Your Hourly Rate

When you start freelancing, you have no clue what your rate should be. What most people do – at least what I did – is to ask themselves: “how much money do I need per month in order to survive.” So you divide that with a sensible number of working hours per week and you get a number – your hourly rate.

This number is usually low. It’s a tactic: you choose the bare minimum so you can have a ground to compete with the already established freelancers. They have ratings and portfolio, you offer a lower rate.

When you do this, you are choosing a rate based on your location, your monthly expenses, not your skills. You’re charging less then the other guy/girl who knows exactly as much as you do – as a temporary move – just so you can build some reputation.

After you eventually build your portfolio and earn a rating, it’s important to reconsider. Some people forget to do so. They continue working at an hourly rate based on their location, not on their skills.

If this is the case with you, go to your freelancing site and find people who match your experience and skills. See you much they charge, then change your rate. You’re probably charging less then you should.

If you’re thinking “it’s a really good pay compared to what people around me earn” note that it doesn’t matter. The client who’s going to hire you doesn’t care where you’re from – only how much you can deliver. It’s a free and global market.

Perhaps you should reconsider your rate.