How to Set Your Freelance Writing Rates

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Now that I am freelance writing full-time, I have to focus on making as much or more than I made at my full-time job. When I started out freelance writing as a side hustle, I started with a few unpaid articles to get experience, took on assignments that were interesting even though they didn’t pay well, and didn’t have as much pressure to hit monetary goals. That all changes when you start working for yourself full-time. Instead of viewing it as a side hustle, you have to realize that you are running a business and you have to set your freelance writing rates accordingly.

I made two mistakes in the past that I am vowing not to make this year. At first, I didn’t really negotiate rates and was fine with the “set rates” publications told me. I have a great community of entrepreneur and writer friends and we recently talked about how we set our rates and it made me reflect. Now I have a system I use to decide whether or not to take on an assignment. I’m also much more organized about tracking my income and expenses, so I don’t have to scramble when it is time to pay my taxes. (I made the mistake of using an Excel spreadsheet to manage everything my first year of freelancing but learned that it’s not the most effective way to do it. Who knew?!)

This year, I’ve been using QuickBooks Self-Employed to find tax deductions and keep my finances organized by capturing receipts to business expenses, automatically tracking mileage, and categorizing my business expenses. (You can also link it to your business bank account to make it even easier!) I also have the app on my phone so I can check it and add information on-the-go. There are some publications that do direct deposit or have invoice forms but, when they don’t I use the QuickBooks Self-Employed invoice tool to send and track invoices.

Here are a few of my tips for negotiating your rates and what I’ve learned about how to stay organized with taxes as a freelance writer.

Do your research:

When you are negotiating a raise at a job, you should always look at data to find out the market rate for the position using online tools like PayScale. It can also be helpful to ask close coworkers or people in the industry what they make. There are some online tools where people stipulate how much various publications pay like Contently’s Freelance Rates Database, but I also find it helpful to ask friends who have written for the publication about the rate they negotiated.

Decide what you’ll accept: 

Before going into a negotiation you have to think about the amount of money that would make it worthwhile for you. Decide the lowest rate you’d accept to take the assignment. When I’m thinking about the rate, I also factor in the other things that make the assignment worth it. Is it for a prestigious publication that would help me get more regular work there or with other publications of the same caliber? Do they have a large readership that would help me develop new relationships with sources and public relations companies? Would I do one or two articles at a lower rate to say I’ve written for the publication then stop? Do I find the assignment really interesting and want to write it? How long will it take me to write the piece? Let’s say I normally charge $400 for something that takes about 4 hours to research and write but this assignment doesn’t include original sources or is a shorter, faster piece. In that case, I may be willing to charge $200 because I could write it in half the time.

Get it in writing:

I’ve done work where people say they will pay…then drop off the face of the Earth. Most publications will send a contract or statement of work. If they don’t send one, at least make sure that all of the rates are agreed upon in writing not nonchalantly over the phone. The contract, statement of work, or email communication should also stipulate when you will be paid so you know when to follow up or when to check to make sure the money has actually been deposited into your bank account.

Ask for what you deserve: 

Money is a taboo topic and it’s even harder for women to negotiate because of societal norms and when women are assertive in negotiations it backfires more than it would for men. And it’s not because they aren’t deserving, it’s because of conscious or unconscious gender bias. But that’s all for another article…I digress. The point is: You are worth it and you deserve to be in a situation that works for you. Think about what you are getting out of it and don’t just think about the money (although that’s also important) think about the other factors like starting good relationships with publications, getting your byline out there, trying a different type of assignment, or beat, or enjoying the topic. If it’s not worth it for you, it’s okay to say “no, thank you.”

Stay organized year-round:

When it comes to filing your taxes, you don’t want to be in a rush to get everything together last-minute. Filing your taxes is exponentially easier when you only have one income stream. When you have lots of clients, invoices, and checks to manage it can be tough. It is much easier now because I can use TurboTax Self-Employed to automatically find deductible business expenses, talk to self-employment experts to answer tax questions, and make sure I track both income and expenses with QuickBooks Self-Employed.

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