Charging Per Hour vs. Per Project

If you’re a corporate designer, you don’t have to worry about things like how to bill your clients, as you’re likely either on salary or have a predetermined hourly rate and regular work schedule.

But for freelancers, figuring out how best to charge clients for work completed can be a nightmare. After all, you want to charge clients a fair price, make a decent living, and get enough work so that you’re not struggling to find the next project.

In the world of web design, there are two basic ways most designers charge: per hour or per project. There are advantages and disadvantages to each method, and there are situations where one method works better than the other.

In this article, we’ve presented an overview of what’s involved in each method of charging, as well as what you need to consider when choosing a method.
Charging by the Hour

Charging an hourly rate is incredibly common in the world of freelancers, both for designers and other professionals.

It’s a pretty straight-forward way of charging. I just tell you I charge $X per hour and you either think that’s reasonable and agree to pay it or you don’t and you find someone who charges less.

Advantages to Charging by the Hour

As mentioned, hourly charges are very straight-forward. Some designers have a flat hourly rate regardless of the type of work they do. Others have different hourly rates for different functions (designing, coding, testing, etc.).

It’s easy to lay out for your clients exactly what you charge, and they often feel like it’s a more transparent way of doing business. It’s also a method clients are used to dealing with, as that’s likely how their lawyer, accountant, and other professionals also charge.

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Written exclusively for WDD by Cameron Chapman.
http://www.webdesignerdepot.com/2010/10/charging-per-hour-vs-per-project/

If you’re a corporate designer, you don’t have to worry about things like how to bill your clients, as you’re likely either on salary or have a predetermined hourly rate and regular work schedule.

But for freelancers, figuring out how best to charge clients for work completed can be a nightmare. After all, you want to charge clients a fair price, make a decent living, and get enough work so that you’re not struggling to find the next project.

In the world of web design, there are two basic ways most designers charge: per hour or per project. There are advantages and disadvantages to each method, and there are situations where one method works better than the other.

In this article, we’ve presented an overview of what’s involved in each method of charging, as well as what you need to consider when choosing a method.

Charging by the Hour

Charging an hourly rate is incredibly common in the world of freelancers, both for designers and other professionals.

It’s a pretty straight-forward way of charging. I just tell you I charge $X per hour and you either think that’s reasonable and agree to pay it or you don’t and you find someone who charges less.

 

Advantages to Charging by the Hour

As mentioned, hourly charges are very straight-forward. Some designers have a flat hourly rate regardless of the type of work they do. Others have different hourly rates for different functions (designing, coding, testing, etc.).

It’s easy to lay out for your clients exactly what you charge, and they often feel like it’s a more transparent way of doing business. It’s also a method clients are used to dealing with, as that’s likely how their lawyer, accountant, and other professionals also charge.

Leer más “Charging Per Hour vs. Per Project”

7 Warning Signs Your “Big Idea” Is Going to Flop

By James Chartrand

Ever have a really great idea for a product?

You know, the kind of idea that leaves you slack-jawed and wide-eyed with wonder at the sheer potential of it all. You want to grab someone by the shoulders and explain the whole thing in a breathless rush, watching their eyes grow in wonder as they realize you’re going to be rich and famous. For the next few hours or even days, you find yourself revved up in high gear, eager to turn your big idea into reality.

Oh yeah. It’s an awesome feeling.

There’s only one problem: what comes up must go down, and sometimes big ideas do just that – they flop, hard. You could shrug it off and say that failure is really a learning experience, but wouldn’t you rather learn how to avoid those flops so you can save yourself time, money and heartache?

I know I would.

So here are seven warning signs your big idea is about to flop and seven ways to avoid landing with a splat:


Broken-Lightbulb

By James Chartrand | //blog.kissmetrics.com

Ever have a really great idea for a product?

You know, the kind of idea that leaves you slack-jawed and wide-eyed with wonder at the sheer potential of it all. You want to grab someone by the shoulders and explain the whole thing in a breathless rush, watching their eyes grow in wonder as they realize you’re going to be rich and famous. For the next few hours or even days, you find yourself revved up in high gear, eager to turn your big idea into reality.

Oh yeah. It’s an awesome feeling.

There’s only one problem: what comes up must go down, and sometimes big ideas do just that – they flop, hard. You could shrug it off and say that failure is really a learning experience, but wouldn’t you rather learn how to avoid those flops so you can save yourself time, money and heartache?

