Status: I'm new around here
Join date: Feb 2009
Location: Oxfordshire
Expertise:
Software:
Posts: 3
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I have to agree that the rate (GBP30/CAD47) does seem quite high at first, specially when you compare it to what you would be earning as an employee. The thing to remember though is that this rate takes all your overheads into account :- Office Rent (or part of costs to rent your home)
- Electricity
- Cost of hardware/software
- Phone bills, etc
If you were running a company and employing others, you would need to be able to pay all of your overheads as well as your employees' salaries and other benefits (health insurance, etc) from the business. This all needs to be taken into account in the charge rate.
If you didn't include your own salary in the rate, it would be just like working for a company who paid your rent, utilities, etc but didn't pay you any money.
You could of course opt to re-invest a good part of the salary you take back into the business.
Hope you're enjoying the book. You might also want to grab a copy of "Go Freelance [PDF Link]" from Freelance Advisor. It's next on my reading list. 
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