An hourly rate is the amount you charge a client for each hour of work you complete. It's one of the most common pricing models in freelancing.
What is Hourly rates?
An hourly rate is a set price you charge per hour for your services. You track the time spent on a project and bill the client accordingly. This model is straightforward and compensates you for all the work you do, including revisions and meetings.
Why is this important?
Your hourly rate is the foundation of your income. Setting it correctly ensures you are paid fairly for your time, expertise, and business costs. It directly impacts your profitability and sustainability as an independent professional.
How does it work?
You agree on a rate with a client before starting work. Then, you use a time-tracking tool or method to log your hours. Finally, you invoice the client for the total hours worked multiplied by your agreed rate, often on a weekly or monthly basis.
Pros and cons
The main pros are you get paid for all time spent and it's simple for new projects. The cons include a potential income ceiling and clients sometimes questioning time logs. It can also discourage efficiency if you're not careful.
Conclusion
Hourly rates offer a clear, low-risk way to start freelancing and are ideal for projects with unclear scope. As you gain experience, you may mix them with other models like project-based pricing. The key is to set a rate that truly reflects your value.
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