One of the biggest mistake newbie freelancers make is under valuing their services. $100 for a logo an stationary package is not acceptable. If you choose to work for these types of rates, it is a slippery slope and you will always be working for below average pricing. Why would a client pay market rate to you once you have already lowered the bar? Not to mention, any possible referral work they send your way will also be expecting the same discount.

Trying to set your rates can be a confusing problem. My recommendation would be to charge what you feel you are worth. If they hourly number you quote makes you feel content with the work you are producing then that is all that really matters.

Commit and be organized

If you want to be successful at freelance design, it needs to be your main focus. The easiest way to commit to your new found freedom is to quit your day job. I know it might sound scary but if you aren’t comfortable quitting your job, you probably shouldn’t be freelancing. Another crucial aspect to freelancing is to be organized. You are now in charge of not just design but accounting, sales, marketing and other various small business responsibilities. A good way to keep your projects organized is to use a project management service like Basecamp. Also, it would be a good idea to pick up a copy of Open Office to keep your accounting organized. There are a number of other personal accounting systems out there so search around for the best fit for you. A final exercise that is a good way to keep your business growing is to dedicate a set amount of time each week for marketing your business. Whether it be through google ads, social media websites like Twitter, or simply checking in with your clients from time to time to see if they need a hand with any projects.

Don’t sell yourself short

Do not, I repeat do not ever work for free! If you are a qualified designer, you have spent several years building your skills and it isn’t fair to be expected to work for nothing. Aside from the personal aspect, it cheapens the design industry and helps to spread the notion that design isn’t a valid trade. If you are fresh out of school or only have a small amount of experience, you should be charging $25/hr minimum for your services. If you are an experienced designer, you should be charging $50-$100/hr. It comes down to what you think you are worth – I understand that working for free or cheap when you are starting out may sound like a good idea to get your feet wet. However, if you start working at a rate of $10/hr, you will always be working at that rate. Why would your client pay anymore once you have established that rate with them? As well, any referral work they throw your way will be expecting the same discounted rate. “I know this great designer that works for peanuts! You should really give them a call.” Believe me, that is a headache you don’t want. Most of the time, clients that offer low-ball pricing are not businesses you want to work with in the first place. They generally will push you the hardest and pay you the least. Remember the following quote as it has helped me immensely:

Fast, Cheap, Good. You can have two of those terms but it will cost you the third. For example, if you want it fast and cheap, it isn’t going to be good.

Keep it legal

One of the great advantages of freelance design is the ability to register your own business. This is allows you to take advantage of business expenses that you can write off against your income. Therefore, paying less tax at the end of the year. I’m not going to pretend I’m an accountant so I would recommend you find yourself a good accountant to do your taxes for you. You should also look into registering your business as a sole proprietor.

Now that you are an official business person, it is time to start acting professional. What does that mean? NO PIRATED SOFTWARE. This is your full-time business and you should invest in it. If you are using pirated software and your client(s) find out this could negatively impact your company. As well, we are trying to be professional here and pro’s don’t steal software. This also holds true for fonts, vector artwork, and photography. If you expect to be paid $50/hr for your services, don’t ask a photographer to do a photo shoot for free. One of the most important things you can do as a freelancer is act professional and provide excellent customer service to your clients. If you hope to one day work with the nikes of the world, you need to project an image of success and professionalism.

This is just a start. Freelancing is a continuing learning experience and experiment. In the near future, I’ll plan to write more about freelancing. If you are interested in the specific details of registering your business in Canada, please leave your questions below in the comments.