Ten-some years ago I started at $100/hour and I thought that was a good idea. "Great, I'll make $200k a year and pay 45% in taxes, that's fine, I can live on that." I thought that being attractive to more people was a better way to find clients.
I didn't have a problem finding clients, but they were clients that I didn't see panning out — they gave me vibes of being poor executors. I looked for a way to filter out these "app idea bros" as I called them.
The first thing I did was change my rate to $150/hour.
Again, I didn't have a problem finding clients; they were still the clients that I didn't see panning out, though.
I kept increasing it until I got three prospects in a row that had huge concerns paying what I was asking: granted, it as a lot more than anyone should ever pay for any skillset that wasn't life or death, but it helped me find a balance.
Eventually I settled on $375/hour, prepaid, and prepaid weekly. I still have no problem finding clients, but the quality of client has significantly increased. I also now am much more happy to filter clients out — I let them know that, too.
I rarely negotiate on it. I'll negotiate on scope (time), or really narrow focus so that my value can be had in a much more focused manner.
Before, my marketable skill was "developer, with business chops". My acumen has evolved, sure, so my marketable skills have too. But how I approach it has changed greatly.
My value prop is quite extensive: I am a one-stop shop for all things idea, from both a business and product standpoint. I contribute at the executive level, I build the product, I share fifty ways that a product could fail and find new ways that it could succeed.
Most importantly, though, I tell clients what they don't need, and I don't spare any time to do so. "Well, my friend said that they use AWS and Kubernetes, don't we need that to scale?", to which I reply, "Cool, I'm happy for them, but you don't need it, no; $PaaS is fine until you reach their limits and it starts becoming a problem — you have three paying customers who are operating off your hacked-together MVP; thus, it's not a problem. Please, do yourself a favor and stop talking to friends about what they use and go talk to customers and potential customers while I'm building this."
This builds trust, and is the most important tool in my bag of tricks: not my background in Ruby development, not how productive I am, not my experience in having already solved seemingly 99.9% of the problems people face in building and scaling web apps. Those are all superficial and nice-to-haves.
Trust is the most important thing I sell, followed by my ability to say "no". The practical and tangible experience in design, development, systems, content, email campaigns, copy, branding... my clients could hire anyone to do those things better than I could — people can specialize in it. I specialize in saying no, and, while the jury is still out on this, I haven't quite been proven completely wrong yet — and one of my biggest kinks is being wrong.
I miss client work. It was stressful at times, and at times kind of lonely. I've pivoted to other things to build skillsets that were practical, but I still find myself picking up the odd job here and there.