Ok…so this goal? This goal right here? It’s one you need to be thinking about from the jump.

 

Honestly, I probably should’ve started the month with this one because EVERYBODY needs to have one of these.

 

It’s your minimum hourly rate and it’s so ridiculously important to the success of your business that if you haven’t thought about it, you need to stop right now and get ready to.

 

That’s because this rate solves SO many freelancer problems. Setting this rate will…

 

• keep you from burning time on low-paying projects.
• help you meet your income goals without stressing yourself out.
• make sure you’re always working less to make more.
• help you push your income even if your available work hours are constrained by employment or other obligations.

 

Now I won’t lie. If you’ve been employed for a while — ESPECIALLY if you’ve been salaried — this is a hard mental transition to make.

 

You’re used to your effort and output being disconnected from your compensation so it’s going to be hard to shift gears. But let me tell you…it really can change your life.

 

This rate is the key to building a freelance business that works for you, and it will change the way you look at your time in multiple corners of your life.

 

 

How to Set Your Minimum Hourly Rate

 

So there are a bunch of ways to set your minimum internal hourly rate. Remember…we’re talking about your internal rate (not what you charge clients) so that doesn’t just include production. Depending on how you want to look at it, it will also include project management, pitching, marketing, and everything you do to keep your business going.  

 

So here are a couple of ways.

 

Get Above $75

You know my stance on this. $75/hr (or your regional equivalent) is a good number to use as a benchmark or goal.

 

Divide it Out

Do you know how much you want (or need) your freelance business to bring in every month (after taxes)? Divide that by the number of hours you want to work and there’s your answer.

 

Just Set It

This is partly the method that I use. I knew that I wanted to put a solid price on my time, so these days, it’s at a range of $120-$160…again…that includes the time it takes to run my business.

 

 

If you’re looking at a number and it feels impossible to reach, don’t feel bad. You’re probably looking at it through employment eyes — the ones where you have little control over how much you make and how quickly you can push your income and efficiency.

 

Even if you think you’re averaging minimum wage hours now and want to push for more, know that you can, and that you’ve already taken the most important step.

 

 

 

Megan

 

P.S. Make sure to fill out your self-assessment! Don’t deprive your future self of past lessons.  

 

 

Community Chat Update

This week, in the Skype group we’ve been talking about dealing with information overwhelm, clients dragging their feet on payment, and setting up liability insurance for your business.  Come on by for a visit!