How to Set Your Rates as a Freelance Content Writer: A Practical Guide

As a freelance content writer, one of the most challenging aspects of your journey is determining how to set your rates. A recent survey revealed that 60% of freelancers struggle with pricing their services, often undercharging due to a lack of industry benchmarks or confidence.

Freelancing now accounts for 36% of the U.S. workforce, contributing nearly $1.4 trillion to the economy annually. Specifically, freelance content writing is one of the most in-demand skills, with a projected growth rate of 8% over the next decade.

Pricing your services appropriately is crucial, not only for sustaining your business but also for ensuring that you’re compensated fairly for your skills and effort. Whether you're new to freelancing or looking to refine your pricing strategy, this guide offers actionable insights to help you establish your rates confidently.

1. Understand the Market Rates

• Research Industry Standards: Start by researching what other freelance content writers with similar experience and expertise are charging. Websites like Glassdoor, Upwork, and Fiverr can provide a ballpark figure.
• Consider Niche Rates: If you specialize in a particular industry (e.g., technology, finance, healthcare), the rates can vary significantly. Niches often command higher rates due to the specialized knowledge required.

2. Evaluate Your Experience and Skill Level

• Entry-Level Writers: If you're just starting, it's normal to charge lower rates while building your portfolio. In situations where you do not have a set of sample works to showcase (your portfolio), you may not be able to charge premium rates, or your clients may not be willing to pay premium rates for what they cannot see. However, avoid underpricing yourself. A competitive but fair rate can still be maintained.
• Mid-Level Writers: With a few years of experience, a solid portfolio, and client testimonials, you can confidently charge higher rates.
• Expert-Level Writers: For seasoned professionals, your rate should reflect not just the quality of your work but also your ability to deliver value quickly and efficiently.

Now, at this stage, you're probably thinking - 'okay, so how exactly should I charge my clients?' What is the price I should quote? And I could tell you standard rates, like as beginner you should quote ?1 to ?2 per word. As a mid-level writer your rate should be around ?3 to ?5 per word.... but that would simply be an unfair expectation for you and for your client.

Instead, let's look at setting rates from a different perspective. One that factors your expectations and the no. of hours you're willing to work. That would be a better approach.

3. Calculate Your Desired Income

• Annual Income Goals: Determine how much you want to earn annually. This figure will help you break down your rates into manageable portions.
• Work Hours and Availability: Calculate the number of billable hours you can realistically work each week. Factor in time for client communication, revisions, and administrative tasks.
• Rate Calculation Formula: A simple way to calculate your hourly rate is: Hourly?Rate=Desired?Annual?Income/Billable?Hours?per?Year

For example, if you aim to earn ?6,00,000 annually and plan to work 1,800 billable hours annually (5 hours per day), your hourly rate would be ?333.33.

Another way to look at this would be to find out how many hours it would take for you to deliver a 1,000 word article.

Let's assume that it takes you around 20 hours (including research, writing, editing and proofing). Your total hours X per hour rate (20 X ?333.33) = ?6,666 — now divide this by the total word count (which in this case is 1,000 words) and you get your rate per word.

?6,666 / 1,000 = ?6 per word.

You might have figured it out by now, that the more hours you work on a particular content task, the more money you can earn—doesn't mean that this always holds true. As a beginner in content writing, you will take more time to complete and deliver an article, but you will not be able to charge per hour here. This is where you use the hours to learn and perfect your craft, so you can learn to optimize your time.

Eventually, as you become an expert writer you will be able to charge more even though you take fewer hours to complete the task. It's a journey, so my suggestion? Enjoy the ride and learn as much as you can!

4. Factor in Business Expenses

• Overhead Costs: Consider costs such as software subscriptions, internet, office supplies, and professional memberships. These should be factored into your rate to ensure your business remains profitable.
• Taxes and Insurance: Don’t forget to account for taxes (income tax, self-employment tax) and health insurance, as these can significantly impact your take-home pay.

5. Offer Different Pricing Models

• Hourly Rates: Ideal for ongoing projects or work that requires a significant amount of time without a clear deliverable.
• Per-Project Rates: Best for defined projects with clear deliverables, like a series of blog posts or an eBook.
• Retainer Agreements: If you have clients who require regular work, a retainer agreement ensures steady income. Offer a discounted rate in exchange for a guaranteed number of hours or deliverables each month.
• Package Deals: Bundle services to provide more value and justify higher rates. For example, a content strategy package that includes market research, content calendar creation, and blog writing.
• Per-word rates: can be ideal for one time projects, or an in-depth research article. This can even work when you are required to ghost-write for someone.

6. Communicate Your Value

• Highlight Expertise: Ensure clients understand the value you bring to the table. Whether it’s your industry knowledge, speed, or writing quality, make it clear why your rates are justified.
• Showcase Results: Use case studies or testimonials that highlight the results of your work, such as increased web traffic or higher conversion rates.

In upcoming articles, I will talk more about how you can showcase your value, highlight testimonials from clients and use those to drive more engagement and convert more prospects.

7. Adjust Rates Over Time

• Regular Review: Periodically review your rates, especially as you gain more experience, improve your skills, or expand your portfolio.
• Increase with Demand: If you're consistently booked and turning away clients, it might be time to raise your rates. A gradual increase ensures you don’t lose existing clients while attracting higher-paying ones.

8. Consider Geographic Differences

• Local vs. Global Rates: Understand that rates can vary significantly based on geography. Clients from different regions may have different budget expectations, and your rates should reflect the market you’re targeting.

9. Test and Iterate

• A/B Testing Rates: Don’t be afraid to experiment with your pricing. You might offer a slightly lower rate to a new client to win their business, then adjust your pricing as the relationship develops.
• Feedback Loop: Use client feedback to refine your pricing strategy. If you’re consistently told that your rates are too high or too low, it’s worth re-evaluating your pricing structure.

10. Trust Your Worth

• Confidence is Key: Believe in the value you provide. Clients are willing to pay more for quality, reliability, and professionalism. Don’t undersell yourself; instead, position yourself as a premium service provider.

Keep in mind that whatever your rates - you must fully believe you are worthy of earning that rate, and are capable of delivering projects for the said rate.

Setting your rates as a freelance content writer is not a one-size-fits-all approach. It requires careful consideration of your skills, experience, market demand, and personal financial goals. By following these best practices, you can develop a pricing strategy that not only sustains your freelance career but also allows you to grow and thrive in the competitive content writing industry.