By Tamara Levit in Upwork — Sep 30, 2024

How to Analyze the Market and Set Your Hourly Rate on Upwork

finally, an answer how to find your hourly rate

haha! just paid for chatgpt to create images for me. Big thanks to Max!

Setting your hourly rate on Upwork can be tricky, but here’s a step-by-step process to figure out what’s realistic.

Start by looking at what other freelancers in your niche are charging.

Step 1: Go to "Talent Search." Use keywords that match your skills. Be specific—search for something like "React JS Developer," not just "developer."
Step 2: On the left, you’ll see a diagram of hourly rates. Choose the biggest rate range (e.g., $20–$30/hour). Don’t pick random numbers—start with the largest.

Step 3: Pick 50 freelancers and dive into their profiles. IGNORE BOOSTED ONES. Now, here’s the kicker—don’t just believe what you see. Check their job history for the last year. Are they actually earning their listed rate, or is it all smoke and mirrors? Write down their real earnings.

Freelancers charge rates, but what are clients really paying?

Step 1: Head over to "Find Work" and search for jobs in your field.
Step 2: Take note of the budgets clients list in the posts. After checking a few, you’ll start to see a clear range.
Step 3: Don’t get tricked by Upwork’s default pricing. Some clients don’t bother setting their own budget—they just follow what Upwork recommends. Go create a mock job post to see what those default rates look like. Now compare them to real job budgets.

Step 4: Ignore the outliers. If a budget looks way too high or low compared to the average, it’s probably not worth your time.

Now, check how your past bids have stacked up against the competition.

Step 1: Look back at jobs you’ve bid on. Did someone else get hired? Click the job link and check out the freelancer who won.

Step 2: Compare their rate to yours. Are you getting undercut, or are they charging more than you? Look for patterns in who wins these jobs.
Step 3: If you’re getting outbid by cheaper freelancers, you may need to rethink your pricing. But if those freelancers are charging the same or higher, your rates are probably solid.

Hurray:) Finally I gave a birth to this article😼

Hugs,
Tamara