0 1 00:00:02,590 --> 00:00:10,430 Here's some tips on pricing. A lot of freelancers think, that clients pick lower prices. And if they'd 1 2 00:00:10,430 --> 00:00:14,880 bid low, they think they're going to look more attractive for the clients. 2 3 00:00:14,900 --> 00:00:16,110 Sort of like a bargain. 3 4 00:00:16,130 --> 00:00:18,290 Freelancers who have this sort of mindset. 4 5 00:00:18,290 --> 00:00:24,320 They have this negative sort of taste and attitude towards Upwork and these freelancing platforms, thinking 5 6 00:00:24,320 --> 00:00:28,880 because everybody's now competing for the price and there is a lot of pricing, a lot of people competing 6 7 00:00:28,880 --> 00:00:29,720 with a price, 7 8 00:00:29,780 --> 00:00:32,440 so everybody's kind of bringing the prices down. 8 9 00:00:32,480 --> 00:00:36,530 But they couldn't be more wrong. If that was true, then you wouldn't have some freelancers getting paid 9 10 00:00:36,800 --> 00:00:40,730 $500 per hour on Upwork. Websites are high value products. 10 11 00:00:40,730 --> 00:00:44,030 They're not like toilet paper that the cheapest gets the most sales. 11 12 00:00:44,150 --> 00:00:48,990 Businesses are going to use websites for their own business, so they can get more sales, right? 12 13 00:00:49,010 --> 00:00:54,200 It's going to represent their company, represent their business and their brand, 13 14 00:00:54,200 --> 00:00:55,580 so they don't want cheap. 14 15 00:00:55,580 --> 00:00:56,800 They want standard. 15 16 00:00:56,810 --> 00:01:02,630 They want quality. And often they're more than happy to pay for it. Just like a lot of us, who are happy 16 17 00:01:02,630 --> 00:01:08,000 to pay a 1000 bucks for iPhone instead of paying 100 bucks for Alcatel. By bidding low, not only 17 18 00:01:08,000 --> 00:01:10,760 you make less money, but you also win less jobs. 18 19 00:01:10,760 --> 00:01:14,780 It sounds counterintuitive but clients actually prefer higher prices. 19 20 00:01:14,780 --> 00:01:15,410 Why? 20 21 00:01:15,410 --> 00:01:19,840 Because pricing is one way to tell if something is quality or not. 21 22 00:01:19,880 --> 00:01:25,240 We know that it's not always true and we do realize that, but often we can't help ourselves. 22 23 00:01:25,250 --> 00:01:25,520 Right? 23 24 00:01:25,520 --> 00:01:32,030 So, we use pricing as one of the indicators to judge if something's going to be high quality or not. 24 25 00:01:32,060 --> 00:01:36,320 By bidding low you're quietly whispering to your clients, that you are a lower quality. 25 26 00:01:36,410 --> 00:01:40,210 Look at this list of proposals lower you scroll, more depressing 26 27 00:01:40,220 --> 00:01:44,770 the situation looks. Less qualified people, no rating no previous jobs, 27 28 00:01:44,780 --> 00:01:48,700 worse presentation. And you get lower prices on the bottom too. 28 29 00:01:48,710 --> 00:01:51,300 So being on the bottom doesn't look attractive at all. 29 30 00:01:51,350 --> 00:01:56,840 The less experienced talent is sorted on the bottom. So lower prices are associated with lower quality. 30 31 00:01:56,840 --> 00:02:02,270 Just by looking at this list. This list is a clear indicator to the client that they should be careful 31 32 00:02:02,270 --> 00:02:03,370 with low prices. 32 33 00:02:03,440 --> 00:02:07,010 In this case, lower prices look like a warning sign, not a bargain 33 34 00:02:09,750 --> 00:02:11,400 As a client when I'm hiring freelancers, 34 35 00:02:11,400 --> 00:02:13,290 I hate the question, "What's your budget?" 35 36 00:02:13,290 --> 00:02:15,820 Because most of the time, I don't know what's my budget. 36 37 00:02:15,840 --> 00:02:19,920 I know that I want something done, but often I don't know how much is it going to cost. 37 38 00:02:19,920 --> 00:02:22,920 I don't know what's the good value for it to pay. 38 39 00:02:23,340 --> 00:02:27,920 So, asking that question is gonna put me into this confused state, where I don't know how to answer. 39 40 00:02:28,020 --> 00:02:33,960 But when you post a job on Upwork as a client and if you choose a flat rate, Upwork is going to ask 40 41 00:02:33,960 --> 00:02:35,550 you what is your budget. 41 42 00:02:35,580 --> 00:02:41,160 And for somebody like me who doesn't know exactly what's their, what is their budget and doesn't 42 43 00:02:41,160 --> 00:02:42,980 like to answer that question, 43 44 00:02:42,990 --> 00:02:46,730 what we do is we try to pick the lowest number that comes to our mind. 44 45 00:02:46,750 --> 00:02:49,470 Last thing you want to do is to overpay for something. 45 46 00:02:49,800 --> 00:02:57,480 So, if I don't know what something costs, I will go way way lower on my estimates, than it's actually 46 47 00:02:57,480 --> 00:03:03,110 going to cost. Because I really don't want to overpay, so I don't want to say, "you know what, I'll pay 47 48 00:03:03,110 --> 00:03:04,920 2000 for this job." 48 49 00:03:05,040 --> 00:03:11,610 And what if it costs just 300 bucks? Then I'm gonna assume, that freelancers are going to abuse me for 49 50 00:03:11,700 --> 00:03:13,680 me kind of putting this high budget. 50 51 00:03:13,710 --> 00:03:19,420 So, now everybody is going to try to take advantage of that. And they'll say, "Oh we'll do it for 2000, 51 52 00:03:19,440 --> 00:03:24,930 we'll do it maybe 1500" and so on. Where in reality the job just cost $300. 52 53 00:03:24,930 --> 00:03:31,190 So, to avoid overpaying you'll see the clients often will pay way lower budget, than what they're 53 54 00:03:31,200 --> 00:03:32,460 actually willing to pay. 54 55 00:03:32,820 --> 00:03:38,400 And at the end of the day, they'll be fine paying 2, 3 times more of what they proposed as the 55 56 00:03:38,400 --> 00:03:39,150 budget. 56 57 00:03:39,150 --> 00:03:45,780 So when you see a number on the budget, don't take it as 100% true, that that's exactly the 57 58 00:03:45,780 --> 00:03:48,930 amount of money available they have. 58 59 00:03:48,930 --> 00:03:49,820 Sometimes it's true. 59 60 00:03:49,830 --> 00:03:50,100 Right? 60 61 00:03:50,100 --> 00:03:54,020 Some businesses will have exactly that amount of money available for that project. 61 62 00:03:54,330 --> 00:03:58,360 But often it's not true. it's just clients pulling numbers out of their heads. 62 63 00:03:58,380 --> 00:04:03,660 And when you see these budgets just ignore them, and propose what is the project worth to you. Unless 63 64 00:04:03,660 --> 00:04:08,180 if you see inside the job description, that they explicitly mean that that's their top budget 64 65 00:04:08,190 --> 00:04:09,540 and that's what they're going to pay.