{"id":49336,"date":"2017-12-11T07:00:08","date_gmt":"2017-12-11T12:00:08","guid":{"rendered":"https:\/\/www.virtualvocations.com\/blog\/?p=49336"},"modified":"2024-06-17T18:37:45","modified_gmt":"2024-06-17T22:37:45","slug":"freelancer-rates-setting-fee","status":"publish","type":"post","link":"https:\/\/www.virtualvocations.com\/blog\/telecommuting-survival\/telecommuting-tips-tools\/freelancer-rates-setting-fee\/","title":{"rendered":"Freelancer Rates: 7 Suggestions for Setting Your Fee"},"content":{"rendered":"\n

Updated December 2022<\/em><\/strong><\/p>\n\n\n\n

Independent contractors enjoy the freedom and flexibility of choosing how and when they work, but with that freedom comes the responsibility of setting their own rates to achieve professional success and personal peace of mind. If you’re an independent contractor<\/a>, consider these seven quick tips for setting your freelancer rates.\u00a0<\/em><\/p>\n\n\n\n

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Freelancing can be a liberating and rewarding way to work. It offers flexibility, entrepreneurship opportunities, and the ability to carve out your own specialty all while working remotely.<\/p>\n\n\n\n

When you first begin as a freelancer, the excitement associated with gradually growing a base of clients and contracts can have you riding a natural productivity high. It’s easy to overcommit, overextend, and give all your energy to projects that don’t pay well. These trials are all a part of the learning curve. However, when it comes to money, you don’t want to box yourself into a job that requires a tremendous amount of energy, only to find that the payoff is well below what is needed to sustain yourself.<\/p>\n\n\n\n

The power to set your own freelancer rates for your work is within your grasp. With the knowledge, research, and skills to perform, you can confidently set fair freelancer rates that keep you and your clients happy. Here are seven quick tips to help you set your freelancer rates.<\/p>\n\n\n\n

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Why freelancers should use SaaS tools, and five options that you might consider<\/em><\/strong>!<\/a><\/figcaption><\/figure><\/div>\n\n\n\n\n
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1. Do Your Research<\/strong><\/h2>\n\n\n\n

As a freelancer, it’s up to you to stay informed about market fluctuations both in your industry and beyond. The best tool you have to advocate for a reasonable wage is to understand what others are paying for similar services.<\/p>\n\n\n\n

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You don’t want to price yourself out of prime opportunities or accept below market pay for your work, because it becomes more difficult to raise your prices later. Start by identifying the unique services you provide.<\/em><\/p>\n<\/blockquote>\n\n\n\n

Freelancer surveys can provide you with an idea of current rates across industries. Also, take a look at what employers are paying salaried workers to provide these same services. You can find a plethora of salary information on sites like Glassdoor<\/a> and Salary.com<\/a>. Once you have an idea of the in-house costs, consider additional expenses required as a freelance worker.<\/p>\n\n\n\n

Browse the websites of industry contemporaries to review their previous projects, clients, and rates. This will help you gauge how you stack up against others charging similar freelancer rates.<\/p>\n\n\n\n

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If you find that you charge more or less than a competitor offering similar services, it may be time to evaluate your rates. <\/em><\/p>\n<\/blockquote>\n\n\n\n

However, knowing what individual perks you bring to the table will aid you in deciding if you need to make some adjustments, or if you need to better market your own services.<\/p>\n\n\n\n

Taxes<\/em><\/h3>\n\n\n\n

As a contracted 1099 worker, you are responsible for paying your own taxes<\/a>. This means that your rates must take into account the 20% usually deducted per year for salaried employees. This percentage should be factored into your rate. It is vital that you understand your rights and responsibilities when it comes to taxation, as well as much you need to make in order to have to file income taxes<\/a>.<\/p>\n\n\n\n

Home Office<\/em><\/h3>\n\n\n\n

Consider that you must foot the bill for your home office expenses such as internet, printing, software subscriptions, and office equipment. These expenses could be tax deductible, however, so keep excellent records and make a budget sheet to see if your monthly or yearly expenses outweigh your profits.<\/p>\n\n\n\n

Marketing<\/em><\/h3>\n\n\n\n

To get clients, they have to be able to find you. Marketing is a necessity for all freelancers and requires a website and a strong social media presence\u2014possibly including ad buys\u2014that require monthly and yearly funds. As you plan your freelancer rates, be sure to factor these costs into your budget.<\/p>\n\n\n\n

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Need help tracking your accomplishments for use on your resume? Access our FREE Career Wins Tracker in our Career Center!<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n\n
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Insurance<\/em><\/h3>\n\n\n\n

Everyone needs health insurance, and freelancers are no exception. As a nonemployee you don’t have access to an employer plan, so you must figure this vital expense into your wages. Particularly if your industry is high risk, is prone to burnout, or requires extensive physical or mental labor, you want to be sure you can afford healthcare to stay well enough to continue working and earning as a freelancer.<\/p>\n\n\n\n

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2. Join The Club<\/strong><\/h2>\n\n\n\n

It’s a great idea to get involved in an online freelancer community in your field. There, you can ask questions and get a sense of what others are charging for similar projects.<\/p>\n\n\n\n

LinkedIn<\/a> is a great place to start the search for a professional freelancer group or forum. Start with the Virtual Vocations LinkedIn page<\/a> for daily telecommuting tips and resources.<\/p>\n\n\n\n

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