Freelance recruiters typically charge anywhere from 15 to 25 percent of a starting salary. More difficult positions result in higher fees. Ensure recruiters maximize candidate salaries.
Why so High?
Most recruiter work does not result in filled positions and fees. Charging high fees for successful placements makes up for this.
Headhunters vs. Recruiters
Headhunters find candidates and provide information to companies. Recruiters manage the entire hiring process.
Recruiter fees vary based on expertise required, role complexity, industry, and region. Additional fees may apply for advertising, interviews, assessments.
Freelance recruiters only get paid if a candidate is hired. ZipRecruiter data shows freelance recruiter salaries ranging from $42,000 to $64,500 annually, with top earners averaging $85,000.
Benefits of freelance recruiting include setting your own hours, choosing clients and projects, better work-life balance, location flexibility. Technical recruiters place talent in fields requiring specific skill sets like law, medicine, engineering.
How to Set Your Rates
Your pricing strategy is a delicate balance that requires understanding your value, target clients, and the larger competitive market. Follow these tips, and there’s every chance you can get substantially more money while still doing the same number of hours.
To set competitive freelance rates, you need to understand the market and what other freelancers with similar skills and experience are charging.
Determine Your Rate
To determine a fair freelance rate for your skill-set and expertise, you should research the average rates other freelance marketers charge. Steps to Set Your Freelance Rates:
- Calculate your expenses, including operational costs, monthly expenses, and taxes.
- Set your desired net income based on your qualifications and experience.
- Determine your working hours to calculate the minimum acceptable rate (MAR) you need to charge per hour or project.
Calculating Expenses
- Start with making a comprehensive list of all your private and professional costs.
- Your freelance rates should be higher than the rate you expect from a regular 9-5 job.
Calculate Expenses
: List all your personal and business expenses to determine your minimum rate needs. Account for items like utilities, insurance, marketing costs.
Estimate Billable Hours
: Track how long projects take you. Establish rate baselines based on your expertise.
Factor In Non-Billable Time
: Charge enough to cover vacations, sick days, etc.
Use Market Data
: Research standard rates in your industry for those with similar skills and experience.
Consider Value Provided
: Can justify above-average rates if you offer unique skills or deliver significant value. Demonstrate this through case studies.
Have a Pricing Formula
: Take your target annual salary + 30% buffer. Divide by estimated annual billable days.
Price Sustainably
: Choose rates that cover costs, allow you to invest in growth, and withstand seasonal dips in projects.
Get Client Feedback
: If prospects balk at prices, probe why. Are rates misaligned with value delivered? Or is more education needed on why your expertise commands those fees?
Revisit Rates Annually
: Regularly reassess pricing and increase rates gradually over time.