The highs and lows of editorial fees (or how not to trip up during rate talk)

One of the things new entrants to the field of editorial freelancing want to know is: What’s a good rate? ​Here's how to work out what's a good or bad fee for the job.

Terms like good, high, fair, low, poor and predatory are problematic because they’re used by individual freelancers to reflect their own experiences and circumstances, which are often very different.

Rate talk can trip us up if we're not careful.

​And while it can be interesting to listen to colleagues’ opinions of whether a fee is low or high, their views might not be in any way useful for us because we need to make decisions based on our circumstances, not someone else’s.

One of the first potential trip-ups occurs when the conversation takes place between colleagues from different countries. This issue is one of currency, particularly fluctuations in the exchange rate.

Proofreader A lives in Oxnard, CA, USA. She tells her colleagues in an online forum that she’s accepted an offer from an agency to proofread 4,000 words for US$25.

​The job is budgeted to take one hour. Some of her US colleagues say that the rate is unacceptably low; some even believe that she’s encouraging a race to the bottom by accepting such a fee from an organization whose rates are clearly unfair.

Meanwhile, Proofreader B, who lives in Manchester, UK, is reading the forum thread.

• It’s January 2017 and the exchange rate is 1 GBP = 1.22735 USD, which means that US$25 converts to £20.36.
• Roll back to early 2016, some months before the UK’s referendum on membership of the European Union. The exchange rate is 1 GBP = 1.468570 USD, which means that US$25 converts to £17.02.
• Let’s roll back one year earlier to 2015. The exchange rate is 1 GBP = 1.532750 USD, which means that US$25 converts to £16.31.
• Now let’s imagine instead we’re in January 2018. The pound has collapsed beyond even the worst expectations: 1 GBP = 0.8 USD, which means that US$25 converts to £31.25.

Proofreader B needs to earn a minimum of £20 an hour to meet her needs.

• If it’s January 2017, she thinks the agency’s rate is okay, but she already has enough clients filling her schedule who are paying that fee so she doesn’t feel compelled to jump through the hoops to get on board.
• If it’s January 2015 or 2016, she thinks the agency’s rate looks low because she has enough clients filling her schedule who’re paying a fee of a little over £20 per hour. The agency work therefore holds no appeal for her and she dismisses any thoughts of working with them.
• If it’s 2018, she’s already working out how she’ll word her email to the agency before she’s finished reading the thread. She thinks it’s a fantastic opportunity! £31.25 per hour? Nice!

Conversations that include blanket terms such as high and low therefore don’t help Proofreader B. Because the exchange rate fluctuates, so do her perceptions of whether a price is good or bad.

It’s not just currency fluctuations that affect our perceptions of good, high, fair, low, poor and predatory in relation to editorial rates. Circumstances muddy the waters too.

Proofreader C lives in Belfast, Northern Ireland. She tells her colleagues in an online forum that she’s accepted an offer from an agency to proofread 4,000 words for £16.

The job is budgeted to take one hour. Some of her colleagues say that the rate is unacceptably low; some even believe that she’s encouraging a race to the bottom by accepting such a fee from an organization whose rates are clearly unfair.

Meanwhile, Proofreader D, who lives just down the road from C, is reading the forum thread.

• She’s been working for a local supermarket, earning the UK’s legal national minimum wage of £7.50 per hour for people over 25 years of age. She lives at home with her parents so she’s able to survive on this.
• When not working, she’s used her spare time to take an intensive distance-learning proofreading course. She’s passed with distinction. Now she needs to find clients, acquire practical experience, build her portfolio, get some glowing testimonials – all valuable stuff that she’ll be able to sell on later to even better-paying clients.
• From her perspective, every hour she spends working for that agency she’ll be earning 113% more than if she was working in the supermarket. To her, the rate looks high.
• The agency is worth getting in contact with because it will offer her the opportunity to acquire some of that value-adding stuff mentioned above. She appreciates that it might not be a viable solution in the longer term, but her marketing is currently non-existent, which means her visibility to potential clients is non-existent. The agency will ameliorate the problem while she attends to making herself discoverable.

Proofreader E lives to the west in Strabane.

