Why Underpricing is One of The Biggest Issues for Freelancers (and How to Fix It) 94

Why Underpricing is One of The Biggest Issues for Freelancers (and How to Fix It) - letsreachsuccess.com

Pricing your products seems to be one of the main blocks on the road for freelancers and independent creatives of all kind.

We all do work we love, we put in the time and effort, and have the expertise. And when it comes to asking what we think we should be paid for it, we get it wrong.

That happens for a few reasons:

  • we compare ourselves to the big names in the niche, think we’re nowhere near their quality work and reputation, and charge many times less than they do;
  • we still aren’t sure we’ll make it on our own;
  • we think being a freelancer is amateurish compared to the real entrepreneurs making the big money and don’t even try to get to a higher standard;
  • we don’t believe in our products as much as we should;
  • we aren’t sure about the ‘why’ behind the work we do;
  • we don’t feel comfortable taking people’s money;
  • we still think like an employee;
  • we think a higher price will raise customers’ expectations so much that we won’t be able to answer that with our offers;
  • we base what we charge per hour, or per item, on so many outer factors;
  • we keep in mind the clients’ budget and don’t want to make them take big financial decisions, so think that a much lower price would be a no-brainer;
  • and more.

If you look closely at all those reasons why we underprice our products and services, even though we’re answering a need in a specific market and care about the work we do for clients, you’ll see that the underlying problem is that we aren’t confident enough.

That, however, can be crucial for our business. Here’s why.

The Consequences of Underpricing

1. A proof for low quality.

One of the common rules in any business is that the customer gets what he pays for. And when you charge less, you are directly telling each and every potential client of yours that you’re offering them lower quality.

Underpricing means undervaluing your work and your abilities.

2. A negative perception of your brand.

If you, the owner of the business and the provider of the product/service, undervalue what you have to offer to people, you’re ruining your brand reputation.

3. You won’t attract high-value clients.

One of the freelancer’s dreams is to have a few big, loyal clients who come back with new projects on a consistent basis and thus provide security, a recurring income, and even help with word of mouth marketing.

But to do that, you need to build a name for yourself and to be confident enough to position yourself in the way that will attract such clients.

4. You won’t grow.

Pricing higher is a challenge. And as you know, challenges help us grow, both in life and in business.

If you keep your prices low, you’ll stay small, attract low-quality clients, and never live up to your potential.

Charging more, however, will help you get out of your comfort zone, see where your work can take you, and let you create the ‘learn and optimize’ mindset so that you can always be innovating and making a better offer with your goods and services.

Now that you know why underpricing is bad for our business and what makes us do it, let’s see what we can do about that.

The Solution to Underpricing Your Products: Value-Based Pricing

According to Sean McCabethe pricing models most freelancers and independent workers are using today are broken because it’s based on anything else but real value.

However, you should charge depending on the value you’re providing, and that is pure math and combination of stats and numbers.

To simplify that process and let you get paid what you’re worth, Sean has spent the last 2 years refining value-based pricing and developing custom tools to help you get through the process effortlessly.

It all begins with defining the value – that’s the starting point.

In fact, he created the Value-Based Pricing course where he describes the process in steps, and then gives you the tools you need so that the work is done for you.

It’s all about giving you the confidence to price correctly, and be sure that it’s fair to both your client and yourself.

The course is perfect for beginners, just getting started with client work. People who’ve never done contract work can still start charging the right price from day one, and do the best work they can at the same time.


If you’re tired of underpricing, think about all the reasons for that I mentioned above. Write down your version of this and think each item of the list through.

Confidence is the underlying connection, but there must be more.

Maybe you’ve got people in your surroundings killing your self-esteem, maybe your lack of diploma or special training makes you insecure, or it might be that you’re terrified of expressing how much your time is worth in numbers.

Whatever the reason, you need to get clear about it so that you can define your value clearly, and then ask to be paid more.

