

What kind of rates for freelance/contract work? - petsos

I was looking at freelance and contract works at www.authenticjobs.com and other similar sites and I have no idea what kind of rates are considered normal for python, rails, iPhone or similar gigs.<p>I realize that the question depends a lot on the actual project and the qualifications of the applicant, but I would really appreciate some examples to get an idea.
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gexla
You are totally in the wrong frame of mind here. With this sort of question,
you might as well be looking at average salaries so that you can just pick up
a job with someone. You aren't looking for a job, you are trying to price out
the services of a business, your business.

Assuming your business has only one person to pay (you) then it's likely that
expense is going to be the largest of the company. How much you should be paid
is a personal question. How much do you require for your lifestyle? How much
would you be able to make if you were to simply leave your business and work
for someone else (this assumes that this is a readily available option.) You
don't want to be taking a salary cut while slaving away on your business.
Additional considerations are things like adjusting for vacation pay, sick
days, insurance and all those other things an employer might pay for. Once you
have decided how much to pay yourself, you then need to add business expenses
such as accounting services, rent for an office (if needed,) cost of business
tools, etc.

At this point you have an idea of how much your business is going to cost to
operate (which includes paying you.) Now you simply figure out how many
billable hours you can get within x period and do the math. However, you need
to keep in mind that if you decide you will work an 8 hour day, not all of
those hours will be billable. You will also likely have downtime between
projects.

Again, do the math. Now you have a basic idea of what you should be charging
per hour to make your business work and to provide reasonable pay to you. One
great way to break outside the hourly rate straight jacket is to give a fixed
cost. Sometimes you can "crush it" on a fixed project and bring in the
equivalent of a much higher hourly rate.

Last step, go sell! If you get this last step right, then your hourly rate may
be meaningless. Double your rate and still get the clients rolling in then you
are a natural!

