When I started on Upwork, everyone told me to keep my rates low.
I didn’t listen to them.
And this was a good decision.
If I do not value my skills, why should the client??
My starting rate on Upwork was $32.23.
I applied a formula to come up with the exact value I could offer to my clients in an hour.
And this is what I came up with.
Note: Most of my projects are fixed or retainers.
I don’t go by the hour.
I think you can make more money in fixed-rate projects.
Let’s say it will take you 5 hours to do XYZ project.
And you are working hourly.
In my case, it would be $32.23 * 5 = 150 dollars.
Now, from the client’s perspective that work is worth $500 to him.
I can easily close him on $300.
It’s all about figuring out the value you bringing to the table.
Your business will not be the same after value-based pricing.
Once you go with it, there is no going back.
Here is a simple framework to help you justify higher rates to your client.
Framework – Value-Driven Rate Framework
Remember, your goal is to use this framework to justify and charge higher rates on Upwork.
This is possible by emphasizing the value you provide to clients.
1. Understand Your Value
Clients will not understand your value if you do not understand your own value.
Identify the unique skills and expertise that set you apart from others.
Every human is unique. So is every freelancer.
You too.
You just have to figure that out and jot it down.
Here’s how to figure out your value as a freelancer:
1. Create a comprehensive list of your skills, experiences, and successful project outcomes.
2. Focus on specific achievements that demonstrate your impact, such as “Increased client’s website traffic by 50%.”
3. Use the Notion template to organize this information for easy reference.
2. Research Market Rates
Determine the appropriate rate for your services by comparing them with industry standards.
My go-to methods are market research are the following:
- Research rates are charged by freelancers with similar skills and experience on platforms like Upwork, Glassdoor, and freelance rate calculators.
- Compare where you fit in terms of experience, skill level, and market demand.
- Document your findings in the Notion template to establish a baseline for your rates.
3. Communicate Your Value
Reduce the friction to sale by clearly conveying the benefits and ROI (Return on Investment) you provide to potential clients.
For example, My premium newsletter (£7/month) gives clients 10x ROI.
I publish one ebook every week. Each ebook is priced at an average of £17 in my shop.
And they get 4 of them.
Plus, there are Notion bundles.
And access to my Notion Library worth over £100.
Still, I am undervaluing the resources that I am offering here.
It must be more than £300.
Similarly, you must convey the value they are getting.
You could be saving them £3000 a month.
Or helping them make £3000.
Get creative and figure out the impact of your services on their business.
You can do this by coming up with compelling value propositions that focus on client outcomes and success stories.
For example, “I design websites that increase conversion rates by 30%.”
Update your Upwork profile and proposals to highlight these value statements prominently.
Use the Notion template to refine and store these statements for consistency across all client communications.
4. Offer Tiered Pricing Packages
You can either go with tiered packages or value ladders.
I personally prefer value-ladder.
But tiered packages have worked well for many freelancers.
Provide clients with multiple service options at different price points to cater to varying needs and budgets.
How?
Here are three actions you should take:
- Action 1: Develop tiered service packages (e.g., Basic, Standard, Premium) with clearly defined deliverables and benefits.
- Action 2: Detail what each package includes and justify the pricing based on the value provided.
- Action 3: Organize and present these packages using the Notion template, making it easy to showcase during client discussions.
5. Leverage Testimonials and Case Studies
Case studies sell like hotcakes.
They are your conversion agent.
Your client can relate to your service through your case studies.
Use social proof to reinforce the value of your services and build credibility.
3 simple ways to do that are:
- Collect Testimonials: Gather feedback from previous clients that highlight the positive impact of your work.
- Create Case Studies: Develop detailed case studies that outline the problem, solution, and results of your successful projects.
- Presentation: Use the Notion template to compile and format these testimonials and case studies, making them readily accessible for proposals and profile updates.
As always, a framework is nothing if you do not have a tool to implement it.
Here is a Notion tool to help you implement higher rates.
Notion Template: Rate Calculation and Justification Tool
This template will help you calculate and justify higher rates using the Value-Driven Rate Framework.
It is free and simple to use.
Create an account on Notion.
Duplicate the template in your Notion.
And start using it.
If you like this issue, and find value in it, please reach out to me and let me know.
This will boost my confidence and I will know that I am connecting with you.
Otherwise, let me know what things would you like to learn about Upwork.
I reply to one single email, comment and DM.
Always happy to chat with my family.
Waiting,
Talha X
Dreamer & Founder @ The Notion Millionaire.
