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Sobel 060513 presentation freelance rates

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Sharon Sobel has been freelancing in the metro DC area since 2003. Prior to that, she was the production manager at Maguire-Reeder, where she was responsible for hiring and paying freelancers, and …

Sharon Sobel has been freelancing in the metro DC area since 2003. Prior to that, she was the production manager at Maguire-Reeder, where she was responsible for hiring and paying freelancers, and keeping projects on deadline and on budget. She used the knowledge and business skills gained on that job as she embarked on to freelancing.
Sharon works as a freelancer for production companies and television stations in the area, filling roles from production assistant to producer/director. She also produces script-to-screen projects for corporate clients on her own, bringing in freelancers, as necessary.

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  • 1. How to set a rate and stop working for food, t-shirts, or film credits
  • 2. Before you can determine a rate, you have to know your annual expenses.
  • 3. Start with an assumption that you can reasonably bill for 25 hours per week, and that you’ll take 2 weeks of vacation per year.
  • 4. You can’t (and don’t want to) work 40+ hours per week on video projects.
  • 5. 1. 30% taxes 2. 15% overhead costs So you need to be sure that your rate will provide enough income to cover your expenses after 45% of it is gone.
  • 6. To net the same level of take home pay as a salaried employee, a freelancer must bill at double to triple the employee’s hourly rate.
  • 7. Look up the job you’re interested in at www.indeed.com/salary
  • 8. Look up the job you’re interested in at www.indeed.com/salary For our example, we’ll use Video Producer. $51,000 per year
  • 9. 1. Divide the annual salary by 52 Ex: $51,000 ÷ 52 = $980.77 2. Divide this answer by 40 Ex: $980.77 ÷ 40 = $24.52 So an EMPLOYED, SALARIED video producer would be paid $24.52 per hour.
  • 10. $24.52 x 2.5 = $61.30 per hour
  • 11. Half day (5 hours) = about $300 Full day (10 hours) = about $500
  • 12. 1. $60/hr x 25 hours a week = $1500 2. $1500 x 50 work weeks per year = $75,000
  • 13. 1. $60/hr x 25 hours a week = $1500 2. $1500 x 50 work weeks per year = $75,000 3. 30% taxes plus 15% overhead = 45% deducted
  • 14. 1. $60/hr x 25 hours a week = $1500 2. $1500 x 50 work weeks per year = $75,000 3. 30% taxes plus 15% overhead = 45% deducted $75,000 x.45 = $33,750
  • 15. 1. $60/hr x 25 hours a week = $1500 2. $1500 x 50 work weeks per year = $75,000 3. 30% taxes plus 15% overhead = 45% deducted $75,000 x.45 = $33,750 $75,000 - $33,750 = $41,250 Remember, your expenses were determined to be $50,000 per year.
  • 16. 1. $75/hr x 25 hours a week = $1875 2. $1875 x 50 work weeks per year = $93,750
  • 17. 1. $75/hr x 25 hours a week = $1875 2. $1875 x 50 work weeks per year = $93,750 3. 30% taxes plus 15% overhead = 45% deducted $93,750 x.45 = $42,187.50
  • 18. 1. $75/hr x 25 hours a week = $1875 2. $1875 x 50 work weeks per year = $93,750 3. 30% taxes plus 15% overhead = 45% deducted $93,750 x.45 = $42,187.50 $93,750 - $42,187.50 = $51,562.50 net profit
  • 19. 1. Know your worth.
  • 20. 1. Know your worth. 2. Get rid of personal debt.
  • 21. 1. Know your worth. 2. Get rid of personal debt. 3. Look into finding a part-time W-2 job (or two) or way to bring in passive income or regular income
  • 22. 1. Know your worth. 2. Get rid of personal debt. 3. Look into finding a part-time W-2 job (or two) or way to bring in passive income or regular income 4. Know thyself.
  • 23. Don’t hire people or greatly increase your expenses in any way until you have mastered how to squeeze the most out of your revenue potential while working alone.