| Learning how to set fees for freelance writing | | | | pricing options has advantages and disadvantages |
| projects can be confusing especially for the | | | | depending on the assignment, your writing pace, |
| beginning freelance writer. When I first started | | | | and your client's wishes. |
| my freelance writing business, I had no idea what | | | | Flat Fee or Project Rate - If you commit to a |
| to charge, so I looked online at websites of other | | | | project rate or flat fee before you know much |
| writers. Not many of them posted their fees on | | | | about the job, you could end up disappointed if |
| their website and now I know the reason. Fees | | | | the project becomes bigger or more complicated |
| must be set by the project after taking many | | | | than you originally thought. |
| factors into consideration. | | | | Hourly Rate - Also, hourly fees may be the best |
| In the first year of my career as a freelance | | | | approach for freelancers who write at a slower |
| writer, I joined the pool of freelance writers at | | | | pace. For me, an hourly rate is the best way to |
| where I had to bid for projects. There were | | | | charge-not because I write slowly, but because it |
| many writers and lots of project leads, and I felt | | | | is hard to tell up front how long a project may |
| overwhelmed; however, I had paid my yearly fee | | | | really take. I give my client a ballpark on the |
| to join so I decided to give it my best shot. Many | | | | number of hours I think a project will take me. In |
| times I didn't win the bid for a project I really | | | | order to let the client know what to expect, I |
| wanted, or the pay was minimal. I bid low to | | | | give them a margin of 20% more or less hours |
| garner a wage and took any project I was | | | | than I estimate. For example, if I think a project |
| awarded. I was working for less than $8 an hour | | | | will take me 10 hours, I'll quote the client 8-12 |
| and was about to take the plunge into | | | | hours just in case I need to adjust once I get into |
| self-UNemployment. Once I built my writing | | | | the project. If I finish in less hours than I |
| portfolio and gained confidence in my writing skills, | | | | expected, I only charge for the hours I used. |
| I raised my rates just to survive. | | | | Per diem rate - If you are going on site to write |
| Print ads didn't bring much response and they | | | | for a client, you will have to leave all other |
| were expensive to boot. I decided to do some | | | | projects behind while you travel. You will need to |
| online marketing through a newsletter and quickly | | | | consider not only lodging, travel expenses, food, |
| had subscribers agreeing to receive it as an email | | | | and your hourly rate, you also need to include an |
| each month. I joined several networking | | | | amount that will cover the help you have to hire |
| associations and soon I had clients coming to me | | | | to tend to children or pets while you are away. A |
| regularly. Then I had a new problem. I couldn't | | | | per day rate is not set in stone. You may give |
| work fast enough to service all my clients and still | | | | the client a day rate (your hourly fee times |
| have time to do marketing. | | | | number of hours on site) but also ask for |
| Yes, you have to market your business even | | | | expenses to be covered. |
| when you have plenty of projects. Otherwise, the | | | | On retainer - If you have a client who wants you |
| well dries up and you have no work or income | | | | to be on call and ready to take his or her project |
| once you've completed the current assignments. I | | | | on a moment's notice, you may find that you |
| raised my rates again thinking I would probably | | | | have to drop everything to tend to that client's |
| attract fewer clients, but I'd make more from | | | | needs. If you have cleared your schedule to allot |
| each project. The leads kept coming in and I | | | | a certain number of hours to her project and she |
| realized I needed help. I asked a writer friend of | | | | ends up not having an assignment for you that |
| mine if she would like to take some of my | | | | month, you have lost the money you could have |
| project leads and do sub-contracted writing for | | | | made otherwise. A retainer might come in handy |
| me. That worked out so well, I took on another | | | | for such cases to insure that you have some |
| writer and did more marketing and networking. | | | | income even if the client doesn't come through |
| The snowball kept rolling as word of mouth kept | | | | with a project. |
| growing and soon I had six writers on my team | | | | Page Rate - Our team started out using a per |
| and most of them were staying busy. Some of | | | | page rate (a page is 250 words). If you work |
| them agreed that my rates reminded them of a | | | | fast, a per-page rate is advantageous. However, I |
| circus-in other words I was working for peanuts! | | | | found that we weren't being compensated for our |
| My prices were much lower than the going rate | | | | research, interview and phone time, so if we |
| on writers market, so my team and I set our | | | | charge by the page, we charge for research and |
| project rates to compete with the going rate. | | | | interview time separately. |
| THINGS TO CONSIDER IN SETTING RATES | | | | Word Rate - A lot of journalists and magazine |
| Ability to Pay - A corporate client is able to pay | | | | writers use the per word rate. I've seen some |
| more than an individual or nonprofit organization, | | | | charge $1-2 per word. The thing to remember |
| but there needs to be fairness and consistency. If | | | | about per word rate is that you may do the |
| someone has a project but truly doesn't have a | | | | same amount of research for a 250-word article |
| large budget, I might be willing to work with them | | | | as you do for a 500-word article, so your time |
| if they are willing to pay me a portion of my fee | | | | spent is going to be about the same with some |
| via advances and royalties, but I've got to be | | | | extra time added for the actual writing of the |
| pretty darn sure the client's book is going to get a | | | | longer article. If I charge by the word, I may also |
