5 tips for determining your hourly rate

Good news for independent entrepreneurs: clients pay an average of 3 euros more per hour at the beginning of 2015 compared to the end of last year. This is evident from research by ZP Facts.

Increase

At the beginning of 2015, both the desired and paid hourly rate for independent entrepreneurs increased compared to the end of 2014. The average hourly rate that independent entrepreneurs charge at the beginning of 2015 is over 83 euros. At the end of 2014, this was just over 80 euros per hour. It is striking that the amount paid is also more than the independent asks for assignments.

Copywriter Hans Stuyling de Lange has been an independent entrepreneur for 15 years and has a lot of experience in negotiating rates. “I always assume a basic rate of 60 euros per hour. The final rate depends on a number of things for me. For example, I first look at the difficulty of the text, how much needs to be adjusted, how long and large the assignment is and whether I can do more assignments for that client. But I usually go below the basic rate, because I have a lot of competition in my sector.”

Experience tips

He gives starting freelancers 5 tips to arrive at an hourly rate:

1. “Look at colleagues around you and also pay attention to the sector in which you work. What do others charge per hour? Depending on this, you can make an attractive price. It is very important to be well positioned in the market.”

2. “Include your experience in your price: depending on this, you can charge more or less. You see that more experienced colleagues can charge more per hour. If you are just starting out, it is better to be just below the average hourly rate.”

3. “Even where you live plays a role. Do you live in the Randstad or outside it? I live in Groningen myself, where the standard of living is lower than in the Randstad. Life there is much more expensive and you have to factor that into your price.”

4. “Do you have to be able to live on what you will earn as a self-employed person? If so, then you have to make sure that you earn enough. If you have other work on the side, then you can ask less money. That makes you more attractive to clients.”

5. “If you are a starter, you also have to factor business investments into your price. After all, you have to be able to earn the money back, so that you also start making a profit.”