Freelance 101:
Chronicles for the Self-Employed

by Leanne Rollins, Membership Manager

Assigning a value to your services is not an easy thing to do. It would make the decision much simpler if you could simply ask other freelancers about their own charge-out rates— but if you are new to the freelancing games, you’ve already realized that no one likes to reveal their rates or their ‘trade secrets’. So, how then, do you establish a rate that is competitive in the market, is acceptable by the client, and generates steady cashflow to your bank account? Read on…

How Do You Rate?

There are a number of significant variables to consider when establishing your rate:

1. How much experience do you bring to the table?
   
   

   Level of Experience: Guideline Junior – 0-4 years Intermediate – 5-8 years Senior - 8 years +

   Clients hire freelance writers for a variety of reasons, but almost always expect a freelancer to hit the ground running. Although training is not provided, and very little direction is given, each contract comes with a boatload of expectations regarding what you will deliver and how fast you will deliver it. That’s why your rate should reflect your ability to complete the job according to the client’s expectations. If you are new to technical writing, carefully consider what you bring to the table and if you can handle this level of expectation. If you are a senior writer, you can expect to charge a little more for your expertise— although your rate will be higher, you should accomplish the work substantially faster than a junior or intermediate writer.
   

2. You need more than just one rate.
   

   Although it would be nice to quote a single rate for all types of work, it’s just not realistic. I quote a different base rate for editing, copywriting, online help development, and manual development. If your skill set extends to graphics, you need to establish another rate for logo design and possibly website development. Pull together a basic menu for all your services. You don’t need to publish this menu; just keep it on hand so you can quickly respond when a potential client asks the million-dollar question. To help you out, I’ve included my menu of base rates. Keep in mind that I am senior writer with over ten years experience, so adjust your own rates up or down accordingly.

   
   

   Service	Hourly Base Rate
   Editing	$50.00
   Copywriting (Marcom)	$45.00
   Online Help Development	$65.00
   Manual Development	$60.00
   Logo Design	$40.00
   Usability and UI Development	$50.00
   Web writing	$50.00

   
   
3. How badly do you want the work?
   

   You might have more than 10 years experience, but if you’re going through a dry spell and need the work, or if you are new to the freelancing game and need to snag that first client, consider a rate lower than your base rate to get your foot in the proverbial door. This technique has worked for me on several occasions when a particularly troublesome client returned to me for additional work, and I craftily mentioned an increase in my rate thinking that it might save me some grief if the client simply chose not to hire me for the project. The client didn’t bat an eyelash—and I toughed out the contract with gritted teeth. I was paid well though!
   

4. Should the tool affect your rate?
   

   Short answer—no. Assume that you are being contracted for your WRITING expertise, regardless of tool. That said, if the client expects you to use Word to create a 300-page manual, I would seriously consider increasing your base rate by 10% simply to compensate for the aggravation you will experience.
   

5. Per project or per hour?
   

   In my experience so far, per hour works out to be more lucrative for you, but it is much riskier for the client. Often, I bill per hour, but I provide the client with a ‘cap’ amount. In the contract, I include a clause that lets the client know that as scoped, the project will not exceed a certain dollar figure. It seems to give the client peace of mind. If you surpass the dollar figure, your effective hourly rate whittles away for every additional hour you put into the project, UNLESS, there was a major scope change. In that case, you should renegotiate the cap as soon as you realize you’re going to blow past it.
   

6. What rate is likely acceptable to the client?
   

   I’ve found that there is simply no way to guess the client’s threshold when it comes to rate or budget. You can do all the research on the company you want—analysis of their market space, their cash-flow situation, their product offering, etc. But in the end, the best bet is to reveal your rate straight out. If they gasp in dismay, ask them to allow you to quote on the project anyway, which gives you a chance to provide that all-important cap, which is the number they REALLY care about. Most of my clients have a sum in mind that they can spend on the project —although they won’t reveal the number. If your quote comes in under their sum, you’ve probably got yourself a contract. If not, you may have to do a whole lot of convincing that you are the right contractor for the job.

One thing is certain—deciding your rate isn’t an exact science. Your rate will change over time as your experience increases, and demand for contract writing services continues to explode in our world that is rich with emergent technologies. Now get out there and get busy!

About Leanne Rollins

Leanne recently became a self-employed contractor, escaping management roles for the first time in years. This newfound freedom has allowed Leanne to take on extra-curricular activities such as a more active role in the STC. When not writing or playing with her kids, Leanne enjoys running and soccer.