Your day rate as a graphic designer: How to price your freelance projects
Date
Jul 16, 2024
Establishing the right freelance graphic design rates is a very important process that you need to take seriously. However, it’s something that many designers struggle with.
There are potential pitfalls and difficulties associated with freelancing, of course, but none as difficult as making the decision on what rates to charge clients. How you approach projects, develop relationships with clients and ultimately earn a decent living are all connected to your approach to pricing.
Many of our Shillington graduates have gone on to become very successful freelancers. So, with our experience we want to help you with your freelancing career and accurately set your graphic design prices.
What day rate should I have as a freelance graphic designer?
Graphic design, like any freelancing gig, has its unique quirks. Client expectations can fluctuate wildly, as can the quality of the work. Some clients will gladly fork out $600 for work that took an hour of your time, while others will try to haggle with you over how much time the project should take. There is also the fear of pricing yourself out of the market. In other words, you don’t want to be so expensive that only clients with large budgets can afford to work with you. Simply put, there will be a lean season and those smaller clients will be necessary.
So, aspiring freelancers, how do you get this pricing thing right? How do you balance being compensated for your time with being compensated for the value of your work? Here’s how:
Know your worth as a graphic designer (so clients know your worth)
In the beginning, it can be hard to determine what to charge. If you are just starting out you probably don’t have an impressive portfolio to show to clients as proof of your bona fides. And honestly, clients can be wary of first-timers. For this reason, many new freelancers undercut themselves in the beginning stages. They need to attract clients and people are more likely to take a gamble on a newbie if the price is right.
In fact, some entrepreneurs even seek out new freelancers for this very reason. They know that they need to build their clientele list so they expect them to offer more satisfying prices for a similar quality of work as more expensive freelancers.
Looking at what other designers charge in your area will give you a good idea on what your starting rate should be and how you can inflate your prices accordingly as you gain more experience and build your client base.
But also keep in mind that your education investment and the type of software you’re using should also impact your rates. Don’t let clients pay you less because they know how quickly you were able to create a profound design for their brand. Instead, they’re paying you for your ability to effectively design what they’re looking for. It took Paula Scher five minutes to design the Citibank logo, which has now become known as the “1.5 million-dollar napkin” story. It’s not the time it takes, but the impact it makes to the client.
Freelance graphic design rates
If you’re feeling overwhelmed with where to start with pricing yourself as a freelancer, here is a little bit more information on what the average hourly rates are in a few locations based on experience level.
New York (from Creative Circle):
- Junior: $30-$35/hour
- Mid: $45-$55/hour
- Senior: $60-$80+/hour
Australia (from iknowho):
- Junior: $25-$35/hour
- Mid: $45-$55/hour
- Senior: $65-$90+/hour
UK (from Major Players):
- Junior: £150-£200/day
- Mid: £250-£275/day
- Senior: £300-£400/day
Tips for setting your own graphic design prices
There are a number of other tools out there to help you with pricing. Indeed, Glassdoor and Payscale are sites that help you compare average salaries according to job description and location. There are even sites designed specifically for designers, such as Bonsai who’s rate calculator (which you can try out here) allows you to select your specific skill set, years of experience and location to see the range of what others are charging.
Don’t think you’re limited to a certain rate. Over time, you will know what pricing you can use for the quality of work you offer to clients. But as you continue to become an expert in your field, you may have to start defending your expertise to prospective clients. High hourly rates may be met with some pushback, but this is what your progression as a freelancer has prepared you for—backing up your expertise and proving to clients why it’s in their best interests to pay for quality with an experienced designer.
Why it’s important to get your day rate and pricing right
It should go without saying that the purpose of working is, at the end of the day, to make enough money to pay your bills and live a comfortable (if not fabulous) life. As a freelancer, you have more financial concerns than people who work a regular job.
While you are free to choose when, where and with whom you work, you are also solely responsible for your taxes, retirement and healthcare costs. This means that when you are deciding how much you need to earn to live comfortably, you must add all of these expenses to your bottom line.
A cursory look at freelance graphic design rates will show you a wide variety of prices. Some designers will happily design book covers for less than fifty dollars while others charge thousands for the same work. This reflects not only the differences in the designer’s approach to pricing but also the difference in their economic realities and business strategy.
For some people, several small clients who come back regularly are the root of their business. Larger, more expensive projects are harder to come by and can be more sporadic in nature. Others focus on larger clients who want more high-value projects.
Also, keep in mind that certain kinds of jobs are considered more valuable than others and not all design is paid equally. So, be realistic about the type of design you are doing and charge accordingly.
The objective should be to have a good quality of life and a decent work-life balance. It can be tempting to become a workaholic, picking up whatever gig is available and working long hours, especially if you enjoy your work. But a smarter approach will allow you time to enjoy a social life, take a few classes to enhance your skills and be more creative in other ways.
Hourly rate vs project-based pay – What’s best as a freelancer?
As mentioned before, there is nothing wrong with setting graphic design hourly rates for some types of work. If you’re finding your clients through some of the established freelance markets like Upwork, you will notice that more designers have an hourly rate quote. Some designers charge as little as fifteen dollars an hour and others charge hundreds. The average is around USD $45 an hour for graphic designers. Consider this hourly rate as labour costs for a plumbing job. This is what the client is paying you for the time you spend working. Don’t be afraid to be explicit about what is included in that base rate. Think of it as a basic package. For additional items, you will be charging a premium.
