Hi, Not sure how useful an essentially "me too" response might be, but here goes ;-)
I've been doing contract work on and off for 15 years, and have found it's prudent to gauge rate at 50% over a FT hourly rate. Federal taxes alone are likely to be at *least* 30% (and sometimes more, based on the fact you must make quarterly estimated payments), not to mention state & local taxes. Other costs to you include health ins and other "benefits." Other benefits may include things like % of salary of a typical 401K FT employer contribution---it may seem indulgent to factor this in, but as you pile on the years you'll be glad you did so--as well as however many weeks of vacation a FT job you'd take would cover. I also do consider length of project. For short-term, and/or last-minute projects I'll charge more. Also complexity of project and skillsets drawn on. If there's project management involved, leading project, regular interfacing with clients/representing the company, the rate would be more than if most of the gig involved were toiling away in obscurity on more focused finite tasks. ;-) If the project were a solid and consistent 20 hours, over 6 months, my rate might be appreciably lower than if it were 6 weeks. But a PT 20-hour job for 3 month...that's on a borderline for me. My rate would be lower if there were a good possibility that my relationship with the client, or the project, would extend beyond 3 months. And as it being a PT 20-hour job, I tend to disagree with the notion that it necessarily expand beyond those hours. One of the beauties of contract work--for the company and contractor--is that you're on the clock, and every minute is counted. It is to the benefit of both parties to have fairly strict parameters around hours. That said, I found it's more challenging to set boundaries around hours when working in the capacity of *consultant* vs. "contractor" (the differences between the two being fodder for another discussion). - Susan On 11/3/07, Mark Schraad <[EMAIL PROTECTED]> wrote: > > maya: How do you calculate hourly rates? Is there a formula that can > help you extrapolate from a yearly salary? > > Yes, but remember if you are a contractor - you should add in (30%, > but your milage will most certainly vary) for taxes and benefits. If > you maintain an office (if you don't at least think about what the > overhead costs would be) calculate cost of doing business. This > includes rent, supplies and the cost of your computer equipment. You, > as a contractor, are baring the financial responsability for a lot of > stuff. Salary is for skill levels is often a third to two thirds of > billable rate (usually on a sliding scale). Most design firms and > agencies work with salary + fixed cost, and fro freelancers rate x > mark up percentage. > > maya: I have a freelance job that's 20 hours a week for the next 3 > months, working remotely--I feel I should charge less than I would > for a short-term project but more than I would for a full-time gig. > > I have had half time positions and they never, never end up being > half time unless you have regular office hour, and even then... > > maya: Can anyone give me a clue about industry standards in New York > for a Senior IA and/or Creative Director? > > If you have a trusted client or two, ask what they would expect to > pay for your skill level and the types of projects you are working > on. Try checking in with folks at an AIGA meeting where this sort of > contracting is very common. In short, charge as much as you can while > still getting some work. Your worth and perceived skill level is very > often based upon your hourly rate. I find that freelancers are often > embarassed or afraid to throw out what they see as a large number. > Stand in front of a mirror and practice saying the number > (seriously!). Don't be so reasonable. You want to be charging a rate > high enough so that you loose some projects on price. > > Mark > > > On Nov 2, 2007, at 12:22 PM, maya gorton wrote: > > > Hi there, > > > > How do you calculate hourly rates? Is there a formula that can help > > you > > extrapolate from a yearly salary? > > > > I have a freelance job that's 20 hours a week for the next 3 > > months, working > > remotely--I feel I should charge less than I would for a short-term > > project > > but more than I would for a full-time gig. > > > > What do you think? > > > > Can anyone give me a clue about industry standards in New York for > > a Senior > > IA and/or Creative Director? > > > > I'd be happy to hear anyone's experiences with this. > > > > Thanks for your help! > > -- > > m a y a > > ________________________________________________________________ > *Come to IxDA Interaction08 | Savannah* > February 8-10, 2008 in Savannah, GA, USA > Register today: http://interaction08.ixda.org/ > > ________________________________________________________________ > Welcome to the Interaction Design Association (IxDA)! > To post to this list ....... [EMAIL PROTECTED] > Unsubscribe ................ http://gamma.ixda.org/unsubscribe > List Guidelines ............ http://gamma.ixda.org/guidelines > List Help .................. http://gamma.ixda.org/help > ________________________________________________________________ *Come to IxDA Interaction08 | Savannah* February 8-10, 2008 in Savannah, GA, USA Register today: http://interaction08.ixda.org/ ________________________________________________________________ Welcome to the Interaction Design Association (IxDA)! To post to this list ....... [EMAIL PROTECTED] Unsubscribe ................ http://gamma.ixda.org/unsubscribe List Guidelines ............ http://gamma.ixda.org/guidelines List Help .................. http://gamma.ixda.org/help
