With a brand new year comes a wealth of new possibilities for your business, and you may be planning to hire an extra pair of hands to help you achieve your goals in 2024.
Hiring a freelancer is an increasingly popular solution for ecommerce businesses of all sizes, as they can tackle specific projects to free up your team’s time in house.
But before selecting a freelancer and signing on the dotted line, it’s crucial to understand the cost implications and benefits of outsourcing work. In this blog post, we’ll explore the factors that contribute to the cost of hiring a freelancer so you can get an idea of what you can get for your money.
Understanding the freelancer economy
The gig economy has witnessed tremendous growth in recent years, providing businesses with access to a vast pool of talented professionals. Freelancers bring specific skills to the table without the long-term commitment and overhead costs associated with hiring full-time employees. This flexibility can be a game-changer, especially for small and medium-sized enterprises (SMEs) looking to scale without significant financial risk.
Factors that influence freelancer costs:
Skill level and expertise:
Highly skilled freelancers often command higher rates to their specific expertise. You should thoroughly assess your project requirements and budget constraints to determine the appropriate skill level needed.
Project complexity and scope:
Complex projects or those with extensive scope naturally require more time and resources, and may freelancers charge by the hour or by the day. The more of their time you need, the more they’ll charge. Clearly define your goals and expectations to receive accurate quotes from freelancers.
Market demand:
Skill sets that are particularly in demand may come at a premium as freelancers capitalise on their level of expertise. Be sure to research market rates for specific skills to understand the average price range.
Freelancer reputation and portfolio:
It should come as no surprise that established freelancers with a strong track record will generally charge higher rates. Reviewing portfolios and client testimonials can help gauge a freelancer’s capabilities.
Timeframe for completion:
Urgent projects often incur higher costs as freelancers prioritise quick turnaround times, and may move other projects around in order to fit yours in (if they agree to take it on in the first place). We’d strongly recommend planning your project timeline carefully to allow for enough time for both completion and any amends you may require once your project is sent to you for review. This not only alleviates stress but also maximises your budget.
The benefits of hiring a freelancer
We recently explained the benefits of hiring a freelancer in our previous post, but if we take a look at cost/budgeting specifically, the key perk of working with a contractor is that you only have one cost to consider. They charge you for the work carried out, and you pay them. It’s as simple as that. Freelancers will generally charge in one of three ways:
- By the hour
- By the day
- By project
Whichever pricing model your chosen freelancer opts for, they should present you with the total cost upfront, before any work is carried out or any contracts signed so you can decide if the price works with your budget.
Let’s talk numbers
When it comes to the cost of hiring a freelancer, it’s difficult to give a set number as every freelancer is different and may charge different prices according to the factors laid out above, but also just due to their own individual circumstances. Full-time freelancers need to factor in things like holiday pay, pension contributions etc into their prices, as they need to cover these things on their own.
According to the 2023 Freelancer Rates Report, the average day rate for a freelancer in the UK is £438. The average project length is 44 working days. However, average rates and project lengths vary across different disciplines, so it’s important to do your homework. And of course, while the national average is a good gauge, it doesn’t mean every freelancer you approach will charge this – they could charge a lot less or even more if they’re at the top of their field.
Is it cheaper to hire a freelancer?
On the surface, it may seem like hiring a freelancer is a very expensive business. And while great talent never comes cheap, it’s important to weigh up the benefits of having a freelancer on hand alongside the costs of hiring a full-time employee. With no annual salary, bonuses, National Insurance, pension contributions, paid time off, etc., hiring a freelancer can actually be a really cost-effective way to achieve your goals.
If you’re ready to get the ball rolling, fill out this form and we’ll find the perfect freelancer for your project.
