#jobs

$38/hr in San Jose??? With those part time hours you wouldn't even make $1k a month pre-taxes.

Too low for 5+ years experience! Regardless of location!!!!

Absolutely. I got the same message and was like NOPE!

Agree - so very low.

Here is the 2022 Customer Marketing Alliance salary report. Some good insights into compensation. The average hourly rate in the USA is $64.The report segments by region as well for finer detail if interested.

Thanks all. I said nope too, but as the months tick by with my search I’ve wondered how much I need to knock off of my expectations. @Chuck Quigley I think some companies are definitely still in line with the report findings, but many, many, many are looked to pay 25% less or more. At least that’s my guess. Lots of companies seem to think they can fill roles for $75-95. @Lauren Higbee the role is remote….but still, goodness!

Agree and if a contract role, benefits are excluded. Contract roles historically paid a bit more than a salary role given that contract roles don't come with benefits.

Contract roles should 100% still be paying a higher hourly wage to compensate for the lack of additional "compensation" (normally in the form of benefits and pension, etc.). Respected organizations who work with contractors and contingent workers are still observing this practice. If you're looking at roles and not seeing a comparative compensation, it should be a massive 🚩. It's often a way to entice foreign workers and take advantage of folks not necessarily understanding the job marketing and/or how contracting works. If anyone is curious to learn more, please just let me know. I'm a full-time contractor and speak with companies hiring contractors all the time. Would be happy to share my experience and what I've learned to look for.

@Chuck Quigley where in the report were you finding that $64 rate? I skimmed it really fast and may have missed it. @Alexie Glover is spot on.

Roughly if my target FTE role would pay $125,000, that’s about $60/hr then add ~ 33% for benefits and risk of being independent.

And FYI--they already came back and offered $42 on W2. ROFLMAO.

I sent him the CMA report. Maybe I shouldn’t have (after the above response).

Hey @Jennifer Lyons I used the North America average of $133k. Divided by 52 weeks and then divided by 40 hours. Many other factors to consider this hourly rate. The $133k is a national average spanning locations, levels and industries.

@Chuck Quigley that’s what I figured, but it’s not a good estimate for a contract rate, which should be higher. Would love to understand @Alexie Glover’s mark-up process :)

Pricing is one of the trickiest things 😅 however, a lot of people price themselves out of contract work because they don’t take time to think about it carefully—especially those who are new to contracting or thinking about it temporarily.

The best place to start is with resources such as the salary report. I also recommend researching salary rates for FTE positions where you live (this is a piece that is often overlooked). For example, those based in California or New York City can charge more than those based in Salt Lake City or Denver. (Not to mention that you should look into tax and employment laws where you live before you start to make sure the path is right for you!) Experience also plays a significant role in how you should price yourself. Less than 5 years experience tend to range between $50-$80/hr while more than 5 tends to fall between $90-$150/hr. Important to keep in mind that where you are based might make these ranges either too high or too low for you.

What is the length of time on the contract that you are bidding on, but also … how fast do you work? Contracting is about efficiency. If you really take your time and “go deep” when working on things, you may need to think about lowering your prices/increasing your time commitment on contracts. You have to be able to see both big picture AND the details and know if and where one matters more than the other. Conversely, rates can also vary based on the length of the contract—with longer term contracts at a slightly reduced rate (depends on the contractor and preference, but job security DOES mean something).

You also have to consider the cost of: taxes, benefits, pension, technology, insurance (most big brands require insurance!), the cost of utilities/rent, etc.

We also haven’t even got into the way currency factors into the conversation. Are you US-based but working with a client in a different currency? You have to take exchange rates into consideration. For example, I’m based in Canada and my rates are in USD but can be slightly lower than what someone based in the US would charge because right now the exchange rate is in my favour (meaning USD is higher than CAD) … but this can also change, so in some ways it’s a bit of a gamble.

With all of that said, pricing is a very personal, nebulous topic. Most people don’t talk about it. Particularly women (which only serves to further disadvantage us in the hunt for wage parity). You might look at my ranges and say “that’s way to low/high”—and you might be right! This is what I’ve seen as the standard most recently. But when pitching yourself and your services, a lot of it can be gut feeling as well. Sometimes it’s worth pricing per project at a flat fee to get in the door, for example, or you might base your rates off your most recent role and come up with a number that doesn’t align with the suggested factors here, but you feel confident about it.

One major piece of advice: be wary of pricing yourself out of roles. This is one of the biggest mistakes I see folks make who are exploring contracting as a hold over. Sometimes, the role isn’t a fit and it makes sense to price yourself out (such as the above), but it’s also important to remember that a few dollars project-to-project might not be worth fighting over if it means ingratiating yourself to the client/company.

Also important to understand: being an excellent employee and having great experience/references/skills does not mean you will make a great contractor. Depending on the postings, contracting can actually look nothing like an FTE, and a lot of people don’t realize that! Some clients will look at folks who don’t have any contracting experience and want to see that reflected in the rates.

The cost/rate of contractors who work through agencies is also a completely different story 😅

Hope that helps!