What should you consider when paying freelancers and adjusting the perfect rate? If you manage freelancers you probably thought about this key aspect. First and foremost, one should take into account the specifics of the industry, the project itself, the experience and qualifications of the freelancer, and last but not least – the budget.
Overview of freelance rates for selected services
Below you will find an overview of some freelance rates for selected services. This data will help you determine the pricing of some freelance jobs and decide how much you want to pay your contractors in the future.
Please note that when deciding on the final amount, you should carefully analyse your individual case. Below the table you will find six things to consider before determining the final rate.
Here’s what else you need to do in order to determine an accurate rate when paying freelancers
1. Review freelancers’ market rates and pricings
You can view average rates for specific services by browsing marketplaces popular with freelancers, such as Useme, Fiverr, Upwork, Toptal. In doing so, you will be able to benchmark your offer against other employers’, get to know market rates in a given industry or a specific geographic area.
Platforms designed with freelancers in mind allow them to look for and book specific jobs, while you get a chance to review their professional experience, skills, past projects and price lists. This will help you determine the optimal rate you can offer for your project.
In order to find freelancers who can help you set your benchmark, you can also look into social media (such as LinkedIn). Contacting a few freelancers about their pricing or asking a friend from your industry is also a good way of determining the final amount.
2. Research average salaries in a given country
On the internet you can find information about average salaries for specific jobs and countries. Browse websites such as Glassdoor.com, Payscale.com or Pracuj.pl.
This will give you information about estimated hourly rates for employers with job contracts in a specific industry. If on top of that you know how time-consuming the outsourced task is (see point 3), you will put together an accurate offer for your freelancer.
Below, you can find a table containing examples of some websites which will help you explore average salaries in a given country.
When it comes to collaborating with foreign freelancers, it may be useful to know the average hourly rates of freelancers from different continents.
- For freelancers from North America – 68 euros.
- For freelancers from South America – 39 euros.
- For freelancers from Europe – 100 euros.
- For freelancers from Africa – 47 euros.
- For freelancers from Asia – 63 euros.
The global survey data from Payoneer, on the other hand, indicate that freelancers earn an average of $28 per hour.
What can we conclude from this? Freelancer incomes, especially for those working internationally, vary widely, and much depends on the freelancer’s profession. Remote specialists in the marketing industry set the lowest rates, while high-ranking managers, consultants, and IT specialists set the highest rates.
3. Try using a time-tracking application
Tracking the time spent on a specific task will help you decide on an accurate rate for a freelancer. You can use tools such as Calamari, Harvest or Toggl. They allow you to track the progress of your project and the hours spent on it by the freelancer.
They give insight into the number of hours it took a freelancer to complete the task, and in order to determine their final payment, you can simply multiply the hours they spent on the project by the hourly rate you both had agreed on.
Keep track of all your collaboration details with freelancers. Their past rates can be of help when determining the pay for tasks in the future.
4. Consider future profits against all project costs
If you plan to resell the complete project, its price should reflect all the costs incurred in the process of working on it, namely the costs of freelancers, managers, accountants etc. Make sure the rate you establish for freelancers allows you to reach your desired profit goals.
5. Ask artificial intelligence before paying freelancers
Tools such as ChatGPT can be useful when it comes to paying freelancers and adjusting the perfect rate for a specific project or service. This can be particularly helpful when market rates are not easily accessible or when you are not sure what costs should be included in your project.
To get an adequate answer from ChatGPT, remember to be precise about your prompt and always provide context.
- Pose your question in the most detailed manner – specify what service you have in mind, provide details and requirements, describe the scope of the project and how complex it is.
- If this information makes a difference, provide your freelancer’s location and ask to adjust the rate to the market specifics.
- Ask specifically about different forms of payments: an hourly rate, payment for an entire project or any other form of remuneration that could be of significance in your case.
- Ask for explanation: if an answer seems unclear or you need additional information, ask for explanation or specific examples.
Please bear in mind that ChatGPT answers are based on data and knowledge available in September 2021. Freelance rates might have changed in the meantime, so it is always a good idea to confront the AI answers with up-to-date sources and industry experts, so as to get the full picture of the market.
Every project is different and should be approached in an individual manner. Be open to negotiating rates before actually paying freelancers. Take into account the complexity of the tasks involved, deadlines, and your budget. Remember not to push your expectations at the beginning of the negotiations; let the freelancer suggest their rates. Only then let them know what your budget is and follow with further arrangements.
Useme, a remote work platform which lets clients settle deals with freelancers. It also gives you access to a whole range of freelancers. In addition to finding a freelancer with the right skills, you can send a message to a person of your choice and set a budget together.
The demand for freelancers is growing year by year. Employers who have to choose: freelancer vs agency can easily spot the advantages of hiring freelancers. This is why you – as an entrepreneur paying freelancers – need to be up-to-date with the current labour market developments. Thanks to that you will be able to meet its demands and create lasting business relationships that bring profit to both parties.