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Hourly Pricing vs. Value-based Pricing for Illustrators & Creatives

Let's talk pricing! The subject that is at once eternally-dreaded, yet constantly-searched-for by illustrators and artists everywhere. It can be so tricky to understand how to price your illustration work, but understand the differences between hourly-based and value-based pricing is a key starting point! Formula for figuring out your hourly rate: A is the amount of money you need to make in a year: $_____ B is your expenses (supplies, utilities, equipment, marketing, software & apps, professional services like accounting, etc) $_____ Add A and B C is your profit margin which could be anywhere from 10% to 20% A+B x .10 (for 10%) or .20 (for 20%) A+B+C is the total amount you need to make in a year to cover your basic needs, your business expenses and your profit margin Now you need to figure out how many billable hours you’ll have in a year. Each year is 52 weeks, with 40 hours in a week. If you take a 2 week vacation, that leaves 50 weeks x 40 hours which is 2,000 hours. Then you also need to account for the fact that not all of your hours will be billable. Anywhere from 30%-50% of your hours in a given week can be taken up with things like admin, social media, housekeeping, etc. So let’s subtract 40% from 2000 which gives us 1200 billable hours. Then, to come to an hourly rate, we’ll divide A+B+C/1200, which gives us an hourly rate! Buy the Graphic Artists Guild Handbook for Pricing and Ethical Guidelines: https://amzn.to/2H6Xaqk Support me on Patreon:   / kendyllhillegas   Sign up for my newsletter!! http://www.kendyllhillegas.com/newsle... Take my latest Skillshare class: https://skl.sh/2wMAl4s Follow me! Website - https://www.kendyllhillegas.com Shop - https://www.kendyllhillegas.com/shop Tumblr -   / kendyllhillegas   Instagram -   / kendyllhillegas   Twitter -   / kendyllhillegas   Facebook -   / kendyllmadeit   Edited by the amazing Meg Potter -- THANK YOU, MEG!! Channel:    / megankate92   Website: www.megscreations.com Filmed with: Camera - Nikon D3300 (http://amzn.to/1Vogb8B) Lens - Nikon AF-S DX NIKKOR 35mm f/1.8G Lens (http://amzn.to/1p23UIM) Music: Mama’s Whisper - The 126ers