{"id":5223,"date":"2019-10-18T13:26:14","date_gmt":"2019-10-18T11:26:14","guid":{"rendered":"https:\/\/www.jimdo.com/blog\/?p=5223"},"modified":"2021-05-05T17:25:57","modified_gmt":"2021-05-05T15:25:57","slug":"how-to-make-sure-you-charge-enough-for-freelance-work","status":"publish","type":"post","link":"https:\/\/www.jimdo.com/blog\/how-to-make-sure-you-charge-enough-for-freelance-work\/","title":{"rendered":"How to Make Sure You Charge Enough for Freelance Work"},"content":{"rendered":"\n<p>As freelancers, we\u2019re constantly being reminded to \u201cup your rates!\u201d and \u201ccharge what you\u2019re worth!\u201d But what exactly does that mean? How do you know if you\u2019re charging enough for your work? Here\u2019s my guide on how to set freelance rates that work for you and your clients.<\/p>\n\n\n\n<p>This post will cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>How to set your freelance rates<\/li><li>How to find the \u201cgoing rate\u201d for freelancers in your industry<\/li><li>Freelance hourly rates vs. project fees<\/li><li>Top tip for freelancers who want to make more money<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How to set your freelance rates<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Set your income goal<\/h3>\n\n\n\n<p>How much do you want to make per year? Start with this number and work backward, by calculating how many working hours you have each year. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>I want to make $65,000 a year, before taxes<\/li><li>I\u2019m willing to work 32 hours (or 4 x 8 hour days) per week<\/li><li>I plan to take 4 weeks vacation every year<\/li><li>I\u2019ll add 2 weeks to account for unforeseen circumstances like illness or bereavement<\/li><\/ul>\n\n\n\n<p>52 weeks in a year &#8211; 6 weeks = 46 working weeks in your year<\/p>\n\n\n\n<p>46 weeks x 32 hours = 1472 working hours per year<\/p>\n\n\n\n<p>$65,000&nbsp;\u00f7&nbsp;1472 hours = $44 per hour<\/p>\n\n\n\n<p><strong>$44\/hour is what you\u2019d need to charge<\/strong>&nbsp;to hit your salary goal of $65,000 (before taxes).<\/p>\n\n\n\n<p><em><strong>But wait, what about&nbsp;billable&nbsp;vs.&nbsp;non-billable&nbsp;time?<\/strong><\/em><\/p>\n\n\n\n<p>As a freelancer, not every hour you work can be charged out to clients. You also need to allow time for:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Admin and invoicing<\/li><li>Replying to emails<\/li><li>Prospecting and securing new clients<\/li><li>Marketing your business<\/li><li>Meetings and networking (unless billable to a client)<\/li><li>Professional development and upskilling (eg., taking a course)<\/li><li>Eating lunch!<\/li><\/ul>\n\n\n\n<p>Billable vs. non-billable hours will be personal to you and your goals. But 60\/40 is a good estimate. Back to our example, take that 40% off your billable time:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1472 &#8211; 40% = 883.2&nbsp;<strong>billable<\/strong>&nbsp;working hours per year<\/li><li>$65,000&nbsp;\u00f7&nbsp;883.2 hours = $74 per hour<\/li><\/ul>\n\n\n\n<p>$74\/hour is what you\u2019d need to hit your $65,000 annual salary goal.<\/p>\n\n\n<div class=\"jimdo-alert\">Don\u2019t forget why you\u2019re going freelance. More freedom, flexible working hours, extra time to spend with your family\u2014we all have our reasons for going it alone. Keep your goals in mind when setting your freelance rates and charge enough to make them happen.<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">2. Calculate your costs<\/h3>\n\n\n\n<p><strong>What about expenses?<\/strong><\/p>\n\n\n\n<p>When you\u2019re freelance, you\u2019re responsible for everything that an employer would normally take care of:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Health insurance (depending on your country)<\/li><li>Paying your taxes<\/li><li>Professional and\/or business insurance<\/li><li>Equipment<\/li><li>Renting workspace or heating, electric, and broadband for your home office<\/li><li>Software subscriptions<\/li><li><a href=\"https:\/\/www.jimdo.com\/website\/freelance\/\" target=\"_blank\" rel=\"noopener noreferrer\">Freelancer website<\/a>&nbsp;and hosting<\/li><li>Marketing spend<\/li><li>Travel costs<\/li><\/ul>\n\n\n\n<p>Remember to take all this into account when setting your freelance rates. When you start crunching numbers, it\u2019s easy to see why most freelancers aren\u2019t charging enough.<\/p>\n\n\n<div class=\"jimdo-alert\">Moving from employment to freelance work? Check out <a href=\"http:\/\/www.andrewbibby.com\/reckoner.html\" target=\"_blank\" rel=\"noopener noreferrer\">this freelance day rate calculator<\/a>&nbsp;to see what daily rate you\u2019d need to meet your salary goal. It\u2019s aimed at journalists but works for any freelancer.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">How to find the \u201cgoing rate\u201d for freelancers in your industry<\/h2>\n\n\n\n<p>How much you can charge will depend on your industry, skill level, experience, portfolio or track record, and your ability to negotiate.