How to Set Freelance Rates Without Underselling Yourself
May 28, 2025

Figuring out how much to charge as a freelancer is one of the toughest, and most important, decisions you'll make in your career.
Charge too little, and you're constantly overworked and underpaid. Charge too much, and you risk pricing yourself out of opportunities. But here’s the truth: most freelancers err on the side of caution and undervalue themselves.
That’s not just bad for your income; it also hurts your confidence, weakens your positioning, and slows your long-term growth.
This guide will help you take a smarter, more strategic approach to pricing your freelance work. Whether you're just starting out or trying to scale, you’ll learn how to set rates that reflect your value and attract clients who respect your craft.
Why Underselling Is More Dangerous Than You Think
Many freelancers start by charging low rates to win projects and “build a portfolio.” That may seem like a sensible move early on, but here’s the catch: it’s incredibly hard to climb back up from there.
Here’s what usually happens when you price yourself too low:
You attract bargain-hunting clients who see you as a commodity
You get overwhelmed quickly, taking on more work to meet your financial needs
You create a perception problem, where potential clients assume you’re inexperienced or not very good
Underselling doesn’t just lower your income. It puts your freelance career on a slow track to burnout.
How to Price Your Freelance Services Strategically
Pricing is not just about covering your time. It is about building a sustainable freelance business that reflects your value. The steps below will help you move from guesswork to a clear strategy that supports your income goals, strengthens your positioning, and attracts clients who respect your work.
1. Work Backward From Your Income Goals
Before you think about “market rates” or what others are charging, get clear on what you need to earn.
This isn't about fantasy income. It's about designing a rate that supports your lifestyle and allows you to grow.
Here’s a simple step-by-step calculation:
Decide your ideal monthly income
Example: ₹2,00,000/monthCalculate how many hours you can realistically bill each month
Let’s say: 20 hours/week × 4 weeks = 80 hoursDivide income goal by billable hours
₹2,00,000 ÷ 80 = ₹2,500/hour
That’s your minimum baseline rate. You can now adjust it based on your niche, experience, or market, but never drop below this without a valid reason.
2. Understand the Difference Between Time and Value
A common mistake freelancers make is charging for time rather than outcomes.
Yes, it’s easy to track time and bill by the hour. But if you’re delivering real results, your clients aren’t just paying for your time — they’re paying for the impact you create.
Value-based pricing shifts the conversation from “How long will this take?” to “What is this worth to your business?”
Let’s say you design a sales page that helps a client bring in ₹10 lakhs in revenue. Even if it only took you 8 hours, charging ₹80,000 or more is entirely fair. Why? Because you’re not selling your hours. You’re selling your expertise and results.
To get started with value-based pricing, ask questions like:
What is the goal of this project?
What does success look like?
What kind of ROI are you expecting?
These questions help uncover value, not just tasks.
3. Package Your Services to Avoid Scope Creep
One of the best ways to avoid pricing anxiety and protect yourself from endless revisions is by packaging your services.
Instead of hourly billing, create fixed-price packages with clearly defined deliverables. This makes your pricing more predictable and more appealing to clients who want clarity.
Here’s how it might look:
Starter Website Package: ₹30,000
Up to 5 pages, responsive design, 1 revision roundMonthly Social Media Management: ₹18,000
12 posts, captions, 1-hour strategy callLogo + Brand Guide Package: ₹25,000
3 logo concepts, final logo, basic brand guidelines
Packages help you earn more for your time and reduce pricing objections. They also make it easier for clients to say yes.
4. Do Market Research and Then Go One Step Higher
You should absolutely know what others in your industry are charging. But you don’t need to match them.
Use freelance platforms, industry reports, or communities to get a feel for typical rates in your niche. Look at freelancers with similar skills and experience.
Then ask:
Are they undervaluing themselves?
Are they offering something I don’t?
Am I delivering more ROI per project?
If your work delivers above-average results, your pricing should reflect that.
You don’t have to be the cheapest. You just need to be confident in the value you offer.
5. Include the Hidden Costs of Freelancing
Your rate needs to cover more than just your time.
As a freelancer, you’re also your own:
Accountant
Marketer
Customer support rep
Tech support
HR department
You also need to pay for tools, taxes, and downtime between projects. All of this should be factored into your pricing.
If you want to make ₹2,00,000 a month, and 30% of that goes into tools, admin time, and expenses, your actual income is only ₹1,40,000.
To build a sustainable freelance career, your rates need to reflect your full workload, not just the hours spent on client projects.
6. Use Anchoring to Present Your Rates Strategically
Clients rarely know what your service should cost. That gives you the power to control the frame.
Offer tiered pricing with clear value differences:
Basic Plan: ₹15,000 – limited scope, no strategy call
Standard Plan: ₹25,000 – full scope, 1 strategy call, 1 revision
Premium Plan: ₹40,000 – full scope, strategy + analytics, ongoing support
This technique is called price anchoring — and it helps clients see your mid-tier as the most logical choice. It also makes your highest tier look aspirational rather than excessive.
7. Learn to Say No to Lowball Offers
The ability to walk away is a pricing strategy in itself.
Not every client is your client. If someone tries to negotiate your price down to the floor, it’s usually a sign of future issues: scope creep, delayed payments, or micromanagement.
Saying no protects your time and keeps space open for clients who truly value what you do.
A simple script:
“I appreciate your interest, but this rate reflects the time, skill, and quality I bring to the table. I wouldn’t be able to deliver my best work below this price.”
Let your work speak for itself, and don’t be afraid to turn down projects that don’t align with your goals.
8. How Worknue Can Help You Earn What You’re Worth
Worknue is more than just a place to find gigs. It’s designed to help freelancers build long-term careers, not just land one-off projects.
Here’s how the platform supports your pricing growth:
Freelancer Profiles let you showcase your expertise, niche, and packaged services — so you're not stuck competing on price alone.
Client Ratings and Reviews help establish credibility, giving you more leverage to raise rates over time.
Smart matching helps avoid spammy, low-value gigs by connecting you with businesses that are looking for quality, not cheap labor.
Our upcoming InstaGigs feature will give you an easy entry point into new client relationships. It is designed to help you showcase your skills through short, one-off tasks before moving on to larger, better-paid projects.
As you gain experience and positive feedback on Worknue, your perceived value goes up — and so should your rates.
Final Thoughts: You Deserve to Be Paid Fairly
If you’re serious about freelancing, you can’t afford to price emotionally.
Your rate isn’t just a number. It is a reflection of how you see yourself and how you want others to see you.
Do the math. Define your value. Back yourself. And don’t let fear dictate your pricing.
Clients who truly respect your work won’t flinch at fair rates. They will appreciate the clarity and professionalism you bring to the table.
Ready to start attracting better clients who value your work? Create your free profile on Worknue and position yourself for high-quality gigs and long-term growth.
👉 Create Your Freelancer Profile on Worknue