Now I bill around $800 per day, but I only work about 6 super-focused hours, and I use the Pomodoro method every day. My clients are happy because I get a lot of work done, and I'm happy because I have to work less.
This is just doing general PHP dev work (Codeigniter and Laravel frameworks), and if I specialized, and if I focused on the ecommerce or finance industry I could probably make more. Most my clients are in the Rocky Mountain West, and so far I have more work than I can finish.
So if you want to increase your earning potential you should:
1. Specialize and master a niche.
2. Network like your business depends on it.
3. Give free seminars and teach everywhere you go.
4. Label yourself as a consultant.
5. Don't be just a programmer. Work with businesses and fix their problems.
6. Know your worth, and don't be afraid to charge what you're worth.
7. Anchor your costs against how much value you'll make your clients.
8. Keep raising your rates until you can't get any work.
9. Work half as much as you used to.
10. And finally, spend time on things that matter like family, learning, and having fun.
Or you can keep competing against bottom-barrel programmers on upwork, and spend the rest of your life working for peanuts. Totally up to you.On a side note I actually offer billing by the half day, but price a half day at more than half a full day. This is intended to encourage clients to batch up work rather than feed it to me in dribs.
And you are right. A day rate starts to shift the focus on the outcomes of the project, and less on how much it costs.
It's not uncommon that web agencies in Germany only charge 70 euro/hour, so I would like to hear what's necessary to charge something like 100-150 euro/hour - seems like those rates are only possible in the US or doing specialized things like SAP consulting. It's difficult to compare those US numbers because the german system seems to be very different wrt salaries - 60-70k is considered good even for experienced developers, while it seems that those numbers are absolutely sub-par for US developers.
Would love to hear some tips on how to acquire new clients (especially in non-tech industries) and how to find interesting business problems to solve.
My strategy would be to reach out to local companies, analyze their businesses and build solutions that save them time and money (very similar to business consulting except doing software engineering) and getting inspiration for SaaS businesses. Would like to hear your opinion about this way.
Regarding the question: 100-150€/h is not too unusual in the enterprise world. However it's more like what is paid to consulting/contracting companies than to freelancers. A lot of bigger companies that I know try to avoid freelancers nowadays and want to give contracts to bigger companies instead (e.g. for legal reasons).
My experience is also that high rates are mostly paid for some kind of generic or management consulting (not really technical) or if the contractor has a really great reputation at the company. For generic SW development your 70€ figure seems closer to the truth. For technical stuff the highest rates I have seen were for security related consulting and development.
Embedded, especially small footprint (32kb ram and that kind of thing) is an easy one.
Enterprise senior dev pays more than that as well if you are good. I ran gigs in Munchen for 150/hr and German friends of mine still do.
However 60k is that salary and is that gross or net? Think you are comparing apples and oranges; in the Netherlands, and Germany does not seem very different in that respect, if you get 60k salary, the company is actually paying more than 120k for you. So if you convert that to freelancing, you should be charging at least that 120k (which is less than 70/hr).
Source: Have you ever read of someone making 200K+ in EU ? Me neither.
I didn't write about knowing anyone personally, just about reading on the web. Your message is the first one that I've seen.
Since you have a .nl domain, I'm a little surprised about it. (was excepting something like London/SW).
I'm a seasoned node.js developer (since 0.1.30) and I'm specialized on the "realtime" web, (e.g. chat, push notifications, events synchronization ) and scalable architectures. For everyone interested, feel free to reach me out at pibi046(.at.)gmail(.dot.)com.
I suggest also getting out there more. Blogging works but you have to market your posts, and it's more long term. Teaching for notable learning platforms works, as well as helping to write public courses.
Anyway, the key lesson is to get out there and meet people. Then as you talk about what you do, and if you are good, you'll find work.
Blog for personal fulfillment not monetary gain.
* do not call or email me weekly for years on end telling me how great your programming is. i don't care - i have too much on my plate already.
* do not join slack channels and pm each person individually telling them you want to start work on their php project.
these two things have turned me off of almost all developers who are not in my immediate area, but especially ones outside my country. please do not harass me. I've had more than a dozen folks - probably nice and well meaning - join our local developer groups and then email everyone in the group individually asking for work. I've had several more that would ping me every time I opened skype with "hello mr mike - we are ready to take on your next php project". Holy tamole... just stop.
What works? I've done a couple of small projects testing out non-us folks. These were either word-of-mouth referrals, or I'd found someone y their blog when searching for something niche. Keep a good clean blog, have a portfolio, build a network of folks who may read your blog or see your portfolio who may recommend your services. It's pretty straightfoward. Do not pester/harass me or my friends. It's the fastest way for me to block you.
I receive too many random emails too. Absolutely annoying. A few weeks ago I received one that begin "Hello, I recently spent some time doing a site review of your website. (Yes, I do random site reviews for a living.)"
Wanting to call the bluff and wondering which website they claimed to have reviewed I replied "You don't say! What website are you speaking of?"
