Freelancers' hourly rate has stabilized
The rates charged by freelancers and those who are self-employed rose slightly last year.
The editors of the Prices and Rates Guide still see pressure on prices caused by high unemployment. The editors of freelance-rate.com are doing continuous research on rates for the Freelance Rate Guide. The guide includes rates charged by people employed in 150 different professions. In recent years, the hourly rates have slowly declined. For some months the low point seems to have been reached and the rates have stabilized; 38 percent of respondents find their hourly rate too low but 26% of them think their hourly rate is high enough. Finally, 44% of the respondents are not sure whether the rate they charge is high enough. On average, people who are dissatisfied with their rate would like to earn nine dollars more per hour.
Starters are optimistic
The high and low prices are derived from the survey in which 2,800 people participated. The average starter is between 30 and 45 years old. Men often begin working as independent contractors because of "the opportunities to earn more money than salaried employees", while women tend to see the ability to manage their own time as a major advantage of working independently. For most starters, the increased amount of freedom offered by freelancing is the main motive to start. However, there is a growing category of people who have begun working for themselves because they see no prospect of employment.
The freelance rates are not increasing equally everywhere. Especially in occupations where the competition is fierce, the rates are still under pressure. The results of the survey also show that occupations with low hourly rates do often have high incomes. For example, a construction worker who charges 24 dollars per hour with a forty-hour week and a little overtime easily earns an annual profit of 60,000 dollars, while the consultant with an hourly rate of 200 dollars earns just 30,000 dollars.
Freelance Rates Guide 2016 gives the rates charged by people working in over 150 occupations. In addition, the guide includes five different methods to calculate or determine an hourly rate. This guide also provides information on how to determine the price of products. Different approaches and strategies to determine the best price are discussed.