I have questions for freelancers!

Rimi

Hi everyone

I'm a design student and I'm getting ready to start freelancing. A friend of mine is going to be the editor of a local magazine, and she would like me to do the graphic design work for the covers. Before getting started, I want to make sure that we both sign a contract.

How do you come up with your rates? How do you determine if you should charge an hourly fee or a project fee? How do you make sure that you get paid for each of these options?

Do you adjust rates for family and friends vs. new and long-term clients? If so, how?

eveum

Hey Rimi!

Hope you don't mind me replying here. I am not a freelancer or a design student but I have recently studied a module in my accountancy studies that included a topic covering what you should do if you decide to start your own business or do any freelance work. Here are some tips I have pulled out of my text book:

Fees usually calculated on:

-Skill and Knowledge needed
-Level of training and experience needed
-Time taken to carry out assignment
-Level of responsibility that the work entails.

Ways to charge fees:

-Fixed rate (for a project)
-Hourly rate
-Contingent fees/percentage fees (probably not applicable)

I agree that you should both sign a contract or a letter of engagement before you do any work for her, outlining yours and her respective responsibilities, details about your fee structure (be as clear as possible), the nature/scope of the work etc.

Please also don't forget to charge back any business expenses you may incur by completing the project work You could either charge these back or absorb them into your hourly/fixed rate fee. I am not sure if I am being too businessy about this (as she is your friend) so you can tell me to shut up if you like, but on your invoice/receipt, make sure you include where and how to pay, such as if you accept cash, please make cheques payable to "...", or your bank sort code and account number if applicable. A good idea is to include your terms too, whether you want fees to be payable on receipt, or within 7/30 days etc.

She is your friend but it is also your time and therefore your money that you'll be putting into this. So I would be as risk free as possible by making the whole process as professional and clear as you can possibly be so you both have clarity and can avoid any misunderstandings.


Found this article here for different methods of charging fees.
https://blog.bidsketch.com/clients/hourly-vs-fixed/

Where I work we usually charge a fixed rate on almost everything except bookkeeping work or one-off jobs that we have been asked to do by the client. I would agree that with the article in that fixed rates usually have a more positive psychological aspect to them. I guess you have to have a good idea of how long it will take you to complete a project so you can do cost analysis before doing that though.

Rimi

Eveum, you're such a doll.

Thanks so much for taking the time to go through your book! This was all very helpful. I completely forgot about including an invoice, so I will be sure to do that as well.

I am definitely not worried about being too business-y. She will be my first client, so I want to start off on the right foot and have all of my contract templates and rates and things in place for when I get more clients.

Thanks for including the article! I'll read it right now!

❤️

Rimi

UPDATE: We couldn't make a deal. The budget she's working with is just too small. The bright side of this is now I'm going to just go ahead and get my professional materials in order, so that when I eventually have a client, I'll be prepared.

Thanks again!

eveum

Well that's a shame Rimi.

At least you are getting organised and prepared for clients and I'm glad you're comfortable knowing what your time/work is worth and aren't willing to undersell yourself. 😊

Lotsawaves

Good luck, Rimi. Sounds exciting.

Rimi

Thanks, Lotsa!