Freelance Rates – Part 1: Determining Your Worth as a Freelancer
April 28, 2010 by Lillie
Table of contents for Freelance Rates
- Freelance Rates – Part 1: Determining Your Worth as a Freelancer
- Freelance Rates – Part 2: Hourly vs Project
- Freelance Rates – Part 3: Setting Freelance Writing and Editing Prices
“Freelance editing rates” is consistently the most popular search term that leads people to my blog. Because of that interest, several months ago, I conducted and publised the results of a freelance rates survey. Freelance rates are the source of continuing debate, and the results of the survey showed rates ranging from less than $5 per hour to $150 per hour.
You want to earn what you’re worth, but you want to be competitive and not lose jobs because your price is too high. So, how do you decide what to charge? In this series, I will cover your worth as a writer, hourly vs project fees, and calculating your fees.
To begin, you will want to gain an understanding of your worth as a writer or editor.
- Consider your experience level. If you are just beginning as a writer or editor, you can’t expect to make as much as someone who has been working in the field for twenty years. You can charge more if you are exceptionally knowledgeable about a subject or have additional skills that the client needs.
- Consider the going rate for the work. The Editorial Freelancers Association publishes a chart of typical editing fees. This will give you a typical range; for example, the range for basic copyediting is $25 to $40 per hour. You probably want to be at the lower end of the range if you’re a beginner and the higher end of the range if you have more experience.
- Consider your market. If you choose to write in certain markets, you can expect very low pay. If you write for magazines and many other publishers, you often don’t have much say in what you are paid. If you are in a specialized market, you can earn much higher rates.
- Consider the value of the work to your client. Most of us tend to think in terms of what it takes to do the job, but our clients look at the value to them. One business client tells me often that she doesn’t mind paying my rate because she saves money by hiring me—even though she pays me several times what she pays her employees, they would spend all day doing what I do in an hour or two and the end product would not be as good.
- Consider your costs of doing business and your income needs. Freelancers often make the mistake of charging the same hourly rate they earned as an employee. However, as a freelancer, you have business expenses that an employee doesn’t have, and you can bill for only a fraction of the total number of hours that you work.
In the Volume X, Issue 47 (October 5, 2009) issue of his newsletter, Jim Blasingame, the Small Business Advocate, gave this advice to entrepreneurs selling professional services:
You should think of your hourly rate like renting a car at a rate of $60 a day. That works out to $1,800 a month for a car that you could finance for $350 a month. But you understand that you’re paying a premium because you have a temporary transportation need, the rental company delivers the product and service just in time and you give it back whenever your need has been fulfilled, without further obligation. No muss, no fuss, almost exactly like when a client “rents” your professional services.
As a professional for rent, the services you provide and the resource that you are to clients means they don’t have to adopt you like an employee. They can rent you and send you on your way until they need your “product” again.
Here are other resources that you may find helpful in determining your worth as a freelancer:
- Assessing Writing Projects – A Guest Article, T.W. Anderson, About Freelance Writing
- Defending Your Prices, Jennifer Williamson, Catalyst Blogger
- The great freelance rate debate continues, Michelle Rafter, Word Count
- Why You’re Not Cheap, Lori Widmer, Words on the Page
- Writing Pay – How Low Will You Go?, Dana Prince, Get Paid to Write Online
- You Want Higher Freelance Writing Rates, But do You Deserve Them?, Jennifer Mattern, All Freelance Writing
In the next installment, we’ll discuss hourly rates versus project fees. Then in the final installment, we’ll go into more detail on setting prices.
I look forward to your comments on determining your worth as a writer as well as any questions you have about setting freelance rates.
Awesome post… I was just thinking on this yesterday, in fact.
When I was trying to figure out my own rates, I broke it down to the number of words I could reasonably write per month and then turned that into a minimum per word rate – and then I rounded all the figures up and determined pricing for a few things I wasn’t sure about.
I can’t wait to read your next post.
Angie,
Your formula is a good starting point. You may want to use the tips in the final installment to refine it a little more … so keep reading.
