Whether you’re an experienced freelancer or just starting out, discussing rates can be challenging, especially in a fast-changing economy. With over 26 years of experience in IT recruitment, we’ve seen it all—from juniors overestimating their rates to senior professionals undervaluing their skills, or clients doing so.
So, how do you approach rate discussions? Here are a few tips to help you get started!
1. Discuss your rate with your accountant
Before you start establishing your range of rates, it’s time to have a conversation with your accountant. They can provide a clear picture based on your financial needs—considering personal and professional expenses, expected billable hours, and your desired profit margin. This discussion can help you refine your rate to ensure it’s competitive and sustainable. Especially when freelancing is new for you.
2. Know your worth
Once you have established what you need, you can research your market value. This is crucial to understand how you can position yourself in relation to competition, but it’s not as simple as it sounds. While you might get advice from peers, remember that their circumstances may differ—whether in terms of expertise, industry, or even geographic location.
Where can you find reliable data?
- Freelance Network Belgium: This platform offers insights into average rates for various roles within Belgium, helping you benchmark your skills against the market.
- Acerta’s Rate Calculator: Acerta provides a tool to estimate your rate based on industry standards, which can be an excellent starting point.
- Reddit: Surprisingly, Reddit is a valuable resource, especially in the IT sector. Forums dedicated to freelancing or IT careers often discuss day rates, with input from professionals who might have similar profiles to yours. You can find region-specific advice, including rates in Belgium.
New to freelancing? If you’re just starting out, check out our blog, where we explore the nuances of freelancing and offer some advice on how to get started.
3. Consider alternative billing methods
While daily or hourly rates are the most common in freelancing, they aren’t the only options. Depending on the project, it might be worth considering alternative billing methods:
- Project-based rates: Charging for the project as a whole rather than by the hour or day can sometimes be more lucrative, especially if you’re highly efficient.
- Result-driven rates: In some cases, tying your compensation to specific outcomes or milestones might appeal to clients who value performance.
- Flexible rates: Adjusting your rate based on the length of the project is another strategy. For instance, you might offer a lower hourly rate for longer engagements to secure steady work, while charging a premium for shorter, more intensive projects.
4. Prepare for negotiation
Once your rates are set, be ready to negotiate. Clients may push back on your initial proposal, but with thorough research and a solid understanding of your worth, you can stand firm. Remember, negotiation isn’t just about the rate—it’s also about the scope of work, deadlines, and other terms that could impact your overall compensation.
5. Continuous learning and adaptation
The IT sector is constantly evolving, and so should your rates. Regularly review and update your skills to stay competitive. As you gain more experience, take on more complex projects, and expand your portfolio, your rates should reflect this growth. Don’t be afraid to raise your rates as your value in the market increases.
In conclusion
Discussing rates doesn’t have to be daunting. By knowing your worth, consulting with experts, considering flexible billing options, and preparing for negotiation, you can set rates that reflect your true value. As a seasoned IT recruitment company, we’ve helped countless freelancers navigate these discussions successfully.
Ready to get started? Whether you need guidance on setting your rates or are looking for your next freelance project, we’re here to help. Contact us today to explore how we can support your freelance journey!
Sources
- https://info.hub.brussels/en/guide/starting-business/what-price-should-i-charge-freelancer
- https://www.securex.be/en/blog/entrepreneurs/how-to-set-your-price-as-a-freelancer-in-4-steps#:~:text=In%20general%2C%20you%20should%20not,risks%20the%20employer%20usually%20covers.
- https://netto-planner.acerta.be/simulatie/profiel/dW13d1JKVTlCTloyZmdLWlhVNm1Rdz09
- https://freelancebusiness.be/supportguide