What should I charge for freelance work for the same client on both a business and personal basis, where business is on a retainer but personal wouldn't be?

10 Comments

1. AnonymousDecember 18,2023 at 4:01PM UTC

   I would keep it at the same rate. She throws you a lot of business already and it's still extra money.

2. AnonymousDecember 18,2023 at 4:58PM UTC

   Thanks for your insight!

3. AnonymousDecember 18,2023 at 4:04PM UTC

   Is the work significantly different? (Its not just your time but your experience and expertise - if the work is harder or more niche that should be priced accordingly). I would be aiming for keeping her sweet and matching the current price if not, as you want regular work coming in.

4. AnonymousDecember 18,2023 at 4:57PM UTC

   Thanks for this! (And the work is not significantly different.)

5. Jennifer AndersonDecember 18,2023 at 4:21PM UTC

   You don't indicate the type of work and that can matter.

   My suggestion is that the rate stays the same unless you can find a reason to up it. For instance, it might be that you charge 40 an hour because of a guaranteed number of hours but for projects less than a total of X hours, your rate increases to $45-50 because of something. Sliding scale prices can be okay in some businesses but not others.

   My dad (CPA) and other professionals I know have a set rate per hour. No deviations and Dad has worked on a retainer before as well as done personal taxes. If people didn't want to pay hourly then he had a "charge per form" which often ended up being a higher price than the hourly rate. My hairdresser charges an hourly rate but I didn't know this till recently. She knows how much time a process takes and rates are determined by that. That said, another consultant I knew charged businesses one rate and individuals another. Why, because their history showed that collecting from businesses was harder and they wouldn't deliver the product to individuals until a check was in hand.

   It depends on your market, what others in your space are doing, and how you feel about this person. If they have always been straight with you, charge them the $40.00 and let them know you are giving them a deal because of your former relationship but that price will be higher for referrals. Or set up a price based on "cash" versus a n-15 or n-30 day credit price that the business might be paying. to anyone else.

   Just remember, whatever you do, keep it consistent and when things change, make sure they apply equally to both the company and the individual client.

6. AnonymousDecember 18,2023 at 4:57PM UTC

   Thanks for your insight! For the record, it's designing and making a slide deck. I normally charge way more than $40 an hour for freelance clients, but in this case I'll take your advice and charge her the same--but tell her it will be different for any referrals.

7. AnonymousDecember 18,2023 at 4:25PM UTC

   How much time is involved in the new project, and will it still keep you under 40 hours per week? If so, the $40 per hour is fair. If it pushes you over 40 hours, you may want to stipulate overtime pay for the weeks when that happens, especially if you live in a state that requires overtime pay for over 40 hours. You need to weigh your work/life balance and your relationship with the client carefully. It is good to be paid well for your work, but you don't want to be taken advantage of and end up working twice the time for the same money.

8. AnonymousDecember 18,2023 at 5:23PM UTC

   Same rate for same work. Make it about the work or if the project is a closed ended and not time boxed assignment flat rate the whole project. Don't devalue your worth.

9. JJDecember 19,2023 at 11:15PM UTC

   Hourly projects are usually slightly more than the same work on retainer.

10. Vanda LeeDecember 20,2023 at 3:37AM UTC

    I'd go $50 - no retainer discount.