How to Price Your Services as a Freelance Social Media Manager
If you’re just starting out as a freelance social media manager, figuring out how to price your services can be challenging. Should you charge hourly or offer monthly packages? What should a social media management package even include? In this guide, I’ll walk you through the essentials of pricing your services to ensure you’re paid fairly while covering all your costs.
READ TOO: A Day in My Life as a Freelance Social Media Manager
My Beginnings and Struggles with Pricing
When I first started my social media management agency back in 2018, I was a single mom looking for a way to work from home. I began by listing out all the services I could offer, figuring out how many clients I could handle, and what types of packages to provide. But when it came time to set my prices, I felt lost. I Googled what other social media managers were charging but found a wide range of rates—some hourly, some monthly—which only made me more confused.
Eventually, I realized I needed to stop thinking like a freelancer and start pricing like a business owner. This is one of the most common hurdles for new social media managers: they often undercharge by up to 60%. Once I began calculating my expenses, hours worked, and the value I provided, everything changed. Here’s how I help my mentees avoid these pricing pitfalls.
Common Pricing Mistakes
- Copying Competitors’ Prices: It’s tempting to look at what others are charging and base your rates on that, but it often doesn’t reflect your unique situation or expenses.
- Underpricing to Beat the Competition: Many new social media managers lower their rates to attract clients, only to find themselves overworked and underpaid.
- Ignoring Expenses: From software like Canva and Later to taxes, there are plenty of hidden costs that can eat into your earnings if you don’t factor them in.
If any of this sounds familiar, don’t worry—you’re not alone. Here’s how to set profitable prices that work for you.
How to Set Fair Prices
1. Calculate Your Expenses and Desired Income
Start by figuring out your monthly expenses, from business tools and software to taxes and living costs. Let’s say your total expenses come to $4,000 a month.
2. Determine How Many Hours You Want to Work
If you want to work 40 hours a week and take on 4 clients, that gives you 160 hours a month to divide between clients and other business tasks.
3. Add a Buffer for Taxes and Profit
Don’t forget that taxes will take a portion of your income. In the U.S., the self-employment tax rate is typically 15.3%, so be sure to account for that when calculating your take-home pay.
Let’s do the math: with a $4,000 monthly goal, 40 hours a week, and 4 clients, you’ll need to charge each client around $1,168 per month to cover your expenses and taxes while taking home about $1,000 per client. This comes out to about $25 an hour, a much more sustainable rate than the $8 an hour you might end up with if you undercharge.
Monthly Retainers vs. Hourly Rates
Charging a monthly retainer is often the best option for social media managers. Here’s why:
- Consistency: With a monthly retainer, you can count on a reliable income each month, regardless of how fast you complete tasks.
- Efficiency Rewards: As you become more experienced and efficient, you’ll spend less time on tasks while still earning the same amount. Charging hourly, on the other hand, penalizes you for getting better at your job since you’ll finish faster but get paid less.
- Less Tracking: Managing a monthly package means you don’t need to meticulously track every hour you spend on each client—just focus on delivering results.
Tailoring Packages to Clients
Every client has different needs, so you should tailor your packages accordingly. For example, a standard social media management package might include:
- 5 Posts per Week
- Hashtag Strategy
- Content Creation and Scheduling
- Basic Analytics Reporting
Make sure to calculate the time you spend on each task, like content creation, hashtag research, and client communication. Your package price should reflect this time commitment and include a buffer for your overhead costs.
Adjusting Prices as You Grow
As your experience and skillset grow, you’ll be able to increase your rates and reduce the number of clients you need to support. For example, if you become more efficient at creating content, you won’t need to lower your rates—your monthly package will continue to provide you with steady income, even as your workload decreases.
Final Thoughts
Pricing as a social media manager isn’t just about charging what the competition does. It’s about understanding your own expenses, setting goals, and creating packages that ensure you’re paid fairly for the work you do. By switching to a monthly retainer model, you’ll enjoy more consistent income and the flexibility to grow as a professional without constantly tracking hours.
If you have any questions or want me to dive deeper into any topic, drop a comment below! Don’t forget to subscribe to my YouTube channel for more content, or follow me on Instagram for behind-the-scenes updates from my day-to-day life as a social media manager. You can also find free resources, mentorship programs, and my digital template shop on my website.
Thanks for reading, and I’ll see you soon!
