How to make more money as a freelancer
Depending on how long you’ve been freelancing, you may not remember the thrill of getting that first client. You know – the one where you seriously low-balled yourself and thought, “Should I have asked for more?”
You learned from this, and you started to ask for more. Your clients have been happy to pay for it. But now what? How do you make more money as a freelancer?
In this post, we’ll look at some ways you can increase your income by raising your rates and working smarter – not harder.
Beware of rate calculators
When thinking about how to make more money as a freelancer, you might be tempted to use freelance rate calculators. These online tools help you build a base rate considering your estimated monthly expenses and desired working hours.
These freelance rate calculators seem like the quickest and easiest way to determine the fair market value for your work, but they can be deceiving. Without a way to dig into all the nuances of what you do, they could be leaving a lot of money on the table.
For example, does a freelance rate calculator know how many years of experience you have? Probably not. And does a rate calculator consider the niche service you provide under the “software developer” banner? It’s unlikely.
So, while rate calculators are a good baseline, they should not be the only tool you use to determine your value. Start here, then consider your experience, what you bring to the table that others can’t, and how many billable hours you want to work each week.
Speaking of billable hours…
With freelancing, a LOT happens behind the scenes. It’s not all sunshine and rainbows (although these are perks). You spend a lot of time sending out invoices, searching for clients, going to networking events, marketing yourself – the list goes on and on.
And do you know what nobody is paying you for? Any of those tasks. So when you’re not getting paid, how do you make more money as a freelancer?
Let’s say you charge a client $75 an hour, and you have around 30 billable hours of work for them in a week. Sticking with the 40-hour work week, you use those remaining hours to complete non-billable tasks, which means you’re now effectively paying yourself $56.25 an hour instead.
Bump your rate by $10, though, and you’ll pay yourself $75/hr for ALL 40 hours that week (plus a little extra!)
It’s a minor tweak that can make a world of difference.
Charge by project
Admittedly, answering the question of how to make more money as a freelance web developer can get pretty hairy with this one. But as you gain experience, it becomes easier to estimate the total cost of a project.
For example, maybe your niche is building interactive storefronts for small businesses. The first time you build one, you charge $75 an hour, which takes 140 hours to complete. That works out at $10,500 for this one site.
But you keep building the same site – over and over again – with changes that suit the customer. You become so efficient that you can get it done in 100 hours. If you’re working hourly, you’re now getting paid drastically less for the same work.
Should your efficiency be rewarded?
Yes – it most definitely should!
Once you realize this is happening, start pricing by project. If a client is happy to shell out $10k, and you’re happy to keep improving your efficiency, you’ve basically just raised your rates to $105 an hour, and everybody is happy.
The obvious pitfall here is the dreaded scope creep [link to https://gun.io/news/2023/04/how-do-you-prevent-scope-creep/]. When you offer a per-project rate, make absolutely certain that the work that you’ll do is clearly outlined. Anything that falls outside of that work should incur extra costs.
Automation and outsourcing
There’s no shortage of products that will automate things like scheduling and billing, but you might think it’s more helpful or cost-effective to do it yourself. However, sometimes you’ve got to spend a little to make more money freelancing.
The truth is that companies create these products to serve particular and genuine needs. Using them can free up your time to take on more clients, develop bigger projects, or even give yourself a much-deserved break from anything work-related. (I know; crazy idea, right?!)
Don’t feel comfortable automating payments? Invest in an accountant. Plenty of people are comfortable chasing down your clients for money, sending out invoices, and letting you know exactly how much money you need to fork over in taxes.
When thinking about how to make more money as a freelancer, outsourcing tasks like these is worth its weight in gold.
Rotate in new clients to make more money as a freelancer
Repeat customers are easy to keep happy. You know what they want and how they work, and you most likely have a relationship that fosters good communication.
But then again, you also have a customer who is used to your $75/hour rate, and bumping it up to $100/hour can be a hard sell.
So, when thinking about how to make more money as a freelancer, you can rotate in new clients and hit them with the $100/hour rate right off the bat. They’re happy to pay the fee without knowing what you’re charging other customers.
Eventually, your new, higher-paying clients will replace the old ones, and your bank account will grow with you.
Ask for referrals
Referrals are when previous clients and colleagues recommend you to others needing your services. They’re a great way to find more clients and make more money freelancing, as referred clients are more likely to trust your expertise.
To get referrals, you need to ask for them, so when contacting past clients, make sure to:
- Ask professionally: As with all client communication, you should be clear and polite when requesting a referral.
- Ask the right person: The person providing the referral should be the person you worked with most closely on the project. This person will likely be the one who hired you as a web developer.
- Ask at the right time: It’s best to ask for a referral immediately after completing a project while your work is still fresh in your client’s mind.
Improve your skills
As a freelancer, your biggest asset is the skills you can offer your clients. While you don’t need a specific degree to work as a freelance web developer, training in the basics and upskilling with more in-demand skills will enable you to find higher-paid jobs and increase your rates.
Some ways to improve your skills as a freelance web developer include:
- Taking on programming tasks as part of your other job (if you have one)
- Shadowing or being mentored by another web developer
- Watching webinars and other interactive training videos
- Enrolling in an online course
Want to make more money as a freelancer?
Freelancing can be super rewarding, but isn’t without its challenges – especially in the beginning.
The good news is if you’re a web developer who’s looking to land more clients, we can help! Here at Gun, we specialize in using senior developers to vet jobs and match you with clients who will make you happy.
So talk to us today and learn how we can help you land your next gig!