Lillie,
I love what Mr. Blasingame says.
Personally, some form of freelance work is an option which I myself will have to give some serious thought if I can’t get a job soon.
Since I returned home from Korea last year, I have been trying to land a position within the professional writing and editing field, especially in the area of either corporate writing or business journalism. Toward this end, I have been applying for jobs on a frequent basis, but have not yet been able to land a position. [In addition to looking for work, I have also been studying professional writing and editing part time since February, I have become active with Victorian Writers Centre (the primary organisation for writers in my home state) and also a local writers' group nearby, and I am also doing voluntary work writing biographies for palliative care patients at a local aged care facility]
I do want to work for myself eventually, but ideally, I would like to get a job first so that I can build up skills and practical experience and a solid reputation in the area, thereby being able to consider a wider range of options and being able to charge more favorable rates. But if I can’t get a job soon, then I will certainly have to give serious thought to going out on my own from the outset.
I love writing and I am confident in my ability in this area. In a perfect world, I would ideally like to gain practical experience before going out on my own. But this is looking increasingly difficult.
.-= Andrew´s last blog ..Toyota Part 2: Behind the poor response =-.
Andrew,
You are doing the right things to prepare yourself. There are definite advantages to working for someone else to gain some experience and credibility, but I have spent most of my life working on my own—either owning and managing a small business or freelancing. My lack of corporate experience never stood in my way. Good luck!
Great Post, Lillie! Thank you for all this great information! This is a bookmark page for me!
.-= Dominique´s last blog ..I’ve waited for a lifetime for this moment =-.
Glad you found the post helpful, Dominique.
You might be interested to know that I found your comment in spam. That shouldn’t happen since you’re an approved commenter here unless you’re on a list with Akismet.
Thank you, Lillie. I believe you presented a good primer on freelance rates and I look forward to your next two installments of this series.
.-= Matt Keegan´s last blog ..National Day of Prayer Proceeds As Planned =-.
Thanks, Matt. Hope you find all the articles worthwhile.
FYI: I had to dig your comment out of spam. I never will understand Akismet. Usually it’s very good, but sometimes comments end up in spam that certainly don’t belong there.
Very good article.
I, for example, I don’t take any writing job if it’s not at least $50…
For programming jobs, I usually charge by the hour…
.-= Nicusor @ Nickoo Shore´s last blog ..UEFA Champions League Final 2010 Original Confetti =-.
Nicusor,
It’s good to know your bottom limit and stick with it.
I tried free lance writing before I started my new company. I was the starving artist for sure! I have a lot of respect for anyone who can make a living freelance writing.
.-= Dennis´s last blog ..Heavy-Duty Curtain Track =-.
Dennis,
Freelance writing isn’t easy, but then no business is.
I believe that most potential clients of freelancers do not want to put the time and effort into learning how to set up a good wordpress blog or even write good SEO content. The reality, though, is that most people who run a web based business may know how to do these endeavors and more but just don’t have the time for them (which is of course why they hire a freelancer for such tasks).
Nor can they afford to spend time figuring out which freelancers to work with which is why all freelancers should follow the advice of this post and be clear about what they offer. I know that this simple, sincere strategy works with my products!
.-= Maria@Stress Management´s last blog ..How to Deal with Financial Stress? =-.
Maria,
Writing is difficult for many people, and they can benefit from hiring someone who can do the work more efficiently so the business owner can focus on other aspects of building a business.
Hi Lillie:
This is a great pair of articles you’ve written on setting freelance rates. Though many of my clients are honest and open to reasonable discussion about rates for a project, I have found that many, mostly those new to the freelance game, balk at the idea of paying writers what they’re worth — after all, we’re a dime a dozen, aren’t we?
Just as you stated, for some of my regular clients, where the work is ongoing, it is best to work at an hourly rate. For others, though, especially those whom I know are on a tight budget, I negotiate a per project fee, based on the number of hours I expect this to take and then rounding the hourly rate down a bit so they feel they’re getting a discount. That also means I don’t have to watch the clock every minute I’m working, and the client doesn’t have to worry that I’m suddenly going to present him with an enormous bill.
