guide to freelance pricing
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By 10.4 min readLast Updated: 21. June 2023

Your Guide to Finding Your Price

Setting the right price is extremely important as freelancer. And that goes both ways.

If you sell yourself too cheaply, you will of course miss out on revenue - but you will also hinder your opportunities to live comfortably from your passion.

And if you sell yourself too expensive - yes, you also miss out on revenue. Because then the customers just say no. (If you want them to say yes, we have written about how you closes customer meetings here.)

Pricing is difficult – one of the most difficult disciplines as freelancer. So we've created the only resource you'll need for the topic.

Here you get our big guide to freelancer pricing.

As a general rule, take what the customers will pay!

We recommend that you have a fixed, baseline hourly price, a so-called list price, which you can present your customers.

But we also recommend that you do not lock yourself in to an hourly price - and that you are always willing to negotiate.

Again: both ways.

You have to take what you're worth - and what customers will pay. Therefore, please start high in a negotiation phase. The customer has asked for a quote for a reason – they like you and they want to use you.

Test the customer's price limit. Give them an offer that you will be very happy about if they say yes to - but at the same time an offer that is realistic to receive a yes to. An offer with wiggle room, so if the customer wants to pay a little less, it's still a good deal for you.

However, remember this: You must only negotiate if you are willing to! If you don't want to work at the price the customer will pay, say no.

Otherwise, it will probably be a bad experience for both parties.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user

Are you a full-time freelancer or a part-time freelancer?

In part-time, you can view your pricing in 2 ways:

  • Do you dream of quitting your job and living as a freelancer? Then you have to take a price that you will be able to live on if you go full time.
  • Are you a freelancer to get some extra supplementary income? Then, in principle, you can take a lower price - or you can say, I only "want" to work when the customers want to pay my full price.

If, on the other hand, you are full-time freelancer, in our eyes you have only 1 valid opinion:

  • "So this is my only income - and I have to be able to live on it!"

This means you can't let yourself be consumed by discount schemes and friend services. Remember: You are hired because your work is valuable. Charge a corresponding price for it.

How experienced and skilled are you?

There is a difference in how much you can squeeze the lemon, depending on your seniority, your level of competence and your ranking within your niche.

If you have a very special reputation in the industry and you have excellent results behind you, you can charge a premium for your services, which is significantly above the market price.

Of course, you can only take this premium if customers want to pay for it. But they most often will if you are an industry leader.

If you are completely new and unknown, you can generally take the market price at most. Most often you can feel pressured to price yourself below the market price, and it can also be a good idea to close the first customers and get a foot in the door.

But it is important that you get up to a good level relatively quickly - preferably the minimum market price. Your dream is to make a living as a freelancer, and you can't do that at a reasonable level if you drive at half price.

The methodological approach: Count backwards

What does one earn functionary with your skill set, and what is the converted hourly rate for 37 hours per week? And how much do you have to multiply this hourly rate by to find your hourly rate as a freelancer?

As a general rule, you must multiply a clerk's hourly rate by approx. 2.5 to find a suitable hourly rate for you.

We must emphasize that this method should only be your starting point - because, as mentioned in the previous section, each negotiation is individual, and your price also depends on whether you are better or worse than the rest of the market in terms of competence.

Let's say you are an IT consultant and a permanent IT employee with your seniority earns 50,000 a month and works 37 hours a week. This gives an approximate hourly price of 312.

If you multiply this hourly price by 2.5, you get 780. Here you have a good starting point for an initial hourly price, which you can adjust according to how the market responds to it.

Are you getting too many customers? Put up the price (or consider your first hire).

Are you getting too few? Consider putting it down – or look at other weak points in your business model.

Need more help with pricing? Look no further - we have developed our very own price calculator that gives you answers to everything from annual salary to ideal hourly rate.

Fixed price or hourly price? What should you choose?

Both – must be the annoying answer.

If it is a fixed task, you can give a project price. But the project price should be based on your hourly rate, as the scope of the project depends on the number of hours you expect to spend on it.

If, on the other hand, you are permanently attached as a consultant, and the tasks vary from month to month, it does not generally make sense to give a fixed price. Here, a total monthly invoicing based on hourly price and hours worked will often be the most obvious.

