This month’s business-intensive slew of articles has come to one of the most fraught topics in freelancing: pricing. To get new and established editors a broad perspective on the issue, I surveyed Utah Freelance Editors about their pricing practices.
This survey received 27 responses but has much more divided results than the ones about finding work and nurturing client relationships. There are many viable strategies for pricing, and most independent editors adjust their strategies over time. This article outlines some of the most common strategies and some of the reasons why you might choose them. It also provides some tips on how to choose your pricing.
This article will not tell you what you should charge as an editor. There are too many factors, and I wouldn’t want to rob you of the (terrifying and anxiety-inducing) joy of determining your own destiny. That’s part of the fun of freelancing!
This article covers a lot of material. You can skip to the sections about types of pricing, how editors share their pricing with clients, what factors influence pricing, and UFE members ’ best pricing advice.
By the Hour, Word, or Page?
Editors usually sell their services in one of a few pricing models: by the hour, by the word, by the page, or a custom project-based price that combines several factors. Here are the models UFE respondents use.
One thing the survey revealed was that 40 percent of editors currently use more than one pricing model. Some editors use different pricing models for different services. Coaching, for example, is more often a per-hour or custom package service while copyediting and proofreading are more amenable to per-word rates.
So why do editors choose one model over another? Each model has its pros and cons, and every editor selects the set they feel most comfortable with.
Hourly Rates
Hourly rates are very popular. Charging by the hour means you get paid for every moment your butt is in the chair and your hands are on the keyboard, which can be very reassuring. But it’s not always the simplest model.
PROS: Some of the respondents highlighted their reasons for using hourly rates. One said, “The speed at which I can edit varies widely based on the project.” Hourly rates make sure they get paid for all their time and effort! Another mentioned how they use hourly rates for certain projects: “For technical projects I charge by the hour as the editing for them may also require research and verification time.” Because the amount of research and verification can vary significantly (and it’s hard to judge before diving into the project), the hourly rate protects the editor’s valuable time and makes sure the pricing reflects the time spent.
Hourly rates are excellent at ensuring an editor is compensated for their time, even (and especially) when a project surprises you.
CONS: One of an hourly rate’s greatest strengths is its greatest weakness. Eanna Webb said she doesn’t use hourly rates “because I cannot guarantee the same speed every hour.” Sometimes we might be more concerned with charging clients for an outcome rather than for our effort. This may sound like a trap to get editors to work more hours for less money, but it also works the other way around. As an editor gets better at their job, they get faster, which means they get paid less for the same end result. You can raise an hourly rate to reflect this, but a too-high rate for an editor’s time can turn a client off in a way a flat per-word rate for an outcome will not. (This happens even when the end price of a project ends up being the same either way.)
Hourly rates usually prompt clients to ask for a time estimate, which can introduce another step to signing a client. Clients usually don’t know how to estimate the time you’ll spend on a project, and most editors prefer to see a sample of a project before estimating the hours as well. For some editors, this additional step creates too much back-and-forth before signing the client. The hassle isn’t worth the protection.
Per-Word & Per-Page Rates
For this article, I lump per-word and per-page rates together. Both usually simplify to the same price because per-page rates require clients to standardize their typeface, font size, margins, and spacing to create standard manuscript pages (which averages out the word count per page). Charging by the word means everyone knows exactly what a project will cost from the beginning. Editors usually have different rates for different types of editing. They’ll average out their rate for both easier and harder projects to determine their per-word rate.
PROS: Per-word rates’ biggest strength is how they streamline onboarding a new client and invoicing for projects. As one respondent said, “A flat rate is simpler for me to manage, and clients like to know what they’re getting into up front.” Others mentioned that per-word rates make it easier for clients to budget appropriately and lets potential clients determine whether or not they can afford an editor’s services before contacting the editor. Kelsy Thompson said she likes the model’s “transparency for the client.”
Per-word rates also absolve editors of the need to track their time. (So if you’re frequently interrupted by young children or a strong desire to snack, this model might be for you.)
CONS: The biggest downside to per-word rates is the way they oversimplify editing complexity. Not every 50,000-word book takes the same amount of time to copyedit. Maybe one author struggles a lot with punctuation and spelling while another does not. The first author’s book will take a lot longer to edit! At worst, a per-word rate doesn’t account for this variability. At best, a per-word rate averages out the costs so writers with cleaner and simpler projects subsidize those with more complex issues.
Sometimes the per-word rate ends up being too low to account for all the work put into a project. Per-word rates rarely account for time spent on the phone or emailing with clients, so clients who need a lot of interaction underpay for their editor’s time.
