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Table Of Contents  The Online Freelancing Guide
 >  Online Freelancing Proposals and the Bidding Process

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Avoiding Common Proposal Pitfalls
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Contrasting Static and Dynamic Pricing Policies
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The Economic Principles Behind Online Freelancing Project Pricing

Now that we’ve covered both the generalities and specifics of constructing proposals, it is time to turn our attention to what most people would consider the most essential part of a proposal: the monetary bid. Of all the elements in your proposal, the price you quote to the client has the most potential to either secure the job for you, or to land your offer in the reject heap—possibly even before the bulk of it has been read. Bidding literally will make or break your freelancing career, so it’s essential to learn how to do it well.

Pricing is a difficult and complex subject, which I’ve tried to cover in three section for the benefit of those new to freelancing. This first section starts out by contrasting the two basic approaches to pricing: either using a fixed rate for all projects, or adapting bids based on specific projects. The remainder of the chapter discusses economic fundamentals such as supply and demand, different ways of maximizing earnings, and the difference between fixed and variable costs. If you have a solid business background, you may find some of this material familiar, and so might want to skim (or even skip) it. But most readers will find this background knowledge helpful in framing future discussions of bid optimization and pricing strategies.

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Avoiding Common Proposal Pitfalls
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Contrasting Static and Dynamic Pricing Policies
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Last Site Update: February 1, 2012

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