How Much to Charge for Your Work

How Much to Charge for Your Work

When you make the decision to become a freelance worker, one of the most important decisions you will make is how much to charge for your sets. How you go about doing this will largely depend on the kind of work you’re going to be doing.

If you’re going to be working from home you will not really have any overhead costs to consider when calculating your rates. What you will need to take into consideration is your time and experience, your competitor’s rates, and your costs of operation. Depending on the duties of the job you will be performing, these aspects will vary greatly.

estimate the Competition

Sometimes it is difficult to estimate your competition, particularly when you are working online as a freelancer placing bids on jobs by various job sites. already if you cannot find out exactly what rates the competition is charging, you will ultimately get a feel for what your competitor’s are bidding. This will come with experience, particularly after you have lost a few jobs due to being underbid.

To make yourself more competitive within your field you will need to take a few chances when it comes to placing bids or quotes for jobs. If you find a job opportunity that you don’t think will require an excessive amount of time or research, you might consider placing a bid calculate that is considerably lower than your usual rate. If this gets you the job, you will then have a much better idea of what the going rate is for that kind of work.

Very often, figuring out how much to charge for the work that you do is a difficult, long-term course of action. You may get lucky and find that the rates you offer to employers are accepted right away, but most new freelance workers find that it takes a bit of time and practice to get the “how much do I charge problem” worked out.

Always remember that you need to compensate yourself for the time that you use working. This includes preparatory and research time that needs to be spent on a project before you can truly begin writing, editing, or performing other responsibilities that are required for your project.

Methods for Calculating Rates

If winging it does not sound like an alluring method of figuring out what rates to charge, there is a basic method you can follow to calculate how much you should charge each client. Be advised, however, that this formula will need to be modificated based on the requirements of each job you apply for.

Step 1. Figure out the materials that you will be using or consuming during the time of your work, and factor in an modificated amount for the depreciation of your equipment that will be used (computer, printer, fax machine, scanner, travel, maintenance, etc.).

Some people also like to include percentages for overhead costs in this step, already if they work at home. You do this by factoring in a small portion of your rent/mortgage payment, electricity, internet, and phone sets.

Step 2. Factor in the time you will be spending on the project. Sometimes, this is a nearly impossible task to do upfront. Whether you can calculate this precisely really depends on the kind of job you will be doing. Try to take the total number of hours that you expect to work on a job or project, and multiply that number by the hourly rate you want to charge. After you have done that, take the figure from Step 1, divide by the number of hours, and then add in your hourly rate.

Remember that there is no right or wrong way to calculate the rates that you charge to employers. Ultimately, the decision you make will be based on an amount that you believe to be a fair market rate for the sets you will be providing.

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