Rates: think green zone, yellow zone, red zone

Let’s look some more at the “How much should I charge?” question, since it’s such a source of stress and speculation for most freelancers. You might also be interested in these previous posts–What is the right rate for your translation services, and How and why to raise your translation rates.

If you want, you can have an absolutely 100% set price for your translation services. My accountant (who I love), charges $220 an hour, end of story. Phone calls more than 5 minutes and lengthy e-mails are billable, end of story. That tactic could work for translators too. But whereas accounting work is relatively predictable, we’re always balancing factors like the subject matter, the turnaround time, the format of the source document, the high or low maintenance-ness of the client, the appeal of the project in general, and so on. So instead of having a set rate per hour or per word, here’s another option: think zones.

The green zone is a rate at which you would almost never turn down work, as long as the project is within your capabilities. It’s your ideal rate, and ideally, you’re always trying to push it a little higher. Note: the green zone is a good place for your clients to be, because it means you’ll bend over backward for them (worth subtly pointing out to them, too!).

The yellow zone is a rate that’s not ideal, but that’s worth taking a look at. This might be a rate that you consider when work has been a little slow, or if a project is particularly interesting, or when there’s some non-economic reason to consider the project. For example, when I translate books, it’s yellow zone work. It’s interesting, it’s nice to be off the daily deadline treadmill, but it’s at the low end of what is viable for me financially.

The red zone is work that you turn down because it’s too low-paying. Point being: to have a viable business, you have to have a red zone. If you are continually making exceptions to your absolute, I-don’t-go-below-this-number rate, just for this one project and then you’ll really never work for that little again…you will never have a viable business. So whether your red zone is 9, 20 or 40 cents per word, just make sure that you have one.

I find that this zone approach really helps me; having an “I don’t turn on the computer for less than…” rate helps me feel that this is a policy, rather than a case by case decision. Over time, I also find that I’m more attracted to billing direct clients by the hour; they understand where the number is coming from (which, with per-project pricing, they might not), but I also get paid for everything I end up doing (which, with per-word pricing, I might not). But that’s material for another post…any thoughts out there on pricing zones?

22 Responses to “Rates: think green zone, yellow zone, red zone”
  1. ciclistatraduttore March 14, 2014
    • Corinne McKay March 14, 2014
  2. Alejandra Franks March 14, 2014
    • Corinne McKay March 17, 2014
  3. alchymie2013 March 15, 2014
    • Corinne McKay March 17, 2014
      • alchymie2013 March 20, 2014
    • Corinne McKay March 17, 2014
  4. Oliver Lawrence March 17, 2014
  5. Delfina March 17, 2014
    • christinedurban March 17, 2014
      • Delfina March 17, 2014
      • Corinne McKay March 17, 2014
  6. Elaine Stone March 19, 2014
  7. Kathy Paredes March 20, 2014
  8. lukegos April 11, 2014
  9. Richard April 29, 2014

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