Freelance Writers: Hourly Or Flat Rate? Chipping Away At The Mystery Of Pricing
So, what the heck do you say when a prospect asks the dreaded question, "How much would you charge for..."?
Pricing's kind of a big hill to climb. We'll take it in small steps. The first thing you've got to decide is your hourly rate. Not too many clients will ask about it - although I have a few who have.
Typically, the best situation to run an hourly tab is when you're doing work that's bordering on consulting.
For example, I have a client who's always got great ideas buzzing through her head. She'll ask me to spend some time brainstorming how she could market a new site or product. She knows my hourly rate is $75, and I bill her in increments of 15 minutes. We've worked together enough that I bill her monthly, knowing she'll pay.
Even though your hourly rate will work well sometimes, it's almost always better - for everyone - to bill a flat fee.
Why? Think about it. If you get paid $5 per hour to rake leaves, your employer will wonder whether you're working as quickly as possible, or if you're dogging it. Right? But, if you estimate it'll take five hours, and charge a flat fee of $25 to rake the leaves in one yard, they'll feel better - knowing just what to expect. Now here's the beauty part - what if you become such an efficient leaf-raker that you manage to do that same yard in only three hours? You've given yourself a raise! Your ingenuity is rewarded. And your employer is still happy - because you kept your end of the deal.
The same idea holds true with your writing. Why would a client hire you without knowing how much the project will cost in the end? And why would you want your income tied to your time? A general principle is this: it's always better to get paid by results rather than by time.
But your hourly rate is good to know even when you're charging a flat rate for a project.
Especially when you're just starting out, it's a great way to back into your fees for projects you do often. We'll look at that in more detail next time.
Pricing's kind of a big hill to climb. We'll take it in small steps. The first thing you've got to decide is your hourly rate. Not too many clients will ask about it - although I have a few who have.
Typically, the best situation to run an hourly tab is when you're doing work that's bordering on consulting.
For example, I have a client who's always got great ideas buzzing through her head. She'll ask me to spend some time brainstorming how she could market a new site or product. She knows my hourly rate is $75, and I bill her in increments of 15 minutes. We've worked together enough that I bill her monthly, knowing she'll pay.
Even though your hourly rate will work well sometimes, it's almost always better - for everyone - to bill a flat fee.
Why? Think about it. If you get paid $5 per hour to rake leaves, your employer will wonder whether you're working as quickly as possible, or if you're dogging it. Right? But, if you estimate it'll take five hours, and charge a flat fee of $25 to rake the leaves in one yard, they'll feel better - knowing just what to expect. Now here's the beauty part - what if you become such an efficient leaf-raker that you manage to do that same yard in only three hours? You've given yourself a raise! Your ingenuity is rewarded. And your employer is still happy - because you kept your end of the deal.
The same idea holds true with your writing. Why would a client hire you without knowing how much the project will cost in the end? And why would you want your income tied to your time? A general principle is this: it's always better to get paid by results rather than by time.
But your hourly rate is good to know even when you're charging a flat rate for a project.
Especially when you're just starting out, it's a great way to back into your fees for projects you do often. We'll look at that in more detail next time.
