Here’s a hard question, but every freelancer has to face it: What is your time really worth?
When you’re a freelancer, it can be really hard to tell. As a full-time employee, your salary also takes into consideration business costs like health care, licensing, taxes, and other business essentials — but when you work for yourself, you’ve got to cover all of that and more.
This is a serious consideration if you’re thinking of quitting your job in pursuit of leading a more fulfilling, self-employed career. For a more stress-free way of testing your way into entrepreneurship, I’d recommend starting your freelance career while you’re still working. Join Michelle Ward’s free Ditch Your Day Job Class and learn how to develop your game plan for hitting the ground running with your own business.
Often, in the interest of netting new clients and seeming like a more attractive hire, freelancers will charge as little as possible, hoping to make up for your low rates by sheer volume. This kind of pricing, which photographer Sue Bryce calls a “survival rate,” is extremely risky, because it doesn’t take into account the ebb and flow of work, nor does it allow you to grow your business by expanding markets or investing in marketing.
When you charge enough to not only survive, but thrive, says Sue, “you find better prospects and clients. It is that simple.”
“You find people who can pay what you need to earn…then you ask them for it,” she explains.
But how do you find out how much is enough to really grow your business? What’s your thriving rate?
creativelive.com created a handy graphic to help you figure it out. On the other hand, we recommend you as well to think about if you realy want to base your freelance work on a hourly base. The upscale is quite limited – you can’t charge more then 24h per day. So have you every heard of productize? Check Brian Casel’s opinion on this her.