By Paul Lima

How much should I charge for corporate writing? Do I charge per word or per hour? Do I provide a firm quote or estimate? Simple questions, but the answers are not always simple.

Arriving at a Fee
There are several ways you can arrive at a project fee, all based on your per-hour rate or your per-word rate.

1. The client may spell out the details of the assignment and ask for a firm quote. You clarify the details (more on this below) and quote on the job. The client says yes, no, or maybe (if you can come down to this price...). You may or may not mention your hourly rate, but you have to have a rate (per word or per hour) on which to base your quote.
   
2. The client may want to know how much you charge per hour and will ask you how long it might take to do a particular job. The client is looking for an estimate but expresses a willingness to be flexible as the scope of the job may not be clearly defined, or she isn't sure how many drafts may be required. Generally, with this method, you keep a detailed timesheet and let the client know when you are coming close to reaching your estimated number of hours. The client then authorizes additional hours.
   
3. The client may want you to be on call for a series of jobs and will pay you an hourly rate. Usually you do not have to generate a quote. But you do have to keep a detailed timesheet so the client knows exactly what you’ve done and how long it took you to do it.
   
4. Sometimes the client will want to know how much you charge per word and will ask for x-number of words. This can be similar to writing for newspapers or magazines. Be prepared for revisions based on feedback from the client.|

Speaking of revisions, you will most often write several drafts. Get used to revisions and make sure your quote (see chapters 18 and 19 of The Six-Figure Freelancer) plans for them.

Other Ways to Calculate Your Fee

• Per word (writing): Appropriate if the project involves one or two phone interviews, minimal background reading or research, the writing (or ghost writing) of an article and one revision. You can charge $1 to $2 per word in most instances: $1000 to $2,000 for a 1,000-word article. Round up! Quote $1500 to $2000 for a 1200-word article.

I am used to charging magazines and newspapers a per-word rate. Occasionally I land a corporate client who wants to pay a per-word rate. If the job entails one interview and a modest amount of background research, I will go with a per-word rate (which includes one revision). On occasion, I’ve done a second revision if it seems like simply dotting "i’s" and crossing "t's".

Recently, however, I’ve taken to establishing a figure with my per-word rate in mind, then rounding up my quote. I was asked to write a one-interview, 800-word article and quoted $800 (based on one dollar per word). The client didn’t blink. Next time he came back and asked me to quote on a 1,200-word article. I thought $1,200 but said $1,500. He didn’t blink. I did one revision on the article, which was part of our agreement. He then asked for a second (minor) revision and I did it at no extra charge.

Then his boss decided he wanted several other changes that moved the article in a different direction. I have no problem with this. It happens quite a bit when doing corporate work – all the chefs want to season the soup. I was tempted to do it at no charge since I had rounded up my quote, but I reminded the client that our agreement (see sample quote letters in Chapter 17 of The Six-Figure Freelancer) included one revision and that I had already done two – only because the second one was minor. The third revision, however, was beyond the scope of the project as we had defined it. He agreed and we negotiated an additional $300 payment.

Beware of charging a per word rate on advertising copy or for video scripts, or promotional e-mail. There may only be few words to write but a great deal of research, synthesizing, processing, creative brainstorming, writing, and revising may be required. Go to www.writers.ca/whattopay.htm for suggested rates.

• Per word (editing): Same thoughts apply. No meetings. You receive the work and edit. Price based on number of words of original document and the type of editing. For instance, you would charge less per word to proofread a relatively clean document. (Ask to see a sample of the work before you quote.) You would charge more for a substantive edit. And even more for a substantive edit with a change of focus.

For instance, some clients will ask you how much you charge for editing, and then they will ask you to turn a 7,500-word white paper into a 750-word, three-page flyer, or brochure. That’s not editing. That’s writing! And are they paying you for editing 7,500 words or 750 words? If you do not clarify up front, you could have a billing battle on your hands. “I just presumed...” doesn’t cut it.

• Per page (editing): Appropriate for editing projects. As above, but you base your quote on the number of pages you receive from the client. Again, look at a sample of the writing before you quote.

• Per hour (editing or writing): Appropriate if the work required seems vague, involves multiple meetings and/or interviews, if there is a great deal of research and minimal word count (ad copy, promotional e-mail, headlines for ads, slogans, video scripts, and so on).

Setting Rates for the Corporate Market
When it comes to setting rates for the corporate market, you have to know:

• How much you want to gross per year
• How much you want to net per year after income tax, any other taxes, pension plan contributions (which can account for 15 to 45 per cent of your gross), and business expenses
• What your time is worth
• What skills, ability, experience you bring to the table
• At what level are you working?

