Reviving the lost art of the sherpas

Reviving the Lost Art of the Sherpas

or Responsive Rates & Estimating for Freelancers

Shane Austin | @pixelsavvy

Me

Who freelances?

The term was first used by Sir Walter Scott (1771–1832) in Ivanhoe to describe a "medieval mercenary

warrior" or "free-lance", indicating that the lance is not sworn to any lord's services, not that the lance is available free of charge.

—http://en.wikipedia.org/wiki/Freelancer#Etymology

What is freelancing?

Freelancer:Someone who sells

services to clients without a long-term contract.

Writer

Publisher

Graphic Artist

Developer

Translator (think NATO)

Musician (think jingles)

Sherpa (wtf?)

Freelancing isn’t for the weak-hearted.

Freelance vs Contract

Why Freelance?

Flexibility

Financial reward

Enhancing relationships

Provide best value to client

High profile projects

Professional growth

Work in your jammies (kidding)

Setting Your Rates

You choose

Considerations

SurvivalCan you maintain a sustained and

comfortable lifestyle?

GrowthEnvisioning the future and expanding into

new areas.

ExposureOpening to new markets or opportunities.

Professional DevelopmentHoning your craft or taking on new roles.

Challenges

Financial insecurity

Risks

Staying focussed

Overhead

Learning the ‘biz’

Competition

Industry Pressure

Calculating Rates

Business Costs

Rent

Travel

Equipment and Software

Communications

Insurance

Legal

Accountant

Office Supplies

Advertising

Personal Costs

Rent/mortgage

Daily living

Retirement savings

Occasional

Billable Hours

Total time available to work

Deduct time for:

vacation

sick days

slacking off

walking the dog

Profit and SavingsRule of thumb 10-15%

FormulaS + O + P ÷ B

Nifty calculatorhttp://freelanceswitch.com/rates/

Creating Estimates & Realistic Quoting

Cost-plus & Value-based pricing

Tips

Break down into components

Don't show clients "the man behind the curtain".

Don't fear the reaper.

Don’t quote high for no particular reason.

Add value

PITA Tax or

RFC Discount

Use the right tools

Time tracking

Project management

Wikis and help docs

Business needs assessments

Contracts and forms

‘Modularize’ components

Your rate and your quotes won’t win

projects in the end and if they are,

you’re not doing it right.

Thanks OKDG’ers!“There's a lot of pressure for freelancers to fit in,

conform and comply. It seems easier to generate

new business that way. That's not really true. It's

easier to become an easily-described commodity

that way, but the person who's willing to push

themselves out to an edge that matters is on the

only path that actually leads to success.”

“And then it's up to the client to care enough

about the project and in making a difference to

have the guts to hire you.”

—Seth Godin