It's hard to believe that we're already on the 5th edition of RTR! I want to thank everyone who has served as a panel member so far (especially Chris Spooner and Jon Phillips who have contributed the most) and especially those who have been reading each week. We've seen a recent spike in RTR readership over the last few weeks thanks in part to great content, but also because of the recent poster contest we held. If you haven't seen the RTR posters yet, check it out (we just added some new high-def close-ups).

This week, we're asking the panel what they think of the hourly rate - do they like it, hate it, how do they determine it - that kind of stuff. As you will see, some panelists prefer the hourly rate while others prefer a per project fee. Either way, it all hinges on determining "what you're worth" as a freelance designer. We've got four different approaches/ideas presented below but we're looking for more - yours! Be sure to leave us a comment and tell us what you think.

Jon Phillips

Site: SpyreStudios

I think hourly rates are a bit overrated and I prefer per project fees but of course when you're fresh out of school you should try different things. Maybe the per project route will work for you, maybe it's the hourly rate that will work best. I think experience, style, location and turnaround time matter a lot when pricing a project. Of course charging $200 an hour when you're a freelancer fresh out of school may be a pushing it a little, but if you're extremely good at it maybe that's the right price. I know some 18 year olds that are way better than me and charge 3 times what I charge (I'm 27) but I also know 40 year olds that charge half of what I charge. One way to figure out what to charge would be to look at other people's pricing, ask advice and also take a look at survey results - like the AListApart or FreelanceSwitch surveys, this should give you a pretty good idea. Then adjust your pricing accordingly. If your turnaround time is low you may be able to charge a little more, same thing goes if you have a very unique style that's in high demand.

Matt Ward

Site: Echo Enduring Media

I don't know if this is a question that can just be answered in a simple or straightforward manner. There are several factors that I believe will contribute to formulating an hourly rate. First, is some basic economics. What kind of rate will the market bear? What are people willing to pay for the young freelancer's services? I think that this will vary from service to service (web design, identity development, creative writing etc) and even region to region, which makes devising any specific number very difficult. Yes, part of the beauty of freelancing today is that you can literally have clients from all over the globe, but in my experience the young freelancer is most likely to find his or her first clients (and possibly best clients) in the local market.

Another factor is obviously experience. Some students may have found summer jobs or part time employment in their field while their peers were flipping burgers or waiting tables. This added experience can bring real value to the young freelancer's service offerings, which should typically translate into higher hourly rate.

Related to this, there is also the question of the freelancer's ability. It may be a hard truth to face, but not all students from the same school will graduate with the same skill level in particular area. If a young freelancer is particularly talented in a particular area - perhaps in character design or illustration - then it only makes sense for them to charge a little more, at least for services in that area.

Ultimately, though, it comes down to a personal choice. Any freelancer - young or old - needs to feel comfortable with the rates they are charging. If you charge less than you feel you are really worth, you run the risk of feeling constantly disgruntled. If you charge too much, though, you may find it becomes increasingly difficult to convert potential clients into paying clients. Find a rate that you and your clients are both comfortable with and work to grow from there!

Jacques van Heerden

Site: Creativeoverflow

Freelancers usually base their rates off of their work experience and work quality. Now days clients don't go after the people that have degrees, they go after freelancers that have outstanding/breathtaking portfolios and a recognizable client database. Freelance rates can differ especially from country to country and designer to designer. Some designers need a high income to pay off their monthly expenses and to take care of their family, where other freelance designers don't need such a high income and therefore they have a low hourly rate. Being a self taught designer myself I have struggled with a hourly rate numerous times, but came to the conclusion that a client looks for someone that can get the job done. They don't go through your records unless you apply for a stationed freelance job which is a good idea if you want to gain some design environment experience, but some of us are just not cut out to work for a boss and work for ourselves. Coming back to calculating your hourly rate as a freelance designer, I will say it is based off of a few things such us bills, rental expenses, living costs, fuel etc. My advice for you would be to speak to different people and ask them about your work and when you have a few opinions work out a rate card for yourself and remember never doubt yourself.

Chris Thurman

Site: Visual Swirl

There are loads of great resources on determining web design rates and specific rates will vary by location but for beginners there are some keys to remember when setting your rates. For your first few projects, get a feel for what your client may be willing to pay. I actually recommend ditching the "hourly rate mindset" altogether and start thinking more about per-project costs. As you become a better designer, you'll complete projects quicker, thus earning a higher hourly rate anyways. Don't worry so much about being unique or off-the-wall; worry about how you can solve your potential clients problems fast and effectively. Finally, until you've established yourself, don't do work for free. It not only hurts your current financial situation but it sets you up for more troubles down the road.