Their reply: "Thanks for your response. Actually i do email marketing so i usually send emails in bulk. I got your email id from domain directory, so i send you too. If you have any kind of requirement regarding Web Development or Digital Marketing please let me know. I will be happy to assist you.
Look forward to work for you!"
I knew it! My response: "Oh. So you didn't review my site."
Their response: "Thanks for your prompt response. I just reviewed your website, which is {real web site address}[1] and it seems that your website is in under process."
Do they also think I really believe their name is Steven Moore too? I wouldn't trust this person or company to ever do work for me...
[1] The site address was really there (not a template holder).
LOL. I agree, a lot of people engage in spamming others like that in India. A lot of people do just this (sending unwanted messages to "leads" on Skype , email, slack, whatever) as their day job to make a living.
You can filter by location, type of work, and experience: https://www.hellobonsai.com/rates
Edit: I should read further down the page :). If you would like to add more insight still that would be great.
Thanks for posting this.
I know this is on the higher end, but it is definitely possible to find clients that can afford this higher price point. I routinely took work from clients that had hired a cheaper team and weren't satisfied with the final product, needed someone to fix numerous bugs, or to optimize the performance of their technology.
Also, if you are interested in this higher price point, you need to be ready to truly partner with your client and help them solve problems, vs just writing code. This means embedding yourself in their team as much as possible (which can be done remotely; I always worked remote) and understanding the actual problems they had, rather than just building what they asked for.
On top of that, you'll need to own your solution all the way through. If your client doesn't see you as a lot of overhead, and you can act autonomously, then they'll be even more satisfied with your work and rates.
I charge half rate to startups in top accelerators, like YC, that haven't closed an A round yet. The idea is to build relationships with future customers that have lots of growth potential - but who can't afford $120/hour.
dan"at"closetothemetal.com
I made more when I was working full-time though.
So you have a performance specialization AND do full-stack web development. How do you position yourself in the market place?
For example, most of my work is also fullstack web-development, but I also know how to build highly-available systems with Erlang/Elixir, but I'm not sure how to squeeze the latter into the messaging.
Imagine having a toothpick, saw, wine opener, knife, and other various tools. Now put them all into the very first Swiss Army Knife and try explaining that to someone. Who are you going to explain it to? A carpenter who needs full size professional tools won't need that, but maybe a soldier in the Swiss Army looking for handy tools to cart around in the field would!
Figuring out who needs your services is the first challenge. Maybe high availability systems and full stack web development intersects where people need a front end that ties into a reliable backend (querying a database, visualizing a system, real time analysys, etc.) That's your target customer.
Does your target customer have a name for full stack plus high availability already? To make something up, let's call it Full StackOps. Sell them your Full StackOps wizardry. If target customer has a different name for Full StackOps, you'll have to try to figure out how to tailor your message per customer. If there's no name, try making one up!
Or just generate referral for yourself, so anytime customers need a Full StackOps-like person, their first thought is to call you.
Know your customer, and market the portion of your skills that's most relevant to them.
I would go so far as to have two separate blogs/websites if you're going to market skills as disparate as mine.
Haven't spent enough time marketing, or really just don't know how to go about it. Living in small-town midwest it seems hard to make contacts. Everyone I've talked to wants to offer like $5000 flat fee for a week of work they need done (and we all know "a week of work" always turns into a month). Nothing long-term and nothing very profitable, so I've turned everything down.
In all likelihood I'll be back on the job market soon.
I have been doing consulting for a while and as an advice, I would take the efficiency to be at most 50% so in OP's case would not accept less than $115/hour to quit my $120k job.
Haven't spent enough time looking for new work, and whenever I get a new client it seems like my primary client suddenly has a big deluge of work that I don't want to forfeit.
There were other "life" considerations as well, but I thought the financial would be better than it is.
After reading patio11: 200 < x < 500
Then again, I don't only do software consulting, I ship (or fix, or optimize) solutions on time to help my clients make way more than I cost them.
He wants others to be successful in their efforts, and gives lots of good info on how to do just that.
I earn £12 an hour for my contract work, which I'm quite happy with at the moment because 10 hours a week means I get an extra £500 per month (which is considerable at my age, it pays my rent and bills and some).
I know it doesn't seem much, but I think I'm actually quite lucky to be able to get a gig at my age with my experience.
I hope this motivates you to ask for more.
Last month, I got paid pretty good money for a React+Redux project.
Mail me at mail+efl@vivekgupta.com
I'm currently free for 20-30 hours a week and looking for more work.
And if you are good, (which it sounds like you are), the only reason why you can't charge more is in your head. So charge more. Stop acting like some first-year freelancer and start charging what you are worth.
And if you want to invest in yourself, I wrote a course that you could take and it has a whole module on finding more clients. Don't feel pressured to spend any money, but I think it's pretty solid, and you can check it out here: http://freelance-college.teachable.com/p/freelance-college-w...
At the very least I have some lessons that you can preview in full for free (just scroll to the bottom).
Also busy with GPS webapplications on asp.Net mvc (embedded device who track trucks and the refrigerator °), WordPress sites, NodeJS ( MVP's),,..
