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Figure out what to Charge for your Freelance Work

Arnaud Champavert
Arnaud Champavert

Like everything else, freelancing is not free, it comes at a price. But this one can often seem obscure. Here is a small notice to help you understand the price of your provider, or set your own if you are independent

pensez à tous les àcotés : facture comptable, gardez le m^mee niveau de vie voir l'améliorez d'années en années en augmantant son chiffre d'affaire.

While the employee thinks gross and net salary, freelance must first think in turnover before converting it into salary and this transition can sometimes be tricky. The freelancer must take into account the ancillary costs such as the accounting management of his company. 

Thus, the freelancer will talk about ADR when negociate with the client.

[parler du prix coté projet]

What is the ADR ?

The Average Daily Rate (ADR) is an average value of the selling price of a working day on a project.

In the case of a simple employee, his ADR will correspond to his selling price. In the case of several employees, the ADR will be the average of the selling prices.

Which variables will affect my ADR ?

Fees charged by freelancers can vary considerably depending on :

  • From the context of the job : the more the job involves constraints or stakes, the higher the rates.
  • The duration of the freelance work : the longer the job, the lower the daily rate.
  • Skills, know-how and references of the freelance provider.
  • The sector of activity and the trade concerned : for example, some large companies in the service sector are likely to offer very comfortable prices.
  • Geographic sector : rates are higher in large urban centers than in rural areas.

 How to determine the best rates ?

 In general, prices are determined on the basis of three main criteria :

  • The price that the customer is willing to pay. In the relationship with your client, we are in the field of the subjective. It is important to encourage him to express his problems, the type of skills he seeks and the budget he wants to allocate.
  • Prices that competitors are used to practice. It is recommended to carry out a comparison of market prices. At first, do not hesitate to seek advice from experienced freelancers. This approach combines the advantage of bringing you experience feedback and getting you into a network logic that can be profitable in the medium term : a colleague can possibly co-opt or direct you on assignments. Consulting various websites, forums and professional jobboards like Lookap. Social medias : (Linkedin, Twitter ...) are also valuable sources of information. You will have access to CVs and freelance assignments that will allow you to get a more objective idea of the practices in your area of activity.
  • The price that is acceptable by the freelance itself, and which will function : its legal status, his personal and professional organization, his distance, of its cost structure.

Now, how do i calculate it ?

Some freelancers are based on the monthly gross salary they perceived in their former job.

One formula you can use is the following :

Gross salary desired + charges + fees) / number of days you plan to bill per month

This calculation method is used to determine the base price of a freelance job in an ideal full-time context. Remember, however, that this ADR is without taxe. This calculation method is used by a majority of freelancers and should feet to your requirements.

Thus, we saw what criterias had to be taken into account when determining his ADR.

Now that you have calculate it, you could read how to find jobs when you are freelancer.

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