As a copywriter, you need to invoice your clients for the hours you spend on their projects. But how do you track, calculate, and communicate your copywriting hours effectively? In this article, you'll learn some tips and best practices for invoicing copywriting hours, from setting your rates to using tools and templates.
Before you start invoicing your copywriting hours, you need to decide how much you charge for your services. There are different ways to set your rates, such as by the hour, by the word, by the project, or by the value. You should consider factors such as your experience, your niche, your market, and your expenses when setting your rates. You should also research what other copywriters charge and how they justify their fees.
I would advise all copywriters to move away from a 'time-for-money' charging structure as soon as possible. If you are experienced then this approach doesn't reflect the skills, qualifications, knowledge and talent you bring to the work you do. Productising your services is a far better way of charging. For example, if you write a website for someone, how much business could that website generate for them? If you are highly experienced and help them convert visitors through your writing, the number could be unlimited. Therefore you should place a value on this service, not charge for the number of hours it took you to write the words.
Copywriters all have their own charging structure. I look at both sides of the equation in that a client deserves to know the fee beforehand, and the copywriter should have a realistic expectation of their fee. I calculate based upon hours that would be reasonable for the project then offer a fixed fee. The only time I request a percentage of profits is for the writing of biographies or ghostwriting.
In my opinion, charging hourly is not a viable long-term strategy. Why? Because as you grow, your time may go down, but your expertise and win rate will increase... and deciding your work's worth by hour disrespects your investment in the skill. Imagine, Picasso would have charged by the hour; we would not hear the famous story where he mentioned to the woman - The sketch may have taken me five minutes, but the learning took me 30 years. However, in case you intend to calculate your cost of hours invested for your own business metrics, profit ratio, etc. - I would include research time, writing, editing, tweaking basis feedback, discussions with the business owner/ teams, etc.
Set your rates AND set expectations upfront. Here's how i set my rates: 1. how much do I want to make this year? 2. What does that break down to power week? 3. How many hours do I want to work this week? Now, divide #2 by #3. That's your hourly rate. But you never quote your hourly rate. For quotes, you estimate all of the time that will go into the project. Yes, research, Concepting, copywriting. But also: - Client comunication - A set number of revisions (my go-to was two). - time spent prospecting to vet/ land the client in the first place. (All of those hours) x (your hourly rate) = your base project fee Rush job? Add 25% Not sure about the client/ job? Instead of declining, double your fee. Let them turn you down.
No, instead, set your commission rate. If you're good at what you do, your copy will generate far more profits than any hourly rate could capture. So get some skin in the game and offer your talents on a commission basis. Get a cut of the profits. The advantage to your client is that you're sharing the risk. The advantage to you is you're also sharing in the rewards.
Once you have your rates, you need to track your hours accurately and consistently. You can use a simple spreadsheet, a timer app, or a dedicated software to record your hours. You should track not only the time you spend writing, but also the time you spend on research, editing, revisions, meetings, and communication. You should also document your tasks and deliverables clearly and honestly.
The problem with charging by the hour, or on a 'per-word' basis is that it becomes a self defeating exercise from the start. Let me explain. Some of us take pride in wrapping up work as quickly as possible, and so if the payment is 'hourly' - what would you do if you finish your copy in less than an hour? At the same time, many of us subscribe to the principle - less is more. In other words, we work extra hard to be as brief and concise as possible, and so if we charge clients on a 'per-word' basis we would go bankrupt.
Charging by the hour is an outdated way to invoice clients. Experienced copywriters have honed their skills to the point of maximizing efficiency. You pay for experience and skill, not the number of hours it took the professional to create your content.
If you are a writer or an editor, billing by the word is much more common than hourly billing. When determining your per-word rate, you'll want to account for meeting time and research to ensure that you're receiving fair payment for your work.
The whole reason to become a freelance copywriter is to get freedom from wage slavery. Stop tracking your hours. Don't talk about the work that was involved. Instead, talk about results, establish clear mechanisms for measuring those results, and take a cut.
Highly experienced copywriters can work faster. So you can't penalize yourself charging by the hour. You have to give an estimate that reflects your true value.
To make invoicing easier and faster, you should use a template that includes all the necessary information and details. A template can help you avoid errors, save time, and create a professional impression. You can find free or paid templates online, or create your own using a word processor or an invoicing software. Your template should include your name and contact details, your client's name and contact details, the invoice number and date, the description and amount of your services, the payment terms and methods, and any other relevant notes or terms.
SOP your way to success. Once you find a formula that works, write it down and do everything the same way every time. It saves you time, and you have a model that’s proven to work. Don’t recreate the wheel.
Using a template for your invoices can save you time and ensure that all necessary information is included. A well-designed template typically includes sections for your business name and contact information, the client's details, project description, hourly rate or project fee, total hours worked, and the total amount due. It's also a good idea to include payment terms and methods, such as the due date and acceptable forms of payment. By using a template, you can easily customize it for each client while maintaining a consistent and professional appearance.
