Hourly Rate
Out of context: Reply #39
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- monNom0
@Boz I think defining what 'freelance' means to you is important when discussing rate.
For instance: A contractor working 3-6month gigs at various studios can charge far less then a sole proprietor of a design business with inherent risks and overhead.
For a one-man show winning their own business, you have 2000hrs to sell each year. 50% of those hours are going to be spent winning business, clerical work, and other cost centers. The amount of revenue eaten up by overhead (computers/software/professional services/internet/phone(s)/trans... etc.) might take another 30% (if you're lucky) and figure on 10% being unrecoverable (hours you have to eat, or just won't be paid for).
So that 100/hr turns into 60k for the year, but that's not all for you. some goes to the tax man, and if you're smart you sock away some profit to build your business, to rely on in slow times, get trained in newer tech, maybe hire an employee in a couple of years.
That 100/hr really earns you a modest wage unless you're working out of a coffee shop, and you can't do that forever.
Now for the hired gun who sits at a terminal without any of the overhead. sure $75 will do nicely. but that's apples and oranges. To me, freelance means selling yourself to clients, not working as a part-time employee.
- monNom, that's not how you calculate your rate.. I will show you later.. I will explain it in detail.. it's actually very well explained in numerous business books.Boz
- explained in numerous business books. Some of what you said is important yes, but there is actual math behind everything.Boz
- everything.Boz
- of course you would use real numbers rather than rough percentages, but the methodology is solid.monNom
- 100/hr = modest wage!!? Try telling that to the other 95% of society.Sneakybadger2
- you'll be lucky to keep 40k of it.
modest.monNom