I know I would.

So here are seven warning signs your big idea is about to flop and seven ways to avoid landing with a splat: Leer más “7 Warning Signs Your “Big Idea” Is Going to Flop”

Better Time Management for Improved Cash Flow

We’ve all heard it: time is money. And as much as we sometimes hate to look at it in such base terms, it’s mostly true. As service providers (designers and developers), the time we spend on a project is directly proportional to how much we’re getting paid. How we spend our time also has a big effect on when money comes in.

Timeismoney in Better Time Management for Improved Cash Flow

If we want to get a better grip on our cash flow, we need to get a better grip on our time first. Sure, we all recognize that the time we spend working effects our overall income. But it’s often hard to see the relationship between time management and cash flow. Regardless of how muddy the relationship seems, there are direct ties between how you manage your time and how much money comes in when. Read on for more information on how to better manage your time so you can better manage your finances.
Take a Wide View

Wideangleclock in Better Time Management for Improved Cash Flow

Time management is often dealt with on a micro level. We look at our time in blocks of fifteen, thirty, or sixty minutes, and assess how to best utilize those blocks. But when it comes to managing your time with an aim toward more stable cash flow, this micro-management doesn’t do much good.

What you need to do is take a macro view of how you’re spending your time, and manage it based on when you need to complete billable work. Rather than looking at time in blocks that make up a fraction of your day, look at it in terms of what you’re doing this week or this month.
Regular Billing Intervals

Regularintervals in Better Time Management for Improved Cash Flow

One thing you’ll want to consider when planning your long-term time management is the frequency at which you’ll be billing clients. There are a few things to take into account here. One has to do with how many projects you have going, and how staggered they are. Ideally, you’ll want your projects to overlap in such a way that you can send out bills on a weekly or bi-weekly basis. This means you’ll have money coming in virtually every week, which is a big plus for any freelancer’s cash flow.

The other thing to consider is how often clients are billed for work. Some designers might only bill their clients at the end of a project (in addition to a deposit up front, of course). While this results in larger payments, it also means payments are coming in less frequently. You’ll need to decide if you can justify billing more often during the project. Breaking down the project’s fee over three payments can not only aid your cash flow, but also your client’s.

Again, the goal here is to have money coming in on at least a semi-regular basis. Many freelancers will want payments arriving on a weekly basis, so there’s less budgeting involved. Others might prefer to have larger payments coming in less frequently. You’ll need to work out which system works better for you and the types of bills you have and then plan your projects so deadlines and billing cycles correspond with your desired payment schedule.


By Cameron Chapman

We’ve all heard it: time is money. And as much as we sometimes hate to look at it in such base terms, it’s mostly true. As service providers (designers and developers), the time we spend on a project is directly proportional to how much we’re getting paid. How we spend our time also has a big effect on when money comes in.

Timeismoney in Better Time Management for Improved Cash Flow

If we want to get a better grip on our cash flow, we need to get a better grip on our time first. Sure, we all recognize that the time we spend working effects our overall income. But it’s often hard to see the relationship between time management and cash flow. Regardless of how muddy the relationship seems, there are direct ties between how you manage your time and how much money comes in when. Read on for more information on how to better manage your time so you can better manage your finances. Leer más “Better Time Management for Improved Cash Flow”

The first rule of productivity one thing at a time

Time management, in and of itself, will not really help you be more productive.

I’m talking about time management in the classic sense of the word. Getting through your “to do” list faster. It’s a complete waste of time.

What you really need to do is to look at everything that you have on your list, and pick the single most important thing. Then work on it, uninterrupted, until it’s completed.

The uninterrupted part is the toughest, by far. It’s SO easy and tempting to check your email, answer the phone, respond to an instant message, or click over to a website.


Time management, in and of itself, will not really help you be more productive.

I’m talking about time management in the classic sense of the word. Getting through your “to do” list faster. It’s a complete waste of time.

What you really need to do is to look at everything that you have on your list, and pick the single most important thing. Then work on it, uninterrupted, until it’s completed.

The uninterrupted part is the toughest, by far.  It’s SO easy and tempting to check your email, answer the phone, respond to an instant message, or click over to a website. Leer más “The first rule of productivity one thing at a time”