€¦ · web vieweven as an established writer, every estimate can feel like a gamble: too much and...

PRICINGA COPYWRITING MICRO COURSE

WHAT DO COPYWRITERS EARN? One of the toughest decisions a copywriter has to make is how

much to charge. When you’re just starting out as a freelance copywriter, setting a rate

can be nerve-wracking

It’s a gamble. Yes, you need to earn enough to live on, but you also

don’t want to scare off potential clients.

Even as an established writer, every estimate can feel like a gamble:

too much and you’ll lose the job; too little and you’ll kick yourself when

they say ‘yes’.

THE COMPARISON TRAP When you start out, the first pricing point is to compare yourself to

others. Is this helpful?

It might not be helpful but it’s human.

Freelance copywriting offers lots of benefits but can you make a living

wage?

And if so, how long will it take?

How much effort will it take?

And have you got what it takes?

COMPARING COPYWRITERS The first step is to see what everyone else is charging Hard to discover rates – most copywriters keep their cards close to

their chests

Many copywriters (including me) have rates pages that don’t actually

tell you what they charge.

© The Clever Copywriting School.

http://www.katetooncopywriter.com.au/how-to-be-a-freelance-copywriter


The truth is very few writers actually quote their rates on their website.

So, apart from posing as a fake client and requesting a quote (don’t do

this), a lot of it is guesswork.

Freelance Copywriting Survey

Depends on country: In general, copywriters in the US and UK

charge less than copywriters in Australia.

Depends on industry / writing type. Depends on hours worked: 21.6% of writers work less than 10 hours

a week.

Depends on billable time: 14.6% less than 30% of their time was

billable

First year: 38.1% earning less than $10k AU

Fifth year: 7.5% earning more than $150k AU

WHAT DO I EARN?• Year 1: $60k: 100% of income via copywriting

• Years 2-4: $80-100k: 100% of income via copywriting

• Year 5: $80-120k: 80% of income via copywriting

• Year 6: $150k: 40% of income via copywriting

YOUR MONEY MINDSET• What is everyone else charging?

• Don’t price based on insecurity

– I’m just a beginner, I shouldn’t charge too much, in fact maybe I

should work for free

– She’s got more experience, I’ll charge less than her rate

– No one in my industry charges more than $x

• Don’t base your net worth on someone else’s self worth


http://www.copywritingschool.com.au/2015-freelance-copywriter-survey/


• Don’t let your money blocks hold you back

• Don’t worry it’s not forever!

• How much does your local plumber charge?

• How much does your local psychologist charge?

• Are you a plumber or a psychologist?

• What price feels right for you?

WHAT DO YOU NEED TO EARN?• It’s important to be realistic about what you need to earn

• What life expenses do you have? (rent, food, car, phone, etc.)

• What business expenses (subscriptions, outsourcing, software)

• How many hours can you work a week - REALLY

• What percentage of your time will be billable?

• Sick pay / holidays

• Superannuation

• GST threshold ($75k)

• Tax brackets

• NAB FREELANCE RATE CALCULATOR

• FLYING SOLO FREELANCE RATE CALCULATOR

QUESTION: HOW MUCH DO YOU NEED TO EARN?QUESTION: HOW MUCH WOULD YOU LIKE TO EARN?


http://www.flyingsolo.com.au/hourly-rate-calculator

http://yourguide.efront-flare.com.au/how-to-calculate-your-hourly-rate-as-a-freelancer/


WHAT TO CHARGE?DIFFERENT WAYS TO CHARGE

• By the word?– More of a journalistic thing

– Paying by the word encourages fluffy writing

– Can also really commoditises what we do – and can limit

creativity.

• By the hour– “This job is going to take 4 hours”

– Pro: super transparent

– Con: easy to dispute, scope creep, difficult to gauge how long

something takes

• By the day– “I’ll need 3 days to write this copy.”

– Pro: great for agencies

– Con: a bit limiting, scope creep, difficult to gauge how long

something takes

• By the project– “Here’s a fixed price quote for your website.”

– Pro: helps client understand what they’re in for, allows you to

earn more

– Con: harder to sell

LINK: Glenn Murray | Divine Write

WHICHEVER OPTION YOU CHOOSE, IT ALL COMES DOWN TO HOURLY RATE

DO THE MATHS


http://www.divinewrite.com.au/


• Target income $60k

• 4 weeks holiday (48 working weeks)

• Working hours 20 hours

• Billable time 50% (So really only 10 hours)

• $125 an hour

$60,000 / 48 weeks / 10 hours = $125

AVERAGE RATES: HOUR• New / junior copywriter: $50 – $70 per hour

• Mid level copywriter: $70 – $100 per hour

• Top level copywriter: $100 – $180 per hour

• Regional sometimes less than metro

AVERAGE RATES: DAY One way to calculate your day rate is to take your hourly rate, times it

by 8 and then reduce it by 20 – 30%.

