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

"I’ve enjoyed working with Caroline on a data visualisation project for a complex £1.5m government funded programme running across Birmingham and Leicester. It’s been a high pressure programme with tough targets to meet, so finding the time to collect and make sense of all the data, from a range of sources, has been difficult. With Caroline’s help we managed to prioritise the key information and she then presented it in a clear, easy to grasp manner. Just what we needed. I found her dedicated, easy to work with and very fair on pricing. I would happily work with her again and I commend her and her work to you" Dave Conroy, Programme Manager, Timebank