One of the first questions new freelancers ask is: What should I charge?
It sounds like a simple question, but it most assuredly is not.
Your rate has to cover much more than the time you spend writing, editing, or consulting. As a freelancer, you are also paying for the time you spend finding clients, preparing proposals, managing projects, invoicing, keeping records, maintaining your skills, and running the rest of your business.
You are also paying expenses an employer may once have covered: equipment, software, insurance, professional memberships, taxes, and time off.
That is why starting with, “What hourly rate sounds reasonable?” can lead you badly astray.
Your first task is to understand what your work actually needs to earn. From there, you can decide how to structure the price.
Hourly pricing works well when the scope or amount of work is difficult to predict. Editing is a common example: until you know the condition of the document, estimating the exact amount of work may be difficult. Hourly pricing also makes sense for consulting or other work that evolves as you go.
Project pricing works well when the scope and deliverables are reasonably clear. The client knows what the project will cost, and you are being paid for the completed work rather than for each hour you spend producing it. But project pricing only works if you can estimate the work accurately—and define what is and is not included. Agency work is typically project pricing.
Retainers can make sense when a client needs a predictable amount of ongoing support. They can provide steadier revenue for the freelancer and reliable access to expertise for the client. But a retainer still needs boundaries: what work is covered, how much availability is included, and what happens when the client needs more. (Boundaries also ensure your work doesn’t blur into the territory of functioning as an employee under federal or state tax law.)
None of these pricing models protects you from underpricing.
You can set an hourly rate too low. You can quote a project without accounting for revisions, meetings, or project management. You can agree to a retainer that quietly expands into unlimited availability.
The important question, then, isn’t simply hourly, project, or retainer?
It is whether the price you set reflects the real cost of running your business, the work required, and the expertise you bring to it.
Freelance pricing should be a business decision—not a guess about what you think a client might be willing to pay.
If you’re still deciding whether freelance work is the right next step for you, start with our Freelance Readiness Self-Assessment.