Your graphic design hourly rates are negotiable
You aren’t locked into them until you officially sign the contract and you don’t have to use the same rates for every job. Graphic design hourly rates are a useful tool when working through online platforms or when you are moonlighting while you finish your training. However, most freelancers will tell you it’s better to charge per project rather than by the hour.
Using graphic design hourly rates as a base for your calculations may not be useful in calculating a quote. When charging for the project you need to put yourself in the client’s shoes. They are looking for a product that will be valuable to them in the long run. For them, this is an investment.
Whether you’re designing a logo or an interface for an app, the use and value that they will get out of it will far exceed the amount of money they will spend to have you design it. A website that took you only a few hours to build can generate hundreds of thousands of dollars for them annually. Your graphic design pricing should reflect that value.
In this case, your knowledge of graphic design pricing is essential. There are plenty of clients who will try to get the most out of you for pennies on the dollar. One way to mitigate this problem is to ask them in the beginning what the budget for the project is. Then you can tell them what kind of service they can expect for that price. If they are looking for extra services it will cost a little more. Freelancers don’t have the benefit of an agency to negotiate for them so you must equip yourself to get paid fairly for the value of the work you do.
Another element in graphic design pricing is experience. Are you an expert? Are you an expert at some types of work and a complete amateur when it comes to others? People will pay for expertise. Your graphic design rates should increase as you become more experienced (for some more information on value-based pricing, check out this YouTube video). Again, since you aren’t limited in the types of jobs you take, you may find that you have multiple sets of graphic design rates.
Staying relevant
This may seem like an odd place to mention acquiring new skills, but it is a deciding factor when determining your graphic design pricing. Take advantage of our fast-paced graphic design course and online resources to learn new skills or advance the ones you already have. With the right combination of skills and creativity, even a person with no graphic design background can begin a graphic design career.https://www.upwork.com/hire/landing/
This will keep your work fresh and relevant. As a result, freelance graphic design rates don’t have to be significantly lower than those charged by design firms. Clients care more about results than qualifications and they are happy to pay top dollar for top quality work, regardless of who completes it.
Common mistakes when deciding graphic design prices
Graphic design rates can vary widely, often according to the geographic location of the designer. When you enter the freelance market your competition is global and that pressure can cause some unforced errors when it comes to freelance graphic design pricing.
Don’t undercharge to stay competitive
The most common mistake is charging too little in order to stay competitive.
Freelance graphic design rates vary around the world and designers from several countries might be bidding for the same jobs. But that doesn’t mean you need to lower your rate to stay competitive. Factors like ease of communication, time zone differences, quality of work and experience all matter to the client. Most will happily pay a bit more for a professional, friendly designer who treats them like they are the only client they have. Don’t feel bad about asking for more money. You have to eat too!
Add ten percent for savings and between fifteen and twenty percent for taxes. Often, freelancers forget one or the other when making quotes or setting rates and wonder why they struggle financially when they work regularly.
Research what other designers charge
Another mistake freelancers make is not talking to other freelancers. You don’t have to show your tax returns, but it’s completely acceptable to ask others about how they set their freelance graphic design rates or how much they charge for a particular project. Just like in the corporate world, the more we know about how we are being paid, the better able we are to make decisions about our careers. Freelance graphic design pricing isn’t an exact science and there isn’t an established pecking order, but being armed with an idea of who is charging what will help you map out a plan for your career.
Look for good clients
It’s important that you look for good clients. Who are these good clients? The ones that value your work and treat you well. Many freelancers chase projects, focusing on getting the work done and earning money. Getting paid is essential, but it’s better to have a great client who you work with regularly and who respects your work rather than dedicating yourself to a larger project with a client that raises red flags. This can be done by making sure your freelance graphic design rates are reasonable enough to attract the right kind of client.
While this is not always the case, it has been noted that many clients who are shopping for cheap design work tend to be harder to work with. And often a client who’s prepared to invest in a project is looking for a better relationship with the designer.
Pay attention to the numbers
Countless graphic designers have struggled as they build careers because they were only keeping track of how much money they were making and not paying attention to other numbers. For example, where do most of your clients come from? Where are they located geographically? When do you have your highest influx of inquiries? How many bids for projects do you win? How many projects do you bid for? What’s your busiest time of year?
Taking a closer look at these insights can help you avoid issues in the future and might give you a clue as to some strategic changes that may need to be made. Pricing mistakes aren’t the only ones that can cost you. A poor strategy can leave lots of money on the table in unclaimed opportunities.
What are the future career prospects for graphic design freelancers?
This is a great time to be a graphic designer. More and more companies are discovering that design and branding are an essential part of the engine that drives sales.
The internet has connected us all, allowing both designers and potential clients to find each other in ways that would have been impossible 30 years ago. In this frenzied digital age where workers are increasingly afraid of being automated out of their jobs, the human creative element remains an irreplaceable resource. Graphic designers are in the perfect position to take advantage of this.
Freelancers demanding to be paid what their work is worth not only helps other freelancers, but it also helps people buying design understand what good design is worth. The more people feel empowered to take responsibility for their own financial future, the more equitable the markets of the future will be.