If you’re just dipping into freelancing, or even if you’ve been at it for awhile, you could be grossly underpaid for what you do and not even know it.
So how do you know what you’re worth? You may think it’s not much, judging by the dearth of no-pay and low-paying jobs out there. But your creativity is extremely valuable. If everyone could do it, you would expect to receive commodity type rates for work.
But not everyone can do it, and you should be paid as such. Companies that employ creatives full-time understand this, and you should turn to them to figure out what you should charge.
If you need a guideline or a starting point for negotiations, this method is a good place to start. It’ll always be an inexact science based on the project, but this way you’ll be able to confidently ask for what you know you’re worth, which is half the battle.
Step 1 - Go to a free salary wizard like Monster’s. Are you a writer? Designer? Project manager? You’re trying to find a job description close to yours. Check the advertising category, they employ creatives.
Step 2 - Some salary calculators differ, but you should be able to enter your years of experience, education or location.
Step 3 - Find out how much someone doing what you do at a company makes. Pick the median number, or a little bit higher if you feel you’re stronger than the job description implies.
Step 4 - Add the costs of your healthcare, industry subscriptions and other business expenses. At a company, these are benefits. As a freelancer, you’re on the hook for all of it. The company you freelance for is saving money by not having to pay you full-time and cover your overhead, but you should still charge them for the time period you’ll be working on their project.
Step 5 - Divide the number you have by 52. This is what your weekly rate should be. Divide it by 40 and you’ll know what your hourly rate should be.
The numbers will probably vary by the market, so this number is one of many factors you should consider when pitching yourself. Ask what other freelancers you have a good relationship with charge. Get a good feel for the market you’re in, and you’ll have a more accurate idea.
Remember, a company is paying you for your time. You know how much your time is worth, and if a job is paying you 5 or 6 bucks an hour, you may as well go work at Starbucks instead.
The company you’re freelancing for wouldn’t pay their employees bottom dollar for the work they do, so why should they pay a freelancer a rate like that? Especially if you have experience no one in their company has.
Great post! I would add that writers and editors can find helpful rate information in the annual Writers’ Market book and on the Resources page of the Editorial Freelancers Association website (www.the-efa.org).
The Writers’ Market breaks it down nicely by type of project (copyediting, screenwriting, joke writing, etc.) and type of business (corporate, non-profit, magazines, etc.). It also gives information on the rate ranges, from high to median to low.
I agree about being paid what you’re worth. And freelancerrs may be surprised by what comes their way. I was offered two editorial projects at higher rates than I expected, which helps in planning for future projects.
Left by Joanne on March 6th, 2007