most obvious thing is Whether a buyer will actually pay what you are asking and all of us “consider this” so I will begin with this.
I say “consider this” but actually we tend to just be worried that they won’t want to pay our price. This fear is often irrational and the thing is, you will need to face this fear every time you give a custom offer, quote or when you want to increase pricing. With this in mind, it is a fear worth facing and dealing with now!
- If you don’t believe your service is good enough to earn money from then why are you trying to sell it?
- If you are not going to sell it for a price that makes it worthwhile, how are you going to sustain it?
- If you are working way more hours than you should be to complete orders, why are you doing it?
If you are still here having read the above questions then great. Self-belief, confidence, sustainability and value for money (from your POV, not the buyer’s) are vitally important to being a freelancer. After all, you don’t have a nice boss to come along and encourage you nor a nasty one to give you a kick in the butt when you need it. That role is now yours, as is the employee role!
Phew - but nobody ever said it would be easy!
So now that you are pumped up on self belief and the caffeine boost has kicked in, lets really look at your pricing.
Get a pen (non electrical device used for old school note taking) and start writing down some figures.
- Check out some of your orders and work out how long each one took you and the price you were paid for each. From these figures, find out what your average hourly wage is from Fiverr income.
- Next, write down what the minimum wage (if you are “unskilled”) is in your country or what a realistic going rate is for your industry - key point here is realistic, not maximum. An example could be your hourly rate earned at your current/last job.
- Now, what is the difference between the two figures?
In case you didn’t see the point, this exercise should give you a good idea of whether your prices are realistic, fair, sustainable etc. I choose hourly rate as a benchmark because your weekly rate COULD be based on 10 hours work or 60! Hourly rate is much better for measuring.
If your Fiverr hourly rate is less than the appropriate “going rate” then you should put your prices up. If it is roughly the same or above the rate then you need to look at why you think your prices should go up and be able to justify it. It could be that you do exceptional work which is above average or perhaps you are getting so many orders that you need to slow things down a bit - both good reasons but they need to be true!
Now we come to the crux of this post - Deciding the price.
- You need to be able to earn enough from this to make it worthwhile.
- Your earnings should be enough to justify not getting a job although for some this may not apply as it may not be possible or the benefits of working from home outweigh it. eg. If you only have 2 hours free in the morning, 3 at night and a couple at the weekend - there are very few jobs you could have that would allow that flexibility.
- Your rate needs to be relatively competitive with others. If you are asking for more than your competitors then you should be able to justify this. eg. through better communication, an extra service included, more experience, more variety etc.
If something you do has value to the buyer then it should have a monetary value to you, if not then why do it?
Ways to increase earnings without increasing prices
This sounds like a dream, right? But actually it is very possible for many people.
Can you add something extra to your service? I mean, make it better and more valuable.
Here is one example - Logo design: As a buyer, I would happily pay to get some quick sketches done as a couple of options before then ordering one that I like to be properly created. Most (original) logo designers create these anyway but the client never sees them! By saying you offer this, eg. For an extra $10, I will send 3(+/-) quick sketches for you to choose from you are making an extra $8 for one message!
Even better, it should cut down on unhappy clients/ revisions! Win-Win!
Up your minimum order value: For some of my services, I used to (because I had to) have a $5 service. These were a pain because people would order them and take a huge amount of time in messaging etc. It’s difficult to manage this situation and very often, requesting them to pay more for what they are asking takes longer than actually doing what they ask! But then they ask again…
Now, I do not offer $5 services that are like this any more. The ones where consultation and “homework” are required have no $5 option and this means that I get a higher amount for these orders, simply because I know 99% of them will take more time. Remember that messages, follow-up, revisions etc are ALL counted in the amount of time an order should take. If you can cut out some of the messages, cut out some of the lower value orders then you have more time for larger orders AND CRUCIALLY, you can spend more time on marketing yourself so you can actually get more large orders!
Hope you got something from this and please comment your thoughts, questions etc.
This post is one of a series of posts I am doing which are aimed at helping sellers to Up Their Game and begin to earn more from their work, gain new clients and make the most of being a freelancer. The posts will be based on This Poll which is still open so if you haven’t made your voice heard, please do so as the more that vote on an issue in that poll, the more likely I am to post about that issue.
I chose to write about pricing first as, even though it is not in the poll. It seems to be a major issue for many of us. It also makes sense to adjust pricing BEFORE we focus on marketing (which will be next) and other issues.
To see all posts in the series, Click Here