Pricing Your Projects

Written by Rachel Goldstein

Article submitted by - 1000s of freelance jobs

This isrepparttar second article that I am writing about setting freelance rates. The reason I am writing another article is because of numerous questions that weren't answered inrepparttar 117413 previous article. I will first summarize whatrepparttar 117414 last article was about and then I will go on to new details.

Determining how much to charge for your services is often one ofrepparttar 117415 biggest challenges for a new freelancer. If you charge too much you won't get hired and if you charge too little you'll starve. Takerepparttar 117416 time to read this article and you will figure out what you need to charge to thrive.

If you are a new freelancer, you have probably searchedrepparttar 117417 Internet trying to look for average rates of professionals in your field. Don't even bother. I will let you in on a secret . now thatrepparttar 117418 Internet is here, there aren't any "average" rates because demographics are too widespread. The United States has banned competitors from discussing rates amongst each other based on Antitrust laws. This is why you are having such a hard time finding rate surveys, there aren't any. Instead I will show you how to figure out what your rates should be by using a formula.

Start by figuring out what you want your annual salary to be. To determine your salary, you might want to pay yourself what you earned as an employee or take a look at to find out what an average salary for your profession is.

For this formula, you will need to figure out what your overhead is. Overhead is an expense that cannot be found billable to a client, it is just a cost incurred by running your business. Please fill outrepparttar 117419 following form. If you aren't sure what your overhead is, then look back on last year's credit card bills and checking account statements.





Income Taxes (Use 45% of your annual salary)






Office Supplies




Postage and Shipping




Accounting / Legal




Office Furniture


Dues & Memberships




Health Plan / Medical Insurance


Disability Insurance


Retirement Savings

======================================================= | | Multiply above by 12 to get yearly Overhead | | | | =======================================================


There are duties that must be completed for each client that are not productive towards completion ofrepparttar 117420 project. Figure outrepparttar 117421 actual work hours are spent onrepparttar 117422 following duties. You will need this total later, so keeprepparttar 117423 number handy.




Emailing Customer


Phone Calls




Administrative duties



======================================================= | | TOTAL | | | | =======================================================


Now you will need to figure out how much of a profit you wish to make. Profit isrepparttar 117424 amount that you make over expenses. I recommend 20% in order to make an acceptable profit margin. Profit is necessary for a successful business so make sure to count profit into your formula.


There are always variables that you will need to take into consideration when figuring out what you will charge. You must take into considerationrepparttar 117425 following:

1. What does your competition charge?

2. What is your niche?

3. How many years experience do you have under your belt?

4. What skills do you have?

5. What clients do you want to attract?

6. Are you working online or local?


Follow these steps to figure out what your hourly rate should be.

1. Subtract nonproductive time from Annual Hours to get Billable Hours.

2. Add Salary and Overhead Together

3. Multiply Total By Profit Margin (10% - 20%)

4. Add Total (1) and Total (2) Together

5. Divide Total (3) by Billable Hours (the amount from #1)

For example, ifrepparttar 117426 following is true:

1. Salary = $30,000

2. Annual Hours = 2,080

3. NonProductive Time = 500 hours

4. Profit Margin = 20%

5. Overhead = $15,000

Then this is how you figure outrepparttar 117427 hourly rate:

1. 2,080 - 500 = 1,580

2. $30,000 + $15,000 = $45,000

3. $45,000 X 20% = $9,000

4. $45,000 + $9,000 = $54,000

5. $54,000 / 1,580 = $34 / hour


This formula isrepparttar 117428 easiest of them all. However, I don't recommend this formula unless you are a very established professional. This isn'trepparttar 117429 way to start out your freelance business, only very skilled freelancers can get away with this.

7 Tips I Wish I Had Known 6 Months Ago About Online Marketing

Written by Laurie Meade

7 Tips I Wish I Had Known 6 Months Ago About Online Marketing

(c) by Laurie Meade

1---The importance of a schedule and staying focused. Keeping on task. schedule promotions Plan and make a task schedule for project ideas. schedule purchases -- (don't buy on impulse,repparttar offer will still be there in a day or so!) schedule time -- (remember to schedule time for family members as well :o) schedule breaks fromrepparttar 117412 computer -- (not just physical breaks, take your mind of your business and have some fun --, you'll be more fresh and productive when you go back to work!)

2---The importance and value of keeping good records, Financial Promotional Backing Up Files Affiliate Information Passwords Contacts

3--- Don't try and run an online business with AOL. I personally have nothing against AOL It is a great service forrepparttar 117413 computer illiterate newbie. However, once you getrepparttar 117414 basics down, you can be much more productive with a different ISP. AOL does not allow you to filter emailrepparttar 117415 way it needs to be filtered.

When I was doing my business through AOL, I sometimes would be dealing with over 500 emails a day. No way to send them to different folders as in Outlook Express, MailWasher or many other email programs. Unless they have drastically changed things in Version 8, it is one ofrepparttar 117416 few that doesn't work with third party email programs. This just leads to wasted time and frustration.

4--- Speaking of wasted time.

Get a DSL hook up.

The extra cost is worth it inrepparttar 117417 matter of time saved. Instantaneous downloads.

Web pages that come in as fast asrepparttar 117418 click of a mouse.

It means more productive time spent onrepparttar 117419 computer. More productivity means more money.

5--- Learn what a great tool Yahoo can be. I have read good comments and bad, about Yahoo. All I know is from my own experience. When I first started online, I exchanged a review for a copy of FrontPage 2002. While reviewing it, I put up a "practice site" on geocities. You can visit it here:

I read where you had to have a domain name for people to take you seriously. I agree. However, I learned that a free site is very beneficial to your business as well. Putting links on a free site will bring traffic to your domain name. If you use, it will help you get listed inrepparttar 117420 Yahoo Directory eventually. Two of my pages atrepparttar 117421 above mentioned site, are listed inrepparttar 117422 Yahoo Directory. They are alsorepparttar 117423 two that getrepparttar 117424 most traffic. By putting links on these pages to my other domain names, I can take advantage of all that free traffic.

You will also able to access this site from any computer, even when yours is down.

You can start and manage groups easily. I loverepparttar 117425 convenience of running AutoResponse Plus right at my website. However, having a group to promote articles on Yahoo, makes more sense. Once someone has signed up for one Yahoo Group, it is a simple click of a button to add other groups.

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