I've spent years on platforms like Fiverr and Upwork, and one thing I noticed early on was that freelancers from developing economies tend to charge less. Their bids or prices are often significantly lower compared to those from developed countries. This pricing strategy has created a widespread belief that there's a global disparity in freelance earnings.

 

But here's the catch , while the rates are lower, the value of the money earned differs across regions. Thanks to purchasing power parity, a $10 project might feel insignificant in the U.S., but it's worth much more in countries like India or the Philippines. So, even if they are charging less, many freelancers in developing countries are still earning well by their local standards. Once these freelancers build a solid reputation, they often raise their rates and match the income levels of their Western counterparts.

That's true, five dollars in my local currency is around eight thousand naira in my local currency, so imagine having up to ten clients who pays five dollars? That's something.

Lower bids can lead to more projects and long-term clients, especially for freelancers in developing countries. By building trust and volume, they often earn steady income, proving that strategic pricing can outweigh single high-paying gigs.