VALUE-BASED PRICING WORKSHEET FOR FREELANCERS ============================================== SoloStack | solostack.madethis.app/resources/freelance-value-based-pricing Use this worksheet to calculate the ROI of your work before quoting a project. The goal: understand what the project is worth to the client so you can price as a percentage of value delivered — not as a multiple of your hours. --- PART 1: ROI FORMULA SHEET ========================== Use the formula that best fits the project type. For most projects, multiple formulas apply — calculate all of them and use the highest defensible number. FORMULA 1: Revenue Impact ------------------------- When the project will directly increase the client's revenue. New Revenue = (New Metric × Revenue Per Unit) - (Current Metric × Revenue Per Unit) Annual Revenue Impact = Monthly New Revenue × 12 Attributable Revenue = Annual Revenue Impact × Attribution % Attribution %: The % of the revenue increase reasonably attributable to your work. If you're rewriting a landing page, 80–100% attribution is defensible. If you're one of many inputs into a sales campaign, 20–50% may be more honest. Example: Current conversion rate: 1.5% on 2,000 visitors/month, $500 avg order → Current revenue: 30 conversions × $500 = $15,000/month Projected conversion rate after rewrite: 3% → Projected revenue: 60 conversions × $500 = $30,000/month Monthly delta: $15,000 | Annual delta: $180,000 Attribution: 90% (it's your copy driving conversion) Attributable annual value: $162,000 Suggested project fee: 2.5–5% of attributable annual value = $4,050–$8,100 Rounded: $4,500–$9,000 --- FORMULA 2: Cost Savings ----------------------- When the project will eliminate or reduce an ongoing expense. Annual Savings = Current Annual Cost - Projected Annual Cost After Project Attributable Savings = Annual Savings × Attribution % Example: Client currently pays $8,000/month for a manual process (staff time + tools) Your system reduces that to $3,000/month Monthly savings: $5,000 | Annual savings: $60,000 Attribution: 100% (you're building the replacement system) Attributable annual value: $60,000 Suggested project fee: 10–20% of attributable annual value = $6,000–$12,000 --- FORMULA 3: Time Savings ----------------------- When the project frees up the client's (or their team's) time. Monthly Time Value = Hours Saved Per Month × Client's Effective Hourly Rate Annual Time Value = Monthly Time Value × 12 Client's Effective Hourly Rate: - Founder/CEO: $150–$500/hr (use their target billable rate, not salary) - Manager: $75–$150/hr - Staff: $25–$75/hr - When unsure: ask "What's your time worth per hour?" or use $100/hr default Example: Client spends 20hrs/week on manual admin at $150/hr effective rate = $3,000/week → $156,000/year in "lost" executive time Your systems reduce this to 5hrs/week Time saved: 15hrs/week × $150/hr = $2,250/week → $117,000/year Attribution: 85% (some time reduction comes from other process improvements) Attributable annual value: $99,450 Suggested project fee: 5–15% of attributable annual value = $4,972–$14,917 Rounded: $5,000–$15,000 --- FORMULA 4: Risk Value --------------------- When the project prevents a costly outcome (legal risk, compliance, security, etc.) Risk Value = Probability of Negative Outcome × Cost of That Outcome Example: A GDPR compliance audit prevents a potential $50,000 fine Probability of fine (without your work): 30% Risk value: 30% × $50,000 = $15,000 Probability of fine (with your work): <5% Risk eliminated: ~25% × $50,000 = $12,500 Suggested project fee: 30–50% of risk eliminated = $3,750–$6,250 (Risk work commands a higher % because the client is buying peace of mind) --- PART 2: WORKED EXAMPLES ======================== EXAMPLE 1: Landing Page Copywriter ----------------------------------- Client: E-commerce brand Situation: 2,000 visitors/month, 1.5% conversion rate, $500 average order value Current state: Conversions/month: 2,000 × 1.5% = 30 Monthly revenue: 30 × $500 = $15,000 Annual revenue: $180,000 After rewrite (conservative estimate: conversion lifts to 3%): Conversions/month: 2,000 × 3% = 60 Monthly revenue: 60 × $500 = $30,000 Annual revenue: $360,000 Monthly delta: +$15,000 Annual delta: +$180,000 Attribution: 90% (copy is the primary conversion driver on this page) Attributable annual value: $162,000 Project fee range: 2.5–5% of $162,000 = $4,050–$8,100 Quoted range: $4,500–$9,000 Reality check: Even at 8 hours of actual writing time, this work is worth $562/hr at $4,500. The client gets $162,000 in return. This is a fair deal. --- EXAMPLE 2: UX Designer ----------------------- Client: SaaS application Situation: 500 free trials/month, 15% convert to paid at $99/month Current state: Monthly paid conversions: 500 × 15% = 75 new customers Monthly new MRR: 75 × $99 = $7,425 Annual new customer value: $7,425 × 12 = $89,100/yr (new customers only) After redesign (conservative estimate: conversion lifts to 25%): Monthly paid conversions: 500 × 25% = 125 new customers Additional customers vs. current: 125 - 75 = 50/month Monthly additional MRR: 50 × $99 = $4,950 Annual additional MRR: $4,950 × 12 = $59,400 Attribution: 80% (UX is the primary driver of trial-to-paid conversion) Attributable annual value: $47,520 Note: SaaS value is compounding — these customers continue paying monthly. Lifetime value is typically 12–36× monthly, making the real return much higher. Project fee range: 5–10% of annual attributable = $2,376–$4,752 Quoted range: $3,000–$6,000 (adjusted up for LTV multiplier) --- EXAMPLE 3: Operations Consultant --------------------------------- Client: Boutique agency, 15 employees Situation: Founder spends 20hrs/week on manual admin tasks Current state: Admin hours/week: 20 Founder's effective rate: $150/hr Weekly cost of admin time: 20 × $150 = $3,000 Annual cost: $3,000 × 52 = $156,000 After implementing systems (target: reduce to 5hrs/week): Admin hours/week after: 5 Hours freed per week: 15 Weekly value freed: 15 × $150 = $2,250 Annual value freed: $2,250 × 52 = $117,000 Attribution: 90% Attributable