Almost always, freelancers have a slightly different personality and agenda than the average employee. Whatever your motivation, almost all freelancers wonder how to define their worth. Here are a few easy ways for small business owners to know their worth:

Annual Salary

How much would someone with your experience and expertise get paid per year? Divide that number by 52 (weeks in a year) and then by 40 (hours per week). The number you are left with is what a business would pay an employee. The good thing here is that you’re not an employee, you are a specialist – which means that you can get much more.


The reason you can demand more than the average employee is that you have expenses. Life is not cheap. You have to consider all of your living costs, tools and work equipment when determining your worth. Don’t forget to include vacation savings, medical insurance and taxes.


How experienced are you? This will make a big difference in what you charge; however, if you are a quick learner and excel quickly – you can probably charge a bit higher than average. If you have a stellar reputation (that is backed up by social media: LinkedIn, Twitter, Facebook, Yelp, etc.), you can charge a premium rate. You must be able to verify your experience with a well-written resume.


Who are your current clients? Will they write client testimonials for you? Are you allowed to use their name? Can you put their logos on your website? Your current clients are some of your best assets when it comes to determining your worth. Ask them to write a little note about what you do and what makes you different from the rest.

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Picture credit: markus spiske