In this episode of Two Pixels Off, Brad Hussey and Michael Janda break down practical strategies to help creative entrepreneurs adjust their freelance pricing, grow their businesses, and reprogram their mindset around value and rates. Here are the key takeaways from the discussion.
Understanding Supply and Demand in Freelancing
The Balance of Time and Clients
Freelancers often start with an abundance of time (supply) and a lack of clients (demand). In these early stages, lower pricing might be necessary to create opportunities and gain experience. As demand for your services grows, it’s crucial to raise prices to reflect your expertise and manage your capacity effectively.
How to Create Demand
Build a strong portfolio to attract clients.
Network consistently to uncover new opportunities.
Accept lower-paying projects early on to gain referrals and testimonials.
Adjusting Your Rates Over Time
Why Raise Rates?
Freelance pricing isn’t static. As your skills, confidence, and reputation grow, so should your rates. Failing to increase your prices not only undervalues your work but can lead to burnout by taking on too many low-paying projects.
Strategies for Adjusting Rates:
Set a Baseline: Determine the minimum amount a project must pay for it to be worth your time.
Reassess Regularly: Review your rates every six months to ensure they reflect your evolving expertise and demand.
Push the Ceiling: Test higher pricing with new clients to discover what the market will bear.
The Importance of Tracking Your Metrics
Win Rates and Profitability
Michael emphasizes the need to track your win rates—how many project proposals you submit versus how many you win.
100% Win Rate: Indicates you’re likely undercharging.
Too Few Wins: Suggests pricing or value communication issues.
By targeting a win rate of 50-70%, you can optimize profitability while maintaining balance in your workload.
Tools and Techniques:
Use proposal tracking software to measure success rates.
Monitor monthly income, expenses, and profit margins to gauge financial health.
Reprogramming Your Money Mindset
Overcoming Self-Limiting Beliefs
Many freelancers struggle to charge higher rates due to limiting beliefs about their worth or the value of their work. Both Brad and Michael share stories about being encouraged by clients or mentors to charge more, ultimately transforming their perception of pricing.
Key Insight: “You shouldn’t be winning 100% of your projects,” Michael says. Charging higher rates filters out clients who undervalue your work, allowing you to focus on fewer, more lucrative projects.
Growing with Your Clients
Scaling Alongside Their Success
As your clients grow, so should your projects. If your pricing and expertise don’t scale with your client’s needs, they may outgrow you and turn to competitors.
Actionable Advice:
Build trust and deliver value to maintain long-term relationships.
Leverage positive outcomes from past projects to justify higher rates.
Take Action Today
Whether you’re just starting out or looking to level up, applying these principles can help you transform your freelance business. Begin by:
Setting clear pricing baselines.
Tracking your win rates and financial metrics.
Reprogramming your mindset to embrace higher-value work.
Success is about more than just skill—it’s about understanding your worth and confidently charging for it.
About Two Pixels Off
Hosted by Brad Hussey and Michael Janda, Two Pixels Off is a podcast dedicated to helping creative entrepreneurs run successful businesses. The show covers everything from marketing and pricing to project execution and profitability, all aimed at empowering creative professionals.
If you’re interested in actionable advice for headline writing and other content strategies, tune into Two Pixels Off on your favorite podcast platform, or visit TwoPixelsOff.com for more episodes.