As discussed in our previous post which lists the pros and cons of fixed price rating, this post deals with the pros and cons of hourly priced rating.
The concept of hourly rate for web design is very simple. You work for a certain amount of time and you get paid for the time which you spent working. You bill your client according to “hours x hourly rate”. I tell you I will charge you $X per hour and you either think it’s reasonable and contact me or you simply look for any other web designer. Such type of freelance web designer hourly rate pricing is extremely common amongst web designers.
Let’s take up the pros and cons of freelance web designer hourly rate.
A. Hourly charges are very straightforward and transparent. You know you are getting paid for the actual work you do and hence you dedicate yourself in solving a problem or a sub problem.
B. It’s much easier on the designer’s part to explain the client about the final cost of the project.
C. A client hesitates less on making any changes and or taking decisions.
D. Freelance web designer hourly rate makes larger projects looks cheaper. Hence, you stand at a better place to get bigger projects. A freelancer saying “I will charge $20 per hour” looks cheaper than the one saying “I will charge $800 for a project”.
E. You may use monetize your free time by working on your project. Make money from those extra hours that you’ve put in your hourly rate for web design efforts.
F. The client may ask you to perform certain changes and modifications after you’ve submitted your project. In this case, you can hourly charge him for your efforts and time.
G. As your freelance experience increases, you can easily charge up your freelance web designer hourly rate which is also understandable from a client point of view. A 3 year experienced web designer can increase his hourly rate from $10 to $50 per hour. But, in case of fixed rate, if you increase your price from $100 to $500 per project, clients will start ignoring you. Hence, hourly rate is advantageous to increase your service price quickly.
Here are some of the cons of freelance web designer hourly rate.
A. At the beginning stage of freelancing, very few clients convert from hourly rate pricing. Would you give your project to a newbie freelancer who says “I will charge $100 per hour”? Obviously not. You first need to build a brand for your business, before pitching in hourly rate pricing. But you can still get clients if you charge less. Every client wants to pay less. A newbie freelancer saying “I will charge $20 per hour” will get more projects. But by doing this, you are underpaying yourselves which is not a good thing to do.
B. If you are preparing estimates your clients, they might get upset if you fail to meet your deadline and work some hours more to finish the project, thereby costing them more than the original quote. Make it very clear to your clients that you are preparing “estimates” and it may happen that you will have to work some more and hence you will charge hourly rate for web design accordingly.
C. Many business clients like to know prices up front. This helps them in managing their budgets and estimates. So freelance web designer hourly rate charging is mostly avoided by those business clients.
D. Timesheets are needed to be filled and updated regularly to inform the client about project’s progress. There needs to be an effective way where the timesheets can move back and forth between designer and client. You have to be incredibly organized to keep a track of your activities. And if you charge different freelance web designer hourly rate for different sections of work such as coding, testing etc., you have to break down not just by project, but also by task.
E. Finally, it’s very hard to determine your freelance web designer hourly rate to give justification to your hard work. In most cases, people tend to overrate themselves, hence they find less clients.
freelance web designer hourly rate is not so preferred by business clients. Since you’ve known both the pricing structure, it’s time to discuss your freelance pricing strategy.
Which pricing structure do you apply and why? Give some of your personally experienced pros and cons of both the hourly rate for web design pricing structure. Give your suggestions via comments.
If you are looking for a step by step process to start your own freelance web design, you can visit our Complete guide to become freelance web designer to reach near targeted visitors. Please feel free to leave any comment you have in your mind.