Ronin need to understand how much to charge for their services. It may be
referred to as “free”lance, but that means your sword/talent is free to be
hired, not free to use. Someone on Twitter suggested the term be changed to
“charge”lance.
Calculating an hourly billable rate are is essential. An hourly rate is
how much $ you burn to survive and hopefully live to charge another day. Guard that
close. It is not for your client to know. (Unless of course they will open their
accounting to your close scrutiny too.)
Take your burn rate (your fixed and variable cost) per month. Divide by
how many days a month you will work. Divide by how many hours in a day you plan
to work. Be reasonable as to how much time you think you will work.
Example: $3000.00 per month/ 20 days/ 5 hours (you won’t have 8 productive hours.) That equals
your billable rate. $30 bucks an hour in this case.
your billable rate. $30 bucks an hour in this case.
So, if you are doing a commission for $60 bucks, spend 2 hours or less on it.
After that, you are reducing your hourly rate and losing money against your expenses.
More to come.