Custom Project-Based Rates
Project-based rates have a flat fee, like per-word and per-page rates, but editors who use this model usually gather more information about a project and provide a project rate without explaining how they arrived at it. This is a particularly effective outcome-based pricing model. Clients get to look at the final price and what they receive for it and make a clear decision about value.
PROS: Project rates are highly customizable. One respondent mentioned that they begin their project rates with a per-word rate and then add other fees—like “rush fees, add-ons, adjustments for things in a really poor state”—as necessary. (They can also include unadvertised discounts for a project being particularly fun!) A custom project rate accounts for the truth one respondent mentioned: “No two projects are alike.” Project-based rates also absolve editors of tracking their time and allow them to scale up their pricing easily as they gain experience and expertise.
Although I don’t use custom project rates for editing, I do use them for book design, where I find the flexibility extremely useful in accounting for the different variables in each project.
CONS: The biggest hurdles for custom project-based rates are the time they take to provide and the lack of initial transparency for clients. When each project’s price is customized, editors have to evaluate and assess each project to calculate an appropriate rate, then submit it for a potential client’s approval. This adds several steps before a client signs on with an editor. The custom pricing also means clients can’t estimate pricing themselves, so they may deal with more sticker shock at the final price (and you may get more requests from clients who can’t afford your rates).
Public Rates or Private Rates?
Editing is often a personal, bespoke service, and editors disagree on whether or not the rates for such a service should be posted publicly. Our UFE survey respondents created quite an evenly split pie chart on the issue.
One respondent noted that they post their new-client rates publicly but have a discounted rate for returning clients that they don’t openly advertise.
The Main Arguments
Some of the respondents also mentioned switching from publicly posted rates to providing custom rates after a sample; others have switched in the other direction during their careers. The arguments for and against publicly visible pricing vary, but they boil down to two main camps:
- Public rates let clients make decisions and set expectations before they contact you.
- Editing projects are so variable that tying yourself to a publicly available rate makes it difficult to create accurate pricing.
Both camps have valid perspectives, and they also have their pros and cons. Public rates (even ranges) make it difficult to adjust for intangibles (for example, if a certain client seems to want a lot more one-on-one interaction). But unposted rates make it difficult for clients to self-select for your services, and some will choose a more transparent service provider unless you’ve thoroughly convinced them of your services’ value.
Choosing Your Path
Pick the set of pros and cons you’re most comfortable with. Then set a deadline to evaluate how effective the strategy is (a month, a financial quarter, or a year away). Are you getting a lot of requests from clients who can’t afford you? Maybe you should post more of your rates publicly. Are you getting a lot of clients who need intangibles that aren’t included in your public rates? Maybe you should shift to a model that lets you customize more.
What Factors Determine Your Pricing?
Many new editors come to me and just want me to tell them what they should charge. And I understand the impulse! Choosing your own pricing is a thorny task with many variables. But nobody can understand the entirety of your situation, and all freelance editors regularly reevaluate their rates to find what works for them. Here are some of the strategies UFE editors use to determine their pricing (and a percentage of respondents who use each one).
Variable & Experimental Rates (19 percent)
Around 19 respondents to the survey are currently experimenting with their rates. Although this statistic doesn’t provide a lot of advice for editors who are setting their rates, it can provide peace of mind. Experimenting with what works for you and in your niche is a normal part of the process! This doesn’t mean you’re running your business wrong. It means you’re just like the rest of us.
Working Backward from Earning Goals (19 percent)
While 19 percent are in full experimentation mode, another 19 percent are in full calculation mode: they work backward from their earning goals to determine their hourly or per-word rates.
To use this strategy, first determine how much you want to earn in a month or year. Then determine how many hours you have available to work. (Be sure to account for vacation, sick days, and administrative hours as necessary.) Then simply divide your earning goal by your available work hours and you have your hourly rate!
This strategy is deceptively simple. It can be extremely difficult to determine exactly how much cash flow you need to cover business expenses, health insurance, and nonbillable hours. You’ll likely need to run the calculation a few times, especially when you’re starting out.
Industry Medians (70 percent)
At least 70 percent of UFE respondents use publicly posted medians and averages for editing rates when they choose their own rates. The Editorial Freelancers Association’s median rates chart is especially popular. These charts can be good metrics for determining if your rates are especially high or especially low. They shouldn’t be the final word on what you charge—you should take into account your cost of living, your niche, and other factors. But they’re especially helpful when you want to know how you compare to others in the industry or when you need a starting rate to begin experimenting with.
