Undercharging as a Freelancer: The Harsh Truth You Need to Hear

Publication Date

June 6, 2025

Summary

New freelancers who are struggling to make ends meet — and I’m noticing one common mistake among almost all of them: They’re signing on for gigs that don’t pay their minimum hourly rate.

Why Accepting Low-Paying Gigs Keeps You Stuck

I’ve been talking with a lot of new freelancers who are struggling to make ends meet — and I’m noticing one common mistake among almost all of them:

They’re signing on for gigs that don’t pay their minimum hourly rate.

Then they’re confused when, at the end of the month, their income doesn’t add up to what they need to pay their bills.

That confusion quickly turns into desperation.

So they take any gig to make ends meet.

And the cycle continues.

It gets worse when they end up fully booked — with a calendar packed full of clients who aren’t paying them enough to keep the lights on.

They’re maxed out on time.

Overwhelmed.

Exhausted.

And still not earning what they need.

Now they have no time or energy to look for better clients because they’re drowning in underpaid work.

The Decision You’re Making (Even If You Don’t Realize It)

Let me be very clear:

When you accept a rate that’s lower than what you need to earn, you’re not just being nice or flexible.

You’re making a decision — often without realizing it — that you won’t be able to pay your bills.

That’s not a mindset issue.

That’s math.

And it’s not sustainable.

You didn’t start freelancing to scrape by.

You started because you wanted more freedom, more creativity, and more ownership over your time and your life.

But that kind of life isn’t built on lowball offers.

It’s built on boundaries, clarity, and the courage to say “no” when something doesn’t work for you.

You’re Not Too Expensive — You’re Being Honest

You are allowed to build something that supports you.

Something that:

Pays your bills
Honors your time
Respects the effort behind every word you write

You’re not too expensive.

You’re not asking for too much.

You’re being honest about what it takes to stay in business.

And that is brave as hell.

When you decide to accept a rate that is lower than what you need to earn, you are essentially deciding you won’t be able to pay your bills.

It’s a harsh truth.

But it’s one every freelancer needs to hear.

I Needed to Hear This Too

And the truth is — I needed to hear it too.

When I first started freelancing, I was struggling to make ends meet. I didn’t know how to set my rates, and I was terrified to ask for what I actually needed to earn.

My business coach said this to me once, and I cried on the phone with her.

I still vividly remember sitting on a bench outside my local public library.

I used to get freelance work done there because I didn’t even have enough money to pay for Wi-Fi at my apartment.

I teared up telling my first client I needed to raise my rates.

And you know what happened?

He said yes — without even batting an eye.

That moment changed everything for me.

This Is a Rite of Passage — Not a Personal Failure

Every new freelancer goes through this.

It almost feels like a rite of passage.

That moment when you realize:

Working more won’t fix undercharging
Being busy doesn’t equal being profitable
And saying “yes” to everything is costing you more than it’s giving you

You don’t get out of this cycle by hustling harder.

You get out by deciding — clearly and intentionally — what you need to earn, and building your business around that number.

You can do this.

You deserve to earn what you need to make.

FAQ: Freelance Rates, Undercharging, and Making Ends Meet

Why am I so busy but still not making enough money?

Because your rates aren’t aligned with your financial needs. Being fully booked doesn’t matter if the math doesn’t work.

What is a minimum hourly rate?

It’s the lowest rate you can charge while still paying your bills, covering taxes, and sustaining your business. Anything below that puts you in survival mode.

Isn’t it better to take low-paying work than no work at all?

Short-term, maybe. Long-term, it traps you in a cycle where you’re too exhausted to find better-paying clients.

What if I lose clients when I raise my rates?

Some clients may leave — and that creates space for better-fit, better-paying work. Many clients will say yes without hesitation.

How do I say no without burning bridges?

You can be kind, professional, and firm. A clear “this rate doesn’t work for me” is respectful — to them and to you.

Is undercharging normal at the beginning?

It’s common — but it doesn’t have to be permanent. Awareness is the first step to breaking the cycle.

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