Freelancing has become very popular nowadays. One of the main reasons freelancing has become popular is that you can easily earn a substantial amount by working from the comfort of your own home. However, one of the biggest challenges that every freelancer has to face is the freelance pricing strategy. Many freelancers struggle with pricing and often undervalue their work.

​If you are also struggling with setting the freelance pricing strategy, then you are at the right place. In this article, we will see why setting the right freelancing pricing matters and  different freelance pricing that will help you understand how to set the right price.

​Why Freelancing Pricing Matters?

Freelance pricing matters because it signals your expertise to the client. It’s common that a high value rate signals your expertise and professionalism in your field, whereas a low rate signals that you might be a beginner or not very expert in this field. The way you price your work not only impacts your earnings but also affects your freelance profile. Setting a wrong price lessens the chance of securing a project. So setting the right price is important to get the exact amount of what you actually deserve for the work you did.

​How to Set Freelancing Price-Different Pricing Models

Many freelancers, especially the beginners, make the mistake in setting the price; they just set a price without any proper calculation or just by seeing the competitors’ prices without considering their own skills and expertise level.

There are different pricing models when it comes to freelancing work. Each pricing model works in a different way and has its own benefits, let’s  see the different freelance pricing models to know which one works best for you.

      I.          Hourly Pricing

The most common freelance pricing model used is hourly pricing. In the hourly pricing model, you get paid for the exact number of hours you have worked. You track the time and then tell the client the total hours spent on their project, and they pay you accordingly. The biggest advantage of this model is that you get paid for every hour of your work, ensuring fairness. Your earning in this pricing model totally depends on your working hours; however, if you work more quickly, you may earn less in that case.

Ideal For: Hourly pricing model is for short-term projects that ideally allocate the  working hours, and for projects where the scope of the project may change over time.

    II.          Project-Based Pricing

A project-based pricing model is used when you charge a fixed amount for the entire project, regardless of the hours spent on it. It also gives a client clarity of the total payment, making budgeting easier. However, the problem that freelancers have to face with this pricing model is estimating the price. If you underestimate, that won’t be fair to you, and if you overestimate, the client might not hire you. So you have set the price wisely so that it is fair on both sides. It may happen that you set a low price in the beginning, but when you start working on the project, you realize that it requires more time and effort, which means you should have charged more. The pricing, which is fixed at the beginning of the project, you will receive only that, no change in it once you start working on the project.

Ideal For: Project based freelance pricing model is best for well defined and predictable projects, such as content writing, website development, logo designing, etc.

  III.          Retainer Pricing

In the retainer freelance pricing model client pays you a fixed monthly amount for an ongoing project. The biggest advantage of this pricing model is that you get a predictable income monthly without the worry of securing a new project every month. It also helps to build long-term work relations with clients. Clients also find this model suitable for them as they don’t have to hunt for new freelancers again and again. However, this freelance pricing model may require constant availability, which sometimes feels like a full-time job rather than freelancing.

Ideal For: Retainer pricing model is ideal for projects where clients need ongoing support for their project, like content creation, website maintenance, running marketing campaigns etc. It is best for freelancers who want financial stability.

 IV.          Value-Based Pricing

In a value based freelance pricing model, your client pays you on the basis of the outcome of the project. The more positive and good outcomes, the more pay you will get. For Example if you’re a freelance SEO writer, then the client will pay you based on the revenue that increased from your SEO content rather than just pay per word. If you are a freelance digital marketer consultant and are running campaigns for clients, then clients will pay you on the basis of their ROI.

Ideal For: It is ideal for projects like increasing sales, increasing conversions for your app, increasing website traffic etc.

   V.          Package Pricing

In the packaging freelance pricing model, you create a package of your services and offer it to the client; the client can then choose accordingly among the different packages available. You can create different packages and structure them into tiers. Creating packages reduces the time of discussion and meetings that are held before starting the project to discuss work  and pricing. However, you have to be very careful when setting the price for the packages, as setting over prices  will lead to the chances of getting fewer projects. Also, you have to update the prices over time according to the market demand to stay in the race. Many clients may not opt for such packages due to limited customization from their side. 

Ideal For: Package freelance pricing model is ideal for freelancers who are doing projects related to writing e.g they can create package according to number of words, number of blog posts, social media posts etc, graphics designers e.g they can create package according to no of graphics designed, branding kits, ad creative etc and other freelancers like web developer, digital marketer etc.

After going through these five freelance pricing models, you must get an idea of how and what to charge for different kinds of projects. As a freelancer, it’s very important to value your work according to your skills in order to build a sustainable freelance career. By choosing the right freelance pricing model, you can communicate more confidently with the client and present yourself as a professional freelancer.

So start applying these pricing models today and earn what you truly deserve.

You might be interested in reading: High-Paying Freelance Niches in Indonesia for 2025: AI, E-commerce Copywriting & More.