A daily allowance, or daily rate, is a standard payment model in freelancing. It refers to a fixed fee you charge a client for each full day you work on their project.
What is Daily allowance?
A daily allowance is a pre-agreed flat fee paid for a full day's work. It's different from an hourly rate, as it covers your output for the entire day, regardless of the specific hours worked or tasks completed within that day.
Why is this important?
This model is crucial for project-based work with fluid daily tasks. It provides predictable income for you and cost clarity for the client. It's often used for consulting, on-site work, or complex projects where daily focus shifts.
How does it work?
You and the client agree on a daily rate and an estimated number of days. You then invoice for the actual days worked. Contracts should define what constitutes a 'billable day,' including travel or meeting time if applicable.
Pros and cons
The pros include simplicity and predictable earnings for defined work periods. The cons can be less flexibility than hourly billing and potential scope creep if the client expects extra hours within the same daily fee.
Conclusion
A daily allowance is a straightforward pricing model ideal for focused, project-oriented engagements. To use it effectively, ensure the project scope and definition of a workday are crystal clear in your contract.
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