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Hourly rates for a newbie? Help!

5 replies

Piffpaffpoff · 13/07/2013 21:16

Hi, I need help!

I was planning to start up as a freelance copywriter later this year, and was intending to use the time between then and now to research the financial side of things. However, an amazing opportunity has pretty much been dropped in my lap and I'd be an absolute idiot to say no to it. I have a meeting next week where they want to talk money (hourly and daily) but I have no clue what to charge and I'm slightly panicking.

Can anyone point me in the direction of any websites or resources that would help? I've seen something about working out your hourly rate from an employed role and then doubling it and have done that, but it seems very high (but I am aware that I undersell myself so it's probably not that high in reality). I'm also looking at agencies in my area to see if I can find daily or hourly rates for similar jobs but not having much luck. Anything else I could/should be looking for?

Thanks.

OP posts:
WilsonFrickett · 13/07/2013 21:45

Well yeah, basically you look at the 'employee' rate and double it, because as a freelancer you have to add in tax, NI, holiday pay, pension contribution, etc etc. you also have to consider business development - how many hours do you have to spend to get a day's work? That money has to br found somewhere. So your rate will seem high but it probably isn't.

That said, there is a massive variance in rates. It depends where you are, what the market will bear, and of course how good you are. The circumstances are also important - I do a big amount of work for one agency and give them a day rate of 250 - but I work for them practically every week, it's guaranteed income, and I have no business development costs for that income. Yes, I could squeeze my rate up, but I know they make a good margin on my rate, I'm easy to work with, everyones happy.

For direct clients, who are harder to get, I charge at least 400. But no-one else is making margin on that cost, IYSWIM.

Obviously I can't answer your question for you. But whether it's direct or through another agency has a massive bearing on your rate. Plus if it's regular work, etc etc. The minimum I would suggest is 200 pd and I only charged that when I first started out.

Oh and don't give a low rate thinking you can push it up later in the relationship - that never works.

Good luck!

WilsonFrickett · 13/07/2013 21:47

LinkedIn groups are quite good for further info. Avoid job bid websites because they are just a race to the bottom. Some people seem to be happy working for a cent a word, I'm not.

sara11272 · 13/07/2013 21:50

Hi, and congratulations on the opportunity! I started out charging £30 an hour for copywriting (so c 210 a day) but a bit like you, this was an opportunity that came up v quickly after I became freelance, I had no idea what to change other than some v basic research, and I didn't want to miss the opportunity of possibly the only work I would ever be offered!!

Now, that client is one of 3 or 4 and I recently put my rates up to £40 an hour for them (which is what I charge the others). They didn't bat an eyelid, which makes me suspect that I was undercharging them before - or at least, could have asked for more.

Piffpaffpoff · 13/07/2013 22:15

Thanks everyone. Sara £30/£35 was what I was thinking and that is just under double my last salaried post so i think that's in the right area.

Wilson I see what you are saying too about a slightly lower rate for regular income. Thats a useful point to bear in mind too.

The other thing to toss into the mix is that it's a fairly well known company so would be an absolute cracker to have as an example of who I've worked for when looking for other work further down the line. I think that makes me feel like I'd maybe take a slightly lower rate (say £30 rather than £35) just to get them on my cv.

Anyway, thanks again for the replies, lots to think about. I am compiling a list of questions for my meeting, it's all very exciting and yet very nerve-wracking.

OP posts:
WilsonFrickett · 14/07/2013 11:53

Sometimes big companies can be funny about you using stuff on your own website/blog (although of course they can't stop you putting stuff on your cv and portfolio) so its worth checking that upfront and using it as part of the negotiation.

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