How To Set Up Your Hourly Rate So You Don’t Get Duped
Depending on the work that you do, if you work as a freelancer, you can choose to charge an hourly rate or charge a flat fee. An hourly rate works best for virtual assistants and those who do administrative tasks. On the other hand, a flat fee works best for those who take time to present an output because of their creative process. If you do decide to charge hourly instead of a flat fee, it is important that you get properly compensated for your work.
If you want to do an hourly rate, there are a couple of ways for you to do it without getting the short end of the stick. The first thing you should do is to make sure you’re not setting yourself up for a financial downfall. When deciding on your hourly rate, take into account whether your hourly rate will also be enough to pay for your overhead expenses like health insurance, rent, utilities, and so on. If you set too low of an hourly rate, you might end up putting yourself in financial trouble.
Another thing you could do is to use a time tracking software. You’re probably not aware of the exact time it takes for you to finish a task. If so, you might want to consider a time tracking software. Tracking your time is a good way to make sure your working hours are being kept track of and you don’t get duped. There are a number of time tracking apps that you can use. Some systems also make it possible for you to include the timed task on an invoice.
Before you meet some of your clients, they already have an hourly rate in mind. If they find that the price you are asking for and the price they had in mind are rather different, they will try to haggle with you. Do not ever succumb to this pressure. They are paying for your time, your effort, and your skill. Lowering your rate will leave you overworked and underpaid. Moreover, your hourly rate should be enough to provide for your day-to-day needs. Therefore, if you give in to the pressure and lower your rates to satisfy the client, you might end up barely scraping by on your income.