This document provides advice for freelancers on determining an appropriate hourly rate and managing work-life balance. It discusses calculating the true costs of an employee versus a freelancer to account for benefits, time spent finding work, administration duties, and time off. The document recommends freelancers determine a rate that allows them to live comfortably and communicate expectations with clients clearly. Freelancers are also advised to specialize in one area, focus on one task at a time, plan their time and finances carefully, and prioritize self-care.

1. Freelancing
Time Balance Money

2. What's happening?
Cost of an employee
Calculating rates
Real-life advice (lots of it)

3. How much money?

4. How much money?
The same as an employee
Somewhat more, as I carry the biz risk

5. An employee's income
24000 / year
before income tax and health
insurance.

6. An employee's income
24000 / year
24000 / 12 = 2000 / month

7. An employee's income
24000 / year
24000 / 12 = 2000 / month
2000 / 173 = 11,56 / hour

8. An employee's cost
24000 / year
24000 / 12 = 2000 / month
2000 / 173 = 11,56 / hour
Average hours per month!
Good number to know!

9. An employee's cost
24000 / year
24000 / 12 = 2000 / month
2000 / 173 = 11,56 / hour
… is this actually true?

10. An employee's cost
She has holidays. 4 weeks / year!

11. An employee's cost
She has holidays. 4 weeks / year!
24000 / year
24000 / 11 = 2181 / month
2181 / 173 = 12,61 / hour

12. An employee's cost
She is sick sometimes.

13. An employee's cost
She is sick. 4 in 100 days.

14. An employee's cost
She is sick. 4 in 100 days.
2181 / (173 – 4%) = 12,61 / hour
2181 / 166 = 13,13 / hour

15. An employee's cost
She gets pension benefits.
500/month.
2181 + 500 / 166 = 16,15 / hour

16. An employee's cost
She gets pension benefits.
500/month.
2681 / 166 = 16,15 / hour

17. An employee's cost
She has an office. And a computer.

18. An employee's cost
She has an office. And a computer.
200/month.
(2681 + 200) / 166 = 17,35 / hour

19. An employee's cost
She has an office. And a computer.
200/month.
(2881) / 166 = 17,35 / hour

20. An employee's cost
She has one job.

21. An employee's cost
She has one job.
Her manager organizes work for her.

22. An employee's cost
She has one job.
Her manager organizes work for her.
Now, let's think like a freelancer.

23. A freelancer's rate
She has to find work to do.
No-one does it for her.
She spends one third of her time on
this.

24. A freelancer's rate
She spends one third of her time on
this.
(2881) / (111) = 25,95 / hour

25. A freelancer's rate
She doesn't always find work.
So sometimes she doesn't know what
to do.
This happens one in ten days.

26. A freelancer's rate
She sits around one in ten days.
2881 / (166-55-17) = 30,64

27. A freelancer's rate
She has to spend time on
administration.

28. A freelancer's rate
She has to spend time on
administration.
Another half day in a week.

29. A freelancer's rate
She has to spend time on
administration.
Another half day in a week.
2881 / (166-55-17-17) = 37,41

30. Your rate?
What do you need to live?
Cost for living, communication,
transport, health, pension, holidays,
clothes, notebook, leisure.

31. Whoaa. 40-80 €/hr !!!
My customer doesn't understand.
My customer says others are cheaper.
My customer doesn't want to spend
that much money.
My customer doesn't understand the
complexity of my work.

32. Dealing with „Whoaa!!“
Sell your work under price
Don't get the job
Build a product
Automate parts of your process

33. Prices
Econ 101:
„A function of supply and demand“
Supply: You.
Demand: Your customer.

34. Communicate well
Be polite
Don't be late
Be emphatic
Smile often

35. Manage Expectations
Tell the client what's in scope
(and what isn't!)
If you do extra work: Talk about it!
If you work for free: Make it explicit!

36. Freelancing
> 50% of freelancers work
40-50 h/week
20% work > 50h/week
40% of freelancers have 10-20 days
vacation a year

37. Typical week (40h)
20h client work
10h administration
6h Meetups, Networking, Akquisition
4h learn new things, techniques

38. Work vs. Life
aim for office hours
dont work in your freetime
dont work in bed
have a tablet for private browsing

39. Plan your day
make yourself a timetable
plan your week before the weekend
plan your day the evening before
recheck your planning after lunch

40. Focus
Do one thing at a time
have silent hours without calls,
facebook, twitter…
Avoid ASAP – it will screw up your day

41. Invest time
… in your workflows
… to try new software
… script repeating tasks

42. Care for yourself
Eat well
Sleep enough
Do some sports
Take breaks
Take free days

43. Plan ahead!
plan your money – have a reserve for 3
months
plan your projects with milestones
plan realistically
– clients might need more time than you think
– you might need more time than you think

44. Specialize
Have a strong suit
Have one thing in your portfolio you
know better than anyone else
Write / talk about it!

45. Pro Tips at the end
Develop a technique to do boring stuf
Get to know your work-style
Build a network for your work with
other freelancers

46. Why work under price?
Because you learn.
Make it explicit.
Don't pay for work. Ever.

47. Enjoy Life
You'll earn less at first.
You'll live better.
You'll work for yourself.
Enjoy life.