I was having a conversation with a colleague and mentioned that I was trying to determine a rate to charge community organizations and nonprofits for e-newsletters, many of which have really low budgets. I told her that I had to charge at least $300 to cover everything from drafting to the final product, depending on the amount of content and hours involved.
Colleague: “You charge that much?”
Me: “How much do you charge?”
Colleague: “$60.”
(Awkward silence)
Me: “That’s $60 per hour, right?”
College: “No. $60 per newsletter.”
Me: “WOW!!!”
Why did she charge such a low rate? She had no good answer. However, I did come with a few lessons from my underpaid colleague.
1. Your time is valuable; spend it wisely
Although it is not ideal to swap time for dollars, you do have to know the lowest rate you are willing to work for. It is recommended that entrepreneurs charge at least $50 per hour depending on the project. If you charge less, you may as well get a job.
2. Know the market rate
Even if you choose to charge a lower rate, at least have an idea of the going rate for specific projects. You can find this information in The Writer’s Market, Writer’s Digest, The Writer and on other writing sites.
3. You will get frustrated
Frustration kicks in when the time worked on a project exceeds the rate you charge. Ideally, you will have an estimate of how much time it takes to complete a project and charge accordingly.
4. Work your strengths; outsource your weaknesses
My colleague said that she has writing skills, but that’s not her strength. Personally, I feel she should be outsourcing these projects because they are not her strengths. In addition to being a waste of time, as she could be spending her time on projects she enjoys; it’s also a waste of productivity.
5. Have confidence in yourself
I have learned that you can get almost anything you want if you have the confidence to ask -including rates for services. But first, you have to know how much you should be asking for.
Above are just five lessons I learned from my colleague who is grossly underpaid for her writing services. Main lesson: charge for your services accordingly.This will not only boost your bottom line; it will also boost your confidence and self-worth.
Image: www.thechurchofnopeople.com
I know what it’s like to feel frustrated about undercharging. I have at times woefully underestimated the time needed for a writing project. Also, I have to become more comfortable charging a competitive rate, even with nonprofits.
I feel you, Yolanda. I had been writing for 10 years before I got comfortable charging competitively.