How to Set Your Hourly Rate as a Remote Freelance Developer
As a remote freelance developer, setting your hourly rate can be challenging. Market rates vary greatly depending on your location, years of experience, skills, and the stage of the company you work with.
Many freelancers will start by looking at salary information for full-time employees. But there are a few issues with this. For one, full-time, salaried employees aren’t totally comparable with what a freelancer should charge. That’s because freelancers don’t typically receive bonuses, benefits, or vacation, so they should factor these considerations into their pay. And salary information is pretty opaque: many companies withhold salary information from job descriptions, and efforts to increase pay transparency have been largely ineffective.
Table Of Contents
So how do you set your freelance rate? In this guide, we’ll walk you through three steps to work out a fair and competitive income, how to communicate it with prospective clients, and share tips for how you can increase it over time. Whether you’re just starting out or you’re a seasoned freelancer, this article will provide you with the knowledge and tools you need to set a rate that reflects your capabilities.
Step 1: Assess Your Skills, Experience and the Role
Your rate should reflect the specific skills you have, the industries you’ve worked in, and how many years you’ve been doing it. Gather the following information to piece together your story as a remote developer and the highlights of your career.
Professional and Academic Experience
Start by asking yourself broad questions about your work experience, such as:
- How many years have you been working in the industry?
- How many years have you spent as a junior, mid-level, and senior team member?
- Were you in a leadership position for any or all of these roles?
