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Guidelines for Pricing Yourself As A Freelancer

posted October 27, 2008 - 2:22pm
Guidelines for Pricing Yourself As A Freelancer

For any freelancer, a common question that we find ourselves asking (especially when we're new) is: what am I worth? How much should I charge? What jobs are too low to be worth taking?

Ultimately, I think we all have to answer these questions for ourselves. But I think there are certain guidelines that anyone can use when trying to figure it out, so I'm going to share with you the questions I ask to determine how much I need to get paid.

How much do I need to be paid in order to make a living?

This question is a good place to start. The money you need in order to make a living is the lowest amount that you should expect to receive for any work you do. Determine a "minimum wage" for yourself based on an assumption of 40 hours a week and your barest financial needs according to your expenses and where you live. Use this number as the minimum for negotiations on your price, taking into account ALL the time you are devoting to the job in question.

I would recommend that you never do any work for less than legal minimum wage. Us workers gotta stick together. I've seen a lot of situations, particularly with writers, where people are willing to underbid others down to almost nothing. I know, almost nothing is better than nothing if you don't have work, but don't do it: it just makes everything worse for all of us in the long run as freelance employers come to expect more and more for less. There's a reason wage laws exist in the world of permanent employment!

How much can my client or employer afford to pay me?

I like to implement a sliding scale for people based on their situation. For instance, I offer a reduced rate for resume and cover letter writing for people who are students, recent graduates, or who are between jobs. Likewise, if I know someone is rolling in it and is willing and able to pay well for the services of others, I'm going to demand the same for mine (a prime example of this is being the musicians at a wedding - far too often, the wedding party is all to happy to dish out top dollar for 15 minutes of professional photography, but think they only need to pay pennies for several hours of professional music).

Now, if someone can't get their act together enough to pay a decent price, they shouldn't be trying to hire a freelancer. This doesn't include friends, family, loved ones, or charities/causes I believe in. But under those sort of conditions, I actually prefer to donate my time, or, if people insist on paying me something (less than what I'd normally charge) I'm going to make it clear that I consider it a gift given in thanks for a donation. There are many situations where I am happy to help out, but I am not willing to have my skills and contributions undervalued.

How do my credentials and experiences look?

Simply put, don't start out as a beginner and try to charge for your work what someone with 10 years of experience and a far more stunning resume would charge. It's just insulting.

How much do I enjoy the work?

This is a question you have to ask yourself for the sake of your own sanity happiness. I would highly recommend asking a little more for stuff you don't particularly want to do, if you're in a position where you can do so. But more than that, I recommend that you *not* make it a constant habit to turn down low-paying work of the kind you really enjoy (in a "I would do this for free if I could" way) for higher paying stuff you don't care as much for. Obviously, there are times when we have to choose money over pleasure, but I don't think this is always preferable.

What are others usually paid for the work I'm doing?

Figure out what's standard and charge that - assuming that you feel you are as qualified as your competitors. Otherwise, charge a little less and be up front about why.



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