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What is the Best Way to Charge For Web Design? Hourly or Fixed Rate? Here's What I Do
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What is the Best Way to Charge For Web Design? Hourly or Fixed Rate? Here's What I Do

Freelance SEO Consultant, Web Designer and Internet Marketer.

Views : 4648

Video Transcription

Hey guys, John here for this weeks edition of Freelancing Friday.

This week, I got an excellent question from Kelly, and Kelly asks me....

“Hi John, I'm really stuck as to how I should charge clients for my web design services. I've heard some people say I should charge hourly, and other people say I should charge a fixed rate. What would you recommend?”

Excellent question, thanks for sending it in Kelly, let's get straight into it.

This is undoubtedly one of the most commonly asked questions I receive. I swear, I must get this email at least once every 2nd or 3rd day. Now when it comes to charging, especially for beginners, it can be really confusing as to what rates should be applied, and how much you should charge for certain tasks, and what an entire website should be quoted at.

When you're new to the industry especially, it can be a little bit overwhelming and certainly confusing, so I'm going to share with you exactly how I have worked out how to charge – it works really well, and I've been using this method or this way of charging for my web design services for the last 8 or 9 years.

Now I'm going to break this down and make it as easy as possible for you to understand.

Essentially, I do two types of work.....

a) I do projects, and
b) I do small tasks

For projects, I charge a fixed amount. For small tasks, I charge an hourly rate.

What is a project?

My definition of a project is anything that takes a considerable amount of time. Anything that takes say, a week, up to two weeks, a month, a few months – and this usually entails the development of a new site, or the redesign of an existing site.

What is a small task?

A small task is anything that might take a few hours or a few days
. Small tasks usually entail general maintenance, website corrections or bug fixing, or small changes.

Okay, now here's the kicker.

  • How much do I charge for projects?
  • How much do I charge for small tasks, or, what do I set my hourly rate at?

The figures I'm about to quote, apply in my case. Of course you'll have to take into consideration, where you're based in the world, and your own economics and what suits you, but in my case, I said to myself, “Right, If I'm going to start this business, I want to be making at least $1,000 a week”.

So if I'm doing a project – I would essentially sit with a client, get the user requirements, and I would take those user requirements, go back to the office, crunch some numbers and say, “Okay, this project looks like it's going to take me about 3 weeks. I want to make at least $1,000 a week, therefore I would charge the client, or quote - put forward my quote rather at $3,000."

Now as for my hourly rate, I took into consideration what other people were doing within the industry and I measured that inline with my own skill sets and expertise, and I came to the conclusion of $100 an hour.

So in summary, I set my projects at $1,000 a week, and I set my hourly rates at $100 an hour. If a project was deemed to, or estimated to take say, 4 weeks, I would quote that entire project at $4,000.

Money in the bank. Ca ching!

If I was working at an hourly rate, and I spent 6 hours doing it, the client would be charged $600. Now this method of charging might sound simple, but for me, it works, and its a method that I've shared with a  lot of freelance web designers, and they've found that it works well for them too.

Okay so I hope that's helped answer your question Kelly. You can infact charge both ways – the nature of the work should determine the way in which you charge. If its a large project or its the development of a new site – gather the information, calculate how long its going to cost you, work out how much you want to make per week, and then quote the job inline with your desired earnings.

Okay, that's it for today's video, I hope you've enjoyed this one. If you have any questions or comments, please post them below. If you haven't yet already, please subscribe. If you've found this video useful please share it with your friends and if there's something you'd like to see me cover, if you have a question like Kelly did, send it over and I'll answer it in a video for you just like this one.

Thanks so much for watching, take care.

John Romaine
Freelance SEO Consultant, Web Designer and Internet Marketer.

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