The DPM Insider Newsletter: Becoming A Freelance PM

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So, you're thinking about going freelance as a project manager!

I get it—the job market is tough, companies are becoming increasingly rigid, and maintaining work-life balance feels like an uphill battle for many of us.?

While the perks of freelancing make it an enticing option (flexibility to choose your projects, the ability to design your workday, a potentially higher paycheck, etc…), it's important to be aware of the challenges. Building a steady client base, managing your own business operations, and navigating the unpredictability of freelance income are all factors to consider before making the leap.

Let’s dive into what it takes to go freelance as a project manager.

In this edition:

• Deciding To Go Freelance
• Starting Your Journey
• Setting Your Rates

Should You Go Freelance?

Questions about going freelance come up often in our DPM Member Slack community. In fact, we have a whole channel dedicated to freelance PMing. It can be a tough decision—one that ultimately depends on your career goals, preferences, and lifestyle.?

Patrice Embry, who's been freelance PMing for nearly 10 years, shared some advice on how to make this decision during one of our member-only events (P.S. This video is available to newsletter subscribers for this week only!) She suggests asking yourself these questions:?

• Can you sell yourself? You’ll need to be confident in your abilities and when talking with potential clients.?
• How long can you go without an income? If you’re unable to land clients right away, will you be able to support yourself??
• Are you organized enough? Being a freelance PM takes an extra level of organization. Are you ready for that??
• Is it worth the headache? Forging your own path will be a challenge. Are the benefits worth the extra effort?

Take your time with these questions...

Make your decision

Starting Your Journey

If you decide that going freelance is the right option for you, the next step is to focus on what you have to offer. Crafting a clear description of your skills and strengths will enhance every conversation you have with potential clients. Here are some questions to help you identify your niche as an independent project manager:

• What types of projects have you worked on in the past (e.g., software development)?
• Were there similar deliverables or challenges that you handled well (e.g., tight timelines, small budgets, many stakeholders)?
• What project management tools (e.g., Asana, Trello, Jira) or methodologies (e.g., Agile, Scrum) are you a pro at?

These questions will help you gain a better understanding of your project management skills and experience, allowing you to identify the unique value you bring to the table. With this information, you can begin to build your portfolio and search for clients.?

Start your journey

Let’s Talk Money

Getting to set your own rates is one of the biggest benefits of becoming a freelance PM. But it’s also one of the biggest challenges to getting going. How should you price your services??

Let’s walk through an (oversimplified) approach to how you can calculate your hourly rate.?

Goal Salary: $150,000/year take-home pay

• Taxes (add 30%): $45,000
• Software, insurance, licensing: $3,500
• Memberships and conferences: $3,000?
• Accounting and legal fees: $1,000
• Office supplies and marketing: $2,000
• Health Insurance Premiums: $3,900
• Retirement contribution: $5,000

Total billing needed: $213,400

So, if you want to bring home $150,000 a year, you need to bill $213,400 to make that happen. If you’re planning to work 49 weeks a year for around 35 hours per week, you would need to charge at least $125/hour to reach this goal.?

And FYI: According to survey data in our 2024 salary guide, the average hourly rate for freelance project managers in the USA across all job titles, including more senior roles, is $81 USD.?

Get that money

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Dance With Us ??

Who doesn't love a classic harmonica solo??

Gimme Shelter - The Rolling Stones

Thanks for being here!

Kelsey Alpaio — The Digital Project Manager