Setting Your Rates

When I first started freelance writing as an undergrad, I couldn’t believe how much I could make for an article. I was fortunate to have the chance to write for a large national consumer pub, and even though I was probably making the least of all of the magazine’s freelancers, it was good pay by my standards. I figured I could only go up from there.

But then I realized that the rates a writer is paid vary considerably from publication to publication—particularly as you move from consumer pubs to custom, regional, local, or business magazines. It gets even trickier when you throw online writing and other forms of writing work into the mix.

There isn’t one set rate I get for my writing and there never will be.

So when I determine what’s reasonable pay, I take a number of things into account.

A while ago, I figured out what my ideal hourly rate would be—how much I need to get paid in order to make enough to pay my bills. It involved taking account of all of my business expenses, my personal expenses, how many hours I can actually bill (remember, you probably aren’t going to be billing a full 40 hours of work each week), and how much I hope to save after paying my expenses.

Handy sites online, such as the rate calculator at Freelance Switch, can help you figure all of this out in no time.

So then, each time a possible writing or editing project comes up, I keep my hourly rate in mind. I estimate how long I think each step in the process is going to take—background research, interviewing, writing, proofreading, communication with the editor, revisions if necessary—and divide the rate the editor has offered (if it’s a flat project fee) by the number of hours I estimate I’ll spend on it. If it’s close to or even more than my ideal hourly rate, I take on the project.

If that proposed fee is quite a bit lower than my hourly rate, I don’t shoot back a “no thanks” right away. As you know, times are tough, and rates for writing and editing work are getting lower and lower. So before I ditch the assignment, I consider whether there are places where I can trim back my time estimate. Can I keep the amount of time I spend researching or interviewing in check and still produce a quality article?

Other considerations come into play too. When the opportunity comes up to write for a publication I’ve been wanting to work with for years, odds are I’ll take on the gig even if it pays a bit less than my ideal (as long as the rate isn't ridiculously low). The same holds true if it’s an assignment for a topic I’m particularly passionate about.

Or, in the case of a writing gig that promises to offer consistent opportunities, I might sacrifice a bit on that ideal rate because getting regular work is worth it. (I write for almost every issue of one publication I started working for a couple of years ago, so the fact that I get such steady work makes up for the slightly lower rates.)

Besides, if the choice is between writing for a bit less pay than usual or having no writing work at all, I’m going to take on the job.

(One caveat about this: I will not go considerably lower than my ideal hourly rate, to the point where I am almost giving my work away for free, except for those instances where I volunteer my writing services to help out with a cause or publication I believe in, or when it helps build my writing business, as with my blogging. Writing mills and the ridiculously low rates they pay are a whole other topic I could spend many posts on, and perhaps I will someday. Suffice to say for now that I will not spend hours working on a project that brings in only a couple of dollars. In the meantime, if you want to learn more about why I don’t support writing mills, my writer-friend Kristine Meldrum Denholm has been posting on the topic recently and makes some great points.)

Then there are those times when a writing assignment comes with special stipulations—perhaps it's a rush job or it requires extra work that my usual writing assignments don't. In that case, I often will increase how much I am willing to take from the usual hourly rate, particularly if it means I'll be getting less sleep or won't have time to devote to other projects.

In other words, coming up with the ideal rate is an inexact science. But at least having that hourly number in mind ensures that I’m not taking on a project that isn’t worth my time.

How do you figure your hourly rate? How low are you willing to go? I’d love to hear your thoughts.

Learn More:
How Much Should I Charge (njcreatives)
How to Set Salary Goals (everyjoe.com)

Photo by Benediktv via Flickr

It's All About the Money, Honey

It’s mid-January. Odds are, if you’re like me, you’ve been doing some goal-setting and planning for the coming year and perhaps even thinking about tax time. It’s hard to do any of that without thinking money.

Money is never far from a freelancer’s mind no matter the time of year. It’s what keeps us going. Money ensures we can pay our bills and live a comfortable life and do what we love. It’s a constant source of stress and worry and occasionally even excitement when a big check, or even a reasonably sized check, arrives.

That’s why, this week, I’m going to post a bit about money—specifically, about writers’ rates (tomorrow) and getting paid (on Thursday).

And, while we’re on the subject, I’d love to hear your thoughts on freelancing and money. What is the best part about the freelancer’s income? What stresses you out the most? Anything you’d like to hear more about? Let me know!

Photo by AMagill via Flickr

Beggars Can’t Be Choosers—Or Can They?

I am looking at the freelance writing job board for possible gigs. Many of them are low-paying—much lower than the rate I’ve calculated I need to make per hour to cover my expenses and earn a reasonable living. So I choose not to apply for them. It’s the right choice, I know. I need to have standards.

But I need work. I have bills to pay. I need something now. Isn’t minimum wage better than nothing?

These are the sort of dilemmas freelance writers face every day. These are the sort of dilemmas I’m facing every day.

Freelance writing rates have spurred some hot debates recently (see below for links to a few of the many posts on the subject). And for good reason. The rates many individuals and companies post along with their job descriptions on Craigslist, freelance job lists, and the like are low. Terribly low. We’re talking pennies per word. Ten dollars or less for a fully researched, well-written blog post. We’re talking much less than minimum wage.

And the thing is, people are willing to do that work for those rates. So more potential employers post their gigs with miserably low compensation. It’s a vicious cycle, and one I refuse to jump into. I am worth more as a writer than those companies are willing to pay. I am not that desperate. I will get a gig waiting tables on the side or will take on teaching more composition classes to pay my bills before I’ll settle for giving away my hard writing work for free.

Unless, of course, a publication I’m incredibly passionate about pays paltry rates. If I get a chance to write about a topic that means a lot to me or for an organization whose cause I believe in, that’s a different story. But to pour my heart and soul into a writing assignment for some nameless person halfway across the country who’s willing to send me a check for less than $10? Um, no.

Still, if it comes down to crappy payment for work or no payment at all, is it any wonder that fledgling writers are taking what they can get?

Where do you draw the line?

Learn More
Why Bloggers Should Be Paid More (Men with Pens)
Why Some Freelance Writers Accept Such Low Pay Rates (freelancewriting.suite101.com)
Freelance Writing Rates (ScrawlBug)
Why Low Pay is Bad Pay, No Matter the Rate (Erik Sherman’s Writer Biz)
Harlan Ellison: Pay the Writer (Freelance Writing Gigs)