Ask HN: Is there a correlation between Freelance rates and Full time salaries?
3 comments
A rule of thumb I have heard is to start with your target salary/year (say $150k), and divide it by 1000 to get your hourly rate ($150). This advice is usually targeted at those who are just starting out and have "no idea what to charge."
The worst thing you could do is say "I made $100k at my last job therefore I am going to charge $50/hour." Because the economics of freelancing are not the same as the economics of having a full time salary. You will need to, at minimum, DOUBLE your equivalent-hourly rate from your last job.
After you get some successes and understand your core value proposition, you can charge more, especially if you find a solid niche.
The worst thing you could do is say "I made $100k at my last job therefore I am going to charge $50/hour." Because the economics of freelancing are not the same as the economics of having a full time salary. You will need to, at minimum, DOUBLE your equivalent-hourly rate from your last job.
After you get some successes and understand your core value proposition, you can charge more, especially if you find a solid niche.
One rule of thumb I heard for freelancers was your day rate should be 100x your desired salary in K.
Ie if your targeting income of £30k a year your day rate should be around £300 - though of course you should as much as the market will stand.
Ie if your targeting income of £30k a year your day rate should be around £300 - though of course you should as much as the market will stand.
I'll 2nd the 100X rule (for 1099 work in the US)
E.x. full time salary in generally is 75% of the hourly rate.