Yuppies hop on freelance gigs on top of their nine to five job for one reason: freelancing rate.
Rates are competitive, and diverse. When the odds are in your favor, you will meet a generous client who even provides bonuses and incentives.
Who wouldn’t be swayed to join the freelancing gigs?
One major difference in payment, however, is HOW you will be paid. Will it be hourly or project-based?
What do they mean?
Hourly Freelancing Rate
Clients offer you a fixed hourly rate, and you have to fulfill a certain number of hours.
For example, you got hired to be a virtual assistant. Great! It requires a minimum of 25 hours of work.
Your offer could be $4/hr or $10/hr. 25 hours x $4 is equivalent to $100 weekly compensation!
This is not bad though. $100 is equivalent to almost 5,000php, which is almost the same with how much you get for working for 40 hours.
Project-based Freelancing Rate
Unlike hourly-rate, project-based freelancing rate does not have a specific set of working hours.
Clients don’t pay you because of the time you devote for the task. Rather, they pay you for your skills and expertise you can contribute to the project.
Let’s say there’s an ongoing project that needs to be completed by the end of the month. It doesn’t matter if you work less than or more than 25 hours.
You just need to complete the project!
The payment can be in the beginning of the project, probably 50% of it, and the rest will be deposited after the project.
Opportunities of Hourly and Project-based Rates
When do you expect to receive hourly payment vs project-based rates?
- Long-term work
- Fixed schedule
- Daily tasks
- Direct work with clients
- Soft-skills or services
Opportunities: Virtual Assistant, Outbound Calls, Appointment Setter, Nonvoice Support, Project Management
- Short-term work
- Flexible time
- Higher compensation
- One-time payment
Opportunities: WordPress Developer, Graphic Designer, Course Writer, Video Creator
What was mentioned earlier were just common scenarios; however, they could greatly vary!
The truth is, being paid per hour or per project depends on the setup, contract and other requirements of the tasks.
I remember working as a course writer in which the setup is based on the number of articles I could write in two months. That’s an example of a project-based task!
This is far from the fixed rate I was offered for writing up to 2 articles per day.
Which freelancing rate should I choose: hourly or project-based?
Good question! I had the same question when I was starting out as a freelancer.
But, it totally depends on your current setup or needs.
Go for hourly rate if…
- I need a regular job.
- My current status seeks for stable payout or compensation.
- Workstation, laptop, and stable internet connection are ready!
Go for project-based rate if…
- I need additional income.
- Working minimum hours daily is how I plan to commit to the project.
- Short-term projects look attractive!
Realities of Both Types of Freelancing Rates
There’s no perfect setup, and I experienced the worst scenarios for both types of freelancing rates.
In 2015, I was regularly receiving my payout for my hourly rate job until I did not hear anything from them.
All of a sudden, I got ghosted by my client!
Of course, they did follow up and told us that we’re taking a break for our work. It was sad, and painful I must say. As I thought everything was stable until that happened.
Way back in 2016, I was working for a specific project and got constant work weekly. Nonetheless, the project was completed and my contribution was fulfilled.
I was happier when it happened since my expectations were set. I knew that all good things must come to an end.
While I was enjoying the compensation from that project, I expected it to be finished since it’s just a “project”.
Whether you choose to charge per hour or per project, the reality is that freelancing does not guarantee stability all the time.
Always assess the tasks, or projects, whether it is beneficial for you or not.