Pricing Tips for Freelancers (+ Resources too!)

ilise-new-headshot-bug-1-11More and more mainstream publications are writing more and more frequently about the challenges of freelancing — here’s one more article from Alina Tugend (@atugend) of The New York Times “Personal Business” section (from 5/31/14) called “Tips for Those Who Set Their Own Salaries.”

In it she cites Lindsay Van Thoen from The Freelancers Union (join for free if you haven’t already!) on how to set your hourly rate.

Pricing Bundle on sale

There is also an excellent hourly rate worksheet for designers in “The Pricing Bundle: Tools for Smart Pricing.”)

Video interview with Ilise Benun & Mike McDerment, CEO of FreshBooks

Video interview with Ilise Benun & Mike McDerment, CEO of FreshBooks

Tugend also quotes FreshBooks’ CEO, Mike McDerment (and links to his free ebook, “Breaking the Time Barrier“), with whom I did a video interview last year when the book was launched. Watch that here….

And in the article, Tugend tells the story of a consultant who has a pricing problem:

Of course, even with the best effort in the world, things go wrong. Ms. Demetriou, the Santa Monica, Calif., marketing consultant, thought she had everything covered when she started a project for a market research company. She provided a timetable, set her hourly rate, had an agreed-upon scope of work and a signed agreement, and kept in touch with her clients with status reports, as well as updating her work online.

But when she sent her first bill, she received a big surprise. She was told the deal was for only 10 hours of work and no money was available to pay the invoice in full.

“I had probably done 50, and they could have seen all along that I was doing way more than 10,” she said.

Ms. Demetriou said she believed the budget of the department that hired her was cut between the time she was assigned the work and the time she billed.

What would you do if this happened to you?