How to set Freelance Rates and Negotiate Better Terms

Freelancing gives you the freedom to work with clients worldwide, but setting the right rates and negotiating better terms can be challenging - especially when working across borders. Charge too little, and you might struggle to make a living. Charge too much, and you risk losing clients. So, how do you find the sweet spot?

In this guide, we’ll explore different pricing models, how to calculate your freelance rates globally, and key negotiation tactics.

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Understand Different Pricing Models for Freelancers

There are several ways to charge for freelance work .The right pricing model depends on your industry, experience level, and the type of projects you take on.

1. Per word (Best for writers, translators, content creators)
   This is common for freelance writers, journalists and translators. Clients pay based on the number of words agreed.
   Example: A content writer with British clients charges £0.10 per word for blog content, while a technical writer may charge £0.50 per word for complex reports

1. Per hour (Best for Consultants, Designers, Developers)
   Hourly rates work well for tasks requiring flexible timelines and ongoing collaboration.
   Example: A UX designer in Germany charges €75/hour for website mockups, while a beginner designer in Argentina charges $30/hour.

1. Per project (Best for fixed deliverables and larger scopes)
   A flat rate is charged based on the estimated time and effort for a project.

Example: A journalist charges $1,500 per long-form investigative piece instead of billing per word.

1. Retainer Model (Best for ongoing work and stability)
   Freelancers receive a fixed monthly payment for continuous work, ensuring a steady income.

Example: A social media manager charges $1,500/month to handle posts, engagement, and reporting.

How to Calculate your Rates: A Global Approach

Setting your rates isn’t just about guessing a number - it requires research and strategy, especially for international freelancers.

Consider your Experience and Niche

Beginners may start at industry averages, while specialists can command higher rates.

Example: An e-commerce copywriter with a niche expertise in the UK charges £100/hour, while a generalist content writer charges £50/hour.

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Factor in Living Costs and Taxes

Your location affects your minimum viable rate. A freelancer in India or Indonesia may charge differently than one in Sweden or Canada due to cost-of-living differences.

Tip: Use online tools like Numbeo or Payscale to compare living costs and adjust accordingly.

Outstandly

Research Industry standards across borders

Look at market rates in different regions:
US Copywriters: $50–$200/hour
European Graphic Designers: €30–€150/hour
Asian Software Developers: $25–$100/hour

Currency fluctuations and international payment fees

Freelancers getting paid in multiple currencies must consider exchange rate fluctuations.

Example: A Brazilian freelancer receiving USD payments sees earnings shift based on exchange rates.

Solution: A Wise Business account allows you to hold and convert currencies at better rates.

How to Negotiate Better Freelance Rates

Once you’ve set your rates, the next step is negotiating fair compensation.

Know Your Worth & Justify Your Rates

Clients value expertise. Show them the return on investment.

Example: A freelance web designer proves that a past project increased a client’s conversion rate by 30%, justifying a higher fee.

Handle Common Client Pushbacks

“Your rates are too high.”
Response: “I understand budget concerns. My rates reflect my expertise and the value I provide.”

“Can we pay after 90 days?”
Response: “I require 50% upfront for new clients.”

“Can we do a free test project?”
Response: “I’d be happy to share my portfolio instead.”

Offer Pricing Tiers for Flexibility

Giving clients options helps them choose what fits their budget while ensuring fair pay.

• Example: A social media manager offering tiered pricing:
  • Basic: $500/month – 10 posts, no ads
  • Standard: $1,000/month – 20 posts, engagement strategy
  • Premium: $2,000/month – 30 posts, ads, reporting

Getting Paid as an International Freelancer

Once you’ve negotiated a rate, the next challenge is getting paid efficiently across borders.

Choosing the Right Payment Methods

Each payment method has pros and cons:

• Bank transfers: Expensive for international payments.
• PayPal/Skrill: Convenient but high fees (~5% per transaction).
• Wise Business: Lower fees, fast payments in multiple currencies.

Setting Up Contracts & Payment Terms

A clear contract protects you from late payments.

• Tip: Invoice in the client’s preferred currency but receive payments in your own via Wise Business.
• Example: An Australian freelancer invoices a UK client in GBP but receives payment in AUD without high conversion fees.

Set Your Rates with Confidence

Setting and negotiating freelance rates is essential for a sustainable career— especially for international freelancers. By choosing the right pricing model, researching global standards, and using the best payment solutions, you can ensure fair compensation while working with clients worldwide.

Wise Business helps freelancers get paid faster and with fewer fees, no matter where they are. Open a multi-currency account today to take control of your international earnings.

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