Determining how much to charge for your services is often one of
the biggest challenges for a new freelancer. If you are a new freelancer,
you have probably searched the Internet trying to look for average
rates of professionals in your field. Don't even bother. I will
let you in on a secret : now that the Internet is here; there aren't
any "average" rates because demographics are too widespread. With
this in mind, I will show you how to figure out what your rates
should be by using a formula.
Start
by figuring out what you want your annual salary to be. To determine
your salary, you might want to pay yourself what you earned as an
employee, or take a look at salary.com
to find out what an average salary for your profession is. For
this formula, you will need to figure out what your overhead is.
Overhead is an expense that cannot be found billable to a client,
it is just a cost incurred by running your business. Please fill
out the following form. If you aren't sure what your overhead is,
then look back on last year's credit card bills and checking account
statements. MONTHLY
OVERHEAD:
Now you will need to figure out how much of a profit you wish to
make. I recommend between 10% and 20%.
Follow
these steps to figure out what your hourly rate should be. 1.
Add Salary and Overhead Together
2. Multiply Total By Profit Margin (10% - 20%)
3. Add Total (1) and Total (2) Together
4. Divide Total (3) by Billable Hours (2,000)
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by Rachel Goldstein
http://www.Allfreelancework.com - 1000s of freelance jobs, articles, and resources. |
