Pricing your skills and getting paid

When you work for yourself, nobody hands you a pay rate. You set the price, send the invoice and chase the payment. A simple method makes your prices fair to you and clear to your clients.

Hourly or per project

• Hourly pricing suits work where the time is hard to predict or ongoing, such as tutoring or babysitting. The client pays for each hour you spend.
• Per-project pricing suits work with a clear result, such as designing a poster or editing a video. The client knows the total in advance.
• Per-project pricing rewards you for getting faster, but if the client keeps asking for changes, you lose money. Always state how many rounds of changes are included.
• Whichever you choose, write it down before you start.

Working out a fair rate

• Step 1: choose your target hourly rate, the amount you want to earn for each hour of your time. Look at what others with similar skill and experience charge locally, and be realistic as a beginner.
• Step 2: count all the time a job really takes, not just the visible part: preparation, travel, messages and admin.
• Step 3: add your direct costs for the job, such as transport, printing or materials.
• Formula: price = (target hourly rate x total hours) + costs.
• Worked example (tutoring): target AED 60 an hour; each session is 1 hour of teaching plus 30 minutes of preparation and travel, so 1.5 hours; costs AED 10 per session. Price = (60 x 1.5) + 10 = 90 + 10 = AED 100 per session.
• Check it backwards: if you charged only AED 60 per session, your real rate would be (60 minus 10) divided by 1.5, which is about AED 33 an hour, not AED 60.
• These figures are examples to show the method, not suggested market rates.

Quoting for a project

• Worked example (poster design): you estimate 4 hours of design at AED 50 an hour = AED 200, plus 1 hour for one round of changes = AED 50. Quote: AED 250, including one round of changes.
• Put the quote in writing: what you will deliver, the format, the deadline, the price, what is included and what costs extra.
• For larger jobs, ask for a deposit before you start, for example 50 per cent. On a AED 250 quote that is AED 125 up front and AED 125 on delivery.
• If the client asks for extra work, send a new written quote before doing it.

Invoices

• An invoice is a formal request for payment. GOV.UK lists what an invoice must include in the UK, which is a good checklist anywhere.
• Include a unique invoice number, your name and contact details, the client's name and address, a clear description of the work, the date the work was done, the invoice date, the amounts charged and the total owed.
• Add your payment terms, for example 'Payment due within 7 days by bank transfer'.
• Keep a copy of every invoice and mark it paid when the money arrives.

Getting paid safely

• Prefer payment methods you can trace, such as bank transfer to an account a parent or guardian helps you manage.
• Never accept a cheque for more than the agreed price and send back the 'extra'. This is a classic scam: the US FTC warns it can take weeks for a bank to discover a cheque is fake, and you then owe the full amount.
• Anyone who insists on paying or being paid by gift card, wire transfer or cryptocurrency is a red flag.
• For in-person work, agree the price in writing beforehand and collect payment at the end of each session or as agreed.
• If a client refuses to pay, stay polite, send a reminder with the invoice attached, and involve your parent or guardian.