If you give a project price for a large task, remember to include a good margin (i.e. set the price high) in case the customer proves to be difficult or the scope of the project is completely off limits. Or both.

In these cases, a combination can also be a good option – a project price that covers the agreed piece of work, and an additional hourly price if the work goes beyond the stipulated work.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user

You cannot invoice all hours!

If you can bill an average of 75% of your hours, you should be happy. As a freelancer, you must allocate a not inconsiderable amount of work to, among other things, following:

  • General administration – updating the website, purchasing systems, non-billable communication with customers and business partners
  • Advertising for yourself – on e.g. LinkedIn or for networking events
  • Sales – outreach to new customers and customer meetings
  • Accounting – income, expenses, annual reports and the like

And all sorts of incidentals that will inevitably appear. Therefore, your hourly rate will simply have to be at a level that can cover this "free" work - and of course your expenses.

You have a number of expenses that your hourly rate must cover

Remember that as a freelancer you yourself have to pay for the following:

  • Holidays, days off, maternity and sickness – you don't make any money when you can't bill hours
  • Pension
  • Office rent
  • Travel activity and transport
  • Fixed expenses such as computer and various programs
  • Advertising and advertising
  • Continuing education and courses

You have to think about all this when you look at your hourly rate and think, 'it's high enough!'

Because in reality it is not.

Still unsure of a suitable price? Ask your colleagues

It is important to know an approximate market price before making your arrangements. The customer probably thinks that you are frivolous (or completely exceptional) if your hourly rate is 1500 kroner and the market price is 600 kroner.

How do you find the market price? You naturally ask those who do the same as you – your competitors/colleagues in the industry.

Some write both hourly prices, price packages and price examples on the website, and you can take that as a starting point.

But what is written on a website is one thing – the price agreements that are actually concluded are another. The two numbers can be very different, which is why the honest conversation between two industry peers is so important.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user

Remember: It is much difficult to negotiate when you first start

It can be tempting to give a discount in order to close a new customer. "It's only here at the beginning", you both say.

But when will you get the normal level price later? It will not be the customer who is going to suggest it (we dare to guarantee). And thus it will be you yourself who must destroy the good atmosphere.

You must be aware of this before entering into large discount agreements with new customers "just" to close them and get them in the customer file.

When that is said, is possible to raise the price for existing customers. It just requires a little finesse.

When does it make sense to raise the price as a freelancer - and how do you do it?

When you have enough customers, you can raise the price for new customers – and consider doing it for existing ones. That has to be the short answer.

You should never raise the price for existing customers without dialogue and a clear agreement. Customers like as few surprises as possible – especially when it comes to budget. Also, remember to do it in a very proper and polite way - especially if they are some of your first customers who have been with you through thick and thin.

Having said that, a price increase will (almost) always lead to a weeding out of customers, as not everyone is equally elastic in relation to price. You must therefore have settled with yourself how you will handle the inevitable rejection that will come with a price increase.

A dialogue about the hourly rate can take place on e.g. this way:

"Dear [name of customer]

I have been, and still am, happy to work for you, and you know that I greatly appreciate the fact that you have chosen and continue to choose me as a supplier.

When you brought me in, we started at an hourly rate, appropriate for my level at the time. Since I started, I have developed a lot and, among other things, helped you achieve XYZ.

A natural development in the market as well as an increased level of competence on my part means that my price per xx increases from current XX to XX +10%.

If this price regulation puts an end to our cooperation, I am open to a dialogue about your specific needs, and can most likely point you in the direction of a specialist who delivers at a lower budget. 

Of course, I hope to continue the collaboration and continue to help you get closer to your goals in the future.”

This approach achieves several things:
- You praise your customer and emphasize that you appreciate the collaboration.
- You also draw a line in the sand and draw a comparison between your old and your new professional self.
- You announce a price increase so that your customer does not experience unexpected surprises.
- You have your customer's best interests in mind. Want a lower quality, you can help them further. If that is the case, your paths were doomed to part anyway.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user
guide to freelance pricing
By 10.4 min readLast Updated: 21. June 2023

Your Guide to Finding Your Price

Setting the right price is extremely important as freelancer. And that goes both ways.

