A few people have emailed me asking about how to charge for copywriting work (magazine rates are usually set by the publication so there's less wiggle room). Some freelancers insist on billing by the hour or by the project. I do either one depending on the project specs.Here's why.
If you charge by the hour, your compensation is practically guaranteed to scale with the size of the project (I say practically because clients don't always pay us as agreed, but that's another story). If the client wants a million little revisions, then you can happily provide them knowing you will be paid accordingly. For some clients, this means they will be very clear about what they want up-front to minimize back and forth later on. Others don't seem to realize that their indecisiveness is costing them money.
When the project's scope is likely to evolve over time, I suggest billing by the hour and invoicing monthly so that I can get paid for the work I've done even if the project is awaiting revisions or gets postponed. (Some clients go for this, and some don't.)
BUT...
Billing by the hour also means there's no incentive to be efficient. Your income is limited by the number of hours you work, so you're essentially a wage slave.
Say I've written a million press releases and could write a killer release in less than two hours. But it might take another freelancer twice as long to write that same release. She would earn twice as much for something that theoretically has the same amount of value to the client. Sure, she might have taken her time to craft something really compelling and concise, but she might also be less efficient because she's not as experienced at writing press releases. And some clients don't like hourly rates because they don't really know how you're using your time.
So, for a project that has a very defined scope (such as a press release, a sales letter, or a blog post), I try to set a flat rate that is fair to the client and, if all goes smoothly, still allows me to earn more than my hourly rate. The client likes knowing they will stay within their budget and I like knowing exactly how much I'll earn from the project.
The thing to be careful about with flat rates is those clients who like to spend lots of time on the phone or email discussing the project or requesting endless revisions. This can seriously cut in to your income, so I try to be polite but not too indulgent. And usually the flat rate will include a set number of revisions, though I've been known to be lenient about that because I want the client to love the finished product.
What about you? Do you prefer to bill by the hour or by the project?
Flickr photo courtesy of suburbandollar
10 comments:
It depends on the project, really. As you said, the hourly rate offers more wiggle room for picky clients, however, I do have an item in my writer's agreement stating reasons for changing my original quote or rate. If a client has numerous revisions and requests and I charged a flat fee, I'll let him know I'll be making adjustments to my original quote as per our agreement.
Agreed, it depends on the project. Generally, with assignments I've dealt with before and know what to expect, I charge a flat rate (e.g. websites, brochures). When I go this route, I specify in the contract how many rounds of revisions are included, and state that additional work will be billed at an hourly rate. With assignments that are harder to put parameters around (e.g. editing or consulting), I charge by the hour.
Excellent points on the reasons for using both types of pricing. Though I usually charge by the hour because I do a lot of different things for my main clients and just keep a running tab, I charge a flat rate for one-time projects with a defined scope.
I'm taking a survey on how freelancers charge and plan to use the results in upcoming posts on pricing. I'd love for you and your readers to participate. The survey is anonymous and has only six multiple choice questions. Take the survey. Thanks to anyone who participates.
I prefer to quote a flat rate for the grand majority of my projects, if only because my clients have heart attacks when they see my rates. They tend to assume that they'll be paying me for forty hours or some such huge number.
But those flat rates are closely connected to my hourly rates — I know, on average, how long it takes me to write a 500-word blog post, for instance.
I've found that a blend of both things seems to work out well for the freelance work I do (mainly Wordpress-related). I do flat-rate for things I know don't have any ambiguity to them, such as an install / setup or migration. Things that can be open-ended or ongoing (mainly design-related) I charge an hourly rate. Granted, I've been willing to work with folks that I know have a limited budget and give them a flat-rate, with the understanding that there would be a limit to changes that would be made.
This is the clearest, most concise explanation I've ever seen on the difference between flat and hourly rates and what they look like in practice. If you haven't done much (or any) of either, it's hard to grasp, but I'd think what you've written here would help anyone have the confidence to do flat rate, and get comfortable with flat vs. hourly and how they affect the bottom line based on the client. Kudos.
I had a client pay me .10/word for several articles regarding the local school district for a community magazine. In addition to writing 4 stories, I met and brainstormed with administration, took photos and confirmed about 15 concert dates with teachers from 5 different schools. The client took none of this into consideration. Of course for the feature stories, I went to the schools, interviewed students and teachers - basically did everything (happily) involved in the writing process. Should I ask for a flat rate instead to help cover all of my additional, non-writing time?
@Laurie: Usually articles are paid by the word. So the next time you get an assignment, maybe mention all the extra work you've done and see if they'll bump up your per word rate. Or you could see about getting an hourly rate tacked on for additional tasks such as taking photos. I agree - the more sources who are involved, the more time it takes to pull together an article!
Thank you for confirming that magazine articles are usually payed by the word. Yesterday, another magazine editor asked me for my "freelance rate" without telling me how much her publication pays. I really didn't know what to tell her because there are so many variables. I didn't want to price myself out of her range or sell myself short. I gave her a per word and per hour number and she wrote back and said sorry, she doesn't pay per word or hour, and I am out of her range. They usually pay a certain amount per article. The per article amount is exactly what I would have expected. Had she told me what they pay, I would have accepted it (and had she done her math, she would have found that I didn't actually price myself out of her range). I don't want to debate the fact that we are really on the same page. I think I may have to give up on this particular publication. I am a very frustrated 40+ freelance writer with professional experience and a child in college!
Thanks for another great article. I have mostly written for magazines that pay by the word or an editing client who specified an hourly rate. But this past spring I landed a business client who has me writing pretty steady marketing material and wanted to pay me by the piece. So I guesstimated a flat rate per piece based on my hourly rate, and it's working out pretty well. I definitely agree on the incentive to be efficient. I usually finish in under the time it would have taken me to match my hourly rate, but occasionally go over, so it all evens out. It's good to hear a more experienced freelancer's opinion - it sounds like I'm on the right track.
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