Stop Undervaluing Yourself: How I Learned to Raise My Coding Rates (and How You Can Too)
Are you charging what you're worth as a coder? Discover why hourly billing can crush your earnings and how to confidently raise your rates.
The Hourly Billing Trap: Why Coders Need to Escape
- Killing Productivity: Charging by the hour incentivizes slow work and time padding, leading to dishonest billing practices.
- Constant Money Scrutiny: Obsessively tracking your earnings per hour creates unnecessary stress and anxiety.
- Undermining Your Worth: Hourly rates often lead to undervaluing your skills and experience.
Hourly billing as a coder can feel like a constant hustle. You're always aware of how much money you're making at any given moment. This pressure doesn't create a healthy environment for focused, efficient work.
My "Cheap" Awakening: A Coder's Story of Undercharging
Like many coders, I fell into the trap of undercharging, especially after a layoff. Fear and desperation led me to lower my rates, a decision I quickly regretted.
It all started when I was "let go," and panic set in. I sent my CV to what felt like every company with coding needs. After months of silence, a company finally called, not because they valued my expertise, but because they needed someone "cheap" to handle a tedious migration project. This was my wake-up call.
The Layoff Panic: How Fear Leads to Undercharging
- Settling for Less: Job market pressures can tempt you to lower your rates out of desperation.
- Ignoring Your Value: Undervaluing your skills leads to accepting lower-paying projects.
- Missing Opportunities: Focusing on getting any job can distract you from finding the right job.
The fear of unemployment can drive coders to make financially unsound decisions. Lowering your rates might seem like a quick fix, but it can have long-term consequences for your career and income.
Setting an Aspirational Rate: Escape the "Cheap" Label
Finding the right coding rate is very important for coders. After that soul-crushing interview, I realized I needed to re-evaluate my pricing strategy. I needed to focus on setting an aspirational rate, a rate that reflected my true value.
Inspired by Naval Ravikant, I understood the importance of setting an aspirational rate as a coder. Even though my savings were dwindling, I knew I had to break free from the "cheap" label. But how do you determine that perfect number?
Finding Your Number: Practical Tips for Pricing Your Coding Skills
- The "Comfort" Test: Set a rate you're comfortable with, whether it's accepted or rejected.
- Assessing Market Value: Research industry standards and adjust your rate based on your experience and expertise.
- Value-Based Pricing: Consider the value you bring to clients, not just the time you spend on a project.
Gerald Weinberg puts it best: choose a rate that makes you feel content, no matter the outcome. Don't leave the negotiation table regretting that you could have upped your wage.
Unlock Your Earning Potential: Raise Your Rates Today
Like me, you probably need to raise your coding rates too. Stop leaving money on the table and start valuing your skills. You deserve to be paid what you're worth! Join my free 7-day email course to refactor your coding career and avoid costly mistakes.
