How to Set Your Hourly Rate — Business Pricing Strategies for Entrepreneurs and Freelancers

How do you set your hourly rate as a freelancer or entrepreneur online when you're looking to be hired? If you're trying to hire people online as employees or contractors, how do you work with people pricing to get the best service for the lowest amount or to pay an amount you feel is really good about, which might be higher?

I'm Jerry Banfield and I've hired hundreds of freelancers and contractors online to work with me and what I'll do now is share my experience with setting an hourly rate. I've also been hired to work for others by hundreds of clients in more than 20 different countries.

How To Set Your Hourly Rate — Business Pricing Strategies for Entrepreneurs and FreelancersHow to succeed at everything online” to learn generally about how to level up your entire online presence and how to level up your hourly earnings.

If you're new to working online, you might wonder, “Well, where do I start my hourly rate?”. You might look around at other people, try and see what their hourly rates are.

For me, there are 2 key factors that go into setting your hourly rate.

#1 is what do you feel really good working at?

It doesn't matter if everybody else is working at $10 an hour. If you know you won't do a good job at $10 an hour, the trick is to find what's the minimum you feel excited to work at.

This is helpful because if you know what you're not willing to accept, you know where not to waste your time. There are so many jobs and opportunities out there. If you know you're not willing to work below a certain point, you know where not to apply.

From what I've seen, it's more valuable to know where not to go many times than it is to know exactly where to go and what type of clients you don't want to work for.

One reason I set my hourly minimum at $200 an hour is that I don't want to work for somebody who's paying less than $200 an hour. The kind of client that will pay me $200 plus an hour, the kind of client I want to work for.

I don't want to work for a client who is shuffling around for $10, $20, $30, $40, $50 or even $100 an hour because the client is not ready to handle my level of service, experience, and ability.

Freelancers who apply at hourly rates they are not clearly happy with and then try to raise those hourly rates often double and sometimes even triple what they originally applied for.

To me, as an employer, I feel deceived that you applied for $6 an hour and now you want much more than that. It was not an honest application. It was an attempt to just get in the door and get hired based on a lower hourly rate and now you want to get way more than anybody else is getting.

Hourly rates obviously fluctuate. For example, if you're in India, Bangladesh or Philippines, $10 an hour there is a lot different than $10 an hour where I live in St. Petersburg, Florida which is close to minimum wage.

If I hire someone in the Philippines for $10 an hour or Portugal, that's probably equivalent to $20 or $30 an hour where I live, which is certainly decent. That's enough to have your own place and to live comfortably certainly.

I obviously as an employer like to hire people if I don't know them. That will do the best work for the lowest price. That's natural. At the same time, there are certain kinds of work that I'm willing to pay much more for.

For example, if I'm paying to have someone edit and transcribe my videos into a blog post, well that's something I'd rather pay the least possible for the best result.

I've hired a man in Pakistan for $10 an hour. He does a good job transcribing the videos into blog posts. It costs $40 to $50 to have one of my 10, 20 or 30-minute videos turned into a blog post which then has the opportunity for me to earn income indefinitely.

That's a good deal for me and it's a good deal for him because $10 an hour in Pakistan is probably about $20 to $30 where I live. That’s more than I made for the first several years of my career.

For trust-based work, I am willing to pay much more for that. If you want to get your hourly rate higher, you want to work that's trust-based.

For example, if I'm allowing somebody to log into my computer then I want to pay more money. I don't want to just hire anybody for that. I want to hire somebody that I trust and then I'm paying them more.

Therefore, having a trusting relationship with somebody is a good way to pay more and just applying for jobs where you don't know anybody, you're often minimizing the hourly rate and the potential you can get.

How do you set your hourly rate?

To set your hourly rate, you want to make sure you are putting yourself in the best position for success by having an hourly rate that is at/or above your minimum but once it's at/or above your minimum, it also can obviously depend on what kind of work you want to do.

There are certain kinds of work I would not accept for $200 an hour. There are other kinds of work that theoretically I might accept less than $200 an hour.

For example, if you want me to go do something that's really fun that helps promote my brand, yes, I might accept to work for less than $200 an hour for that.

Therefore, the exact kind of work you're doing can have an impact on your hourly rate. It is up to you to decide what work you apply for and to figure out what skills you have that you can earn the most with.

Trial and error are unfortunately one of the main ways you go about this but you've really got to know yourself.

You need to know what skills you can help people with and where you can find people that need help with those skills and then you can often get a much higher hourly rate than just generically applying for jobs.

Many of the people I've hired at lower hourly rates are what I would say undifferentiated. It's difficult to tell what's special about them and the kind of work they're doing is something that is easily done by other people.

If you want to get to a level where I'm at of charging hundreds of dollars an hour, your work needs to be differentiated where if someone looks to hire you, they don't know of anyone else they could hire to do that specific work.

That's how you can really level your hourly rate up over time and that’s how you set your hourly rate.

Thus, I hope this guide on how to set your hourly rate has been helpful for you. I appreciate you learning how to set your hourly rate with me. I love you. You’re awesome.

Jerry Banfield

Posted from my blog with SteemPress :

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