Tips On Setting Your Freelancing Rates

Pay -- aaahh!! The sole reason why most people choose to become freelancers. Don't get me wrong -- money is the primary motivating factor for any job (freelancing or full-time). But over the years, you realize that self-satisfaction, good health, good client communication, a trustworthy team, and a positive attitude are also important.

In this newsletter, I am not going to talk about all that. Rather I am going to discuss the 'money' factor today. Whether you are a graphic designer, a social media manager, a copywriter, a content writer, or a marketing expert, you all have one challenge in common -- setting a reasonable project rate. Aspiring writers or freelancers often have difficulty deciding their project rate or per word rate.

Aspiring writers or even expert professionals often undervalue themselves and offer their freelancing services for cheap. They often fail to consider the operational costs (research, hours, internet bills, telephone bills, etc.) of freelancing to cover their monthly expenses. In addition, some freelance writers are still stuck with that mindset: 'Whatever the client will pay!'

Before I begin my take on this topic, remember that high qualifications and years of experience equals higher project or hourly rates. However, with good communication and negotiation skills, you can also alter the rates per your preference.

How to understand your freelance rates?

Firstly, your per word or project calculations should consider any of your monthly expenses and cost. If you have a gift to buy for your girlfriend this month, add that value to your expenses; if you have to change the room, add that value; if you want to go clubbing this weekend with your friends, add that as well!! I am not asking you not to save for the next months. I want you to have fun while thinking about the future!

• Make a list of every little expense you incur as a freelancer. Your monthly expenses should include both private and professional ones.?
• It is recommended to consider how many days per week, month or year you are looking to do freelance work. If this is a side-hustle, consider that you will be dedicating the weekends. Learn from your full-time job the value of those 8-10 hours!

Work on MAR -- Minimum Acceptable Rate! (Hourly)

I have seen most of the freelancers in my connection who have set a MAR -- we don't work below that! I have a LinkedIn connection who charges 70ppw, and another charges 1.5rpw. These are their minimum acceptable rates, which they must decide after considering their experience, efforts, and what great things they bring when they work.

If you have a problem finalizing your MAR, check this one out:

MAR = [(Personal Expenses + Professional Expenses)/Hours or Days You Work]+taxes

'Ye Maths kab Mera Picha Chodega!'

Let me explain it with an example:

• Suppose your monthly expenses are 30,000 INR (personal and professional both)
• You put 8hrs per day for a project, making 40hrs per week, 120hrs per month
• MAR = 30000/120 = INR 250 per hour + taxes

In India, clients do not work with someone who pitches them hourly rates. But with this MAR, you will understand how much you should make per hour if you are working on a project. If your per-word charges are not bringing this much, I suggest you speak to your client or negotiate the charges.

As you develop your freelance skills and your monthly expenses increase, you may increase your MAR to reflect your skills and knowledge!

How Much Should You Charge?

I always discuss during my writing sessions how much one should charge for their work. I will share the same example that I use during my classes.

You go to a restaurant and see a menu and learn that Dal Tadka costs 120/- and Dal Makhani costs 150/-. At the same time, Paneer Bhaji costs 180/- and Kanju Curry costs 220/- (I might be living under the rock if the hypothetical rates are way down from the average charges). Why the chef/hotel/restaurant is asking for different rates?

• The ingredients are different
• The process of making those cuisines are different
• The benefits of those cuisines are different
• The expertise required to make different cuisines are different

Are you still following me or salivating for Kanju Curry or Dal Makhani?

If you pay different rates for different cuisines, why do you ask for the same rate for every project? And if the person does not negotiate in the hotel, they won't be doing the same with you if you have desired skills and have presented your case more positively!

Adding the CTA as I wrap this newsletter and get back to cooking! Today is Sunday, and on Sundays, maa take the rest, and we cook at home - Kanju Curry -- here we come!!

If you are facing issues with your freelancing journey, wondering how to crack clients, get clients from LinkedIn, get clients from Upwork, and make money through this, get in touch with me! I will share the details of the next free writing sessions soon!

Till then, Baw Baw!!!

- V