annual value: $105,300 Project fee range: 5–15% of attributable annual value = $5,265–$15,795 Quoted range: $5,000–$15,000 Note: This also counts as cost savings (fewer hours needed = potential to replace a part-time hire or reduce contractor spend). The ROI case stacks. --- PART 3: CLIENT DISCOVERY QUESTION BANK ======================================== 20 questions for diagnosing business value before quoting. Ask these on the discovery call. You don't need all 20 — pick the 5–8 most relevant to the project type. CATEGORY 1: Business Goals (5 questions) ----------------------------------------- 1. What is this project meant to accomplish for the business? (The real goal, not the surface deliverable) 2. If this project goes really well, what does success look like in 12 months? (Gets them thinking in outcomes) 3. What's the business impact if this project doesn't happen this quarter? (Quantifies the cost of inaction) 4. Is there a revenue or cost target tied to this project? (Opens the door to value discussion) 5. How does this project fit into the company's larger goals this year? (Reveals whether this is mission-critical or nice-to-have) CATEGORY 2: Current Situation (5 questions) --------------------------------------------- 6. What are you currently doing in this area, and what's working vs. not? (Establishes baseline for ROI calculation) 7. What have you tried before? What happened? (Prevents you from repricing an already-failed approach) 8. Who else is affected by this problem besides you? (Reveals scale of impact — wider impact = higher value) 9. How long has this been an issue? (Duration signals cost of inaction — and urgency) 10. What does this problem cost you right now? In time, money, or missed opportunities? (Direct value question — often gets you a number) CATEGORY 3: Success Metrics (5 questions) ------------------------------------------- 11. How are you currently measuring success in this area? (Establishes their metrics vocabulary) 12. What specific number would move the needle for you — conversions, revenue, hours, costs? (Gets to a quantifiable outcome) 13. What's the minimum result that would make this project feel worth it? (Helps you understand their floor, which informs your floor) 14. How will you know in 6 months whether this worked? (Defines a measurable outcome you can anchor pricing to) 15. Are there any secondary benefits beyond the primary goal? (Often reveals additional value you can factor in) CATEGORY 4: Timeline & Urgency (5 questions) ---------------------------------------------- 16. When do you need this done, and why that date? (Urgency often commands a premium) 17. What's driving the timeline — an event, a launch, a deadline? (Context reveals how important speed is) 18. If the timeline slips, what's the downstream impact? (Quantifies the cost of delay — another value lever) 19. Is there budget allocated for this project? (Scopes the conversation; not "what's your budget?" but gentler) 20. Who else needs to approve this project or the investment? (Prevents ghost decision-makers from killing the deal later) --- PART 4: VALUE ANCHOR PHRASES ============================== 15 ways to reframe the price conversation from cost to investment. Use these when presenting your fee or when a client questions the investment. They work because they shift the frame from "how much does this cost" to "what does this generate." 1. "Rather than quoting based on time, I price based on what we're trying to achieve together — and based on what you've described, here's how I'm thinking about the value..." 2. "For a project like this, the investment typically sits between $X and $Y — which, based on the outcome you described, represents a [X]% return in the first year." 3. "I don't quote by the hour for projects like this. The outcome is worth [range] regardless of how long it takes me — and if I deliver faster, you don't pay less for the result." 4. "Think of this as a return on investment, not a service fee. You invest $[amount] and get [outcome] back. The math is [ratio]:1." 5. "Hourly billing would give you a number, but it wouldn't tell you anything about what you're getting for it. I'd rather talk about what this is worth to your business." 6. "I price based on the outcome, not the inputs. For [client's goal], clients typically invest $X–$Y. That's what this kind of result costs to get right." 7. "Based on what you've described — [rephrase their goal] — I'm estimating this could generate [outcome] over the next 12 months. My fee for that kind of result is $[amount]." 8. "This is the kind of project where time is the wrong unit. You're not buying hours — you're buying [specific outcome]. That's what I'm pricing." 9. "If we hit the targets you described — [their metric] — what's that worth to your business? [Let them answer.] That's the context I use to set my fee." 10. "Clients often ask me why I don't charge hourly. The short answer: I could finish this in 10 hours or 40 hours and the result would be the same. My fee is for the result." 11. "Let me share how I think about pricing this. You mentioned [outcome metric]. If we hit that, the project generates roughly $[calc] for your business. My fee is $[X] — about [%] of that return." 12. "The investment for this project is $[amount]. Based on what we've discussed, I'd expect you to see [outcome] within [timeframe]. Does that math make sense for where you are?" 13. "I don't think of my fee as a cost — it's the entry price for [specific result]. The question isn't 'can you afford this' — it's 'is this worth [outcome] to your business.'" 14. "You're not paying for my time. You're paying for [outcome]. And [outcome] is worth [X] to your business, so this fee represents [%] of that value." 15. "My clients who get the most value from this kind of work are the ones who focus on the ROI, not the invoice. Let me show you how I think about the return on this investment." --- Download more free templates at solostack.madethis.app/resources Get the full template library at solostack.madethis.app/products