Re: What's a good freelance rate for technical writers?

["Michael L. Wyland" <michael -at- sumptionandwyland -dot- com>]

Mark:

You've received a lot of really good advice.

There are three ways to price your services.  One is to figure out 
what how much money you need to earn in order to live and meet your 
personal and family goals.  This would include identifying business 
expenses, cost of benefits, PTO (if you want any kind of  paid time 
off, *you* have to pay for it! <g>), non-revenue business time 
(administration, marketing, education/professional development, 
networking, product development, etc.), and other expenses.  Then 
figure out how many hours a day/week/month you wish to work.

Another way is to look at the competitive environment and determine 
what the market says the work is worth.  Then determine a business 
model that would support that market-based compensation range.

The third way is the most difficult and the most profitable.  That 
way is to price your services based on their value to the client, 
regardless of your costs or the prevailing market.  For more on 
value-based fees, Google the search term "value-based fees" or look 
at the books written by Alan Weiss.

One good rule of thumb is that a contractor needs to bill at a rate 
2-3 times the prevailing base salary for the work to be 
performed.  So, $40 an hour base salary should be billed at $80-$120 
an hour by an independent contractor seeking to have the same 
after-tax income as the employee.

One caution:  an independent contractor with only one client may be 
regarded by the IRS and US Labor Department as an employee, which is 
bad news for the contracting organization/employer.  See the 
following web page for a description of the independent contractor test:
http://www.twc.state.tx.us/news/efte/appx_d_irs_ic_test.html


Michael L. Wyland
Sumption & Wyland
818 South Hawthorne Avenue
Sioux Falls, SD  57104-4537
(605) 336-0244
(605) 336-0275 (FAX)
(888) 4-SUMPTION (toll-free)
michael -at- sumptionandwyland -dot- com

Since 1990
Strategic Planning * Executive Coaching * Training & Facilitation

-- NEW Web site:  http://www.sumptionandwyland.com
-- LinkedIn Profile -- http://www.linkedin.com/in/michaelwyland





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