But the agency will usually have a rate they are willing to pay, which

makes it more of a yes / no decision.

o New / junior copywriter: $300 – $400 per day (approx.)

o Mid level copywriter: $400 – $600 per day (approx.)

o Top level copywriter: $600 – $1000 per day (approx.)

AVERAGE RATES: FACTORS• Experience level: Experienced copywriters who have worked for a

variety of brands and industries may charge more than junior

copywriters



• Demand: In-demand copywriters, may charge more than those just

starting out

• Skill set: Copywriters with a high level of skill in a particular area of

copywriting may charge more

• Location: Copywriters closer to large cities (Melbourne, Sydney,

Adelaide, etc.) may charge more than writers in rural Australia

• Client status: Copywriters may offer discounts to start ups or charities

and charge more to large corporates

• Turn around time: Copywriters may charge more for faster

turnarounds

• What the client can afford

• What you can get away with

THE VALUE OF A RATE CARD Once you’ve worked out your rates, create a rate card

Rate cards remove the stress caused by quoting for every job

It helps you understand a good rate for the various types of job you do.

COMPLETING YOUR RATE CARD• How many hours will the job take?

• Research and reading

• Briefing and discussion time

• Writing time

• Amends and proof reading

• Contingency – 10%

• Also think about travel time and liaison time

COMPLETING YOUR RATE CARD• Rate: $100 per hour



• Website copy – 5 pages

• Research and reading: 2 hours

• Briefing and discussion: 1 hour

• Writing time: 10 hours

• Amends and proof reading: 2 hours = 15 hours

• Contingency: 10% 1.5 hours

Cost = $1650

WHAT IS YOUR MINIMUM PROJECT FEE?

WILL YOU CHARGE THE SAME RATE FOR ALL?

ADD 25% (ESPECIALLY IF YOU’RE NOT CRAZY ABOUT DOING THE JOB)



HOW TO CHARGEHOW YOU DISPLAY COSTS DEPENDS ON YOUR LEVEL OF CONFIDENCE

THE PRE SELL• Option 1: Prices on your website

– Pros: Gets rid of tyre kickers; price is not an issue

– Cons: Can scare off clients, too general, no room to move

• Option 2: Rate card– Pros: Engagement required

– Cons: Too general, no room to move

• Option 3: Ballpark– Pros: Gets rid of tyre kickers

– Pros: Gives you more time for better clients

– Cons: Phone calls win clients

• Option 4: Fixed cost quote– Pros: Can be more profitable

– Cons: If it takes longer, you have to wear it

AVOID ABSOLUTE TRANSPARENCY

POWERFUL PACKAGES• Clients have no idea what copywriters charge. Packages help them

understand.

• You don’t have to package everything, just one type of work

• Base your packages on

- What you enjoy doing



- What you’re good at

- Common enquiries

- What will help you reach your income goal quickly

• Detail inclusions

• Limit number

• Include information about overrun

• Can you partner with someone else (Social Media)?

• Blogs are not a great place to start, if you commoditise your blogs you

won’t be able to compete.

PREPARING YOUR PROPOSAL• By project, works best

• Fixed price up front with proposal outlining inclusions

• Amends / Calls / Proofing / Pages / Words on pages / Concepts /

Options

• Proposal is EVERYTHING (Buy ours here)

• 50% deposit up front

• 50% final payment 14 days after final draft – make the final payment

depending on something you do not something the client does.

OTHER CONSIDERATIONS• Changes in scope

• Additional amends / Late delivery of amends

• Project cancellation – by you or the client

• Meeting no shows

• Payment terms – standard 7 – 14 days

• Rush fees – standard 25%


http://www.copywritingschool.com.au/shop/copywriter-starter-pack/


• PayPal fees

• Get some solid Terms and Conditions

ADDING VALUE• Boilerplate copy

• Proofreading

• Extra pages

• Templates

• Extra discussion time

• Additional services what other skills do you have that you could add

on? (Basecamp)

IF YOUR QUOTE GETS REJECTED EVERY TIME,LOWER YOUR RATES

IF YOUR QUOTE GETS ACCEPTED EVERY TIME,INCREASE YOUR RATES

IF YOUR QUOTE GETS ACCEPTED 50% OF THE TIME YOUR PRICING PROBABLY ABOUT RIGHT

HANDLING REJECTION• Don’t reduce prices, reduce scope

• Split job into chunks

• Do a trail job

• Be honest

• Don’t chop and change

• Don’t be greedy


http://www.copywritingschool.com.au/shop/copywriter-project-terms-and-conditions/