No more underpricing, just value-based pricing.

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5 Online Degrees That Pay Well and Lead to Great Employment Opportunities 4

5 Online Degrees That Pay Well and Lead to Great Employment Opportunities

Online programs range from diploma mills employers knowingly screen against to brand name universities issuing degrees equally valued by employers and employees. But many online degrees teach you skills employers will readily pay a premium for and will give you great employment opportunities.

Here are the 5 best online degrees for employment.


We still pay people quite a bit of money to keep track of our money, whether as individuals or organizations as a whole. Those with a degree in accounting earn more than the average person with a business degree.

If you upgrade to a master’s degree in accounting, you’re well on your way to a lucrative position as a CPA.

If you specialize in tax accounting, you would work as a tax preparer full time or seasonally, while those working in bookkeeping are well paid whether working full time or part-time.

If you earn a degree in accounting after working as a life coach or personal development, you could become a personal finance advisor. Or simply work in accounting, a field expected to grow 13% over the next ten years despite the increasing use of personal accounting software.

If you are looking for a reputable online accounting degree, there are a number of Kaplan Online Programs you can choose from which are all highly recommended.


5 Ways to Boost Your Business Revenue

Businesses pay people to find out how to better understand their customers and speak to them. This is why marketing assistants earn thirty to sixty thousand dollars a year, while experienced marketers earn much more.

If you have copywriting skills like determining which keywords should be integrated into a webpage to put it front and center before a target demographic when they’re ready to buy, you’ll make even more.

If you have a track record of success or management skills, you could easily earn a hundred thousand dollars a year running a marketing department. Not only that, but online marketing degrees are highly respected since marketing and other financial degrees transfer very well online.

Human Resources

Human Resources has become far more complex over the past few years as rules and regulations that companies have to abide by exploded in number.

Hiring, firing, promotions, and training have to be done per complex procedures if you want to minimize the risk of a lawsuit. And whether it is required by state law or guidelines set by federal contracts, you have to fill out a number of reports each month, quarter and year on your workforce.

This means that working in HR is no longer something you do when you want a break from ordering office supplies. It requires training in the law, industry-specific software and procedures. If you earn an online degree in Human Resources, you’ll be eagerly sought after by many companies’ personnel departments.

Video Game Design

While Hollywood’s blockbuster seasons get reported on the news, the reality is that people spend several times that much on video games per year. This money is increasingly spent on digital releases over physically purchased game disks, and spending is shifting toward subscription services and apps.

The sheer amount of money means that even free games that make money through advertising or in-game purchases have to look good, while expensive games have to offer rich visuals to keep the audience engaged.

This has led to the appearance of video game design and video game arts as its own degree program, separate from the general graphic arts. If you have this expertise, you’ll find decent paying jobs with a number of companies as well as gaming app startups. And this degree means you don’t have to spend a lot of time learning to code, either.

Not only that, but with an online degree in video game design, you could get the foundation to create your own video game development company, all from the comfort of your home.

Database Administration

IT is a hot degree today, but learning how to code can seem daunting, and staying up to date with the constantly evolving programming languages is a challenge.

Conversely, database software has been relatively stable, and companies are seeing their stored data grow by 10% a year or more. The solution is larger and more complex databases and more database administrators.

If you earn a degree in database administration, you could work in a number of industries. Whether you’re controlling access to product data, managing customer data or mining data from the IoT, you have a good career in IT ahead of you.

And with the advent of Big Data and advanced data analytics, database administration degrees should continue to be in high demand for years to come.

All these careers have great prospects and adapt themselves very well to online education. This will not only mean that employers will be more inclined to consider you but will give you the same full spectrum of skills any traditional degree would.

Online programs range from diploma mills employers knowingly screen against to brand name universities issuing degrees equally valued by employers and employees. But many online degrees teach you skills employers will readily pay a premium for and will give you great employment opportunities.  Here are the 5 best online degrees for employment.