Friday, July 6, 2007

How Do We Rate?

How much to charge for work is always an uncomfortable subject for vendor and client alike.
Fortunately, there’s plenty of precedence on the Internet to help establish fair rates to charge for writing work. While rates are typically stated in dollar ranges, depending on the type of task, and to an extent, geographic region, both vendor and client can get a feel for whether a quotation is fair or not.
But there are different ways in which work can be quoted. By the word, by the hour, by the page or by the project come to mind. For this newsletter, though, we’ll look at the first two scenarios only.

By the word
This method is usually employed by freelance writers and editors of periodicals to negotiate (or dictate!) the price of an article. Now, articles may not be of much interest to Task Partner clients, but there may be cases where the client prefers to be charged by the word.
For instance, if copy is needed for a short brochure, and a rough estimate of the amount of text is known, the client can budget for it. The onus is on the writer to produce the copy to a ceiling price, regardless of how long it takes them to write it. Keep in mind that this price will be for a first draft only. Rewrites at the client’s request means further negotiation.
Where this method does not work (for the writer especially) is the creation of tag lines for a company’s branding program, or smart one-liners for advertising. The number of words can be 5 or less, so the client would pay only $5 to $10 for the tag! “Think time” needs to be covered, so hourly charging makes more sense in this example.

By the hour
In addition to extremely low word count assignments, such as the tag line example, charging by the hour is particularly suited to large projects. This could be a technical manual or copy for an entire web site. The client should have a reasonable idea of the scope of the project, so getting a budgetary estimate from a writer before commencing is recommended.
Break the project down into measurable milestones. That way, the writer can provide time and cost estimates for each. For instance, a web site can be broken down into pages. Keeping the project bite-sized means you can part company after a milestone is reached without a great deal of commitment (on both sides) if things don’t go as planned.
Clients with continuous writing needs may want to consider putting their favourite writer on retainer. In this scenario, the client guarantees that they will pay the writer for a specified number of hours per month, regardless of whether or not the writer provides any or all of those hours. The benefit to the client? They are guaranteed to get that writer’s services for up to the agreed number of hours. If the project goes beyond those hours in that month, the writer is also paid for the additional hours. This isn’t for everyone, but it works well where a busy client and a talented writer have a trusting relationship.

By the way, be prepared to be asked for a deposit before a writer starts a project. Given that the client and vendor may not have a prior relationship, it only makes sense that the vendor wants to be covered for their time if a payment history doesn’t exist. This may be 25% to 50% of the project cost, or it could simply be the first milestone payment.
OK - so we started talking about rates. Here’s a guide (only) as to what rate ranges you can expect to be quoted in southwestern Ontario and nationally. This is largely based on the Professional Writers Association of Canada (PWAC) website, but is also influenced by actual rates charged by local writers:



Remember - rates are negotiable, and some writers may quote rates outside of these ranges.
Finally, these hourly rates may seem high compared to what you pay your employees. Consider, however, that your employees were probably hired for their special skills, one of which may not be writing. If you add CPP, EI, WSIB and EHT contributions you make on their behalf, plus the cost of medical and dental insurance to their hourly rate, you’re better off subcontracting to a writer specialist.

Good luck with your negotiations and your writing projects!

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