Your Niche’s Norms (30 percent)
Each niche has its quirks. Some niches are more difficult or in higher demand, and some editors provide more bespoke services than others. Around 30 percent of UFE respondents research other editors in their niche to help them determine their own pricing. Checking in with colleagues in your field can help you modify industrywide medians like the EFA chart to better target your ideal clients.
Your Ideal Clients’ Ability to Pay (33 percent)
About a third of UFE respondents adjust their pricing based on their ideal clients’ ability to pay. If your ideal clients are CEOs of major companies who write business advice books, they’ll likely be able (and willing) to pay far higher rates than short-story writers. Similarly, a top-notch semiconductor manufacturer can afford higher editing prices than a small literary journal. Adjusting your rates based on your ideal clients can help them know you understand their needs and budget.
Minimum Hourly Rates (15 percent)
Around 15 percent of UFE respondents use some variation on a minimum hourly rate to determine their pricing. A minimum hourly rate is the rate you require to spend your time editing rather than anything else you could be doing. Some freelancers use their pay at their full-time job to determine their minimum hourly rate (adjusted to account for self-employment taxes). One respondent said, “If you have a full-time job … charge at or above what you would make doing overtime for that job.” Others simply decide what rate would make it worth their time.
Some minimum-hourly-raters use that as their hourly rate. Others will use that hourly rate to calculate per-word rates or will adjust the rate to account for nonbillable time. As one respondent noted, “We don’t tend to work 40 hours per week on just paid projects (there’s admin and networking and continuing education and marketing too—and we can’t bill for most of that).” Spread the cost of nonbillable time onto your billable hours.
Adjusting for Experience or Training (67 percent)
Two-thirds of UFE respondents adjust their pricing over time to account for their increased experience or training. The pricing you begin with is not the pricing you have to keep forever, and you should regularly evaluate your rates and model to see what can be adjusted to make your business work better for you and your clients. Personally, I evaluate my pricing every January. Sometimes I decide to leave it as is, sometimes I raise my rates, sometimes I change how I charge for certain services, but I always, always spend time thinking about it at the beginning of each new year.
What’s Your Best Pricing Advice?
At the end of the pricing survey, I asked UFE members for their best pricing advice—and they delivered! I can’t include all the advice here, but most of the advice covered similar themes.
One respondent started out by saying, “Consider that you are not getting benefits [e.g., health insurance, paid time off, etc.], so a normal hourly rate for an employed editor will not be enough for you.” Freelance editors also pay self-employment taxes. The base hourly rate for an independent editor should always be higher than an employee editor in a similar niche and with similar training.
Another respondent mentioned a common escalating strategy: “Start [your pricing] low as you gain experience, then over time adjust your rates to the industry standard as you learn more about editing.” However, as Eanna Webb advised, “Don’t undercharge too much. The cheaper you start out, the longer the climb.” Other respondents echoed her advice:
- “If you’re a professional, you’re a professional. Charge what you’re worth.”
- “It’s okay to offer discounts, but make sure clients know it is a one-time discount for X reason, not your regular rate. … Don’t discount your services just to drum up business because you’re starting out.”
- “Start low but don’t undervalue yourself.”
- “Don’t underestimate the worth of your abilities. And try not to be guilted into accepting a lower rate than you deserve, because you have valuable skills.”
One respondent had some advice about doing work for free when you’re building your skills: “Don’t get in a hurry—nurture your relationships with writers and do a lot of volunteer and pro bono work to get experience and exposure (make it clear that there are boundaries to your largesse).” For editors who have never had formal training or employment in the field, volunteer and pro bono work can be a good option to build your abilities. But do it thoughtfully, with a clear purpose and even clearer boundaries. (Steer especially clear of people who want to use your skills for free so they can turn a profit.) Editors who already have solid skills or good credibility often won’t find as much value in this route.
No one can tell you exactly what you should charge (though many will have an opinion). One of my favorite pieces of advice from the respondents was this: “Charge what you want to make and don’t compare yourself to other editors. There will always be someone who charges less and someone who charges more.”
Your situation, skills, and niche are unique, and your pricing can and will reflect that. Be confident in your choices, and remain open to adapting as your business changes.
Kristy S. Gilbert is a book editor and designer specializing in science fiction and fantasy for her company, Looseleaf Editorial & Production. In 2021, she was named the first-ever Editor of the Year for the League of Utah Writers and Utah Freelance Editors. Outside of all things bookish, she enjoys cooking, kayaking, and krav maga.