Why Fixed-Price Projects Kill Freelance Profits
The biggest lie in freelancing is that "Security" comes from a steady hourly rate. In reality, trading time for money is the fastest way to cap your income and burn out.
The Efficiency Trap
Imagine you charge $100/hour. You get better at your job. A task that took 10 hours now takes 5.
You just penalized yourself. You earned half as much money for being twice as good. Hourly billing aligns your incentives against efficiency.
The Solution: Value-Based Pricing
Instead of charging for the time it takes to build a website, charge for the value of the website to the client. If a landing page generates $50,000 in sales for them, is it worth $5,000? Yes. Even if it took you 2 hours to build.
🚀 Send Better Proposals
Stop sending Word docs with "Estimated Hours". Send a professional proposal that frames your work as an investment, not a cost.
Get The $10k Proposal Template →How to Transition
- Anchor the Price: Ask "What is a new customer worth to you?" before you state your price.
- Offer Options: Give 3 pricing tiers. 1x for the basics, 2.5x for the standard, 5x for the premium. Most will pick the middle.
- Detailed Scope: Fixed price requires fixed scope. Be extremely clear about what is INCLUDED and what is EXTRA.
Protect Yourself with a Contract
The danger of fixed price is "Scope Creep". The client asks for "just one small change" twenty times. You need a contract that defines the deliverables and a fee for extra revisions.