4 ms·
How much to ask for as Freelance dev?
So, I have a project that I've been working on for the last 3 months and I've been paid $40/hr at around 40 hours a week.
However, I had to split that with the designer I've been working with, as I'm strictly backend, so it's clear that I wasn't making nearly as much as my job demands.
The 3 month contract is now up and they'd like to continue working with myself and the designer even after launch. In other-words, they'd like to sign us to a 12 month contract/yearly agreement and have us on fulltime.
At $20/hr each it's not worth it, but I'm thinking about purposing an $80/hr, 40 hours a week agreement. So that we're both making $40/hr each as we should be.
Is this reasonable? It is to me, considering there's no benefits, dental, etc...
Thoughts?
- techjuice 12y agoCan you provide more information? Location (You, client and designer (City, State)), programming language and frameworks. Is this simple or advanced work in your opinion? You will need to add money to cover the following and should have different rates for your designer depending on the level of effort, experience they have and the skill set required. You need to get paid for: Taxes, food, rent/mortgage, gas, vacation, medical, dental, sick days, vision, savings, rainy day money, retirement, investments, entertainment, software, hardware, an accountant, other businesses expenses and any other things you may want or need for your job. So these should be added to that final rate that you charge the client per individual. Since they want to take you on full time I recommend forming a business (at least an L.L.C.) and have your designer and anyone else you need as a contractor or employee to you. This would allow you to hire more people and get a higher rate than what you are receiving now along with more flexibility in growing with the client. I recommend creating a chart with all of your current and possible future expenses for an entire year so you can get a better look at where the money will disappear too. As there might be some things that are now showing up for you now that you might only see when you have everything in front of you. For your contract I recommend preparing things to take to a business lawyer first by breaking it down into separate projects and pay rates for you vs the designer. This can be the same rate if you want it to be but normally someone doing development/engineering/programming/architecture work is paid a higher amount than someone doing design unless it is high end design(architectural drawings, advanced 3D simulations, etc.). Work up a summary of work along with official documentation on what is expected for each role, the minimum hours per week, business hours, what you require from the client and milestone deadlines, what the penalty costs are if deadlines are not reached or required information is not given, along with wording on an agreement for changes that occur and what the cost of said changes are after x amount of time. Do you supply your own hardware, or will the client supply it for you. As depending on what is required you may be classified by law as an employee of the company or a contractor, which you will need to check with an attorney about. Once you have a draft ready have an attorney take a look over what you have so you can make sure you are covered legally with the business your are working with along with any of your contractors. Also take a look at the rates of people along with their benefits on popular salary sites so you can get a better idea of what your rate and your designers rate should be set at.
- Apane 12y agoFantastic advice. Thank you. To answer your questions: My Location: Toronto, ON. Client: Orange County, CA. Designer: San Fran, CA/Bangaldesh India (he's back and forth). Combined Programming Language/Framework exp: Rails 4.0, Ruby 2.0, JavaScript, JQuery, CSS3, HTML5, AJAX, Vast understanding of web architecture (http, TCP/IP etc...) The work itself is quite advanced compared to other projects I've worked on. I feel a bit strange boosting the hourly rate up double but the reality is, taking a project like this on fulltime I need to make sure that my needs are met/covered.
- techjuice 12y agoThose are extremely in demand and high paying skills. For that area (Orange County, CA) the average salary with benefits is ~$100,000/year+ for a Ruby on Rails Developer. You can use sites like indeed.com and salary.com to get an average, but depending on your skill level: beginner (journeyman), intermediate, senior, expert or master you may be better placed in the top percentile or higher. For now since you may be starting out going with an average of what you find on indeed.com/salary and salary.com I recommend reading up on rates of employee vs contractor, as contractors will bring in more than an employee since they have to pay costs that are normally covered by an employer. Read http://www.salary.com/pay-yourself-right-when-being-your-own-boss/ http://www.salary.com/pay-yourself-right-when-being-your-own... and http://career-advice.monster.com/salary-benefits/salary-information/how-much-should-contractors-charge/article.aspx http://career-advice.monster.com/salary-benefits/salary-info... for more details. I also recommend searching glassdoor.com for senior software engineer and senior consultant. As one mistake you and your designer would not enjoy and could not change if it is in black and white is getting what your worth and cover all of your expenses + personal money for entertainment and the big rainy day. It does feel strange raising that rate but for a Senior Ruby on Rails developer contractor the going rate in major metro areas is around $150/hour to $250/hour or more depending on your specialty. If you want to play it safe I would recommend doing some more research on RoR developers salaries/contractor rate to get an average and move it up or down depending on what your expenses are and how much left over money you would be happily comfortable with after expenses and taxes. Here in the USA as a contractor your in the highest tax bracket so pulling in a gross of salary of $350,000/year+ is not unreasonable as you will net 50% of that (around $175,000) or less depending on your businesses and tax expenses. Just be careful with the amount as you have to be careful that your being paid a fair rate to take care of yourself. If your really good you should be compensated very nicely for it.