31

This is a good question that I'm sure many people face when starting out. You need to decide on your pricing model first: are you billing by the hour, or by the project? There are advantages and disadvantages to both, but it essentially comes down to your skills, and what the client is willing to pay. I have seen many animation or graphic projects (I call ...


25

[tl;dr: Clients are paying for more than a task to be done, they're paying for you. Understand that, and make that product unique, valuable, and worth every penny.] Here are a few things to keep in mind: Your time is limited: When you're working hourly, the client's not just paying for the work to be done, they're paying for you to do it. A subtle ...


18

Note, this is an answer modified from one I gave on the workplace stackexchange. You need to find out the market rate for an equivalent employee first, then your costs. The following costs must be accounted for accurately in order to compute an hourly rate just to keep you on par with the salaried employee G & A (this is accounting speak for computers,...


18

Realize that if you are tied up, full time, for a year, you'll most likely lose all your other clients. So, if that's okay you need to make it worth your while. If you are financially in good shape as things are with several clients, then putting all your eggs in one basket, as it were, can be very risky. Due to the damage, yes damage, such a position ...


16

I believe that being a 'Westerner' definitely works to your advantage for many reasons. Let me share part of my experience on the subject, as a freelance developer who started in London, then moved on to other 'western' countries. I had no portfolio, having done only bar work since I left Uni, but I was really motivated. First, as you said, the market is ...


14

I think most of fair freelancers felt the same. I felt the same when I had to charge mother of two, then again when I had to charge a student, and so on. But in the end, simply tell yourself that you have responsibility to your own family, your children, your parents, and so on. And this is the way to feed them, right? The best way to overcome the guilt is ...


12

Note that there is a distinction between "project" and "client". Large clients can have small projects and vice versa. More/Smaller Clients: Pros include: you are diversified and therefore, the loss of one client will have less impact on your work/cash flow getting into more clients should increase your marketability because of your greater visibility ...


12

I am using a model "based on a situation". For example, if a client want me to code database and I don't know how to do it, then I will not charge him for the time I spend learning how to do this. As this is a simple and basic thing and I was supposed to know that. On the other hand, if he's asking me to code some physics (smoke, clouds, etc.) where I ...


12

There is nothing wrong with adjusting your quote. You need to understand and really believe that. If you don't, it can be heard in your voice (if you are on a call) or it can be seen in body language. You quoted an amount based on an assumption from an email. You had limited information on the scope of the project and based on what information was given to ...


12

[Bit of background, I've done contract work exclusively through oDesk since 2006.] As far as I see it, the single most important thing you can do in your cover letter is tell them how you'll solve their problem. That's really what (in most cases) they're looking for. They only care about your past work, your experience, or how well you're rated in terms of ...


10

The German platform GULP frequently publishes statistics in press releases and in its knowledge base. There also is a calculator to estimate hourly rates. From my experience, they mostly staff consulting jobs at large companies in the area of SAP, banking, and automotive. As of August 2013, GULP claims that consultants in the age group 40 to 50 get the ...


10

Simple, either raise their pricing or drop the client. It's business. There's little point in working even a few hours for less money than you could earn with another client. Businesses typically do not provide individual pricing merely because you've been doing business with them for a while. Hi [client], As of [Month day year] pricing for my ...


9

Hourly billing is the art of its kind, and there are many approaches. Many freelancers simply count all hours they've spend working on project, and bill them to the client. Time for research and learning new things is usually excluded, because the prerequisites for taking the task is that you have the knowledge and experience needed to accomplish it. If you ...


9

I see you have a ton of experience which is good, but it's not enough to convince a client. I have been working for almost 8 months now and I'm starting to get more work than I can handle. Here are some tips to get more jobs: Don't start with " I have a lot of experience...". It's good that you have, but keep that to the end. You must first catch the client'...


9

Not pertaining to iOS specificall, but freelancing in general, also as a citizen/resident of the USA, I would charge roughly 4 times the hourly rate you get from an employer. I've seen other freelancers charge around this much. So if an iOS dev is making 25EUR/hour, then freelance, said dev would charge 100EUR/hour. This may seem high, but there are few ...


