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Freelancer’s Guide: Hourly Rate or Fixed Price?

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Althea is a creative writer who enjoys creating informative pieces that aid in decision-making and problem-solving. As a freelancer, should you charge an hourly rate or fixed price? Let’s talk about a subject that most freelancers find difficult: the pricing scheme. There’s always this feeling of dread that accompanies the quintessential question, “How should I charge for my work?” It can be a confusing time when you’re choosing a pricing scheme that would give you a fair and profitable value for your freelance work. If you earn too low, you feel like you’re cheating yourself and the value of your work. Meanwhile, if you charge too high, you risk losing your client and source of income. But even with the looming reality of this risk, what should always be your focus is finding a good middle ground between you and your client. The ideal situation is having the best pricing scheme where you will be able to earn decent pay and yet still have the client thinking he or she is getting value-for-money. So it’s important to study the pricing schemes available to ensure that your work is fairly compensated. Hourly or Fixed? As a freelancer, there are two charging schemes you can explore: hourly rate or fixed pricing. While each has its own advocates, let’s lay down the pros and cons of both schemes so that you can make an informed decision. Is charging by the hour the best option for you? Hourly Rate Charging an hourly rate basically means that for each hour that you spend working on a project will charge the client a certain amount, say, $25 per hour. A good thing about hourly charging is that you’re sure to get paid for each hour that you spend on a project. In the end, you’ll feel that your time was more or less compensated, unless you charged way too low. Also, if you get paid by the hour, you get to exercise your judgement on your work pace. In the end, it’s most important that you understand your own work pace and quality. However, one drawback in charging by the hour is that some clients may be easily intimidated with hourly rates since they can’t immediately see the total amount they have to pay. At certain situations, it also limits your maximum earning potential per day to the number of hours you work. It’s also important to discuss and agree with the client on overtime charges, should you find yourself needing more hours per day than the original agreement. In the end, it’s most important that you understand your own work pace and quality. If you think a certain project will take you longer to complete and you’re anticipating revisions from the client, then hourly might be a good option. If, however, you find that the project would take you fewer hours but you’d like to be fairly compensated for the quality of your work, then fixed pricing might be the better choice. Should you […]

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