Home Business - Pricing Your Freelance Projects - Continued

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Home Business Basics Categories:

Setting Your Hourly Rates | Pricing Your Projects
How to Quote a Freelance Project | Should You Take the Job | Naming Your Home Business
Legal Considerations for Your Home Business

FORMULA 2

This formula is the easiest of them all. However, I don't recommend this formula unless you are a very established professional. This isn't the way to start out your freelance business, only very skilled freelancers can get away with this.

Ask yourself the following questions:

1. How much money do you want to make on this project?
2. How many hours do you want to work?

Now all you need to is Divide these two numbers. Its that simple, you now have your hourly rate.

FORMULA 3

Use the following formula if you are interested on how to set the rates for your entire business.

Add up all costs to run business on an annual basis (including profits) by annual hours (2,080). This will give to you your pay rate.

1. Salaries + Overhead = Annual Costs
2. Divide Annual Costs by Annual Hours

So For example, if the following is true:

1. Salaries = $60,000
2. Overhead = $50,000
3. Annual Hours = 2,080

Then this is how you figure out the hourly rate:

200,000 / 2,080 = $52

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