I created my invoice template in Canva. I use Canva all of the time for client projects, so found it extremely easy, especially given the fact I already knew what I wanted it to look like. I literally do 'file>save as' to create my invoices every month. I have an overall master spreadsheet where I log all of the invoices I issue. I record the date submitted, amount, client, invoice number and date due. I check the spreadsheet once a week and update it every time I issue an invoice or receive a payment. I also have a separate spreadsheet for my VAT returns.
Communication is key to invoicing your copywriting hours successfully. You should communicate with your client before, during, and after the project to ensure that you are on the same page and that there are no surprises or disputes. You should discuss and agree on the scope, timeline, budget, and expectations of the project. You should also update your client on your progress and hours regularly, and send your invoice promptly and politely.
Forget scope, timelines, and budgets. But do talk about expected results. Talk about your expected cut of those results. Talk about the benefits to the client. They're not interested in paying your salary. They're interested in sharing the risk and rewards with a marketing partner who knows how to make the cash register sing.
Effective communication is key when invoicing for copywriting. It's essential to establish clear lines of communication with your clients from the start. Discuss the scope of the project, your rates, and any specific invoicing requirements. During the project, maintain regular communication to provide updates on progress and address any concerns or changes. Open and transparent communication helps build trust and ensures that both parties are on the same page regarding expectations and payment terms.
The final step of invoicing your copywriting hours is to follow up and collect your payment. You should send a friendly reminder to your client a few days before the due date, and thank them for their payment once you receive it. You should also keep track of your invoices and payments, and follow up on any late or missing payments. You should be firm but respectful when dealing with non-paying or difficult clients, and use professional language and tone.
If you follow my advice and charge for results, not your time, then you should be collecting on a monthly basis. This is recurring revenue for you based on the ongoing value that your copy is creating for the client.
Once you've sent your invoice, it's crucial to follow up and collect payment in a timely manner. Keep track of your invoices and payment due dates, and send reminders to clients as the due date approaches. If a payment becomes overdue, follow up promptly and professionally. Politely remind the client of the outstanding balance and inquire about the payment status. In some cases, you may need to negotiate a payment plan or take further action, such as involving a collections agency or seeking legal assistance. However, most payment issues can be resolved through open communication and a proactive approach to collecting payment.
As a copywriter, you should always strive to improve your skills and processes, including invoicing. You should review your invoicing system regularly and look for ways to optimize it. You should also ask for feedback from your clients and peers, and learn from your mistakes and successes. By invoicing your copywriting hours effectively, you can increase your income, reputation, and satisfaction as a copywriter.
One thing you might want to consider is not charging hourly at all. The reason lots of copywriters charge by the hour is because that’s what the client expects. But when you charge by the hour what they are essentially saying is they are paying for your time, not your skill. In the eyes of the client, this positions you more as a commodity than a an expert that provides value. The better thing to do would be yo figure out your hourly rate and how many hours it would take, but tell client that you only do project based work. Or better yet, learn the art of value based pricing. That could triple the amount you make. To learn more about that you should follow Blair Enns.
I've found success moving away from hourly rates (although I have one if anyone asks) and started viewing work as a project. It has a beginning and an end, and the outcome or result has a value to the hiring company. That's where the pricing model wins. If you charge hourly, you'll never be able to charge what your expertise is worth, just your time. It may have taken years to learn how to write effectively, but as a result you can jot something workmanlike off in a couple of hours. Do you only want to get paid for the two hours you spent, for all the surrounding time doing admin, billing, research etc.? Or do you want to charge that major brand client appropriately for some thing that could potential make them tens of thousands?
Always have a contract in place with a new client that clearly explains your invoicing and payment terms. Include provisions for late payments (charging late fees, etc.). Having a contract provides you with evidence the client agreed to your terms should they fail to send payment and you decide to pursue legal action to recover your losses. Consider requesting a non-refundable, upfront deposit before any work begins as well. Make it large enough that if the client walks without paying, you've not completely wasted your time and talents.
You have to be a bit like a lawyer/legal firm, and track the creative time, emails, the revisions, etc - that are factored into the final product. Does your client think it's too much - well, ask for a piece of the sales, numbers, success KPIs - if they choose to undervalue your worth.
I go with a "by-the-project" charge, but for slightly different reasons than those stated thus far: the CLIENT's needs and level of comfort. When you charge by the project, the client knows, up front, what the work is going to cost. There's no attendant fear of a "running meter" that accompanies "by-the-hour" pricing. Not only does this instill trust in you from the get go, but the client can properly budget for your work, as well. There are no surprises, "extra" charges or unanticipated "overtime." And, if the client wants to negotiate, there's something tangible to negotiate: a fixed price. Best of all, if you require a percentage of your cost up front, you'll know exactly what to charge.
Value your work and skills. When you know your work can bring in INR 1,00,000, don't be the one who charges a mere INR 5,000. The intent of working with a copywriter is to boost conversions and sales. Which means our work directly increases the topline, and you deserve a decent part of that increase. It may take time but valuing yourself will be essential for growth.
Overall, invoicing for copywriting hours requires careful attention to detail, effective communication, and proactive follow-up. By setting your rates, using templates, communicating with clients, and diligently collecting payments, you can ensure a smooth invoicing process and maintain a healthy cash flow for your copywriting business.