You have studied hard and are ready to take on real work as a web designer. Although freelance work can be a great way for you to build your brand, increase your portfolio, and add to your bank accounts, one question might stump you: How much should I charge for my work.
Do not be discouraged! This is a common question for freelancers, especially those just starting in the market. It can be difficult to figure out the right dollar amount for your time. Many new freelancers have failed as they try to figure it out. We’ve brought together some experienced graphic designers to help us think through what goes into our work and set our rates accordingly.
How to calculate your graphic design project rates
It’s always a good idea to research the market and see what other graphic designers charge their clients before you venture into new territory. You can look online for freelancers who are already in business. Many list their rates and pricing directly on their websites.
You can ask the agency what they would charge for a project if you want to dig deeper. Independent designers can charge more than those working at established agencies.
Kristine Daub is a graphic designer and founder byCurated. “Once I have about ten, I will call them and request pricing.” This gives Daub a range of options to set her rates.
Roberta Morris, the founder and creative director at Leave it To ‘Berta, offers these two tips to new designers trying to establish their rates.
Morris recommends that you join trade associations and make use of their resources. “Another method to determine pricing is to find the average annual salary for the job and then add 20 percent to account for higher taxes and business expenses.”
Do I bill per project or hourly?
There are many opinions among graphic designers about whether it is better to charge by the hour or per project. For some, charging per project makes more sense.
Jacy Valeras is the founder of Platinum Circle Media. Hourly is difficult when you have a creative project.
Jon Beres is a Graphic designer Jon Beres prefers to work at fixed rates.
Beres states that a fixed price gives transparency between the client and me, so we all know what we’re getting or paying up front. A fixed price will allow me to add padding for revisions. Within the scope of any project, I offer unlimited revisions. It is crucial because it ensures that the client is satisfied with the final results.
Others prefer an hourly rate. You might need to experiment on your own to see what type of projects you are required to complete.
Andrew Weisz, CEO of Finden Marketing, says, “We have done our services hundreds and hundreds of times, so we have it down to a science.” A logo should take X time, so it should cost X. A branding package should take X time, so it should cost X.
Factoring your time into your pricing
Many designers have learned how to gauge the time it takes to accomplish a given design task. Sometimes with different degrees of success.
Stephanie Carter is the COO of Ooze Media and often hires freelance graphic designers.
Carter reports, “Common things that I hear is that people forget to account for the time it takes to attract, pitch, and lockdown new clients or contracts.” We also hear, “I didn’t know how many taxes I would have to pay.”
New graphic designers must respect their time and understand the job scope. Before naming a rate, it is important to consider details such as how many revisions you will need, how long you will need to discover and research, travel time, and expenses.
Carter says, “We remind our designers also to set the rules for the game.” It will be very costly not to set boundaries early on.
Aaron Whittaker is the director of demand generation at Thrive Agency. He recommends establishing a payment structure to keep you and your client on track with cost and expectations.
Whittaker explains that one-third of the payment is due upfront and another third upon final design approval. The third is due after work has been delivered. A simple contract tagline reads, “All rights remain with the designer until receipt payment for the final project.”
Mark Des Cotes, graphic designer and host of the Resourceful Design podcast, says that time can also affect pricing.
Des Cotes says pricing is often based on the product, not the service. Des Cotes explains that a designer’s service includes more than a product, such as a brochure or a poster. He encourages designers to take into account other factors when setting prices.
Des Cotes says, “Things such as discovery, strategy, presentation sessions with clients, research into the industry, competition, and target market.” Designers need to be compensated for non-design time. They should include this in their pricing, as it is an integral part of the overall project.
Graphic design: Is it worth it?
Graphic design, like other creative industries, has been following a portfolio model for many years. This means that newcomers to the field are required to do unpaid work in return for building their portfolios and getting “exposure.”
A creative portfolio can be constructed in many different ways. You can justify not getting paid if you can design for a charity or cause.
Morris believes that the price of services is complicated by the recent rise in online gig work platforms where you can get all kinds of freelance services for as low as $5.
Morris states, “with the advent of Fiverr and other platforms like them, more pressure is placed on the pricing conversation.” It doesn’t necessarily mean a logo is worth less just because it takes forty hours to create. The real value is in the creativity and thought that goes into it.
Tony Ham, the founder of Tony Ham Creative, has also seen the benefits of freelance platforms and encourages designers to think differently about what they offer.
Ham says, “It is important that you emphasize to potential clients that your services go beyond executing a task or designing a product.” You are providing design expertise to help the client create a final product that aligns with their vision and communicates well to their target audience. The cost of the work is only part of the total cost. It also includes your communication and interpretation skills.
Designer Jon Beres encourages designers to recognize their worth.
Beres states, “If I could offer advice to someone who is just starting in this industry, it would be to know your worth and stick to it.” It’s fine if clients don’t want it. Others will follow.”
