Deciding on your hourly rate involves a lot of considerations. If you set a very high hourly rate, you might turn off potential clients. If you set a low rate, you might miss out on well-deserved income.
Setting your rate is not only about the amount you wish to earn but also the quality of life you want to have. But where do you start?
Determine your independent contractor rate
Before setting up your rate, do a bit of research. You may start with your co-workers or people you know who are in the same field as you or people who have hired workers with the same skills as yours. Ask them for the going rate in the industry you are in.
You may also do an online search of rates offered by clients in reputable job sites for their prospective independent contractor hires who have the same skills or experience as you. Check independent contractor profiles on online freelancing sites to get an idea of what you should or could charge.
Other considerations for your rate
As an independent contractor, you are your own boss. You will have to consider that you are responsible for your own taxes, health insurance, disability, retirement, office equipment and certifications/training or skill development fees.
That’s a lot to consider, but you need to factor them into your rate to ensure that you’re set up for success.