<\/p>\n\n\n\n<p>Not sure what other freelancers charge?&nbsp;<em><strong>Just ask!&nbsp;<\/strong><\/em><\/p>\n\n\n\n<p>As freelancers, we often shy away from talking about money. But this means we all lose out on important information and are more likely to under-value our services. Join LinkedIn groups or Facebook communities for freelancers in your niche and start building your network. When I ask friends or colleagues about how they price things, they\u2019re usually happy to share\u2014especially as they\u2019re curious about my rates too.<\/p>\n\n\n\n<p>Here are some resources to help you find the average rate in your industry:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rates for freelance writers<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.procopywriters.co.uk\/wp-content\/uploads\/2018\/05\/ProCopywriters-Survey2018.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">ProCopywriters Survey 2018<\/a>&nbsp;includes average day rates and annual incomes for copywriters in the UK.<\/li><li><a href=\"https:\/\/www.awai.com\/copywriter-rates\/\" target=\"_blank\" rel=\"noopener noreferrer\">AWAI free PDF download<\/a>&nbsp;includes fee ranges for common writing projects in USD. Skip to page 27.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Rates for editors and proofreaders<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.sfep.org.uk\/resources\/suggested-minimum-rates\/\" target=\"_blank\" rel=\"noopener noreferrer\">SFEP<\/a>&nbsp;suggested freelance rates for editors and proofreaders in the UK.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Rates for artists and illustrators<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.hireanillustrator.com\/i\/blog\/illustrators-survey-2018\/\" target=\"_blank\" rel=\"noopener noreferrer\">Illustrators Survey<\/a>&nbsp;includes average price ranges for commissions and yearly income.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Rates for designers and developers<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.hellobonsai.com\/freelance-rates?fbclid=IwAR0motUrZQrywoDerV4gmK-MTy-9dkd65j8EbW19eOmjLdwMPWkUdPCzGsc\" target=\"_blank\" rel=\"noopener noreferrer\">Bonsai\u2019s Freelance Rates Explorer<\/a>&nbsp;includes rates for a variety of development and design jobs you can filter by experience and location.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Rates for IT freelancers<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.itjobswatch.co.uk\/contract.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">IT jobs watch<\/a>&nbsp;includes average day rates for freelance developers, analysts, and project managers.<\/li><\/ul>\n\n\n\n<p>If you decide to charge a project fee instead of an hourly rate, it\u2019s still useful to keep track of your hours. Try a free time-tracking app like Toggl to make it easy. That way, you can work out if you\u2019re charging enough and check if per project pricing is actually more profitable for you. It can be a real eye-opener and will help you quote more accurately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Freelance hourly rates vs. project fees<\/h2>\n\n\n\n<p>When I started out as a freelancer, my first question was \u201cHow much should I charge per hour?\u201d But I quickly realized that charging set fees per project can work well too. Here\u2019s a quick overview of the hourly rates vs. project fees.<\/p>\n\n\n\n<p>Advantages of hourly pricing:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Useful when working with agencies or temping, as most will ask for your freelance day rate<\/li><li>You don\u2019t lose out if the scope of a project changes or it takes longer than expected<\/li><li>Easy to estimate your potential income by calculating your billable hours<\/li><\/ul>\n\n\n\n<p>But:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Your hourly rate must cover all of your costs (tax, tools, time off, etc.)<\/li><li>Risk of undervaluing your work (eg., it takes you 5 hours to design a leaflet that generates $15,000 in income for your client)<\/li><li>You\u2019re penalized for working quickly<\/li><\/ul>\n\n\n\n<p>Advantages of pricing per project:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>You can charge based on the value of your work rather than hours spent<\/li><li>You\u2019re not penalized for working faster as you get to know a client\/project<\/li><li>Helps clients stay within budget<\/li><\/ul>\n\n\n\n<p>But:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If you misjudge the complexity of a project, you could earn a low hourly rate<\/li><li>You need a solid contract to protect from scope creep and changes<\/li><li>You need to be confident and able to justify your rates<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Top tip for freelancers who want to make more money<\/h3>\n\n\n\n<p><strong>Avoid freelancing platforms that take a high percentage of your earnings.