Are you a creative that doesn’t like to talk about money? Unfortunately, unless you’re planning on nabbing the patent for post-it notes, you will have to think about it - or worse, TALK about it.
Money is necessary, we all need it, and we all spend it every day. If you’re a freelancer and you need to hustle for it, you’re going to need to get comfortable with talking about it.
The first step to getting extra comfy with the big bucks is to know your worth as a freelancer. Knowing your value isn’t only going to help you keep cashing in on your work; it’s also going to enable you to communicate your value to your clients or buyers.
How much do I ask for?
How much you ask for is really up to you. You can base it off many things such as skill level, expertise or market availability. Take a look at what other professionals are asking for the same service, compare and contrast what your skills can offer. It’s widespread to undersell yourself when you’re only looking at one source, do extensive research and don’t stop at the first value you see. If you’re still not sure, write a list of the unique qualities that you bring to the table. These will move the needle not only for yourself but will help you to quote with confidence.
Do I ask for hourly or project-based?
This question isn’t so black and white, and you might even notice that some freelancers will give you a definitive one or the other. However, there are a few things to consider when deciding between the two.
What is the nature of the work?
Is it ongoing work that may be occasional or consistent? Occasional work can be better suited to an hourly rate, whereas consistent can be a regular allowance.
Have they already proposed a budget? This can determine what your deliverables are.
Is there a clear outcome or solution? With a result set, you can calculate an overall fee for your time commitment.
Make a clear outline.
Outline everything that will be included in the project - more importantly, also outline the things that won’t. Sometimes you will get that one client that assumes you will pick up anything that isn’t part of the services you agreed on. It’s as easy as “can you quickly do this XYZ”, and before you know it, it can become free work.
Your services need to be outlined and discussed. You will also need to be aware of any costs that are not your responsibility.
These costs might include web hosting, images, font licenses, printing, or postage costs. Always make sure to quote and get approval before locking in any of these items. You can list these as ‘Additional costs’ when invoicing.
What if they want changes?
Revisions are a part of the creative industry. But unless you want to get stuck revising a project until the end of time, you need to set solid expectations. You need to use effective communication throughout the process and have a hard limit on the number of reiterations. Two rounds of revisions are usually sufficient. After that, if the client wants to make further changes, there needs to be a conversation around adding to their final invoice.
What happens if the project gets cancelled?
Always a last resort as no one wants this to happen! But if the absolute dumpster fire that was 2020 has taught us anything, it’s that things get cancelled. Ensure you’ve set yourself up for this. An example is that you might refund any money that has already been paid to you. If you’ve already started working on it, be clear and make sure your client pays you equal to the amount of work done. This is where having a written agreement from the outset can be beneficial.
Invoicing and billing
When it’s crunch time, always go back to knowing your worth. Learn it, then add tax. You need to have confidence in the value you have settled on to reflect your skills. If sending an invoice gives you those awkward jittery feelings, go back to your facts. Look at your time tracking. I’ve done this amount of work; therefore, I need to be paid this amount. There are many time tracking apps, like Clockify that can pump out an invoice for you. Or if you’re not tracking your time, Xero or MYOB are foolhardy invoicing platforms that become very handy around tax time too.
Let’s wrap up!
While it’s nice that some clients think “It’ll be great for exposure” are the five words creatives most want to hear, it just won’t pay the bills. No formula tells you how much your work is worth. But if you have compared and contrasted to the market, you can start feeling more confident in having those conversations. Always take time to evaluate when starting a new project to make sure it’s the right choice for you. Clear communication from the outset is vital. If you prefer to have it all in writing (highly recommend), you can use tools such as Hello Bonsai for contract templates and advice.