The minutes go by in Excel, ideas and confusion collide and… don’t you get to determine how much to charge for your fee? Here are some tips and things you should know to make your freelance work go smoothly.
Usually, our fees will be determined by certain parameters such as:
- Our conditions
- Our experience
- Our prestige
- Difficulty of the task on-hand
We do not spend the same amount of money per month if we live with our parents, as if we live alone and must take care of all the expenses.
Our prestige and experience
These two parameters play an important role in our fees. If you are a professional with extensive experience and prestige in your area, you can afford to charge above the average price. If you are just starting out, I recommend that you be a little more conservative about your fees (I will give you some recommendations later on so that you can get out of the average price in the market 😉).
Now, let’s get started.
As a first step, we must establish what is the amount of money we need on average to be able to pay off all our accounts at the end of the month. Once you have determined this, define how many hours you will be able to dedicate to your freelance activities per day. I recommend taking 20 to 25 minutes to discuss and define this, it is very important.
To make this more didactic, we will work with a character we will call “Daniela”. This is the total amount of money Daniela needs to settle all her accounts with their respective breakdown.
Daniela goes to Excel and begins to determine what her price per hour should be. For this process he starts determining:
- Her annual income
- The days per month you will work
- How much you hope to be useful for your work.
As we can see, Daniela will work from Monday to Friday 8 hours a day and expects to have a 35% profit from her work. In this case, one hour of Daniela’s work will cost an average of $4.84 under the assumption that she will have work that takes up the 8 hours she has arranged.
To be noted!
Be part of your country’s tax system: Eventually you will sell to companies or individuals with businesses, they will need to legally support the investment in your services. Therefore, issue invoices for your services and try to pay your taxes on time, it is very good practice.
The client will negotiate: Always, always, always… the client will negotiate your prices so I recommend you to be prepared with the right arguments. (I recommend a very good course for this).
Work on your personal brand: Companies in particular, before proceeding to an interview with you, will have already researched about you; so it is vital to work and take care of your personal brand.
Have an impeccable portfolio: Whether it’s a website, a blog or physical documents, make sure your portfolio is incredible and impressive. It will help you a lot.