The idea of getting paid for every word you write can be exhilarating. When I first started freelancing, I would pull up my calculator after practically each paragraph and type in the word count x the rate. Seeing money rolling in like magic was like a drug.
But while watching your keystrokes turn into dollars is fun, pay-per-word isn’t always the most effective way to set your rates.
In fact, you could do yourself a disservice. If your writing includes tasks like interviewing, extensive research, or SEO work, charging for each word you write ignores the extra time you’re spending. Sure, you can simply increase your per-word rate to make up for it. However, many clients’ eyes go wide when your rate is suddenly double what they’re used to.
So, how can you make sure you’re compensated for the time you spend?
Change your pricing model.
Here are a few creative ways I’ve used (or seen other writers use) when per-word rates simply aren’t cutting it.
Why Hourly Rates Suck
Before we get to the good stuff, a quick note on why simply switching to an hourly rate isn’t the solution. Though hourly rates are common in basically every field, they aren’t friendly to freelancers.
Picture this: You’ve been writing for a while and are good at what you do. You can crank out a 500-word article in 20 minutes. Your hourly rate is $50/hr.
Would you rather make roughly $17 for that piece? Or would you rather make $100 with a flat rate? $50 with a $0.10/word rate?
By limiting yourself to an hourly rate—even one as high as $100/hr—you’re limiting yourself to pocket change by being efficient.
Efficient writers shouldn’t be punished. If you’re turning out high-quality work, it shouldn’t matter whether you take 20 minutes or three hours.
I’ve advised many freelancers against using an hourly rate for this exact reason. Personally, I haven’t used one since the start of my career. I even turn down clients when they only want to work hourly—because my time is too valuable to be punished for efficiency.
In truth, all the client cares about is getting the final deliverable—a great article—at a fair price.
Best Ways to Set Freelance Writing Rates
Remember, not all projects are equal. No one pricing structure is a good fit for every project. Keep yourself flexible and don’t be afraid to think on your toes.
With all the above in mind, here are some of my preferred ways to price my work.
Monthly Retainer
If I could choose one method of charging clients, it would be the monthly retainer. Not only does this cover the problems caused by hourly and per-word rates, but it also lets you know exactly how much money you’ll be bringing in each month.
In the freelance world, unpredictable cash flow can be brutal, especially around the holidays and during the summer when business might slow down.
Having clients on a monthly retainer means you a) know how much you’re making, and b) have at least a one-month lead time if something happens and you lose that client.
Both factors let you operate much more freely and focus on writing.
There are a few ways you can set up a monthly retainer. First, it’s crucial to get in sync regarding the final deliverables. You should have a written document signed by both you and your client that outlines this.
Be specific. Don’t use generic terms like “blog articles.” Instead, say 4x 1000-word blog articles. Outlining the scope of your work protects both you and your client and prevents confusion.
From there, it’s up to you to put a valuation on the amount of work in that scope. I typically have a set rate in mind for articles of different lengths and intensities (research, interviews, etc.). If the retainer only includes articles, I just add those numbers up.
However, you can also add a pseudo-hourly rate for other work that will need to be done. For instance, if your client wants SEO keyword research, you can define a set limit in the scope document, then choose your rate for that time and add it to the amount you’d charge for just the writing. All the client sees is one flat monthly price, but you know exactly how the number breaks down for the work you’ll do.
Having a retainer in place is one of the simplest ways to manage your freelance clients once you get it set up. One bill at the end (or beginning) of the month, and you’re done. I can’t recommend it enough if your client is on board.
Flat Rate
I just mentioned that I usually have a rate in mind for certain types of content. Figuring out what you want to charge for, say a 1,500-word blog article vs. a 5,000-word B2B white paper, is up to you.
Setting a flat rate per project works well if your client’s content need isn’t steady enough for a retainer. By saying “I will deliver X to you, and you will pay me $X for it,” you free yourself from needing to worry about efficiency.
You can create that content as quickly as possible or take your time and still get paid the same.
If you use this approach, be sure to adjust your rates periodically. I typically evaluate my pricing at the start of summer, and inform clients about changes in October (this is when most businesses are completing their budgets for the following year and are most agreeable to price hikes).
Per Word Plus Bonus
If you’re working with a long-term client, you can take your partnership beyond a simple payment. This tends to work better for copywriters than content writers (but I’ve used it to turn a nifty profit on a sales-y white paper before).
Essentially, you set up a per-word rate for a piece of content. Typically, this rate will be a bit lower than the per-word rate you’d usually charge.
However, you then include a “bonus” stipulation in your contract that awards you if the content you write helps the client achieve a defined milestone after publishing.
Example: You write a series of three 250-word emails for a client’s landing page sequence. You charge a rate of $0.10/word. Then, if the email sequence achieves an open rate of 60% or higher, you get a bonus of $50.
Example: You write landing page copy for a client’s online course. You charge $0.25/word for 1,500 words of content. For each person who buys the course from the landing page, you get 1% of the revenue.
Example: You write a 1,000-word blog article with SEO optimization. You charge $250 for the piece. If that article generates more than X views in the first X months after it’s published, you get a $100 bonus.
A few caveats…
1. This structure works best with clients you have a long-term relationship with and trust. A bad client could simply lie about the content not hitting a milestone so you don’t get your bonus. If you think this might be an issue, stick to another pricing model.
2. This approach can be attractive to clients with a limited budget. You can work with them for a slightly lower rate. Then, if they succeed (and are making money) you get to claim your share and ultimately end up making more than you would have at a higher starting rate. Everyone wins.
3. You believe your client’s marketing funnel is well built. Even the best-written article can’t get views if your client’s website is trash. You could write a stellar email sequence and get 10% opens if their list is full of bots. If you agree to this style of contract, be sure your client is doing the work on their end, so the content you create has the best chance of succeeding.
Bonus: Pay What It’s Worth
This one will probably have industry vets clenching their teeth. If you’re familiar with open-source software, you might know about this approach.
Instead of charging your client a set rate, you say, “I’ll do this for you for free. When we’re done, you can pay me what you think it’s worth.”
Now, if you’re an experienced freelancer with a good portfolio and track record, you probably shouldn’t do this. (Unless you want to offer your services to a local non-profit as a charitable service and are okay with getting nothing in return).
However, this tactic can benefit new freelancers just hoping to get their foot in the door. Sometimes, a glowing testimonial or a referral from a happy client can be worth more than any per-word or hourly rate.
By using this approach, you guarantee yourself two things:
- You’re adding a piece to your portfolio
- You’re getting valuable practice and improving your skills
If you deliver a brilliant piece of content, your client will almost always reward it. Sometimes, you could even walk away with more than what you would have asked for in the first place.
Again, try this approach at your own risk. It certainly isn’t for the faint of heart.
Conclusion
When putting a price on your writing, there are several paths you can take. You aren’t wrong for choosing an hourly rate or a per-word rate. However, there’s a chance you’re missing out on revenue by using those models.
If you want to maximize your payments, try getting creative with your pricing structures. With some planning, you’ll come up with a better solution.