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As a freelance worker, one of the most important aspects of your income is your hourly rate. Unlike traditional office jobs, freelance workers often times don't have the luxury of standardized entry level salaries. Instead, freelancers have to research their respective fields and calculate their own rates. If you're new to freelancing and need to know how to develop an hourly rate for freelance services, you must accept that this isn't an exact science. There are many factors that will help you determine your optimal freelance hourly rate.

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Steps

  1. Develop an Hourly Rate for Freelance Step 1.jpg
    1
    Determine your freelance work expenses. It doesn't matter how high your hourly rate is if you can't cover your monthly expenses. Sum up your regular expenses, including food, utilities, rent, clothing, and other personal expenses. This will be the bare minimum that you need to earn in 1 month.
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  2. Develop an Hourly Rate for Freelance Step 2.jpg
    2
    Determine your desired profit. By calculating your expenses, you will know how much you need to earn in order to break even. However, for most people, breaking even isn't enough; everyone prefers to work for profit.
  3. Develop an Hourly Rate for Freelance Step 3.jpg
    3
    Determine your industry's standard for freelancers. Due to the nature of freelance work, industry standards for freelance pricing are hard to find by research. Yet at the same time, most freelancers aren't bound by contract to keep their rates private, and many prolific freelancers are comfortable telling you a ballpark rate if you ask them. When you find out how much others in your field are charging, you can use that as a baseline for setting your own rates.
    • Consider the market demand in your field. The market demand for freelance writers is different from the market demand for freelance programmers, thus the hourly rate will differ. The greater the demand, the more you should charge. On the other hand, if you're finding it difficult to land a job, perhaps you need to lower your rates.
  4. Develop an Hourly Rate for Freelance Step 4.jpg
    4
    Consider your skill level in your field. The quality of the work you produce will greatly impact the value of your product, and your hourly rate should reflect that. If you produce mediocre work for a high rate, you likely won't find repeat business. If you produce first-rate work for a low rate, you'll be missing out on a lot of potential income.
    • If you're unsure whether your production is worth your price, ask your previous and future clients for feedback on the work you did for them. In particular, ask them if they were satisfied with the quality of your work for the price you charged.
  5. Develop an Hourly Rate for Freelance Step 5.jpg
    5
    Consider your experience in your field. Clients are more likely to pay higher rates for those who have more experience. Experience does not necessary correlate with skill level, but those with more experience tend to have a better understanding of business in their field. As you gain more experience, you should gradually increase your hourly rate.
  6. Develop an Hourly Rate for Freelance Step 6.jpg
    6
    Consider your client. If you're working for a start-up company, they probably won't be able to afford very high rates. By contrast, an international company would likely be more willing to pay much higher rates for the same quality work.
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Categories: Consultancy Freelance and Contracting

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