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Comment by zippergz | Hacker News Reader

I don't know where you're located, but $60/hr seems insanely low. Annualized as a full time job that's $125k/yr. not terrible, but quite a bit less than what a good developer can make as base salary at a tech company. But that tech company job comes with benefits, paid vacation, stability, and possibly equity and bonuses. Plus the freelance gigs are rarely actually full time (even if you have enough clients on a steady basis, you need some time to manage the business itself). I can't imagine going freelance if $60/hr was what I was able to bill...

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Location makes a big difference. I live in the Midwest and there aren't many $125K positions out here. But a 3 BR house in good shape in a decent neighborhood can be less than 100K.

Freelancing at $~60/hour * ~30 hours/week can work fine here. You can raise a family on it no problem. You're not going to retire early this way, but different strokes for different folks.

Exactly - my goal has been self improvement / preservation over the last few years, not wealth, and I've been achieving this goal:

1. brought my suicidal depression back down to regular occasional depression

2. brought stress levels down to manageable

3. learned / learning 3 new programming languages, 2 platforms and 2 game engines and developed skills in pixel art.

achieved this by making money a secondary priority and living a life of near seclusion in my apartment (do have a daughter here 2 weeks per month and live with my gf so i'm not completely secluded).

edit: i've only worked 6 months this year and spent the rest improving my game dev skills. I usually take on 3 month contracts and then break for 1 to 3 months before my next.

> I don't know where you're located, but $60/hr seems insanely low

Where are you located?

What's the median (not mean) cost of a detached family home, where you live?

In your situation, do you have to work 5 days a week, or do you work fewer?

Could you just decide on any given day that you don't feel like doing any work, and do something else, instead?

All relevant questions. SF and NY are not the only cities in the world with excellent software developers.

Country-specific. $60/hr for me well be great!.

^ which is probably also why i can't charge more than $60. How can you compete with poland / india / etc when they are able to charge less?

Based in the midwest. I agree that $60 per hour is low. If you know of anyone who will pay more, please send them my way :)

If you ever charged $250 an hour (even if that was the "I hate you go away" rate), then congrats, that's your new hourly rate. Everyone paying less is getting a screaming deal on the friends and family plan.

Try charging more for new clients, and walking your rate up each year for existing clients. In my experience this results in one awkward phone call/email exchange a year and approximately zero negative side effects.

This is how I brought my rate from $30 an hour to $90, also in the Midwest.

> that's your new hourly rate

I don't think this is the case. The client was volatile (random screaming and swearing at people in the office and me in my first and only meeting with him, plus a vague personal threat made against me if I were to "fuck him on the contract").

I knew what I was walking into and boosted my price accordingly. The only reason he went for it is due to having (or at least thinking he had) no other options. I worked fast and was extremely careful with my time. Everything went well, he paid me and I never heard from that company again.

> walking your rate up each year for existing clients

How do you get repeat business? It seems that my clients are happy with me after each project (no complaints and I typically get recommendations) however I haven't had any repeat business. I suspect this is due to working with very small startups with low budgets.

Try periodic emails to past clients - I hire quite a few contractors and I like it when they check in and am more likely to go for someone who has done something good and kept in touch periodically.

I absolutely agree. For freelance/contract work the price should be about double expected base salary.

First of all because agencies get away with charging that much so you're just undercutting yourself needlessly unless you join in.

But secondly because there are big costs; liability insurance and software licensing being some of them.

"First of all because agencies get away with charging that much"

Perhaps they deliver a different sort of value than an individual freelancer? Having a larger staff, having multiple people with different expertise, separate billing/financial folks, admin folks, etc. They provide a different set of services and customer experience - some people want/need that, some don't, but just because agency ABC is charing $200/hr doesn't mean every else can "get away with that" as well. Just being able to have 4 people work simultaneously on a project may be worth the increased pricing for some clients.

Liability insurance isn't that big a cost, and unless you're focused on some really niche industry, "software licensing" probably isn't that big a deal for an individual freelancer. I'd be surprised if even with multiple systems, those combined costs are more than a couple thousand per year (much less for most people I know).

Health insurance is going to be a far bigger expense than almost everything else put together for most folks.

Fair points, you're thinking on a different scale for me. The agencies I'm thinking of were little more than chop shops who hire and then resell. The only positive they could give you is if someone is sick they can back fill; but having seen it in action that's really just someone unfamiliar with the processes warming a seat for a few days and not doing much.

MSDN $2kpa. Liability $1kpa. I guess it's not "a lot" but if you're only doing a little work (as I was) it was a substantial portion of the profit gone; I spent more on hardware though.

It's all perspective. My hourly rate is in three figures, which, for a lot of people looking at me as an individual freelancer, seems high. But the local mid-sized agencies all charge in that range for someone with my skillset anyway. But... that's not how I justify my rate, which is what my original reply was about. And... there are some things I simply can't offer - I can't parallelize my efforts like a larger agency can, which may definitely be worth it for people trying to hit specific market deadlines.

I don't even do MSDN costs. :) But there are definitely some overheads - insurance, I have office space (coworking), services (bookkeeping, etc), transportation - conferences, etc. I may have, say, $12k in overhead each year - including health insurance. That cost is pretty much the same whether I bring in $15k or $150k, and certainly if you're bringing in $15k, those expenses are far higher % of income.

The problem is that I typically work for small startups that don't have a big budget to work with.

I'm also not sure what sort of data the people in this thread are working with. I can't make $125k per year in the midwest as a fulltime developer (unless I'm freelancing - and even then keeping steady contracts has been near impossible). In fact I'm not seeing those numbers anywhere outside of the west coast - I applied for a fulltime job in CO recently and they balked at $90k... said they couldn't go over $60k.

Edit: recently quoted a local client at $75 per hour... he looked visibly perturbed and never got back to me.

A few contracts back I quoted $80 per hour and was told max budget was $60/hour (which I had to accept out of desperation).

I hear a lot of talk on the internet (especially HN) about people making massive amounts of money as contractors, but I have yet to see this in action. On the other hand $10k per month isn't that bad.

...in a handful of markets.

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