602 - How much to charge for my work?

Essential tips on how much to charge for your freelance work

A session with Alec taught me how to rightly charge and invoice for my work - I feel more professional already!

1. Do some research

A great first step is to do some research to see what other freelancers are charging for similar work in your area. If you've got more established freelance friends, ask them what their hourly rates are. Compare and come up with a rate you feel reflects your skills and experience, but make sure you're competitive.

In my experience, I've known web/graphic designers and illustrators to charge anything between £20-£60 per hour; web/software developers between £25-£90 and copywriters to charge from £20 to £50 per hour. But how long's a piece of string? Your hourly rate will be totally specific to your skills and expertise, the area you're based, your competition and the type of clients you work with.

2. Know your place

In comparison to agencies who have more overheads.

3. Calculate your overheads

Could be rent for your office, insurance, travel, stationery or materials. You've got to cover your costs, so make sure your hourly rate is reasonable as well as realistic.

4. Consider lost time

Consider time for administration, involving, etc

5. Consider how much you want to earn

Another way to figure out your rates, is to ask yourself how much you'd like your annual salary to be – taking into account your weekly billable hours and the amount of holidays you want to take. Your Rate – a simple online calculator.

6. Be flexible

When you start talking to clients, you'll soon realise that one day/hourly rate won't suit everyone. But it's wise to charge high first and be prepared to me knocked down on price. Therefore, know your ultimate minimum hourly rate, i.e. the lowest you're prepared to go and stick to that.

Go no lower because you have to remember that you've got overheads and business costs to cover plus you don't want to undervalue yourself. Remember, clients can always push you down on price.

7. Get comfortable talking about money

Don't be afraid to negotiate and have confidence in yourself, your abilities and how much you're worth.

8. Budgets

When meeting a potential client for the first time, try and establish their budget before you reveal your own rates. That way, you can adapt your price accordingly or decide whether you're the right person for the job. 

9. Choose your pricing strategy

When costing up jobs for clients – you have two main strategies to consider: time or project-based. Time is when you log your hours/days and then invoice the client accordingly; project is when you calculate how long you think a piece of work will take and provide a fixed-price upfront. Choose the strategy to suit each job.

If in doubt over any project, explain to the client that you charge an hourly rate, based on the time it takes to complete the project – rather than guessing how long it will take initially and providing a fixed upfront fee. This is especially important for larger jobs, ones that could throw up all sorts of issues along the way.

10. Consider the unknowns

When costing up jobs, you have to consider your productivity and how much you'll realistically achieve in a set amount of time. It's always best to add on an extra day or two of your time as a contingency. That way, you won't lose any money on the job. Don't put yourself in a situation where you've not budgeted enough hours/days, you'll lose money and that's not where you want to be.

11. Every project is different

Hourly/day rates will inevitably vary from one project or client to another. Just stay aware of your competition and the economic climate.

12. Create a rates chart

With your rates likely to differ from one client to the next, create a spreadsheet to keep track of what you're charging. Refer to this at the end of each financial year, so you can asses whether it's time to consider price increases. If you need help with raising your rates, here are some helpful tips to increase prices without losing clients.

Suggested Industry & Job Specific Freelance Rates

Some of the UK's leading bodies, associations and agencies have published recommended freelance rates, allowing you to easily make comparisons to your own. Here are some of the best sources, broken down by theme:

Digital & Design

In 2014, Cogs Agency put together a comprehensive salary benchmark for London's creative professionals, including recommended rates for freelancers. Some highlights include:

• Senior Designer: £250 to £330 (day rate)
• Motion Designer: £200 to £300
• Junior Designer: £100 to £200
• Senior Front End Developer: £350 to £400
• Junior Back End Developer: £150 to £250

However, the IT Jobs Watch is far more current, as it tracks the latest going rates for various tech professions. For example, the average daily rate for a developer in the UK is £400, as of April 2016.

If you're a developer or designer, then Mud, an agency based in Bath, has crafted this clever online tool that helps you figure out your rate based on your age, UK location, years of experience and profession.

Editors and Proofreaders

The Society of Editors and Proofreaders has its own suggested minimum rates for freelancers, as follows:

• Proofreading: £22.75 (hourly rate)
• Copy-editing: £26.50
• Substantial editing, rewriting, development editing: £33.50
• Project management: £33.00

PR & Marketing

According to a survey by the Major Players, rates for PR and marketing professionals vary enormously. Highlights from their findings include:

• PR Account Executive: £60-£100 (day rate)
• PR Account Director: £190-£250
• Content Manager: £200-£300
• Social Media Manager: £200-£300