An hourly wage is a fundamental pricing model where you are paid a set rate for each hour you work. It's a common way for freelancers to bill clients for their time and expertise.
What is Hourly wage?
An hourly wage is the amount of money you earn for one hour of work. It's a straightforward pricing method where your total pay is calculated by multiplying your hourly rate by the number of hours you log on a project.
Why is this important?
For freelancers, your hourly wage is the core of your income. It directly determines how much you earn and helps you value your time correctly. Setting the right rate is crucial for covering your business costs and achieving your income goals.
How does it work?
You agree on a rate with a client before starting work. You then track your time using software or timesheets. Finally, you invoice the client for the total hours worked multiplied by your agreed hourly rate.
Pros and cons
Key advantages include fair pay for scope changes and simple invoicing. The main disadvantages are the income ceiling, as you can only bill so many hours, and the need for meticulous time tracking to ensure you get paid for all work done.
Conclusion
The hourly wage model offers transparency and security, especially for projects with unclear scope. It's a solid starting point for many freelancers. Understanding its mechanics helps you decide if it's the right fit for your services and client relationships.
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