I am dead sure you are giving freelancing a try which made you think how to charge for your freelance work if you are reading this article. Well, there is no rocket-science involved in it but just some calculations, basic financing and for the most the management.
Today, I am going to tell you how to manage your freelancing business, no matter full-time or part-time, in order to minimize your fixed cost and how to manage your variable cost. Have a read.
Also Read: How to make money FREELANCING
Charge for your freelance work as “A BEGINNER”?
If you are a beginner you should definitely keep your rate low. My advice to you would be to build a portfolio first and gain experience. A low rate would be what to charge for your freelance work in the beginning. But his way you will have to work more.
COSTS TO BE COVERED
Following are the costs that you have to calculate and cover with your income generated by freelance work.
Tools and Equipment to be purchased
That is the biggest expense; Capital investment actually. You may have to get a loan or pay it from your own pocket and the first expense that you need to cover. It would be more necessary if that is a liability. Pay your creditors first!
Taxes
Be a responsible citizen and abide by the laws by paying your taxes as you would be generating income and liable to pay the government taxes.
Broadband Bill
Broadband is certainly your lifeline and to keep it alive you have to pay the bill. This is a monthly expense and falls in the fixed expenses. In the beginning, you will have to arrange it from your own pocket but with getting and completing more and more work, this cost will minimize and easily be covered by your generated income from freelancing.
Must check: How to communicate with clients in the Freelancing world
Equipment maintenance
This is your overhead cost. You may have a minor or major breakage in any of your equipment, so you have to pay for it.
Transaction Cost
This includes the expense your bank and the money transferring agency will cost but that again it can be totally neglected.
Get Payoneer
After reaching the break-even, your next milestone should be “Get Payoneer “. That is a personal advice if you want to do online shopping this comes totally in handy.
Backup
Yes, you should have a backup in your account. You may add more balance to your this backup category but in the beginning, you can ignore it.
Also See: Top 7 Alternatives of Fiverr
So, these are the costs of your business but trust me the best thing in freelancing is that the fixed cost is less including your broadband bill that most probably will be monthly. You first have to calculate the total of these costs which will make your break-even point and try to meet the break-even point. Once you reach it, you are good to go ahead!
Exceptions:
Graphic designing and internet marketing are exceptions as there might be a need for high technology equipment, printers, scanners, and advanced software required but at the same time, Graphic Designing and Internet Marketing are the fields where the competition is less and the rates are high. Oh! wait. That is a tip for you to choose either of these two categories and become a millionaire!
The costs totally depend on the area you work in so you have to yourself calculate it.
There are several aspects to what to charge for your freelance work:
Entry-level
As your rate is low you may have to work full-time at times to meet the break-even.
Intermediate
You take more work and gain experience. Now is the time to increase your hourly rate.
Experienced
You have built a portfolio and your credibility is top-notch (remember for this 5-star ratings and excellent feedback from all the clients you have worked for is necessary).
The best thing to do to manage a freelance business effectively is to divide the break-even amount by your hourly rate (i.e., $3 or $3.5) and calculate the number of hours you need to work anyway. Estimate some of your costs (your backup, fixed cost, broadband bill etc. as mentioned above). And then make a schedule of how many hours you will have to work on the monthly, weekly or daily basis.
I hope readers you have now the idea of how and what to charge for your freelance work but apart from that, work with devotion and time management because this will eventually add up to your experience, portfolio and thus credibility that will enable you to charge higher.
Go start Bidding! Grab your first job and start earning.
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