| publishing contract or I could end up working for | | | | ask for an hourly fee for research. No matter |
| free. There are times when I have traded my | | | | what method you choose, you should always get |
| services for something I needed but I'm not a | | | | a deposit up front. We normally ask for |
| horse trader, and I can't depend on bartering to | | | | one-fourth as a down payment, and invoice |
| pay my bills. | | | | monthly according to the number of hours/pages |
| Demographics - Another thing to consider is the | | | | we have completed at the end of the month. |
| cost of living in different areas of the country. | | | | THE GOING RATE |
| While $40 an hour doesn't seem like much to | | | | Whether you decide to charge by the project, |
| someone living in New York, it is a lot of money | | | | hour, word, page or some other method, you |
| to a single parent in Mississippi. | | | | want to set your rates within the range of rates |
| Writing Pace - Each writer has their own pace and | | | | earned by your competition. If you ask much |
| my team quickly found that a "per page" rate | | | | more, the client will probably look for another |
| was not the best way to charge. Some writers | | | | freelance. If you ask much less than the going |
| could write a 250-word page in 30 minutes; others | | | | rate, the client will probably think you are not a |
| took over an hour to write a page. You have to | | | | professional and, again, will seek help elsewhere. In |
| know how fast you work in order to estimate | | | | a survey of members of American Medical |
| how many hours a project will take. I ballpark | | | | Writers Association in 1996, the average hourly |
| each project based upon the amount of research, | | | | rate for writing was between $60 and $70. |
| interview time, phone calls, emails, etc required to | | | | Remember that some of their work is sponsored |
| gather the information and the number of hours I | | | | by pharmaceutical companies who pay much |
| think it will take me to write and edit the piece. | | | | more than average. A good word of advice is to |
| Amount of Work Involved - Pricing also depends | | | | never quote a price on the spot unless you know |
| upon the amount of research, interview and | | | | exactly what the project involves. If you have |
| phone time the project will require and that isn't | | | | done a particular type of project many times, |
| always easy to determine ahead of time when | | | | you may be able to establish a set rate. |
| you are quoting the project to the client. | | | | Get as much information as you can about a |
| Your Personal Experience/Expertise - Someone | | | | project and consider the lowest rate you would |
| who has been writing for 20 years is going to | | | | be willing to accept. Then weigh the consequences |
| have more marketable skills than a writer who is | | | | you would have if you accepted a rate that low. |
| just starting out. An impressive track record and | | | | Consider your hourly rate, how much time it will |
| large writing portfolio gives credibility when dealing | | | | take you to complete the project and your price |
| with a client who is looking for experience. They | | | | for similar projects you have done in the past. |
| are usually willing to pay more for a writer who is | | | | Even if you lose a project, don't accept a job that |
| highly skilled professional than someone who has | | | | pays you less than you are worth. |
| little experience. | | | | I use a timer to clock my hours and an Excel |
| Type of Project - Different types of writing pay | | | | spreadsheet to log my project records. In it, I list |
| different amounts of money. Most writers know | | | | every task performed during a job and the |
| that commercial writing or copywriting pays more | | | | amount of time each task required. I use this data |
| than writing articles for blogs. Rates for | | | | not only to show a client an accurate account of |
| ghostwriting a book may depend upon whether or | | | | my billing but to determine the time I might need |
| not the ghost gets credit on the cover. You might | | | | to allot if I do a similar project in the future. |
| consider working for a lower fee if the author of | | | | Important items to include in your log are: |
| record is willing to put your name on the cover of | | | | -Client meetings, emails and phone calls |
| the book. That depends on the notoriety of the | | | | - Research on the background of a company, |
| author of record and how many copies you think | | | | product or person you are going to write about |
| will sell. If your celebrity client has a contract with | | | | - Interview time |
| a major house and is willing to give you credit on | | | | - Writing the draft |
| the cover such you might ask for an advance | | | | - Developing tables and figures |
| plus fifty percent of royalties. A book with your | | | | - Editing the draft |
| name on the cover with a celebrity could earn | | | | - Creating and formatting your works cited and |
| you more than the difference in what you would | | | | bibliography |
| have normally have charged for the project. If | | | | - Making changes after the document comes |
| the client is an unknown author with no publishing | | | | back from the reviewers |
| contacts who hasn't decided if he is going to | | | | - Postage, faxes, travel, lodging and other |
| self-publish, get your money up front rather than | | | | incidentals |
| risk the chance of not getting paid for the project | | | | For more information about setting fees for |
| if the book isn't published. | | | | freelance projects I recommend: Secrets of a |
| PRICING OPTIONS The most common pricing | | | | Freelance Writer: How to Make $85,000 a Year |
| options for freelance writers are: - Flat fee or | | | | by Robert W. Bly and How to Write What You |
| project rate - By the hour - Per diem rate - On | | | | Want & Sell What You Write by Skip Press. |
| retainer - By the word - By the page I use a | | | | All things considered, the right fee is a price that is |
| combination of several of these methods with the | | | | fair to the client and adequately compensates the |
| exception of per diem and retainer. Each of the | | | | writer. |