It’s not easy to be a freelancer without experience. Actually, it’s not that difficult at all. I have trained a lot of freelancers to take their work to the next level and I’ve observed an unsettling trend: services are becoming increasingly commoditized.
A commodity is essentially an item that is sold and bought at a certain price that is based on the its market value. For instance the iPhone iPhone is pretty much a typical price. It also means that when one wants to purchase an iPhone the person knows about its cost.
When a service is made commodity, it means that consumers have an concept of what this cost should be based on its market value, and don’t want to spend more than they should.
It gets worse when you use freelance platforms like Upwork and Fiverr which allow you to generally discover services that are sold as packages that have a fixed price , independent of the situation.
Freelancers are on the bottom of the food chain.
If you’re looking to become successful in selling your services online You must first acknowledge something that is difficult to acknowledge: freelancers are in the lowest in the chain of food.
They’re among the most popular service providers that you can find across the globe, and particularly through platforms like Upwork and Fiverr that set prices for all services.
For instance, you could almost find someone to make a logo for you on Fiverr for just $50. Then, why is it that a client would spend more to get someone to create his logo?
This logic is logical it isn’t logical to blame our clients for this line of thinking. In the end, why do you have to spend more money for something you can do at a lower cost? It’s a mathematical equation and the fundamentals of human logic.
Offering freelance services Based on the value
The most effective method you can use to improve your freelance work to stay clear of getting “commoditized” is simple: you must be able to charge according to value, not on a price.
As an example, let’s look at another look at logo design. One might say that they could design a logo for $50. What’s the effect on the business of the client? What if the logo looks as if it’s a mess and doesn’t reflect the professionalism of the company?
Let’s say this logo appears so professional, it actually enhances the brand image of the client and professionalism.
Imagine that it aids in closing even one client for $10,000 or something? Then, is that logo worth the $50? Or , is it worth more than $10,000? Do you know where it’s headed?
But the value of a product is not enough …!
The most significant issue of being self-employed is you’re entirely on your own. This means that clients have a an immediate connection between the amount they will pay and the amount you earn.
It’s not a good idea to pay individuals too much, especially when it’s higher than what’s considered “enough”. For instance, paying $10,000 to design a logo is considered to be unacceptable.
However, the same business wouldn’t even think about paying similar amounts towards the “agency”, or a “team” of people. There’s no connection between the amount you earn and the amount you earn today.
The more larger your business appears the more money gets “diluted”. It means it is more acceptable for clients to shell out more.
Rebranding should be done as an agency
This is why, in my opinion, the most effective method for freelancers is to reinvent him as an agent instead of an individual.
It will not only take you out of the loop of commodity It can also allow you to charge more. There will be no connection between the amount the “agency” gets paid and the amount you earn at the close each month.
Rebranding yourself as an agency isn’t an easy process and it requires several steps and proper strategies to achieve it. The idea is that if you think higher than you are and be able to make more than what you’re currently earning.
As a freelancer you’re likely to be not paid enough because your work is seen as a commodity since you’re on your own, and also because customers aren’t willing to pay excessively.
If you change your name by rebranding yourself as an agency you will resolve all of these issues completely.