Determining how to properly charge your clients is not only one of the most important tasks for a freelancer, it’s also one of the most stressful. After all, if you charge too little, you can’t pay your bills; if you charge too much, they may look for a cheaper alternative.
In fact, freelancers are owed a staggering amount of money that clients haven’t paid them. To prevent more of this from happening, this price list, spotted on Imgur, breaks down the best way to charge your clients. With over a million views so far, if you’re having problems with your clients, you might want to update your fees to charge the following.
An honest price list to charge your clients
Do they say that they trust you to design the job properly? Or are they back seat designing?
How to properly charge freelance rates
1. Establish a minimum salary
Start with the minimum wage you’d like to take out of the business. How much do you want to earn a year? Remember, this is the minimum figure you could survive on.
2. Calculate costs
Next, calculate your costs (including reoccurring costs) such as software services, rent, etc. But also include a budget for one-off costs such as that new Apple product you want; work out how much this all comes to a year.
3. Remember to save
Don’t forget to plan for the future. Since you aren’t in full-time employment, set aside some money each month for retirement and savings. Calculate the total over a year and add it to your costs and salary.
4. Don’t ignore the tax
The figure you now have should tell you how much money you need to earn before tax. Now, add to that total the tax you would have to pay on that revenue, which gives you the minimum figure you need to earn over the year.
For more tips on how to charge your freelance rates, click here.