Let’s face it, there is a hierarchy. From top to bottom, it goes like this: strategic planner, consultant, project manager, writer, researcher, editor. I’m sure editors would disagree. There may be cases (final edits on highly technical or legalistic work) where they are right.

Strategic planners and consultants give high-level communications advice (and may do some writing or hire writers).

Project managers usually co-ordinate all aspects of a large communication project (a major corporate video or annual report, for instance) from start to finish. Again, they may do some writing or hire the writers, designers, printers or a video crew. And yes, a project manager may do some consulting and a consultant may manage a project.

For the most part, writers write. Yes, it is possible you will give advice, make suggestions, give the client options, help develop strategies, and move the project forward in some way. However, primarily you write and revise. Part of your goal, with each project, is to define – in consultation with the client – your role. That will help you calculate your estimate.

Before you quote on a project, you need to define the scope of the project. To do this, you have to ask the client questions,  take notes (get a headset or speaker phone), and calculate your quote.

When  the client asks you for a quote, take a deep breath and say, “When do you need it?” In other words, don’t quote right away during the conversation. Take an hour, take 24 hours. Then get back to the client with the quote – based on how many hours you believe you will spend on the job multiplied by your hourly (or word) rate.

If you have any additional questions (especially if it is a complex or somewhat nebulous job), ask them before you issue a quote. As you get better at it, you might feel comfortable quoting right away, but make sure you define the scope of the project.

Estimating a Writing Job
The chart (in Chapter 19 of The Six-Figure Freelancer) will help you calculate your quotes so you can be as accurate as possible. However, you are not a lawyer. Don’t sweat the minutes.  Base you quote on the time required for:

• Initial briefing
• Interviews
• Other research
• Outlining
• Writing
• Revision 
• and the other factors as outlined in the book...

Issuing Estimates/Quotes
Now you know how much to quote. How should you present your quote? I prefer to issue quotes in writing. That way the client and I have a record of the quote. Even when I give a quote over the phone, I follow-up with a written quote that I send by e-mail. I can’t remember the last time I mailed or faxed a quote, but if a client wanted me to issue the quote that way, I would.

So how much do you charge?
There is no one right answer. I know many writers. They charge anywhere from $35 to $250 dollars per hour. They charge anywhere from 50-cents to $3 per word. You determine what you are worth, based on your business vision and business plan (as outlined The Six-Figure Freelancer), set a rate, and negotiate based on that rate.

When negotiating with clients, you choose whether there will be any give and take. But take before you give.

Still find yourself asking: “Yes, but... How much do I charge?” This simple rate formula will help.

How many billable hours do you think you can work per day? Billable hours do not include functions such as market research, marketing, invoicing, filing, paying your GST and taxes... That you do on your nickel.

Let’s say, on average, you work 5 billable hours per day, 5 days per week, 50 weeks per year. There are days you may work more, far more, and days you may work less, far less, but let’s say you average 5 billable hours per day. Here is The Rate Formula.

• Billable hours per day x 5 = billable hours per week
• Billable hours per week x 50 = billable hours per year
• Billable hours per year x hourly rate = gross income

Plug in an hourly rate and you know how much you can earn in gross income (before expenses and taxes) per year. Let’s say you plug in $50 per hour.

Example: 4 hrs/day x 5 days/wk x 50 wks/yr x $50/hr = $50,000/yr

Plug in $100 per hour, and you will earn $100,000 per year – as long as you work 5 billable hours per day, 5 days per week, 50 weeks per year. You could charge more and still work that 5 billable hours per day, 5 days per week, 50 weeks per year. You could charge more (or less) and work more (or less) hours. That part depends on how well you sell yourself and on the nature of the clients you acquire.

If you are just getting started, you might find it difficult to come up with $95+ per hour gigs, especially if you are selling your services to individuals or small businesses or under-funded not-for-profit organizations.

If you have been doing corporate work for a year or more, $50 per hour should be your absolute rock bottom rate. Take $50 per hour clients only if you have absolutely no other work to do. In fact, you might be better off investing that time looking for better-paying clients.

All the best with your writing craft and your freelance business!


(Paul Lima is a freelance writer, writing instructor and media interview trainer. He is a member of the Toronto Chapter of the Professional Writers Association of Canada. You can read samples of his business and periodical writing, and more about his writing and media interview training services, online: www.paullima.com) 

Paul Lima
VP Communications
PWAC Toronto
www.pwactoronto.org
© 2003 Paul Lima 

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