Pricing your services: three models and when to use each

Underpricing is the most common mistake I see freelancers and small agencies make. Here are three pricing models and when each fits: 1. Hourly / day rate — Good for unclear scope and early relationships. Downside: you're punished for being fast, and clients watch the clock instead of the outcome. 2. Fixed project price — Good when scope is clear (a website, an audit, a setup). Price on the value and the risk you take on, and write down exactly what's included and what isn't. 3. Monthly retainer — Good for ongoing work like ads management or SEO. Tie it to a defined scope and review it every quarter. A few rules that hold across all three: - Always offer a paid discovery or audit before large projects. - Raise prices for new clients first. - If almost nobody pushes back on price, it's too low.