<\/strong>&nbsp;While it\u2019s not impossible to <a href=\"https:\/\/www.jimdo.com/blog\/20-online-tools-for-every-freelancer\/\">make a living on freelance sites<\/a>, most attract low-budget clients and you\u2019ll be competing on price with thousands of other freelancers, especially if you\u2019re just starting out.<\/p>\n\n\n\n<p>Build your own&nbsp;<a href=\"https:\/\/www.jimdo.com\/website\/portfolio\/\" target=\"_blank\" rel=\"noopener noreferrer\">portfolio website<\/a>&nbsp;instead and use it to showcase your skills. That way, you have complete control over how you present yourself online, what services you offer, and how much you charge.<\/p>\n\n\n\n<p>If you\u2019re new to freelancing or not sure about your rates, I hope you\u2019ve found this post useful. Once you find out your idea rate, check out my next post on <a href=\"https:\/\/www.jimdo.com/blog\/how-to-ask-for-more-money-as-a-freelancer\/\" target=\"_blank\" rel=\"noopener noreferrer\">How to Ask for More Money as a Freelancer<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center post-cta has-white-background-color has-background is-layout-flex wp-container-core-columns-is-layout-0111f410 wp-block-columns-is-layout-flex\" style=\"padding-right:var(--wp--preset--spacing--50);padding-left:var(--wp--preset--spacing--50)\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<h4 class=\"wp-block-heading\">Bring your business online with Jimdo.<\/h4>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<div class=\"wp-block-group is-content-justification-right is-nowrap is-layout-flex wp-container-core-group-is-layout-17124a9a wp-block-group-is-layout-flex\">\n<div class=\"wp-block-button\"><a data-tracking=\"post_cta_create_website_signup\" class=\"wp-block-button__link\" href=\"https:\/\/register.jimdo.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Start Now<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Most freelancers don\u2019t charge enough. Calculate how much you should be charging, find the \u201cgoing rate\u201d in your industry, and make more money freelancing.<\/p>\n","protected":false},"author":2,"featured_media":5224,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[116],"tags":[129],"class_list":["post-5223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-tips","tag-how-to"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Set Freelance Rates and Charge What You\u2019re Worth<\/title>\n<meta name=\"description\" content=\"Most freelancers don\u2019t charge enough. Calculate how much you should be charging, find the \u201cgoing rate\u201d in your industry, and make more money freelancing.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.jimdo.com/blog\/how-to-make-sure-you-charge-enough-for-freelance-work\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Set Freelance Rates and Charge What You\u2019re Worth\" \/>\n<meta property=\"og:description\" content=\"Most freelancers don\u2019t charge enough. Calculate how much you should be charging, find the \u201cgoing rate\u201d in your industry, and make more money freelancing.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.jimdo.com/blog\/how-to-make-sure-you-charge-enough-for-freelance-work\/\" \/>\n<meta property=\"og:site_name\" content=\"The Jimdo blog for small businesses\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-18T11:26:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-05T15:25:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.jimdo.com/blog\/wp-content\/uploads\/2019\/10\/Header-Mon.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2048\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jimdo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/i0.wp.com\/www.jimdo.com/blog\/wp-content\/uploads\/2019\/10\/Header-Mon.jpg?fit=2048%2C1024&ssl=1\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jimdo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/\"},\"author\":{\"name\":\"Jimdo\",\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/#\\\/schema\\\/person\\\/555d7b95204044216222b73d8efacc7d\"},\"headline\":\"How to Make Sure You Charge Enough for Freelance Work\",\"datePublished\":\"2019-10-18T11:26:14+00:00\",\"dateModified\":\"2021-05-05T15:25:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/\"},\"wordCount\":1183,\"publisher\":{\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/www.jimdo.com/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/Header-Mon.jpg?fit=2048%2C1024&ssl=1\",\"keywords\":[\"How To\"],\"articleSection\":[\"Business Tips\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/\",\"url\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/\",\"name\":\"How to Set Freelance Rates and Charge What You\u2019re Worth\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.jimdo.com/blog\\\/how-to-make-sure-you-charge-enough-for-freelance-work\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/www.jimdo.com/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/Header-Mon.jpg?fit=2048%2C1024&ssl=1\",\"datePublished\":\"2019-10-18T11:26:14+00:00\",\"dateModified\":\"2021-05-05T15:25:57+00:00\",\"description\":\"Most freelancers don\u2019t charge enough. 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