• She’s been professionally proofreading for eight years so her business is mature. She’s a marketing monster. Her website is highly visible on Google. She’s a member of the SfEP, EPANI and AFEPI, and advertises in their directories. Her portfolio’s stunning, her testimonials glowing. Anyone visiting those directories or her website will be in no doubt that she’s an experienced professional who can solve their problems.
• Her business has grown from strength to strength. She remembers what it was like to be in D’s shoes, but that’s not where she is any longer. These days, all her academic and business clients contact her direct or via her professional society directories. She no longer works for agencies, packagers or publishers, though she gladly took work from them in the early days of her business’s growth. Now, though, her own marketing strategy brings clients directly to her.
• Her average hourly rate is £32 and this supplements her partner’s income. The partner annually brings in 40% more than her, so her contribution means they have a comfortable lifestyle.
• From her perspective, every hour she spends working for that agency she’ll be earning 50% less than her current average. To her, the rate looks low.
• The agency is not worth a glance because she doesn’t need the client-acquisition value that it offers Proofreader D, and she can earn more from the large pot of clients who regularly get in contact and ask her to quote.

Proofreader F lives next door to E. 

• She’s in the same boat as E except her partner was made redundant four months ago.
• The agency’s £16 won’t cut it. Proofreader E’s £32 won’t cut it. She needs £115.
• From her perspective, anything under £115 per hour is low because that’s what she requires to avoid moving to a smaller apartment, cancelling the pet insurance, junking the gym membership, throwing her Sky box into the trash, and selling the BMW. If things don't get better soon, she might have to give the pet away, or maybe the partner. She hasn't decided which yet, but the partner's food bills are higher! Seriously, though, if she's prepared to make some changes to her lifestyle, she can tweak her minimum hourly requirement accordingly.

So, conversations that include blanket terms such as high and low don’t help Proofreaders D, E and F either because although they’re all operating within the same geographical region and the same currency market, their circumstances are all very different.

Deciding what rate works for you
If you want to work out whether Agency X, Publisher Y or Packager Z’s rates are acceptable, you need to know what good, high, fair, low, poor and predatory mean to you based on your situation – not anyone else’s. The same thing applies to deciding what price to set with clients who come directly to you.

Consider the following:

• What’s the current exchange rate (if you’re dealing with a client from another country)?
• How fast can you proofread straightforward, middling and complex files? Are there efficiencies you can introduce to speed up the process? If you proofread straightforward work at 3,000 words per hour, a 6,000-word file with a fee attached to it of £30 will earn you £15 per hour. If you proofread straightforward work at 6,000 words per hour, a 6,000-word file with a fee attached to it of £30 will earn you £30 per hour.
• What are your outgoings? (Knowing this will help you calculate the minimum you need to earn to live.) If you are regularly offered a whopping £300 an hour, but your outgoings mean you need to earn £350 an hour, that fee is still too low for you (though most of your colleagues will be chomping at the bit for it!).
• How many hours do you have available for work? If you need to earn £600 per week, and you have 25 hours available, you’ll need to earn at least £24 per hour. If you only have 10 hours available, you’ll need to earn at least £60 per hour. Even if you have 50 hours available (meaning you could drop your minimum hourly rate to £12 per hour), could you sustain it? Only you know the answer to that.
• Are you in a position to source, or be found by, alternative clients who will pay you higher fees than those on offer by the agency, publisher or packager?
• If you are, is the volume of work on offer enough to ensure that your gross earnings from this work replace the income you would have earned from the agency, publisher or packager?
• Even if you have some lower-paying clients, do you have other better-paying clients who can offset the lower fees? I have some clients who pay premium rates for my services but the volume of work doesn’t fill my schedule. I could, however, choose to accept some work that pays less than my minimum requirements because the higher-paying clients’ fees would offset the deficit, rendering my average hourly rate one that’s still profitable for my business.

​That data – as it applies to you, not your colleagues – will give you a useful initial benchmark with which to evaluate whether a fee is low or high.

Your colleagues’ opinions are interesting but your colleagues are not responsible for running your business or your home, so their opinions should not be used to determine whether you accept or decline work at a given price.

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While I don’t believe that colleagues should be the sole determiners of the fees we accept or offer, I do think they’re the go-to people for many, many more types of information. See this post on the value of networking – both online and offline.

Louise Harnby is a line editor, copyeditor and proofreader who specializes in working with crime, mystery, suspense and thriller writers.

She is an Advanced Professional Member of the Chartered Institute of Editing and Proofreading (CIEP), a member of ACES, a Partner Member of The Alliance of Independent Authors (ALLi), and co-hosts The Editing Podcast.

Visit her business website at Louise Harnby | Fiction Editor & Proofreader, say hello on Twitter at @LouiseHarnby, connect via Facebook and LinkedIn, and check out her books and courses.