9

Always discuss payment before work begins. ALWAYS. (You should have a contract detailing scope and payment) If you fail to do this it is inevitable that you will end up doing work the client doesn't want to pay for.. thus wasting your time and ultimate resulting in conflict and losing the client in most cases.


9

I do contract work and also charge by the hour. What I charge for is my time to complete the job given the tools that I have, and if that includes waiting on a file to up load then so be it, it gets absorbed into the billing. I also bill on a per hour basis and don't bill on shorter time units, (although YMMV for your field of work) and the client ...


8

Unfortunately, I don't believe such a site exists, and I wouldn't expect it to be accurate either. If you are working on projects, they are usually a per-project cost, which changes as the scope changes, with every single project. A calculator won't be able to detect this. It also will not be able to measure you skill level, or how much time it will take ...


8

This really depends on the percentage and workload. Getting paid in percentage is overall more risky then paid by hour - if you want more profit, you must assume greater risk. A bigger company will give you the option for percentage either to reduce their risk and their variable costs or most likely as the percentage model (%-model) would just cost less. ...


8

Don't do it. Clearly they don't value your work, a 60% discount is what you ask for haggling in a North African marketplace, not development work with a freelancer. And keep in mind that although they ask 60% discount, they will still demand 100% dedication, quality and timeliness. Also, after a while you will definitely start to resent the low rate which ...


7

Entreprenuer magazine recently published an article regarding this. Self employed individuals have several options: Option 1: Do nothing and forgo health insurance. You face paying the penalty: The landmark law requires that most Americans have coverage starting next year or face a fine. Fees for those who opt not to buy individual coverage for 2014 ...


7

I provide flat rate monthly support options for custom software I build. It includes: Bug fixes Email support Research The amount is different for each customer, because some applications are more difficult to support than others. Also the pricing depends on how quickly I guarantee a response - some are satisfied with 2 business day response, while others ...


7

That might be considered "overhead" time. If you've advertised or communicated that the customer's cost will only be for the installation, then turned around and added something else, YES, she's got something to balk about. You can either (a) Bump up the installation cost to cover for the time you'll need - and stop making a surcharge. (b) "Eat" that ...


7

There is no formula for magically determining the number of hours a task will take based on complexity. Rather than agreeing to a fixed price, you might want to break your project into milestones and give an estimate of the number of hours between milestones, and charge hourly. This is most important especially when you consider the fact that as you finish ...


7

I think it all depends on your skill set and portfolio. It also depends on what segment of the market you're targeting. It also depends on where you're finding the work (elance etc.) If you're finding work on sites such as elance, don't expect to get higher rates. People use these sites to find cheap labor in foreign countries. If you're finding work ...


7

First off, charge by the hour. Without knowing a great many details about your expectations for payment, level of skill, customer expectations, graphics, whatever, it's impossible to come up with an accurate estimate that is going to make you happy. Here's the deal though...you are in the same position. Fixed price gigs almost always (in my 30 years of ...


7

Good clients are generally not the clients looking for the cheapest workers they can find. They are customarily more vested in abilities than actual price points. Good clients know that quality workers demand more than a bare minimum rate. Good clients customarily find good workers and continue to return to those workers in order to maintain a level of ...


7

I don't feel the need to justify anything - my rates are my rates. If a client doesn't like them, they can hire someone else. I don't need to explain my fee calculations to clients, only what I'll charge them if they hire me. I don't "argue" my rates. If I'm increasing rates for an existing client, I send an email between projects stating rates will ...


7

If I create a tool which makes it easier to complete my work, and complete it much faster than before, the client does not need to know about it. (Provided you aren't under a work-for-hire agreement). How I do my job, the speed at which I do my job, the tools I use to complete my job, what hours I work and where those hours fall, are all my choice and the ...


Only top voted, non community-wiki answers of a minimum length are eligible