What is Your Time Worth? Calculating Rates

Image via WikipediaIn setting prices for work and in deciding if a gig is ‘worth it’, there are numerous factors to consider. While picking a number out of the air that sounds good is possible, it is not practical.

One basic way to calculate rates is determining how much money you want or need to make per hour. Once you are experienced with your particular brand of writing projects, it is easy to calculate accurately how long it takes you to accomplish various tasks.

For example:

If you can write two 500-word articles that are light to medium in research in one hour and wish to make $30 per hour, you need to get at least $15 per 500 word article.

However, you also need to consider if that $30 will cover all of your expenses related to those articles and your writing business in general. Taxes, internet, licenses, business registration, advertising and even Paypal fees may need to be covered.

There are some wonderful resources online that help you calculate what you need to charge and remind you of all the little things you need to consider. I have listed a few of those below, and have also included a rates resource to show you the average rates charged by your peers.

Editorial Freelancers Association. Current Editorial Rates (Updated Sept. 2008)
http://www.the-efa.org/res/rates.php

The How-To Catalog. Putting A Price On Your Capabilities: How To Set Your Fees As A Freelance Writer by Debra Jason.
http://www.writedirection.com/rprt300e.htm

About.Com: Freelance Writing. How Much Should I Charge by Allena Tapia.
http://freelancewrite.about.com/od/finances/f/rates.htm

Freelance Switch Hourly Rate Calculator
http://freelanceswitch.com/rates/

Freelance Writing Contracts: Pay Half Upfront

Image via WikipediaOne thing I have learned to do in writing up my freelance contracts and beginning business with new clients is to ask for half the payment upfront. I use PayPal so the buyer (client) feels they have some protection in the deal, too.

I do this because too many scammers are out there who will ask for work, not pay, and then make use of your work. Some will claim it was not up to par, others will never communicate with you again.

When I collect half the money upfront, I know it will not be a total waste of my time to create articles (or whatever)for my new client. I know that I will have at least some compensation for my work. It also tells me they are likely to be serious, legitimate clients when they are willing to pay half upfront. They understand that many businesses operate in that manner.

When it comes to freelance writing, you want your clients to feel safe and comfortable with you, but you also need to protect yourself. Asking for half the fee upfront is common business practice, and one way to protect yourself from being scammed.

Free Stuff for Freelance Writers

Image via WikipediaHere are a few links to help you organize your time and projects as well as promote and ‘professionalize’ your business:

Custom Planner Templates

Business Fax Covers

Business Card Templates

Stationery and Envelopes

Free Post-its

Track Your Spending and Manage Your Finances

Calendars, Lists, Reminders (mobile phone access, too!)


If you know of more freebies that help freelance writers, please let me know so I can add them to this list. Thanks!