Negotiating Freelance Rates: A Practical Guide for Coworkers

Good rate negotiations are mostly won before the conversation starts. Know the lowest rate you can accept, price the work by what it includes, and be ready to change the scope instead of the price. Then put what you agreed in writing.

How do you work out your minimum rate?

Start with the income you need in a year, then add the costs that an employer would normally carry for you: tax, equipment, software, insurance, a desk or coworking membership, and time off. In the United States, for example, freelancers pay self-employment tax for Social Security and Medicare on top of income tax, as the IRS explains. Other countries have their own equivalents, so ask an accountant what applies to you.

Next, estimate the hours you can actually bill. Admin, pitching, invoicing and gaps between projects are unpaid. Divide your needed income by your billable hours, not by a full working week, and you have a floor. Anything below it costs you money.

How do you find out what clients pay?

Ask peers, not just job boards. Other members of your coworking space, professional groups and past colleagues will often share ranges if you ask politely and offer the same in return. Look at what comparable work is advertised at, and note that rates differ by region, experience and industry. Use these numbers as a range, not a single target.

Should you charge by the hour or by the project?

It depends on how clear the work is.

• Hourly: suits open-ended work, support and projects where the scope is likely to change.
• Fixed price: suits clearly defined deliverables. Clients like knowing the total, and you are rewarded for working efficiently.
• Retainer: suits ongoing work. A set monthly fee for an agreed amount of time gives you steady income.

If you quote a fixed price, list what is included and how many rounds of revisions it covers. Extra requests then become a new conversation, not a free favour.

What should you do before the call?

1. Ask for the scope, deadline and who approves the work.
2. Decide your ideal price, your acceptable price and the point where you walk away.
3. Prepare one or two examples of results from similar work you have genuinely done.
4. Have a quote ready, so you can give a number calmly instead of improvising.

How do you state your price?

Say the number clearly, then stop talking. Explain the scope it covers in one sentence. Do not apologise or add a discount before the client has asked. If they ask for your rate early, give a range tied to the scope, such as "for a project like this, I usually quote between X and Y depending on revisions and deadline", and ask questions that narrow it down.

If you work remotely, a video call usually works better than a long email thread for the first price discussion, and a short written summary afterwards keeps both sides aligned. If your connection is shaky, our guide to reliable internet for remote workers will help you avoid dropping out mid-negotiation.

What if the client says your price is too high?

Ask what budget they have in mind, then decide whether the work can be done properly for that amount. Options that protect your rate include:

• Reducing the scope, for example fewer pages, fewer deliverables or fewer revisions.
• Extending the deadline so the work fits around better-paid projects.
• Splitting the project into phases, with the first phase at their budget.
• Asking for a deposit or milestone payments if the client's budget is tight.

Cutting your rate for the same work teaches the client that your first number was negotiable and can make later projects harder to price.

When should you walk away?

Walk away when the price is below your floor, the scope keeps growing without payment, or the client will not agree to written terms. Say it politely: "I can't do it for that budget, but I would be glad to help if the scope or timeline changes." Leaving the door open often brings the client back.

What should be in writing?

Confirm every agreement by email at least, and preferably in a contract. Include:

• The deliverables and what is not included
• The price, the currency and how it is calculated
• Payment dates, deposit and late-payment terms
• Revision limits and the deadline
• Who owns the finished work

If the contract involves large sums or unusual terms, have a lawyer read it. Freelancers who work from shared spaces can also swap contract templates and tips with other members, and a workshop hosted in a coworking space is a good setting for that kind of exchange.

How often should you raise your rates?

Review them at least once a year, and whenever demand for your time is higher than your capacity. Give existing clients notice before an increase, and explain it briefly. Charge new clients the new rate from the start.

Negotiation is a skill you improve with practice. Each conversation shows you which questions to ask earlier, and which numbers to be firmer about next time.