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Reviving the Lost Art of the Sherpas
or Responsive Rates & Estimating for Freelancers
Shane Austin | @pixelsavvy
Me
Who freelances?
The term was first used by Sir Walter Scott (1771–1832) in Ivanhoe to describe a "medieval mercenary
warrior" or "free-lance", indicating that the lance is not sworn to any lord's services, not that the lance is available free of charge.
—http://en.wikipedia.org/wiki/Freelancer#Etymology
What is freelancing?
Freelancer:Someone who sells
services to clients without a long-term contract.
Writer
Publisher
Graphic Artist
Developer
Translator (think NATO)
Musician (think jingles)
Sherpa (wtf?)
Freelancing isn’t for the weak-hearted.
Freelance vs Contract
Why Freelance?
Flexibility
Financial reward
Enhancing relationships
Provide best value to client
High profile projects
Professional growth
Work in your jammies (kidding)
Setting Your Rates
You choose
Considerations
SurvivalCan you maintain a sustained and
comfortable lifestyle?
GrowthEnvisioning the future and expanding into
new areas.
ExposureOpening to new markets or opportunities.
Professional DevelopmentHoning your craft or taking on new roles.
Challenges
Financial insecurity
Risks
Staying focussed
Overhead
Learning the ‘biz’
Competition
Industry Pressure
Calculating Rates
Business Costs
Rent
Travel
Equipment and Software
Communications
Insurance
Legal
Accountant
Office Supplies
Advertising
Personal Costs
Rent/mortgage
Daily living
Retirement savings
Occasional
Billable Hours
Total time available to work
Deduct time for:
vacation
sick days
slacking off
walking the dog
Profit and SavingsRule of thumb 10-15%
FormulaS + O + P ÷ B
Nifty calculatorhttp://freelanceswitch.com/rates/
Creating Estimates & Realistic Quoting
Cost-plus & Value-based pricing
Tips
Break down into components
Don't show clients "the man behind the curtain".
Don't fear the reaper.
Don’t quote high for no particular reason.
Add value
PITA Tax or
RFC Discount
Use the right tools
Time tracking
Project management
Wikis and help docs
Business needs assessments
Contracts and forms
‘Modularize’ components
Your rate and your quotes won’t win
projects in the end and if they are,
you’re not doing it right.
Thanks OKDG’ers!“There's a lot of pressure for freelancers to fit in,
conform and comply. It seems easier to generate
new business that way. That's not really true. It's
easier to become an easily-described commodity
that way, but the person who's willing to push
themselves out to an edge that matters is on the
only path that actually leads to success.”
“And then it's up to the client to care enough
about the project and in making a difference to
have the guts to hire you.”
—Seth Godin