Beginner freelancers often struggle to price their services competitively and accurately. Since freelancers are charged per hour and are competing against a global market, it is sometimes hard to set the right price. Of course, payment still depends on what type of job you are filling and so, not all freelancers have the same salary for different jobs (which makes sense because all jobs are different), but one thing for sure is the same… Whether you’re an engineer, a copywriter, or a marketing expert, all freelancers have one challenge in common: setting a reasonable hourly rate.
In this article, we will help a starting gigger calculate the hourly charge to a client. Continue scrolling down to know what to avoid when making rookie mistakes when it comes to setting your freelance rates!
One thing’s for certain when it comes to hourly rates, according to Freelancer study, high qualifications, good references and years of experience equates to higher hourly rates. Still, it is at your discretion as a freelancer, how much you charge and how you communicate with your clients. In addition to that, you should also do some research on regular worker salary (depending on your field of work) so you’ll have an understanding of average hourly rates in your chosen field.
Calculate all cost
Before giving your fees, you should carefully calculate all expenses that you will incur if you’ll accept an offer. You can start from the least obvious expenses (i.e. internet fees, software costs) to general (i.e. office equipment, taxes, insurances, communication costs). Moreover, you should also include calculating your working days if you are willing to do freelance work.
Set your MAR
MAR stands for Minimum Acceptable Rate which is your lowest hourly rate you are willing to set for. Don’t rush things out just because a client comes to you for the first time. Think thoroughly and smartly.
How to calculate MAR:
((living costs + overhead business costs + salary) / (hours worked a year)) + tax = MAR
*We do not recommend for freelancers to settle at the MAR rates but still, it is a good starting point if you’re a beginner in the field.