Pay By The Hour

That sounds about right. I do development work on the side and, fortunately, get most of my work through a design agency who shoots potential clients in the leg first, then slides the rate in. My rate looks light next to theirs.

You must have been wildly popular with this technique. Any warranted reason to connect the adoption of these "two simple steps" with the fact that you "used to be a freelancer"? ;)

I'm a junior associate at a large law firm, and I am repeatedly amazed that our clients pay my hourly rate for a recent law school grad.

I'd think that reversing the order might work better, no?

The best is when you're in a small town with the the major industry being construction. Try discussing web standards with company owners who regularly wear hardhats - I often times don't even discuss rates until we get past at least agreeing on the fact that a web presence is beneficial.

Heh. So true. In my hometown, people had HUGE problems with my hourly rate, maybe because they thought i was too unqualified certificate wise, or because of age. Whatever, I dont think I used the slapping technique.. though I've been tempted on MANY occasions.

But what if you consult with non-profits occasionally? You can't charge them nothing or they won't value the work you do and you won't be bringing home the bacon (or tofu or hufu). So is there a "divide by 2 or 5 or 10" in there for 501's?

As someone on the hiring side, here's my advice on how to deal with high hourly rates.

(1) It's like dating: Just keep asking and asking. You'll eventually find someone who will happily work for your rate, however low it is. This takes time, and you need thick skin, but it saves money.

(2) Only hire people to do things that they have done before, in pretty much the exact style that you want. High priced contractors are often talented enough to do new things and do them well the first time out. But what you want are low priced contractors who can only do one thing, but do it well.

Reverse the order, and make step two optional.

Tell them your hourly rate. If they so much as flinch, then you may as well wind up and slap as hard as you like, because it's best not to sign a contract with them.

I've my own succinct summary for proper pricing:

If you never lose a job because your fees are too high, then your fees are too low.

And there's a corollary, of course; get to know you competition- your colleagues- have lunch and for god sake talk about fees. There is nothing wrong with consultancy that a little price fixing can't fix.

–ms

It's always daunting when you increase your freelance rate, the simple fact is if you're good at what you do and make the rise appropriately the amount of work you do will not suffer.

Here's a step.

- Try to avoid clients like Michael Z.

It saves time, and headache. Never lower your price.