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Figure Out An Hourly Rate

Desired Salary and Work Week
Taking into consideration the amount of your fixed and variable costs, how much money do you want to make per year? Not sure what number that should be? According to Salary.com a writer in the US just starting out and concentrating on new media can expect a median income of $44,000.

For example’s sake, let’s say your target income is $40,000 for the year. Now, how many hours do you want to work per week? Our example freelancer will work 50 hours per week. Multiply the number of hours per week you will work by 50 weeks for the year (assuming you want a two week vacation.) For our example freelancer we come up with 2,500 hours.Â Using the chart below, enter your desired numbers.

Desired salaryÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â _________ (a)

Hours worked/wk. _____ (b) x 50 =Â Â __________ (c) (hours worked/year)

Sick Days and Paid Holidays
Not all of your time will be spent working directly on a project you are charging a client for (billable hours.) There will times you are marketing your services, doing administrative work or building a better business. These functions are equally important to your success. By figuring out how much to charge for billable hours, you are increasing the hourly rate clients are charged in order to pay for those times when you’re doing non-client related work. This non-client work may at times be paid sick days or holidays. Our example writer’s goal is to be paid for 2,500 hours of work per year by clients, even though a percentage of that time will not be spent working for the client. Do you know what percentage of your time is spent on administrative or sales work and what percentage of the time is spent actually working on projects? If you know, use your figure, if not use a number between 60%-80%.

For our example we will use 70% of 2,500 hours which is 1,750 billable hours. So, you will work directly for clients for 1,750 hours, but you will be paid for 2,500 to compensate for the time you spend doing other business tasks.

Percentage of time spent working on projects __________ (d)

(d)__________ x (c)__________ gives you billable hours __________ (e)


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