Strict Standards: Declaration of Walker_Page::start_lvl() should be compatible with Walker::start_lvl($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_Page::end_lvl() should be compatible with Walker::end_lvl($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_Page::start_el() should be compatible with Walker::start_el($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_Page::end_el() should be compatible with Walker::end_el($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_PageDropdown::start_el() should be compatible with Walker::start_el($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_Category::start_lvl() should be compatible with Walker::start_lvl($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_Category::end_lvl() should be compatible with Walker::end_lvl($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_Category::start_el() should be compatible with Walker::start_el($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_Category::end_el() should be compatible with Walker::end_el($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Strict Standards: Declaration of Walker_CategoryDropdown::start_el() should be compatible with Walker::start_el($output) in /home/jjensen3/public_html/freelancesprout/wp-settings.php on line 158

Warning: session_start(): Cannot send session cookie - headers already sent by (output started at /home/jjensen3/public_html/freelancesprout/wp-settings.php:158) in /home/jjensen3/public_html/freelancesprout/wp-content/plugins/maxblogpress-stripe-ad-pro/include/mbp-stripe-ad-pro.cls.php on line 58

Warning: session_start(): Cannot send session cache limiter - headers already sent (output started at /home/jjensen3/public_html/freelancesprout/wp-settings.php:158) in /home/jjensen3/public_html/freelancesprout/wp-content/plugins/maxblogpress-stripe-ad-pro/include/mbp-stripe-ad-pro.cls.php on line 58

Warning: Cannot modify header information - headers already sent by (output started at /home/jjensen3/public_html/freelancesprout/wp-settings.php:158) in /home/jjensen3/public_html/freelancesprout/wp-content/plugins/maxblogpress-stripe-ad-pro/include/mbp-stripe-ad-pro.cls.php on line 70

Warning: Cannot modify header information - headers already sent by (output started at /home/jjensen3/public_html/freelancesprout/wp-settings.php:158) in /home/jjensen3/public_html/freelancesprout/wp-content/plugins/maxblogpress-stripe-ad-pro/include/mbp-stripe-ad-pro.cls.php on line 80

Warning: Cannot modify header information - headers already sent by (output started at /home/jjensen3/public_html/freelancesprout/wp-settings.php:158) in /home/jjensen3/public_html/freelancesprout/wp-content/plugins/maxblogpress-stripe-ad-pro/include/mbp-stripe-ad-pro.cls.php on line 81
Calculating Your Freelance Rates - Part 1 | Freelance Sprout | Find, Start, and Grow Your Dream Freelance Business
Read the six part series on creating a freelance business plan
 

Calculating Your Freelance Rates - Part 1

Date February 12, 2008


Strict Standards: Only variables should be assigned by reference in /home/jjensen3/public_html/freelancesprout/wp-includes/post.php on line 117

Strict Standards: Only variables should be assigned by reference in /home/jjensen3/public_html/freelancesprout/wp-includes/post.php on line 117

Strict Standards: Only variables should be assigned by reference in /home/jjensen3/public_html/freelancesprout/wp-includes/post.php on line 117

What do I charge? This question is as illusive as it is scary. Other questions that plague freelancers include: Am I asking enough for this type of job? Should I charge by the hour, or use a flat project fee? Is charging less for nonprofit work considered illegal? These questions are legitimate but really focus on just one aspect of pricing which is the the actual price itself.

Price is just one measure of the value of a product or service. Simply put, the buyer has to believe the value of an object is worth more that what he paid for it or at least equal to what he paid. So, what does this mean for you?

First, you need to think it terms of value. If you can communicate the value you bring to your client (increased sales, better leads, lower costs) then you will have no problem jumping the price hurdle.

But, initially, you will need to make a few assumptions. That’s fine. Once you have a few clients under your belt, you will know your price “sticking” points. You will know at what rates your clients will flinch, or not.

When it comes to pricing, it’s too easy to get bogged down in the numbers, billable hours and schedules. True, you may feel awkward at first but you will feel more comfortable as you work through your own situation.

In this series of posts, I will explain the four questions you need to answer to calculate your own freelance price rates. By working your way through the details, I guarantee you will have a good estimate. But, don’t stop there. Once you test your rate, adjust as necessary depending on you own situation and location.

A few things to consider before you start. If you’re planning on being a full-time freelancer, realize that you won’t be getting paid for 40 hours of work per week. When you’re employed, you get paid no matter what you do. On the other hand, when you have your own business, you only get paid for the work you do.

Also, you won’t have all the “perks” that are usually associated with having a job. So, not only will you have less billable hours, you won’t have vacation, sick leave, health insurance, or a 401k plan. Quite simply, you will have a cost of doing business now. These are a few ideas that will help you as you work through the next 4 questions.

So, don’t fret if your rate seems too high or too low. You will have to make the decision to go with one rate eventually. You can always change it later.

Tags: , , ,

Like it? Share it!

  • Technorati
  • del.icio.us
  • blogmarks
  • Furl
  • Ma.gnolia
  • StumbleUpon
  • Digg

Related posts:

  1. Calculating Your Freelance Rates - Final Installment
  2. Calculating Your Freelance Rates - Part 2
  3. Calculating Your Freelance Rates - Part 3

One Response to “Calculating Your Freelance Rates - Part 1”

  1. » Pricing and Positioning Your Rates Amongst Other Freelancers and Businesses - Blog for Freelancers and the Self-Employed said:

    […] Your Hourly Rate How to Set Your Freelance Rates Freelance Writing Rates Based on Ability to Pay Calculating Your Freelance Rates - Part 1 Calculating Your Freelance Rates - Part 2 Calculating Your Freelance Rates - Part 3 Calculating […]

Leave a Reply

You must be logged in to post a comment.