How to Set Your Freelance Rates Without Losing Clients

Charge your worth.

It’s late at night, and you’re staring at your laptop, fine-tuning your proposal for a potential client you met on Upwork. You’ve spent hours crafting the perfect pitch highlighting your experience, showcasing your portfolio, and ensuring every word sells your expertise.

The following day, you hit “Send,” and within minutes, your phone buzzes. It’s them.

“Hey, we love your work. Let’s talk details. What’s your rate?”

Your fingers hover over the keyboard. You hesitate.

You’ve been here before. If you charge too much, they might disappear without a response. If you charge too little, you will be stuck working long hours for barely enough to cover your expenses. You quickly do some mental math, trying to find a number that sounds “reasonable.”

So, you reply.

Silence.

Minutes feel like hours. Then, the response comes in.

“That’s way out of our budget.”

Your heart sinks. Did you price yourself too high? Should you have asked about their budget first? Worse still, should you have lowered your price to land the project?

Every freelancer has faced this dilemma at some point. The struggle to balance fair pricing with client expectations is real, and it often feels like trying to find the perfect middle ground.

In all fairness, pricing your services shouldn’t feel like a gamble. You should charge what you're worth without losing clients, and this guide will show you exactly how.

1. Understand the Factors That Influence Your Rates

Before setting your rates, consider these key factors:

• Experience & Skill Level: The more experienced and skilled you are, the higher you can charge. A seasoned graphic designer will naturally have higher rates than a beginner.

• Industry Standards: Research what others in your niche charge to get a general idea of the right pricing.

• Consider Project Complexity: A one-page website will cost less than a full e-commerce platform. Consider the time and effort required.

• Your Business Expenses & Taxes: Remember, you’re not just charging for your time; you’re running a business. Account for software, taxes, internet, and other overhead expenses.

• The Value You Provide: Clients pay for results, not just effort. If your service helps them generate more revenue or saves them time, you can charge accordingly.

2. Calculate Your Base Rate

Before setting your freelance rates, you need to determine the minimum amount you must charge to cover your expenses and still earn a comfortable income. This is known as your base rate, the lowest hourly rate you should accept to keep your business sustainable.

A simple formula to calculate this is:

(Desired Annual Income + Business Expenses)÷Billable Hours=Hourly Rate

Let’s break it down with an example:

Imagine you want to earn ₦5,000,000 per year from freelancing. You also have ₦500,000 in annual expenses (such as software subscriptions, internet bills and taxes).

Now, let’s say you plan to work 1,000 billable hours per year (billable hours are the actual hours you spend working on client projects, not admin tasks or breaks).

Use the formula:

(₦5,000,000+₦500,000)÷1,000=₦5,500 per hour

This means you need to charge at least ₦5,500 per hour to meet your financial goals while covering your expenses.

3. Choose the Right Pricing Model

There’s no one-size-fits-all pricing strategy for freelancers. The best one for you depends on the type of work you do, how clients prefer to pay, and how much value you bring to the table.

1. Hourly Pricing: This works well for tasks where the workload isn’t clear from the start, like consulting or ongoing support. But the downside is you will be trading time for money, which means there’s a limit to how much you can earn.

   Choose this if you’re working on long-term or flexible projects where the scope might change.

2. Project-Based Pricing: This is great for tasks with clear deliverables, like writing an article or designing a website. The better and faster you work, the more you earn.

   Choose this if the project has a clear scope, and you can estimate how long it’ll take.

3. Value-Based Pricing: Instead of charging based on time or effort, you charge based on the impact your work creates. For example, if your copywriting helps a client make ₦1,000,000 in sales, charging ₦200,000 makes sense because your work brings huge value.

   Choose this if your work directly increases a client’s revenue, leads, or business growth.

So, Which One Should You Pick?

If you’re new to freelancing, hourly or project-based pricing is a safe start. But as you grow and start delivering bigger results, value-based pricing can help you earn more for the impact you create. The key is to understand what the client needs and choose a pricing model that works best for both of you.

