Why Freelancers Should Be Sure to Charge What They’re Worth

by WorkFromHome on November 15, 2011

Hundreds of millions of people across the world are conditioned to accept less money than they’re worth. The reason for this is that companies have to pay workers less than they are worth so that they can pocket the rest. While there’s nothing inherently wrong with this, it poses certain problems for the worker who decides to do freelance work. Specifically, because workers are conditioned to accept less than they are worth, when they start working from home, they almost always charge much less than they should be making. We’re going to show you some things that help to perpetuate this condition and what you have to gain by charging more for your services.

The Fear of Failure and Losing Customers

When you start off working at home, you’re probably going to be scared to death of falling on your face and failing. The idea of failing to make a better life for yourself and being embarrassed in front of your family and friends is enough to keep most people from going outside of their comfort zone. The fear of charging more for your services is basically a fear of driving away potential customers. This is a very rational fear to have since you can’t work from home if you have no one to pay you. However, just because it’s rational doesn’t mean that it’s acceptable. The first step to get past this is to realize that it’s okay if you lose some potential customers from charging more. As you’ll see next, this doesn’t necessarily mean that you’re going to lose money.

An Example Scenario

Suppose that there’s a teenager who currently charges $20 each for going to peoples houses and washing their cars. For the sake of this example, let’s suppose that this teenager washes 30 cars each month and makes $600 total each month. This isn’t a bad home business for a teenager who is still in high school. Using this as a baseline, let’s take a look at what could happen if our teenager friend decided to increase his or her price from $20 each to $30 each and he or she loses 10 customers as a result. Now our teenage friend will have 20 cars to wash while making $30 for each car for a total of $600 each month. The point here is that by charging what his or her time was worth, this teenager was able to cut down his or her time working by one third while maintaining the same amount of income.

Your Price Determines Your Level of Respect

Whether they realize it or not, people will judge you on some level by how much you decide to charge for your services. You will also judge yourself for the same reason. If you don’t charge what you are worth, then you will be treated with less respect than if you do. When you’re treated with respect, you tend to do a better job and feel better about yourself and your work. In short, your level of happiness is directly influenced by whether or not you are charging a fair price for what you’re doing. A big part of wanting to work for yourself is to increase your self-respect, so make sure that you set your prices to something respectable.

Higher Prices Mean Better Clients

Having difficult clients is one of the main sources of stress for people who work at home. When you charge really low prices, you’ll tend to get clients who aren’t very serious about their business or about how they treat you. These are some of the most difficult people to work for, and having to interact with them on a daily basis can make your life miserable. By charging what you’re worth, you’ll immediately start to see improvements in the quality of the clients you get. They will be more willing to discuss business with you and will give you fewer headaches. Not only will you be making more money from your new clients, but you’ll also be treated better on average than dealing with people who just see you as cheap labor.

Networking and Expansion

Since you’ll be getting better clients by charging more for your services, you’ll have more chances to network and expand your home business. When you associate with successful people on a regular basis, you start to develop some of the habits of those successful people since you want to fit in. You’ll also have more opportunities to do business with people who have something real to offer you, and this will lead to making even more money.

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