Miriam,
Your pricing philosophy makes sense. It’s always good to quote a project fee when it’s feasible to do so, but some ongoing work for regular clients just can’t be quantified enough in advance to calculate a project fee.
Great Write up. Some really good tips given by you in this post.
Glad you found the post helpful, sera.
I always consider my client’s budget with regards to any project. I make it a point that both parties are not uncomfortable with the agreed amount. As much as possible I want my client to get what they have paid for.
Bernice,
It’s good to consider your client’s budget if you don’t let that be the deciding factor and sacrifice your own income for someone else. As you say, you want to arrive at a price that is fair for both of you.
Thank you Lillie now at least we have our own gauge worth. Both from clients and freelancer.
Liza,
Thanks for letting me know the post was helpful.
[...] Freelance Rates – Part 1: Determining Your Worth as a Freelancer [...]
I have always had a passion for writing and believe it or not editing. I have been in business for myself for over 11 years, and have frequently thought of freelancing but time restraints have stopped me from continuing.
Just recently I have started to reevaluate, as it is something that I enjoy. Your post are really inspiring me to consider going for it.
You have given me some price points to start expanding off from.
Looking forward to reading more on your blog.
Megan,
Good luck with making the right decision about freelancing and for success and joy if that is what you decide to do.
Thank you Lillie, you truly have given me some great information on this site.
I will keep you posted as you have sparked my market research today.
Have a great day
Megan,
Be sure to read the other articles I have on freelance writing, including the series on becoming a freelancer. Check out the Series page (under the About tab).
I look forward to hearing about your progress.
Great article. You have shared here valuable information which is really helpful for them who are thinking of freelancing job.
Looking ahead for more updates.
prashantsnv,
This is the first of a series – just follow the links to read the rest.
Lilli,
This is a great post in helping budding freeleancers start to think differently about how they charge and the value they create for their customers. Really good of you to share your experience.
)
One thing thatI found really useful in raising my fees for coaching, training and consulting, was begining to really dig for where I could add most value to my clients (from their perspective).
The best book I ever found on this was Spin Selling – it’s a longish read but the value in understanding who understand the needs of clients is immense.
Hope this adds a little more value to your readers.
Thanks again for sharing this.
Dave.
Dave,
Excellent way of setting your rates – determining what value you bring to the client.
Really it’s a good news for freelancer. I want to start work as a freelancer then you can guide me that how is this possible. I have 1 year exp in SEO.
mithun,
I do not offer any type of coaching program. However, you will find a lot of help in the articles posted here. Good luck in your freelance career.
I also agree this is a great post. I have a question I am originaly from Chicago but now living in the Philippines. I do freelance writing and editing sometimes for clients in the US. I get alot of my clients from craigslist and Odesk. Now these people looking to hire a freelance writer/editor are looking to hire a filipino at a very very reduced hourly or per project rate alot less then someone hired in the US would get. Can anyone give me a suggestion as how I can determine what my rate should be given my situation? I have asked other filipino freelancers there rate they charge and the span of different rants is very big going from $2 per hour for an hourly rate to some asking $12 per hour so its hard for me to determine how much I should say I want to get paid any feedback is most appreciated thanks.
Charlie@Christian Dating Sites recently posted..Christian Community – Reasons to Join a Christian Community
Charlie,
I suggest you use the criteria I outlined in the post above: How much experience do you have? What market are you writing for? What added value can you offer your clients?
I realize that we all tend to get careless in writing blog comments, so it isn’t fair for me to judge the quality of your writing by your comment. However, I recommend that people who are marketing themselves as freelance writers be a little more careful to avoid typos and spelling and grammar errors in everything they write. If I had nothing but your comment to base my opinion on, I would tell you that you merit only the very lowest rate.
Of course, I’m sure you’re a better writer than your comment indicates, and there are several things to consider: the quality of your writing as well as your turnaround time and your ability to communicate with the client to ensure that you meet his or her needs. The better your writing, the faster your turnaround time, and the better your communication skills, the higher rate you can command.
