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Hourly jobs
can make you money — if you handle them with care
Teacher: David
Perlstein
In my last column, I advised — strongly — that
you charge by the project rather than by the hour.
There are times, though, when
it makes more sense to charge by the hour.
Usually, this is true for what
I consider “mechanical” tasks. For me as a copywriter,
these are open-ended jobs that generally involve editing and
revising rather than conceptualizing and problem solving.
When you decide it’s better
to charge an hourly rate, you might want to follow these basic
guidelines to protect yourself:
Don’t overreach. Your
experience, not your ego, will help you find your market value.
Start with a minimum rate that will let you meet your financial
needs. Over time, you’ll be able to raise it.
Set a consistent rate. Avoid
quoting different rates to different clients for different
projects. You risk confusing yourself and angering your clients
if they find out.
Get it in writing. The
last thing a free agent ever wants to hear is, “You charged
me how much an hour?” Keep a paper — or email — trail
to support your position if a client ever questions your invoice.
Flag your client. Hourly
jobs may often be open-ended, but client budgets are not. Report
your progress periodically in writing. If you estimated a job
would take 20 to 25 hours, report your progress at the 10-hour
mark and every five hours after that.
Your client will want to be told
about how long it will actually take to do the job and what
it will really cost. And you’ll want those notices to
document your position in case there’s a dispute.
Once you get started, you’ll
need to keep accurate records. Here are some tips:
- Create a standard time
sheet: Record the day, date and time periods during
which you work. Keep a running total of your hours so you
can track the job instantly.
- Divide each hour into workable
billing units: I keep time in quarter-hour units.
Any work time beyond 15 minutes accrues as another
quarter-hour.
If I work from 3 to 4:05 p.m., I’ve accumulated
1.25 billable hours. Include those three-minute stretch
or water
breaks, too. No one can function without them.
- Charge for travel and meetings: Travel
to a meeting or research site, and you’re working for
your client. The same holds true when you’re commuting
to work on-site. (My personal rule is to charge for
trips longer than 30 minutes from my home or office.)
- Add out-of-pocket expenses. Include
these in your invoice under a separate category.
Hourly jobs are not the most
profitable, but they can definitely add to your bottom line
if you handle them right. Open communication with your client
and thorough record keeping can make them work.
About the teacher:
David Perlstein
has been a freelance advertising copywriter in San Francisco
since 1979. He is the author of Solo
Success: 100 Tips for Becoming a $100,000-a-Year Freelancer,
Crown Publishers, New York.
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