I have a Cordova app before I go to clients, currently landing on too much work because of it ( it's a great conversation starter and builds trust). Will up hourly rates soon, but have a lot of work the next months ( mostly creating webshops for clients). I also work full-time.
My webshop currently lands me 500€/ month without marketing, it's something totally different than full-stack development.
I also did something with Pokemon Go to learn how Facebook worked. https://news.ycombinator.com/item?id=12858993 i had the #2 fb page in Belgium. We did events to earn some money with it, it's the #1 rated comment ;)
Currently notified all me clients that i will probably have some delay, but nothing was planned for this month. I do put longer hours currently then i want for now, just to make sure everything will land on time... ( 16 hours per day at the moment, hope soon everything will be back to normal)
Also use a lot of jenkins and automation tools, i hate manual labor. My collegues use 4 tools i wrote for myselve every day. It just takes off a hell of time of lookup up usernames, passwords, phone numbers, logging hours, ... I guess you only need to use it in a "ux friendly" enough way, but just don't sink too much time creating it ;)
I had a month delay on my projects because of it. The situation will improve soon in a month or 2. I also have a stressfull job fulltime ( team leader + .Net architect), but i can handle it. My dad had a more stressfull job then what i have, so i don't mind this. At least i'm able to take a break when i can. I just want it all finished on time.
Fyi, he was a veterinarian and sometimes worked 32 hours on a row. He's on his pension now ( works a lot less). I'm happier that i can choose my own hours and spend time with friends when i want.
If I learned anything working for myself the past decade, it's that you're never finished. You need to set aside time for yourself and others today, and every day.
This is in addition to my full-time gig.
Assuming I'm booked eight months of the year, that's $38,400.
I could make more if I wasn't going through the agency, but for now, I don't have a name or connections, and I don't have the time to market myself.
So I figure do the agency thing first, build a name, then start soliciting direct clients. Then eventually ditch the full-time gig.
Honestly just stumbling through this.
I'm in Toronto looking for agency work as well. It's been a while since I've done some.
I am deeply embedded inside the small company I consult for, it is extremely nice because people trust me, are not in my way and are just looking for results.
Really happy, however since I don't only bring coding experience but also business acume I would definitely increase my rate to 150 €/hr .
People come to me with problems, I make sure they actually have that problem, I listen to the solution they propose, I actually make my own proposal about what should be done considering both business and technologies, we talk a bit, more problem or constraints arise, we tweak a bit whichever proposal is better and then I go ahead and I implement it.
Time spend talking between 10 and 30 minutes, client have its solution about ready the day after. We are both happy.
My focus is building solutions to business problems. I don't look at it as software but solutions. When you approach it that way people are more receptive to what you have to say.
I don't reveal amount earned but can't complain. I bill monthly, weekly or per project and it works. Forget hourly. Either way, Im raising my rates for 2017. Best of luck.
But no clients so far except for some friends who have promised to pay in the future if their startup gets successful or gets funded :)
I have tried the usual freelance sites but no one really bids on me. The reason is that I am from India and don't have much to show in terms of projects/experience - my previous company had a very strict non disclosure policy, and haven't worked on anything open source yet, don't have a blog, etc.
I am not very serious though and more focussed on a project/"startup" of my own but still looking for pocket money of 20-40$ a day to sustain myself without having to do a job. I am trying at fiverr now. Somehow I just haven't cracked the money nut yet.
When I started out here in Australia I asked for very little, comparatively, and got an equivalent amount of work. It wasn't until I asked for more than I thought I was worth that people actually started hiring me.
I like to keep myself occupied for 6 hours on long term projects and keep 2-3 hours for short term projects. It helps me maintain my diversification across clients.
I am a bit of tech nerd and offer discounts for exciting ideas based projects, specially for startup. I think such projects are win-win for me as tech nerd and client as low cost delivery.
Feel free to reach me out at naveensky(.at.)gmail(.dot.)com. I always keep looking for new exciting projects :)
I'm working a full time gig now and haven't taken on any additional work in ages, but depending on contract length I would start at $170 and up.
As I've seen posted here and elsewhere if you're experienced and charge less than yearly salary/2080 * 3 you are giving money back.
(My wife worked as a buyer at one of the national labs and had to purchase contractors, should used to have to tell them what to ask for because more often than not it would be too low for her to quote them out.)
I used to work a bit in Upwork (I am doing complex SPA in React/Redux, though I can do it in other stacks as well), and charged 35–50$ (depend on a project).
Also, my question is, how you raise the bar? Like, I know I can double my rates and offer "solution" rather just code, but how you find such contracts (people tend to not trust you there), and how do you present yourself?
How did you swing that/who do you write for?
I have written an article for Sitepoint and have a couple in-progress pitches with them and someone else, but I am not really motivated about it because the per hour rate, after all the back-and-forth and work, ends up being like 20 bucks or less.
As you allude to though, the back-and-forth does dilute the rate quite a bit. But it's still fun as hell.
I'm currently free for about 20-30 hours per week, looking for more work.
Feel free to contact me: kovrik0 at gmail.com