Pricing-Below-Market-Rate-A-Smart-Stepping-Stone-or-a-Double-Edged-Sword

Pricing-Below-Market-Rate-A-Smart-Stepping-Stone-or-a-Double-Edged-Sword

Starting out as a freelancer, getting the first few projects quickly is often the top priority. Among countless ways to attract clients, offering a lower-than-market rate is a common approach—one that many consider, and some apply right away. But is this truly a smart strategy, or could it end up being a double-edged sword?

Lower Rates Easier to Land Jobs, Harder to Build Longevity

Without a strong portfolio or much experience, quoting a lower price can give an edge over seasoned freelancers. Clients may also be more open to giving newcomers a chance if the rate fits their budget. However, the ease of landing jobs this way may come at a cost later on: difficulty raising rates, struggling to assert true value, and being perceived as lower-quality even when the work is excellent.

Undercutting Only Works in the Short Term

One undeniable fact: the freelance market is just as competitive as any other industry. If everyone resorts to underpricing to win projects, it gradually creates a vicious cycle where quality is sacrificed for affordability. Worse, it drags down overall market standards, making it harder for the entire freelance community to thrive.

Low Pricing Isn’t Wrong But the Reason Matters

Charging a lower rate isn't necessarily a bad move if it’s done strategically. It can be a viable approach during a trial period, when building long-term relationships, or while learning a new skill. The key is to be clear: this is a temporary phase, not a long-term pricing model.

How to Avoid Undervaluing Yourself

Focus on Value Delivered: Instead of competing on price, show clients why they should choose based on quality, reliability, and professionalism.

Build a Strong Portfolio: A clear, well-presented portfolio increases credibility and can be more persuasive than a low rate.

Raise Rates as Skills Grow: As experience and positive feedback accumulate, don’t hesitate to adjust pricing to reflect true worth.

Stick to Core Principles: Once a fair rate has been established, stand by it confidently. Clients who value quality will be willing to pay a reasonable price.

Pricing below market rate can be a smart move if done with intention and awareness. But when treated as a long-term strategy, it can slowly erode personal value and professional growth. In the freelance world, rates are negotiable but quality and self-respect shouldn’t be.

MiLin

MiLin leads Community and Social Impact at PitchNet, building initiatives that drive economic opportunity, freelancer wellbeing, and nonprofit impact.

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