You also have to take into consideration that customers who search for cheap prices probably are less interested in quality than clients who look first at the writer’s qualifications and second at price.
Hey Lillie,
I found your post rather useful as I just began freelance writing with a local magazine. Just wondering if you knew how raises work with freelance writing. For example, I am being paid 200$ for a 900 word article. If I write 10 articles for them, will they raise it to $300 per article? Is that how it works or no? Or does it depend on a lot of factors?
Natalie,
I don’t write for magazines, so I can’t tell you a lot about how they work. But in general, there is no increase for volume in freelance writing. Prices are negotiated between the writer and client–some have less room for negotiation as some publications such as magazines have standard rates. If there is to be an increase in price, generally it would have to be negotiated again, and the freelancer should have some justification for higher prices. Typically as you gain experience you offer more value, so you can command higher rates if you have more experience.
Hi Lillie,
I just stumbled upon your site and have to say I’m very impressed with all the helpful tips and information!
I’m somewhat of a newbie in that I don’t have any freelance experience, but I do have an editing background. Can you recommend an alternative to providing samples to prospective clients? Would a resume be a good substitute?
Also, is there a specific style guide you use when editing (e.g., AP, Chicago Style, etc.)?
Thanks in advance for your time and any advice you can offer!
Chad,
I’m a strong believer in providing a free sample for several reasons.
First, it’s how I determine how much to charge. As you probably know, all editing jobs are not created equal. Some writers are much better than others, and some writers require extensive editing. I never charge by the page or the word because the good writer overpays and the bad writer underpays (and I’m the one who doesn’t get the money I should!).
Also writers have different expectations. Some just want an editor to tell them their words are golden. It’s much better to spend a few minutes doing a sample and find out they don’t like your work than to take on the job and have an unhappy client. Years ago, I was listed as an editor on the website of the one of the “self-publishing” companies. Since then the companies all started offering in-house editing, but in the beginning, this company just offered writers publishing with them a list of editors to contact. I never did any work for any of those folks because they all wanted to do it their way. Now, having control over the finished product is one of the great benefits of self-publishing, but a serious writer will take advice from other professionals. I don’t expect clients to accept every suggestion I make, but I expect them to consider my ideas and use some, even most, of them. If the client is going to tell you it’s her story and she wants a spy being recruited in public at a random meeting in a bar and it doesn’t matter if that’s realistic or not because it’s fiction … I don’t want to edit that book.
A free sample also gives the prospective client a level of comfort that you can handle the job and that you will be easy to work with, always a good start to a working relationship.
Most of the work I do is book-length. I had someone want me to edit a 5-page short story, and I didn’t do a sample for that. You couldn’t tell anything from a sample of a few sentences. But if it’s a project that is going to take many, many hours over weeks or months to complete, I insist on a sample.
I generally use Chicago style because I primarily work on books, and that’s the preferred style guide for books. However, I have other styles depending on the job–APA for academic papers, AP for newspaper columns, etc.
Thanks for the detailed response, Lillie. That helps immensely!
Glad it helped, Chad.
[...] a comment on a post about freelance rates, Chad asked, “Can you recommend an alternative to providing samples to prospective clients? [...]
I’m a freelance writer and to be honest the competition is fierce. I agree with your post and I may have to reevaluate my rates
Jaon,
Rates are certainly one area of competition among writers. But there are other important aspects, also. Things like experience, turnaround time, and knowledge of the industry can make a big difference both in the amount of the work you get and in the price you are paid for.
[...] Freelance Rates http://lillieammann.com/2010/04/28/determining-your-worth-as-a-freelancer/ [...]
Personally, i prefer to keep a standard pricing policy for all my clients. Regardless what the job means or worth to them i prefer to keep it simply about how much time it’s gonna take me to do the work and how much i charge my working hour. I find more honest and fair this way. Ok, there have been times that i did charge more but these times where an exception.
Chie,
I’m not sure if you’re saying you charge a flat hourly rate or if you have a standard price for various kinds of work. But the main thing is that you have a system that works for you, and that’s good.