5 Effective Pricing Strategies Every Digital Freelancer Should Implement

As a digital freelancer, deciding how much to charge for your services can be a big challenging task. However by implementing effective pricing strategies can help you to decide how much you should charge.

This pricing strategy will work for all Digital freelancers, whether you are a web designer, content writer, Facebook ads expert, social media manager, etc. 

But why pricing strategy is important to know as a freelancer?

It’s really very important for freelancers to set their prices of services smartly.

This will help you to stand out and get more clients in a competitive market. because people don’t know how to price their services that’s why they don’t get enough paid.

When you know how pricing strategy works then you can charge higher prices for your services and build a sustainable freelancing business with long-term relationships with clients.

Read – 5 Strategies to Attract High-Ticket Clients

So in this blog, we will discover 5 strategies and how you can implement these.

Strategy 1: Value-based pricing

Value-based pricing is a strategy that focuses on the value you provide to your clients not the time you spend on the project. This approach helps you to charge higher based on the results you are providing to your clients.

For example, If you are a web designer and you are helping your clients to get 30% more leads/business through their website for their business.

that means you are directly contributing to their business growth through your services.

So the value you are delivering to your client is very high. now in this case if you quote double the price of what your competitor charges they will be happy to pay you.

I hope you got my point.

To implement value-based pricing, first, you must have a good understanding of their business/industry and previous experience.

Remember clients pay for the results, not for the time you spend to deliver the service.

You should clearly talk with your clients that these are the benefits of my services and your revenue will increase by x% in x days/months.

Now the client can justify the investment they wanna make on your services.

Strategy 2: Tiered pricing (The gold-silver-bronze pricing method)

Another effective pricing strategy that you should consider implementing is tiered pricing. This is a great strategy if you know how to implement this in the right way.

In this strategy, you (as a services provider) offer different levels of price points to your different types of clients.

For example, You can see any of the saas companies offer different price points for different types of clients…

look at the picture below to understand. 

Image source – Pabbly 

As a digital freelancer, you can implement this strategy in your business so your clients can get services based on their requirements and based on their budget.

Most of freelancers use this strategy, When I started my digital freelancing business as a social media manager I was using this strategy to showcase my pricing. I still use this strategy sometimes.

In this strategy if any client has a low budget but he/she wants to work with you then you can start with the lower package and then when he/she starts getting better results from your services then you can upsell.

This works very well if you implement it in the right way. You are not losing clients and you are getting a consistent flow of clients.

Strategy 3: Package pricing (Retainer-Based)

Package pricing is also another effective pricing strategy that you should consider implementing and get high-paying clients.

In this strategy, you need to bundle different services or deliverables into a comprehensive package for your clients to choose from.

For example, If you are a social media manager and you provide social media management, paid ads, and funnel-building services to your clients.

Now what you can do, you can create a bundle of all these services.

In this bundle, You will provide all these services in a single place with guaranteed results.

because they might be taking these services from different places, so you are saving their time to manage multiple teams, saving money, etc.

Remember you must have a good understanding of that industry/niche.

Now you decide how do you want to package your services.

If you provide other services then think what are the other services my clients need with these services and how this will help them to grow their business.

It’s helping your clients to make a better decision. Also, you should provide them with a clear understanding of what they will receive for their investment.

This transparency builds trust and makes it easier for clients to justify the cost.

Strategy 4: Time-based pricing

This is also a good strategy that you can implement in your business. in this strategy, you charge your clients based on the time you are putting into completing that task or project.

This strategy is particularly useful for digital freelancers who offer services that require a significant investment of time.

You may have noticed in freelance marketplace like Upwork, and Fiverr, most freelancers charge based on time.

In this strategy, there are two sites of coin – Good things and Bad things

The good thing is you have more scope of work from clients and the bad thing is clients can reduce the scope of work because both parties have freedom.

Hourly pricing is great for when a project scope is not defined. When it is defined I would rather recommend fixed or value-based pricing.

Now it totally depends on you whether you choose this strategy or not.

Strategy 5: Project-Based Pricing (Fixed pricing)

This is also a great pricing strategy that you consider implementing in your business.

In this strategy, you charge based on the project not by the hour or for each task.

With project-based pricing, you can estimate the total time, effort, and resources needed for a specific project.

Now you have clarity on how much you will get paid and how much the client needs to invest.

For example, you provide web design services to healthcare companies.

So this project could be for 1 month, 3 months, or maybe 6 months. you have a fixed price for the entire project.

You are crystal clear on this, now you need to focus on the work.

Should you stick to one strategy?

Now as a freelancer, you have enough knowledge of pricing strategy after reading this. I recommend you switch your pricing strategy based on the client and his requirements.

After having a great experiment by working with a good number of clients, you can stick to any of pricing strategy that matches your business.

Always track your time and analyze your strategy which one is working well and giving you better results plus your client’s satisfaction rate.

Remember there is not any fixed rule to charge x amount, keep learning and keep improving.

If you have any other questions do let me know in the comment section below,

Thanks for reading till the end have a wonderful day!