The following post is an excerpt from my new e-Book series, How to Become an e-Learning Freelancer. The three volumes in the series are designed to be easy-to-use, practical guides to getting your freelance e-Learning career off the ground. Learn more here!
Last week, I talked about how charging an hourly rate is a great way to start out in your freelance e-Learning career, particularly as you get to know your own work pace and abilities. When you’re first building your business, charging an hourly rate helps you make sure you get paid for all of the work you do, and helps your new clients minimize the risks associated with working with a new vendor (because if things don’t work out and they decide to move on, they’re only on the hook for the time you’ve already spent with them and not the entire project cost).
Eventually, however, charging an hourly rate can present new challenges, and sticking with an hourly rate model can hold you back from growing your business and making more money. As you progress with an hourly rate, you’re likely to run into tough questions like:
- When can I raise my rates?
- How do I justify a rate change to my existing clients?
- How do I avoid getting into bidding wars with other freelancers?
- How do I avoid having to track the different rates I’m charging different clients?
These are definitely solvable problems, but before you spend too much time on them, consider that there’s a better solution: charging by the project.
[This topic continues in my e-Book series, How to Become an e-Learning Freelancer.]