Could you make a career out of freelancing? Lots of people are successful at it today and you can work from virtually any location. The key to successful freelancing is knowing how to properly set your rates.
Learn what the going rate is for the service you offer. Factor in your level of experience. If you have solid experience in the area, charging more per hour than the individual who lacks knowledge of the particular market area could benefit your client. They could actually have less billable hours for a project.
To begin to get a fix on what your hourly rate should be, figure out what your annual salary was as a full-time employment worker. It’s ok to add on about 25% to cover your marketing expenses, networking, and other business costs.
Should you charge by the hour or offer a flat fee? This depends on the project so analyze the time you’ll put into it very carefully. You don’t want to offer a lowball flat fee for a project that will take a month; you will learn to master this art as you develop clients.
Make sure you develop a ‘contract’ or ‘guideline’ letter or email that spells out exactly what your task is; then if the client says, ‘oh, but what about the….’ you can easily and professionally point to the fact that it was not included in the initial assignment and then perhaps get another gig.
Always be open to negotiation, especially with a new client. It could help you develop a long relationship and jumpstart your new enterprise. You must, however, remain cost efficient and not give your services away. Freelancers can go for a month or more without an assignment, so try to be flexible as you build up your new business. For more resources on running your business, visit www.sbomag.com.