Rates and what’s fair

Households have inflation and ‘bad months’, and so will your business.

Rates are key to surviving the future. Charge what you are worth, and use industry guidelines as a way to calculate your own rate. Don’t be ashamed to charge what other writers are asking for their services. Otherwise, someone out there is earning smarter than you are.

Consider rates suggested by organizations like the Professional Writers Alliance or South African Freelancers’ Association (SAFREA). Writer’s Digest publishes How Much Should I Charge in each of its annual yearbook issues, the latest having been written by C. Hope Clark of FundsforWriters.

When expenses have gone up, remember it’s okay to raise your rates as long as people know about it (and the raise is reasonable for the current industry). It pays you to keep up with the going rates. It also keeps you looking professional.

Different ways to charge

There are different ways to charge clients: royalties, hourly, per project, or word.

Some jobs are charged based on a customer’s preference or budget, but it could help to give them the option during your quote. If you prefer per-word, for example, then say so.

Costs have to make sense across the different ways, or an hourly client could feel cheated when jobs are cheaper per word. Estimate the amount of time you’d spend on a 500-word piece, and match this to what you could charge by-word – including research and interview times.

Track time with apps like Toggl, Clockify and Omnicalculator.

Should writers get tips?

A tip for writers: ask for tips. Tips aren’t just for les sommeliers, but should also be for authors and other services. The option-to-tip appears as a prompt on all my invoices. Some clients actually use the option when they feel I’ve done an exceptional job. It gives them a way to say thanks.

A tip option can also be found on PayPal’s Create Invoice function, and websites like Patreon or Buy Me a Coffee.

While not all clients notice, steady customers might show you added appreciation for your consistency, polish, and maybe even the holidays.

Professional invoice and expenditure tracking

Professional invoice tracking like InvoicePlane, Open Source Billing, or Xero makes things easier than using your own spreadsheets or paper scraps for what comes in. Firefly III and InvoiceNinja can track expenditures.

Graph your business, and approach your writing schedule like a business plan.

It’s one way to see bad months coming, and to know when to adjust your sails, change your rates, or increase your workload.

Invoices and terms

An invoice needs terms-and-conditions – and when unconditionally issued with open-ended terms, becomes much harder to pursue unpaid bills legally.

Quotes should expire after a certain time period. Clients could say, “Hey, you quoted me this last December!” without a clear indication to either accept quote (or be requoted later).

Invoiced jobs should have a stated payment deadline. Include tax and contact information on both, but never your home and personal details. Keep it professional.

Publications… and payment dates

Connect with editors and clients, but never forget about accounting departments and financial managers. Companies process payments differently than smaller, private clients, and publication dates aren’t necessarily when contributors or freelancers get paid.

I’ve had disasters for assuming how and when I’d get paid: so don’t.

Ask about payment dates and publication dates. Ask about which bank or payment method is used, in case there’s a clearance delay. Pay bills ahead, so that you’re never holding your breath for a single payment to fix shortcomings in your own budget.

Perhaps most importantly, never seem desperate for money when dealing with a client, even when you are. It blows the professional image you’re portraying, and drags them into your personal life. Arm’s length behavior with strong terms and expectations keep everyone happier and of clearer understanding, making less room for controversy.

We all want to keep our steady clients, and we want all of our clients to be happy with terms. But most of all, we need to keep ourselves in business.

About the Author: Alex J Coyne is a writer and freelance journalist. His features have been published in markets like Caribbean Compass, People Magazine, Writers Write, and others.