3 Reasons you’re not earning more as a freelancer 

As we enter 2025, a new year can be an exciting opportunity for growth and transformation. For freelancers, the start of a new year often prompts a time of reflection, especially if last year didn’t go as planned. Whether you’ve been struggling to reach your income goals or you’ve simply hit a plateau, this article is for you.

Freelancing offers freedom, flexibility, and independence, but it doesn’t always guarantee the financial success many envision. If you’re wondering why you’re not earning as much as you'd like, it’s time to take a closer look at the psychological and practical barriers that might be holding you back and how to break free from them.

1. You’re underpricing yourself

One of the most common reasons freelancers struggle to increase their income is underpricing. Many start out by offering low rates to attract clients, but when it comes time to raise those rates, fear of rejection or imposter syndrome often gets in the way. This feeling that your work isn’t “worth” a higher price is not only common but also limiting.

The solution: Start by researching industry standards for your niche. Gradually increase your rates for new clients and ensure you position yourself as an expert. It's important to recognise that the right clients will value your expertise and be willing to pay for it.

Here’s how to overcome underpricing:

• Reframe your mindset: Replace negative beliefs like "If I charge more, clients won’t hire me" with affirmations like “The right clients value my skills and are willing to pay for them.”
• Conduct market research: Understand what others in your field charge, especially those with similar skills and experience.
• Focus on value: Position yourself as a problem solver. Clients don’t just pay for your time; they pay for results.
• Raise rates gradually: Increase your rates with new clients, easing into higher pricing without alienating your existing client base.

Remember, saying no to undervaluing clients makes room for better opportunities.

2. You’re saying yes to the wrong clients

Listen, not all clients are created equal. Low-paying or high-maintenance clients can drain your time and energy, ultimately limiting your potential for growth. Often, freelancers hold on to these clients out of a scarcity mindset, believing that no better clients will come along.

The solution: Evaluate your current clients. Ask yourself: Are they helping you grow financially or professionally? If the answer is no, it may be time to let them go. Freeing up space for better, more lucrative opportunities will help you thrive.

3. You’re not tracking your time and projects

Effective time management is crucial for freelancers. Without it, you might end up undercharging or overworking yourself. Freelancers often underestimate how long projects take, which can lead to lower effective hourly rates.

The solution: Use time-tracking tools like Toggl or Harvest to accurately track how much time you spend on each project, including administrative tasks. When you understand how your time is spent, you can adjust your rates accordingly, ensuring you’re not leaving money on the table.

Freelancing offers the potential for unlimited growth, but to reach your highest earning potential, you need a strategy. The key to earning more as a freelancer is not simply working harder; it’s about working smarter. By shifting your mindset, optimising your processes, and showcasing the value you bring, you’ll be well on your way to growing a successful freelance business this year.

Clear, creative, and impactful communication starts here. For professional writing and communication solutions, email: [email protected]