How on earth does a new freelancer know what rate to ask for?

**jo99** · 18 December 2007, 18:31

You are only worth what the client is willing to pay for you.

On a more useful note look at the average rates for your skill on sites like itskillswatch. I think these are based on adverts so you do need to take it with a pinch of salt. Agents advertise low rates to prove to clients that the rate is too low; or advertise high rates to get lots of CVs! Rarely are actual rates on offer advertised...

**r0bly0ns** · 18 December 2007, 18:44

www.itjobswatch.co.uk is a good starting point

**Sockpuppet** · 18 December 2007, 19:06

Originally posted by d000hg View Post

I see in a few places contractors talking about rates of £400-500 a day, and I'm sitting here thinking "that's like £100K a year"!

No. No its not. £1000 per week is not £52,000 a year.

I do hourly rate * 1500 (some do 1000) = Yearly PAYE salary.

Remeber you need to pay Employer NI, insurances etc. Also you lose sick pay, pension, holiday pay, security (relative), share schemes, employee discounts, company car etc.

So its not the mega amount you think.

**max** · 18 December 2007, 19:49

Originally posted by Sockpuppet View Post

Remeber you need to pay Employer NI,

Optional...surely!

**max** · 18 December 2007, 19:57

Originally posted by d000hg View Post

I see in a few places contractors talking about rates of £400-500 a day, and I'm sitting here thinking "that's like £100K a year"!

Yep...terrible ain't it. Deprived they are.

Originally posted by d000hg View Post

For background I expect my work to be mostly development work in Java/C++/C#/etc as well as some design work with UML, DB design and so on. I didn't want to ask for what seemed a very high figure when getting my first contracts and in fact I had no idea what rate TO ask for - I essentially plucked a number from the air.

Depends on industry and experience.

Originally posted by d000hg View Post

As a freelancer I have no agency fees

So you have no agent? The higher your rate...the more the agent gets.

Get it?

For the hard of thinking..get yer self an agent and a rake...

**zathras** · 18 December 2007, 20:43

Originally posted by d000hg View Post

I see in a few places contractors talking about rates of £400-500 a day, and I'm sitting here thinking "that's like £100K a year"!
I'm working as a freelancer (as of about a fortnight ago) and my contracts pay hourly at a rate around half that. Seeing as how that is around twice the salary I got in my 9-5 job, I was quite pleased. But now I wonder if I could have asked for substantially more...
For background I expect my work to be mostly development work in Java/C++/C#/etc as well as some design work with UML, DB design and so on. I didn't want to ask for what seemed a very high figure when getting my first contracts and in fact I had no idea what rate TO ask for - I essentially plucked a number from the air.

Does this site have any advice in articles or "classic threads" I can refer to about picking a rate, renegotiating a rate, etc? As a freelancer I have no agency fees (or even travel expenses) so my rate and gross profit will be pretty similar, but still I'd obviously like to get what I can!

Thanks

Keep it close to you chest, let the agent make the first move. Oh, you do not have a bottom figure. NEVER, NEVER, EVER give a bottom figure. You look at the rates offered for roles in your area and give £X (the average, if that is what is enough for you), and wait for the agency to make an offer, if it is enough, your quids in.

**payne007** · 18 December 2007, 20:53

a bloody good question and im glad its been posted cos i need the answer aswell

**dude69** · 18 December 2007, 22:04

you are not nearly avaricious enough.

HTH

**beaker** · 18 December 2007, 22:48

Originally posted by Sockpuppet View Post

No. No its not. £1000 per week is not £52,000 a year.

I do hourly rate * 1500 (some do 1000) = Yearly PAYE salary.

Remeber you need to pay Employer NI, insurances etc. Also you lose sick pay, pension, holiday pay, security (relative), share schemes, employee discounts, company car etc.

So its not the mega amount you think.

Then take out all the extra months you take off on holiday

How on earth does a new freelancer know what rate to ask for?