How to: Set Your Freelance Rate

Freelance graphic design is a growing career venture. Designers are often influenced by the flexibility this brings and the opportunity to be their own boss (not to mention work with some amazing entrepreneurs). Now there are many pros and cons for this industry, which we will get into at a later date, but today we are focusing on one key component: how to set your freelance rate. This could apply beyond graphic designers as well; photographers, copywriters, videographers, project managers, social media mangers, art directors - this ones for you.

1.Factors to Consider

• PTO
  How much would you like to work this year? How many vacations would you like to have? Holidays off? Consider all of these when setting your rate!

• Health Insurance
  Oh the beloved insurance aspect (for my fellow US people). The reality is, freelancing means you most likely need to get your own insurance. This is a factor to consider with your rate.

• Product / Membership
  That adobe creative suite, MacBook, and website won’t pay for themselves. Consider the costs that you will be managing now as an independent.

• Ongoing learning time & opportunities
  Want to stay up to date in your field? Factor in the courses you will be learning about in your industry!

• Hours you want to work
  Do you want a half day fridays? Maybe you want five, 7 hour days.

• Credibility
  What is your experience like?

2. Cost Breakdown

• Take the amount of money you feel like you are valued at to earn if you were in a full time role

• If you would think your salary at a full time position is about $75,000 (or perhaps this is the amount you need to live off of)

• $75,000: Goal income amount

• 30 Hour billable per a week (reserve 10+ for internal / communication / marketing)

• 2 Weeks off in a year, 50 working weeks

• 75k / 50 (weeks) = 1500 / 30 (hours) = 50

• Your ideal freelance rate would be $50 / hour

Experience & Value:

• Your goal is to of course make money for less amount time worked / be valued highly

• Set your salary expectations high, but also make sure it is realistic

• If you are just beginning your career, you may be valued at $50,000; which is okay

• But don’t be afraid to raise your rates along the way (can be done at any time)

• Be realistic: if you just started graphic design and are self-taught, your rate will be a bit lower

Typical Prices:

• Entry level: $25 - 50

• Mid level: $65 - 100

• High level: $150 - 300

Flat Rate vs Hourly

• Now these are all hourly, many people will charge a flat rate fee

• I’ve personally done both and continue to do both

• I charge hourly when it is a retainer based individual

• I charge flat rate when it a one off project