Freelancers: pricing structure options

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Freelancers: pricing structure options

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My role as a freelancer means I work on a wide variety of projects. From one-off infographics, to long-running research projects. I’ve found that there is not a single perfect pricing system – instead I make a decision on a project-by-project basis. I will ask myself:

– is there a defined outcome / product?
– have I done anything like this before?
– how easily can I estimate the hours I will spend on this?
– is there a risk of ‘project creep’?
– could there be ongoing work?
– how long will the project last?
– who is the client? How well do I know them?
– does the client have a set budget?


noun_tag_15204Total Project Cost 

I will quote a total project cost if there is a single, defined outcome that I can easily scope. There must be little risk of ‘project creep’ or clearly set boundaries for stages within the project.
– Pro – set price for the client so they’re more likely to agree
– Pro – beneficial for me if the project is completed within my budget
– Pro – project management made easier due to set hours / budget
– Con – I could lose out financially if the project runs over


Hourly (unlimited) 

I will quote hourly if the project brief is still being defined or has the potential to change in scale. If the project is ongoing work with many elements I will quote hourly.
– Pro – I am paid for the work I do – so I will never lose out financially
– Con – clients get nervous if they don’t know the final amount. An estimate is sometimes needed

noun_alarm-clock_317Hourly (maximum price)
This has been a successful combination of the 2 previous pricing structures. I will invoice based on the hours worked, but the total will never exceed the value stated in the quote. This works if I have some idea on the scope, but there are some uncertainties.
– Pro – client more likely to agree as they know the maximum price
– Pro – In most cases I will be paid for the all work I do
– Con – if the project runs over significantly I could lose out financially

noun_checklist_373700Project BuilderThis structure works if there are multiple ways of presenting the information with sets of images. The client is given a list of potential options with a price-per-item. They can pick and choose items from the list to match their budget.
– Pro – client gets flexibility
– Pro – client has early editorial input
– Pro – flexible if client already has strong ideas
– Pro – pricing per graphic means I am less likely to lose out financially

Retainer

A client may wish to sign you up for an extended period of time, agreeing to pay you a set amount each month, for a set amount of hours based on your hourly rate. This is different to a full time contract as multiple clients may have you on a retainer. Note: I do not currently have any clients using this pay structure.
– Pro – client has an expected invoice each month
– Pro – I have an guaranteed income each month
– Pro – potential to be paid for hours not worked
– Con – difficulty / reluctance to charge for hours over the monthly allowance
– Con – client may not realistic understanding what is achievable in the monthly allowance


 

About Author

Caroline Beavon

A communication professional with 12 years journalism experience and a genuine passion for new technologies. An experienced blogger and social media user

"Caroline took a complicated set of facts, figures and processes and turned them into something that now only gave them clarity but also brought them to life visually. She was a pleasure to work with through, suggesting ideas and ways we could use and display information more creatively. Very much looking forward to working with her again." Jenni Fryer, Communications Manager, University of the First Age