Freelancers: 5 factors that can help decide your rate
What’s the right rate to charge? Ask 100 freelancers and you’ll get 100 different answers. Determining the right rate or price is one of the biggest dilema of all the new freelancers out there. A lot of people look at other freelancers and charge similar amounts, some charge based on their experience and others just guess it. There are some major factors that should be considered in order to arrive at the right price. Here are the top five
1. Costs & Profits
For any business to survive, it has to make profits. In order to make sure a business is profitable one should know its cost and expeneses. Cost and expenses should include work related bills like rent, phone bills, insurance and taxes. Profit is the amount of money that you want to make after paying all your bills, expenses etc.
2. Skill & Experience
Not everyone is equal and therefore the quality that one delivers is also different from the others. Skill level and experience of a fresher is totally different than the one who has more than 5 years of experience working on a particular technology. Experience teaches a lots of lessons. An experiecend guy can foresee a problem and can save time and money.
3. Market Demand
This is very simple. If you see that your skills are in high demand and you are getting a lot project requests, then your serive should be more expensive than it currently is. On the other hand, if the demand is low, then your price needs to go down.
4. Project & Client
Different clients have differnt requirements and the benefits working for them are also different. Some clients have long term projects while others not. Some projects are very simple and boring while others might excite you. If you think a particular client or project can make your portfolio look great then you don’t mind ajusting your rates according to their needs.
5. A lot of thinking
The more reasons you have to justify your price/rate the easier it becomes to determine it. Lots of time you’ll learn from your previous mistakes and change the rate.