As creatives, we often face a dilemma when it comes to pricing our services. It’s a challenge to balance being fairly compensated with not scaring off potential clients. Having started from pro-bono work and transitioning to hourly and project-based billing, I’ve experienced the pitfalls of undervaluing my work. What should’ve been quick, simple projects often spiraled into week-long marathons, all because I lacked a clear pricing strategy and firm boundaries.

To truly master pricing, we must dig deeper than just slapping a number on our services. It’s about understanding the full scope of our value, establishing firm boundaries with clients, and selecting the right pricing model for each unique project.

1. Value-Based Pricing: Beyond the Dollars

Value-based pricing shifts the focus from the time you spend to the impact your work has on the client’s business. This model allows you to price based on the value your creative solution brings rather than the hours it takes to execute. Made by James emphasizes the importance of understanding your client’s true needs. By diagnosing their underlying challenges, you can offer solutions that go beyond what they initially requested—leading to higher-value engagements.

But value-based pricing isn’t just about asking for more money. It requires a deep dive into your client’s goals, understanding their market, and identifying how your work contributes to their success. For example, if you’re designing a logo for a startup, consider how this brand identity will be used to attract investors, build customer loyalty, and drive sales. The better you understand the potential impact, the more accurately you can price your services.

2. Retainers: Stability and Consistency

Retainers offer a steady income stream, which can be a lifeline in the unpredictable world of freelancing. Angela Elliott highlights that retainers are particularly valuable for long-term client relationships, providing both parties with a predictable workflow and consistent results. However, the key to a successful retainer arrangement lies in setting clear expectations and boundaries upfront.

Your contract should clearly define the scope of work, the monthly deliverables, and what happens if the client doesn’t utilize the agreed-upon hours. This prevents misunderstandings and ensures that you’re not overworking yourself for a flat monthly fee. Retainers work best when there’s mutual trust and respect, and both parties are committed to a long-term partnership.

3. Navigating the Pitfalls of Hourly and Project-Based Pricing

When I first transitioned to paid work, I leaned heavily on hourly and project-based pricing. Hourly rates felt safe—I was guaranteed to be paid for every minute I worked. But as Chris Do warns, this approach can limit your potential. You’re tethered to the clock, and clients may begin to see you as a commodity rather than a partner.

Project-based pricing seemed like the next logical step, but it came with its own set of challenges. Without firm boundaries, projects often dragged on, with clients requesting endless revisions. What should’ve been a two-hour task could easily turn into a week-long marathon. The key to avoiding these pitfalls is to set clear expectations from the start. Define the project scope in your contract, outline the number of revisions included, and specify how additional work will be billed.

4. Performance-Based and Equity-Based Models: The High Risk, High Reward

Performance-based pricing and equity-based payment models offer the potential for significant rewards, but they come with substantial risks. Performance-based pricing aligns your success with your client’s—if the project performs well, so do you. However, this model can be risky, as your income is tied to factors beyond your control. It’s crucial to set clear performance metrics and protect yourself with a well-drafted contract.

Equity-based payment, on the other hand, involves taking a stake in your client’s business in exchange for your services. This model can be lucrative if the business succeeds, but it’s also a gamble. You’re investing your time and skills into a venture that may not pay off for years, if at all. Before entering into an equity agreement, ensure you fully understand the client’s business, market potential, and risks involved.

5. Money Mindset: The Foundation of Pricing

One of the most crucial aspects of pricing that often gets overlooked is your money mindset. As a creative, having a solid money mindset means recognizing your worth and feeling confident about charging what your services are truly worth. It’s about shifting your perspective from seeing pricing as a mere transaction to viewing it as a reflection of the value you bring to the table.

A strong money mindset also helps you set and maintain boundaries with clients. When you believe in the value of your work, you’re less likely to undervalue yourself or accept projects that don’t align with your pricing standards. This mindset is especially important for long-term growth because it allows you to scale your business sustainably, avoiding the common trap of overworking for underpayment.

Building a solid money mindset takes time, especially in an industry where creatives are often conditioned to accept less because they “love what they do.” But remember, passion and profession are not mutually exclusive. You deserve to be paid well for the value you bring, and this mindset is key to ensuring your long-term success and growth.

6. Protecting Yourself: The Power of Contracts

Regardless of which pricing model you choose, the common denominator must always be a solid contract. Contracts are your safety net—they set clear expectations, define the scope of work, and protect you from scope creep and non-payment. They’re not just about legal protection; they’re about clear communication and ensuring that both you and your client are on the same page from day one.

Download my freelancer contract template for free here to ensure you’re fully protected, no matter how you choose to price your services.

Final Thoughts: Own Your Worth

As creatives, we often struggle with pricing because it feels so personal. But remember, pricing isn’t just about what you need to survive—it’s about the value you bring to your clients and the impact your work has on their business. Whether you’re using value-based pricing, retainers, or any other model, the key is to own your worth, set firm boundaries, and always protect yourself with a solid contract.