4. How to Justify Your Rates Without Scaring Clients

Talking about money with clients can feel tricky. Instead of just throwing out a number and hoping they agree, show them why your pricing makes sense.

1. Focus on the Value You Bring
   instead of saying, "I charge ₦200,000 for this project," explain what they stand to gain.

   ✔️ Increased Sales: “With this sales page, you will attract more buyers and boost revenue.”

   ✔️ Better Brand Reputation: “This social media strategy will position your brand as an industry leader.”

   ✔️ Higher Engagement: “My email marketing will help you connect with customers and increase conversions.” When clients see the return on investment (ROI), they are more likely to accept your rates.

2. Offer Pricing Options
   Not every client has the same budget, and that’s okay. Instead of one fixed rate, offer tiered pricing (like Basic, Standard, and Premium packages). This gives them control over what they pay and makes it easier to say yes.

   For example:
   ✔️ Basic Package – ₦100,000 (Limited features)
   ✔️ Standard Package – ₦200,000 (More value)
   ✔️ Premium Package – ₦300,000 (Full-service, top-tier results)

3. Show Proof That You Deliver Results
   People trust results, not just words. If you’ve helped past clients succeed, showcase it.

   ✔️ Testimonials – Share what happy clients say about working with you.
   ✔️ Case Studies – Show before-and-after results from past projects.
   ✔️ Performance Data – If your work increased sales, engagement, or traffic, highlight the numbers. The more proof you provide, the more confident clients will be that they are investing in quality work and not just a price tag.

5. Learn How to Handle Price Objections

At some point, your client will say, “That’s too expensive” or “Can you lower your price?” And if we are being honest, hearing that can feel discouraging. But don’t panic. Price objections are normal, and how you handle them makes all the difference.

Instead of immediately lowering your rates, focus on communicating your value and offering flexible solutions. These are a few ways to respond:

• If a client says your price is too high:
  Say: I understand your budget concerns. My pricing reflects the expertise and results I bring. Let’s discuss how we can adjust the scope to fit your needs.

This keeps the conversation open without devaluing your work.

• If a client is hesitant to commit:
  Say: Would you prefer a phased approach? We can start small and scale as needed.

Some clients just need reassurance. Offering a smaller starting point can make it easier for them to say yes while keeping the door open for bigger projects later.

• If a client wants to know why your price is high:
  Say: This is a breakdown of what you’re getting for this price.

Transparency builds trust. Instead of just quoting a number, show them exactly what they are paying for, your skills, time, research, revisions, and the results they will get.

6. Know When to Walk Away

Not every client is worth working with. Some will try to negotiate your rates down to the bare minimum, while others expect premium work for peanuts. It’s tempting to accept low-paying gigs just to keep money coming in, but the funny truth is: clients who pay the least often demand the most.

They might:
❌ Expect endless revisions
❌ Disrespect your time and boundaries
❌ Keep adding extra tasks without extra pay

If a client insists on paying way below your worth, it’s okay to politely say no and move on. Every time you say no to an underpaying client, you make room for better clients who value and appreciate your work. The right clients are out there, you just have to create space for them.

Wrapping Up:

When you know your worth, and explain your value confidently, you will attract clients who respect your skills and are happy to pay for them.

Charging too little can leave you feeling overworked and underpaid. But when you price yourself fairly, you build a business that’s both profitable and sustainable. And if a client says, “That’s too expensive,” it just means they are not the right client for you.

And while you're growing your freelance career, Mulla can help you stay on top of your finances. With easy bill payments and up to 2% cashback, you can settle your electricity, TV, airtime, and data bills without stress. More money saved means more freedom to focus on your work.

So, what’s your next step? Will you adjust your rates, switch your pricing model, or confidently charge what you’re worth? Drop a comment, we would love to hear your thoughts.