IT’S A LITTLE MORE THAN I HAD BUDGETED FOR BUT…

RETAINERS• Set amount of money for a set amount of work / hours

• Discounted from your standard rates (10%)

• Charged, and paid, up front

• Limited hours carried over (2 per month, limit one month)

• Not worth doing for less than $500

• Pro: Regular income

• Con: Discounted rates, not very profitable

• All set out in our Retainer Agreement

TIME BLOCKS• Set monthly amount for ad hoc work

• Use Toggl to track time

• Record time after each job / call

• Good for clients with lots of itty bitty jobs

CONTRAS / FREEBIES• Contras

– No tax issues

– Never work out / differences in expectation

• Free– Hard to charge after offering to work for free

– Good for portfolio

• Mates’ rates– Show full price


https://www.toggl.com/

http://www.copywritingschool.com.au/shop/copywriting-retainer-agreement/


DISCOUNTS• Good

– Grouping services

– Return customers

• Bad– Time of year

– Desperation

CLIENT TRICKS• “Do this job free of charge and I’ll give you more work.”

• “Write the copy free of charge and I’ll give you a cut of the profits later

down the track.”

• “Write this copy for a reduced rate and I’ll give you lots of exposure.”



GETTING PAIDUNDERSTANDING CASH FLOW

• Regular income makes life less stressful

• Also makes you more confident in your approach to quoting

• A mix of big jobs and little jobs

• Regular invoicing – when the bill is due, not once a week.

• Retainers

HOW CLIENTS PAY• Solopreneurs: 1 – 7 days

• Small businesses: 7 – 30 days

• Start ups: 7 – 30 days

• Large corporates: 30 – 60 days

• Agencies: 30 – 60 days

BE PROFESSIONAL• Use an accounting software package (Xero)

• Produce clean, easy to understand invoices

• Give clients multiple ways to pay

• Set payment terms

• Enforce payment terms

INVOICE TEMPLATE• Include logo

• Business name

• ABN

• Full contact details, email address and phone number



• Invoice number / reference

• Project cost

• GST

• Full bank details

• Option to pay by PayPal

PAYMENTS WITH PAYPAL• Useful for those with credit cards

• 2.5% fee + 30cents

• Split the fee with client

HAVE A CLEAR PROCESS• Charge a 50% deposit

• Don’t start until you have a deposit

• Explain your process

• Repeatedly tell client when they will be charged

• Follow up promptly (two emails, call)

• Charge late fees

• Find a ‘debt enforcement agency’

MAKE THE FINAL INVOICE DEPENDENT ON YOU. NOT THE CLIENT.



HOW TO EARN MORETRACKING TIME

• Use Toggl to track time

• Use Freedom to block out social media!

THE EASIEST WAY TO INCREASE YOUR INCOME IS TO INCREASE YOUR BLILABLE TIME.

HOW LONG SHOULD IT TAKE• Use Toggl to track time

• One page = 400 words

• 1- 2 hours per page

• What’s easier to write?

• What do you enjoy writing?

• Good days and bad days?

• Admin / proofing / faffing

• Typing! Earn $2000 an hour as a copywriter

UNDERSTANDING ACCOUNTS• Income versus expenses:

• How much is it costing you to earn your money?

• Most valuable clients: • Which types of clients make you most?

• Which particular clients earn you most?

• Lifetime value of a client• Repeat business costs less

• Keep these clients sweet

• Cost of advertising


http://www.copywritingschool.com.au/how-to-make-2000-an-hour-as-a-copywriter/




• This includes social media and blog post writing

• Return on investment

INCREASING PRICES• Don’t chop and change

• Give your prices a chance to work

• Tie price raise in with an event

• Prove your awesomeness

• Do not ask permission or apologise

• Expect to lose 20% of clients

CREATING PASSIVE INCOME• Sub contracting

– Pro: 30-40% mark up for jobs

– Cons: Lots of admin / need a good writer

• Referrals– Pro: 10-20% for doing very little

– Cons: Need a steady flow of work

• Products– Pro: Hopefully regular income

– Cons: Lots of work

WHAT NEXT?1. Decide your rate2. Complete your rate card3. Create a standard proposal4. Set your Terms and Conditions5. Experiment with packages6. BE CONFIDENT


€¦ · web vieweven as an established writer, every estimate can feel like a gamble: too much and...

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