Starting my freelance career several years ago, I had a choice to make…charge by the hour or charge project fees. I even had one potential client ask me to charge by the word. Yeah, no.
I have done both but about 90% have been project fees. I have done agency work at a negotiated hourly rate based on my expertise in both writing and industry knowledge. It was early on in my business and though it came in below what it should be, we got damn close. They are still a favorite client of mine today.
Hourly Rates vs Project Fees
Hourly fees are often the pay structure for agencies as it’s easier for them to budget manpower for each project and stay within budget. Due to the nature of their own client relationships, it makes sense. But offering the right hourly rate can be tough.
Project fees are a set amount based on the type of work and value or impact it will have for the client. I have always taken my pricing cues based on freelance guides from major associations and groups like AWAI who do enough active polling in the industry to know what markets are paying for what types of writing. They are fair and factor in my experience and market knowledge.
As a newbie, my fees were cheaper to get experience under my belt but they are now in-line with what experienced writers charge.
Pitfall of Hourly Rates
Paying hourly has the immediate pitfall of potentially turning off writers that could be perfect for your needs. It could also open the door to some less-than-ethical writers intentionally dragging their feet or simply overstating time within programs designed to track time per project.
You are sending the message to your freelancer that the faster they write, the less they will make. No one wants to be punished for turning around great work fast. It should be rewarded. And I hate the word ‘rates’, too. Sounds too Fiverr or Upwork for me.
Benefit of Project Fees
Now your freelancer knows right from the start that you value the quality of their work by agreeing to a set amount for a project...no overstating time or sketchy reporting to get paid more. It’s about giving you their best work, on time, and exceeding your expectations. That’s it.
Transparency for you as the client knowing exactly what this project will cost vs. budget and transparency for your writer who knows what they are making down to the penny. It helps them forecast their own monthly budget the same as your company has to.
What Should You Be Paying For?
You are paying for expertise, market/industry knowledge, professionalism, efficiency, and copy & content that moves the needle for your business. Paying for time can mean putting too much focus on fast turnaround and not enough of a spotlight on quality. Don’t make it about the clock…make it about results.
If your company must pay hourly, work with your freelancer to find an amount that is fair and takes into account the experience of the writer. $15 per hour is just an insult not matter how much work you promise (and believe me, there are companies out there trying to pay that). In my experience, it’s often a solid way to kick off the relationship with a client because your writer will make the case for the value they will bring to your project and goals.
The old saying applies here…you get what you pay for.