If you sell yourself too cheaply, you will of course miss out on revenue - but you will also hinder your opportunities to live comfortably from your passion.

And if you sell yourself too expensive - yes, you also miss out on revenue. Because then the customers just say no. (If you want them to say yes, we have written about how you closes customer meetings here.)

Pricing is difficult – one of the most difficult disciplines as freelancer. So we've created the only resource you'll need for the topic.

Here you get our big guide to freelancer pricing.

As a general rule, take what the customers will pay!

We recommend that you have a fixed, baseline hourly price, a so-called list price, which you can present your customers.

But we also recommend that you do not lock yourself in to an hourly price - and that you are always willing to negotiate.

Again: both ways.

You have to take what you're worth - and what customers will pay. Therefore, please start high in a negotiation phase. The customer has asked for a quote for a reason – they like you and they want to use you.

Test the customer's price limit. Give them an offer that you will be very happy about if they say yes to - but at the same time an offer that is realistic to receive a yes to. An offer with wiggle room, so if the customer wants to pay a little less, it's still a good deal for you.

However, remember this: You must only negotiate if you are willing to! If you don't want to work at the price the customer will pay, say no.

Otherwise, it will probably be a bad experience for both parties.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user

Are you a full-time freelancer or a part-time freelancer?

In part-time, you can view your pricing in 2 ways:

  • Do you dream of quitting your job and living as a freelancer? Then you have to take a price that you will be able to live on if you go full time.
  • Are you a freelancer to get some extra supplementary income? Then, in principle, you can take a lower price - or you can say, I only "want" to work when the customers want to pay my full price.

If, on the other hand, you are full-time freelancer, in our eyes you have only 1 valid opinion:

  • "So this is my only income - and I have to be able to live on it!"

This means you can't let yourself be consumed by discount schemes and friend services. Remember: You are hired because your work is valuable. Charge a corresponding price for it.

How experienced and skilled are you?

There is a difference in how much you can squeeze the lemon, depending on your seniority, your level of competence and your ranking within your niche.

If you have a very special reputation in the industry and you have excellent results behind you, you can charge a premium for your services, which is significantly above the market price.

Of course, you can only take this premium if customers want to pay for it. But they most often will if you are an industry leader.

If you are completely new and unknown, you can generally take the market price at most. Most often you can feel pressured to price yourself below the market price, and it can also be a good idea to close the first customers and get a foot in the door.

But it is important that you get up to a good level relatively quickly - preferably the minimum market price. Your dream is to make a living as a freelancer, and you can't do that at a reasonable level if you drive at half price.

The methodological approach: Count backwards

What does one earn functionary with your skill set, and what is the converted hourly rate for 37 hours per week? And how much do you have to multiply this hourly rate by to find your hourly rate as a freelancer?

As a general rule, you must multiply a clerk's hourly rate by approx. 2.5 to find a suitable hourly rate for you.

We must emphasize that this method should only be your starting point - because, as mentioned in the previous section, each negotiation is individual, and your price also depends on whether you are better or worse than the rest of the market in terms of competence.

Let's say you are an IT consultant and a permanent IT employee with your seniority earns 50,000 a month and works 37 hours a week. This gives an approximate hourly price of 312.

If you multiply this hourly price by 2.5, you get 780. Here you have a good starting point for an initial hourly price, which you can adjust according to how the market responds to it.

Are you getting too many customers? Put up the price (or consider your first hire).

Are you getting too few? Consider putting it down – or look at other weak points in your business model.

Need more help with pricing? Look no further - we have developed our very own price calculator that gives you answers to everything from annual salary to ideal hourly rate.

Fixed price or hourly price? What should you choose?

Both – must be the annoying answer.

If it is a fixed task, you can give a project price. But the project price should be based on your hourly rate, as the scope of the project depends on the number of hours you expect to spend on it.

If, on the other hand, you are permanently attached as a consultant, and the tasks vary from month to month, it does not generally make sense to give a fixed price. Here, a total monthly invoicing based on hourly price and hours worked will often be the most obvious.

