Appreciation post: the moment I realized I was underpricing my retainer fees

After a year of grinding on a $500 monthly retainer for a small e-commerce brand, I finally did the math and realized I was billing less than minimum wage for the hours they were taking. What tipped me off was when a friend quoted me her own retainer for a similar scope and it was literally double what I was charging. Has anyone else figured out they were lowballing themselves by comparing notes with another freelancer?

3 comments

3 Comments

martinez.paul5d agoMost Upvoted

$500 a month? That’s insane, you were basically working for free.

hannahj495d ago

Start looking at this like a math problem, not feelings. $500 a month for a full-time role? That's below minimum wage in most places, don't convince yourself it's a learning opportunity. I've been there with side gigs and you have to calculate your hourly rate after taxes and commute time, it never works in your favor. Call it what it is and move on to something that pays bills, not just pocket change.

samreed5d ago

Jumped headfirst into that same trap last year for a freelance copywriting gig. Thought $400 a month was fair until I broke down the emails, social posts, and revisions they wanted. Hannahj49 is spot on about doing the math, but I was too scared to look at the numbers. Felt like I was paying them for the privilege of working, honestly. @hannahj49 basically called me out without even knowing me, and she was right. So I raised my rates and lost the client, but at least now I can afford ramen that isn't strictly generic brand.