We're All Setting Freelance Rates: Check out the Ways I Reach My Goals

Freelance rates are all over the map.?

In fact, in this Tweet that resonated with the freelance Twitter community, I shared rates for four articles, their word counts, and the number of interviews involved.

I can guarantee that you’re not the only one questioning how to determine your freelance rates. In a recent survey conducted by Fiverr, nearly two-thirds of participants said they were interested in joining a freelancing platform this year. (BTW, is fiverr worth it ?)

I’ve been quoting freelance assignment rates — or accepting whatever was offered — since 2006 and there isn’t necessarily a concrete way to determine freelance rates.

A number of factors go into consideration when you’re quoting freelance rates, including:?

• Your years of experience
• Industry
• Size of the client/business
• Skills needed
• Type of freelance project
• Scope: including word count, interviews, research?
• Type of freelance services offered
• Value for the client

Knowing how to set a “good” hourly freelance rate can be tricky because it’s a balance of making sure you’re getting paid enough, while also ensuring the rate isn’t so high that everyone balks at cost.?

I heard a freelance expert on a podcast once say something like, “If three out of 10 potential clients don’t think your rates are too high, you aren’t charging enough.”?

Simply put, if every client says, “Sure!” when you quote a project and there’s never pushback, you could and should probably raise your rates.

If you’re just getting started and need to create samples and build up your freelance writer portfolio , you’ll probably need to take on some lower-paying work in the beginning. That’s okay. Get the experience, hone your skills, then raise your rates.

Here are some calculations and numbers I think about when I have the opportunity to quote freelance rates for copywriting projects, writing assignments, and other creative work.

4 Tips on How to Set Your Hourly Freelance Rate ?

1. Look at your annual goal.

Before setting my hourly freelance rate, I like to think “big picture” — like my annual freelance goal for the year.?

Ask yourself:

How much money do I need at the end of the year to be comfortable??

Having a pretty clear understanding of your monthly expenses can help you know the minimum you’ll need to earn to get by.

Then add about 25 percent to that minimum expenses cost that you’ll need to set aside for taxes.

Household and business expenses you’ll need to cover: $3,000

Gross monthly freelance goal option: $4,000

That means your freelance salary goal would be about $50,000. And that’s just covering expenses and paying taxes.

If you’re struggling to come up with an annual salary goal, I recommend aiming 10 to 20 percent higher than your last salaried position. Remember, you might need to pay your own health insurance, self-employment taxes, and expenses to run your business.

Get my monthly marketing plan to learn how to break down your annual goal and the marketing practices you need to work on each week to hit your goals.

2. Then, break it down into a monthly goal.

Now that you have your annual goal, think about it from a monthly perspective.?

Do you have enough money for bills, for any “extras”, for vacations — enough to be comfortable and not stressed about money? After all, if you’re doing this freelance grind and “just getting by,” with the bills, it’s going to be way less fun than you imagined.

I try to average earning between $6,000 and $9,000 a month as a freelancer.?

If you are running a freelance side hustle and working full-time in another job, your monthly freelance goal might be a lot lower.?

When I was freelancing on the side, my monthly freelance earnings goal was around $1,500 to $2,000 a month.

3. Now, set a weekly goal.

Once you have your monthly freelance gross earnings goal, break that down into a weekly goal.?

Let’s say I want to earn an average of $7,000 a month as a freelancer. Ideally, I’m aiming for an $84,000 gross freelance salary, with four weeks of time off throughout the year (allocated for holidays, random days off, sick days and vacation).?

That leaves me 48 weeks of work.

Now time for some math:

$84,000 (ideal sample gross income a year) / 48 weeks = $1,750/week.

This calculation lets me know that I need to earn on average about ~$1,700 a week in order to hit this freelance salary goal.

Do I freak out if I don’t hit that goal each week? No, because I get paid throughout the month.

I try to make sure I’m hitting a quarterly average that’s in line with my goal and I have freelance assignments lined up to hit next quarter’s goal.

Are all of those non-math-fans in the back still with me?

Good.

4. Now calculate your hourly goal.?

Think about the number of freelance hours that you want to work a week or have available to work.

Most experienced freelancers I know — even the ones without children — don’t work 40 hours a week.

Most freelancers seem to work fewer than 30 hours a week, so start with that as a goal calculating freelance hourly rate math.

In order to reach an average freelance salary of $1,700 a week and work about 18 hours a week, my freelance hourly rate needs to be $98 an hour.?

But I also know from tracking my time with these apps for writers that not all of my “working time” is billable —like writing a LinkedIn article! (And responding to email, posting on social media, and doing freelance marketing.)

On average, I spend about 10 working hours on billable client work.

For a little cushion, I set my hourly rate of $175 an hour so it balances out.?

Now this is what I call an “internal freelance rate.”? I don’t necessarily tell my clients that this is my hourly rate. It’s what I try to earn per assignment.?

That might mean:

• A $500 assignment is finished in less than two hours
• Or a $1,000 assignment takes me fewer than five hours
• Or a $300 assignment is completed in an hour

Some clients will have a higher rate and some will have a lower rate but if I try to earn $175 an hour or more, I should be on track with my goals.

Do I ever take on lower-paying work than that? Yes, at times, when it’s a cause or project I’m excited to work on or I can learn new skills.

Now, all of this is not to “rate shame” any freelancer or to tout my (approximate) freelance hourly rate.

It’s to share practical business advice that should shape how you think about your time and your goals before you take on your next freelance assignment.

To learn more about setting freelance rates and finding higher-paying clients, enroll in my self-directed freelance course on Teachable.

I’ll explain the process I follow to book high-value clients, how to avoid lower-paying freelance work, and tips to help you earn more money in less time freelancing.?