If you give a project price for a large task, remember to include a good margin (i.e. set the price high) in case the customer proves to be difficult or the scope of the project is completely off limits. Or both.

In these cases, a combination can also be a good option – a project price that covers the agreed piece of work, and an additional hourly price if the work goes beyond the stipulated work.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user

You cannot invoice all hours!

If you can bill an average of 75% of your hours, you should be happy. As a freelancer, you must allocate a not inconsiderable amount of work to, among other things, following:

  • General administration – updating the website, purchasing systems, non-billable communication with customers and business partners
  • Advertising for yourself – on e.g. LinkedIn or for networking events
  • Sales – outreach to new customers and customer meetings
  • Accounting – income, expenses, annual reports and the like

And all sorts of incidentals that will inevitably appear. Therefore, your hourly rate will simply have to be at a level that can cover this "free" work - and of course your expenses.

You have a number of expenses that your hourly rate must cover

Remember that as a freelancer you yourself have to pay for the following:

  • Holidays, days off, maternity and sickness – you don't make any money when you can't bill hours
  • Pension
  • Office rent
  • Travel activity and transport
  • Fixed expenses such as computer and various programs
  • Advertising and advertising
  • Continuing education and courses

You have to think about all this when you look at your hourly rate and think, 'it's high enough!'

Because in reality it is not.

Still unsure of a suitable price? Ask your colleagues

It is important to know an approximate market price before making your arrangements. The customer probably thinks that you are frivolous (or completely exceptional) if your hourly rate is 1500 kroner and the market price is 600 kroner.

How do you find the market price? You naturally ask those who do the same as you – your competitors/colleagues in the industry.

Some write both hourly prices, price packages and price examples on the website, and you can take that as a starting point.

But what is written on a website is one thing – the price agreements that are actually concluded are another. The two numbers can be very different, which is why the honest conversation between two industry peers is so important.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user

Remember: It is much difficult to negotiate when you first start

It can be tempting to give a discount in order to close a new customer. "It's only here at the beginning", you both say.

But when will you get the normal level price later? It will not be the customer who is going to suggest it (we dare to guarantee). And thus it will be you yourself who must destroy the good atmosphere.

You must be aware of this before entering into large discount agreements with new customers "just" to close them and get them in the customer file.

When that is said, is possible to raise the price for existing customers. It just requires a little finesse.

When does it make sense to raise the price as a freelancer - and how do you do it?

When you have enough customers, you can raise the price for new customers – and consider doing it for existing ones. That has to be the short answer.

You should never raise the price for existing customers without dialogue and a clear agreement. Customers like as few surprises as possible – especially when it comes to budget. Also, remember to do it in a very proper and polite way - especially if they are some of your first customers who have been with you through thick and thin.

Having said that, a price increase will (almost) always lead to a weeding out of customers, as not everyone is equally elastic in relation to price. You must therefore have settled with yourself how you will handle the inevitable rejection that will come with a price increase.

A dialogue about the hourly rate can take place on e.g. this way:

"Dear [name of customer]

I have been, and still am, happy to work for you, and you know that I greatly appreciate the fact that you have chosen and continue to choose me as a supplier.

When you brought me in, we started at an hourly rate, appropriate for my level at the time. Since I started, I have developed a lot and, among other things, helped you achieve XYZ.

A natural development in the market as well as an increased level of competence on my part means that my price per xx increases from current XX to XX +10%.

If this price regulation puts an end to our cooperation, I am open to a dialogue about your specific needs, and can most likely point you in the direction of a specialist who delivers at a lower budget. 

Of course, I hope to continue the collaboration and continue to help you get closer to your goals in the future.”

This approach achieves several things:
- You praise your customer and emphasize that you appreciate the collaboration.
- You also draw a line in the sand and draw a comparison between your old and your new professional self.
- You announce a price increase so that your customer does not experience unexpected surprises.
- You have your customer's best interests in mind. Want a lower quality, you can help them further. If that is the case, your paths were doomed to part anyway.

create free user

Freelance with Factofly

Use Factofly to invoice and get paid without having your own CVR number or registered company. We handle all the boring stuff, so you can spend your time where it's most fun.

create free user