4 reasons why you need to increase your freelancer day rate (and how to do it)
Freelancer day rates are on the up. According to research published on Freelance UK, the average day rate for freelancers is now £368 and that's increased by 5% since 2020. Some freelancers are reportedly earning up to £1,500 a day!
If your day rate has been stagnating, you don't think you're being paid appropriately for your skills and experience, or you haven't considered increasing it, you need to read this.
Businesses are willing to pay more for freelancers
The main reason why you need to increase your day rate is potential clients are increasingly willing to pay more. The opportunity to earn more is there.
IPSE recently reported that quarterly freelancer earnings are at the highest level since the EU referendum. 45% of businesses surveyed by People Per Hour in 2022 said they were more concerned with quality than price and 20% are willing to pay whatever it costs to get the job done well by the right person.
Freelancers are a desirable hiring option for lots of businesses
Freelancer hiring has been on the up since Covid-19. The pandemic was initially concerning for freelancers, and some experienced a serious loss in earnings, but the recovery has been positive.
84% of the hiring businesses surveyed by People Per Hour said they believe freelancers are a huge asset to them. Web developers, content writers, graphic designers, SEO specialists, mobile app developers, and social media managers are most in-demand.
You could be undervaluing your skills and experience
It's incredibly common for freelancers (particularly brand new ones) to undervalue themselves. As our skills and experience increases, we should be charging more. However, male freelancers are earning 43% more than female freelancers, which is reportedly driven by women being more likely to not charge what they're really worth. If this continues, male freelancers will continue to earn more than their female counterparts, regardless of who is more skilled or experienced. This needs to change.
Freelance projects are getting longer
Businesses are reportedly more interested in hiring freelancers for longer periods (9 weeks on average according to Freelance UK) rather than to fulfil a short-term need. This means the future of hiring for a lot of businesses is freelance and the work of freelancers is increasingly valuable to them.
How to increase your day rate
- Not sure what you should be charging? Talk to other freelancers in your sector. Find out what your contemporaries are charging and how long their projects are. If they're charging double what you're charging, you need to know. This is especially important for women who freelance.
- Inform new clients what you charge and don't compromise. It's up to you whether you increase your rate for existing clients or not, but new clients should receive your revised rate.
- Believe you're worth it. Hesitating a bit? Remember that you are worth it and your time and work should be compensated appropriately.
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