What are Writer Costs?
Writer costs determine how much an individual must pay a freelance writer for the latter’s writing services, as well as how much the freelance writer needs to charge as compensation for his services. The writer enjoys greater flexibility in terms of setting their rates but it shouldn’t be a reason to overcharge or undercharge a client.
When setting professional rates, there are different variables to consider, including the length of the article requested, the length and frequency of the project, the writer’s experience, the clientele, and the genre or types of writing to be created.
Factors that Affect Writer Costs
One of the most difficult parts of starting up as a freelance writer is deciding on one’s writer costs. There is always that fear of losing a client because of very high rates or accepting too many projects but being under-compensated. Here are some of the factors that can definitely help freelance writers determine their writing rates.
1. Professional experience
One of the most powerful tools a freelance writer can use is, without a doubt, professional experience. Education, work experience as a writer, number of years as a freelance writer, published works, website, and others can greatly support one’s portfolio. For those who are only starting, they can charge lower than average or do pro bono projects to build a client base.
Of course, it is important for a writer to know how much he is spending on every project. Many clients think that there are no expenses but the writer must pay for electricity, internet costs, and other miscellaneous items to come up with a good article. All the related costs must be included and considered when charging the writer costs.
2. Genre of writing
Not all topics are easy, especially if it is the writer’s first time to write on. The more familiar and easier ones don’t need to be charged a lot, but if the project entails tons of research, interviews, and going to the library, then it would mean the writer costs are higher.
3. Frequency of the project
Project turnover times vary, depending on the length of the work. A writer can charge a specific or flat fee for a one-time project that needs to be done in a month. If it is daily or weekly and the contract is for a year, then the fee is also different.
4. Rates in the industry
It is easy for people to think they can charge as high or as low as they want. But doing so can cause repercussions in the writing industry. It can destroy other freelance writers’ career or it can bring down the rates altogether. It is important to check first with the ceiling rates and writer costs.
Types of Freelance Writing Rates
There are different ways by which writer costs are charged. These could be by the hour, per page, and by project, to name a few.
1. By the hour
Charging writer costs by the hour is most common, especially if the project is long term and that the turnover of articles is determined. For example, a project that asks a turnover of six articles during an eight-hour shift can be charged by the hour.
2. Per page
The per-page type of charging is applicable to lesson plans, ebooks, and indexing.
3. By project
Project-based charging is for books and other materials that take a longer time to complete and require research and interview. The turnover time is determined but is not usually within the next three months.
How to Compute Writer Costs
The best way to get duly compensated for one’s work without the fear of turning off clients is to properly compute writer costs. Here are a few ways to do so:
1. By annual costs and annual hours
The method is to be used when the writer needs to determine rates for the entire business. The writer needs to put together the expenses of the business for the whole year, plus his profit percentage or markup, and then divide the figure by the annual hours worked.
- Annual Cost = Salaries + Overhead + Profit Percentage
2. Easy method
The easy method one is indeed the easiest way to charge writer costs. All the writer needs to determine is how much he needs to earn for the project and how many hours he wants to work.
3. Estimation method
The estimation method is also fairly easy but the writer needs to set a fixed hourly rate first to come up with an estimate. Multiply the fixed rate by the number of hours one believes he can finish the project, and the result is the project charge.
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep advancing your career, the additional resources below will be useful: