Everything you need to know about the average daily rate

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Everything you need to know about the average daily rate

Determining an appropriate rate of pay This can prove to be a major challenge, both for freelancers and potential clients. It is therefore essential to understand how to calculate the average daily rate and to know the factors that influence it.

What is the Average daily rate? (Average daily rate definition)

The ADT or average daily rate is the rate charged per person. by one freelance worker per day. The amount of the average daily rate at the Invoice is always established excluding taxes. Once defined, the cost of the mission is calculated. and invoiced as follows: [number of days worked] x [average daily rate].

This figure differs from a flat rate (which is a specific service or set of services that are typically provided on a monthly basis). To better understand, it is essential to use an average daily rate simulation adapted for wage portage.

How to set up an Average daily rate? What are the criteria?

To properly calculate the average daily rate, it is essential to take into account a certain number of specific criteria. The most important revolve around the following points:

Working time

As an independent contractor, the freelancer himself manages client prospecting, customer service and customer service. customers, missions, accounting, etc. It is important to take these time-consuming tasks into account when calculating a daily rate.

Freelancers and consultants do not have paid leave. They must therefore take into account days not worked (i.e. between two missions).

It is also necessary to calculate the Average daily rate according to the speed of execution of the mission. An executed contract quickly in an emergency situation, for example, can significantly increase the Average daily rate.

Competence criteria

The study of market prices Calculating the average daily rate is a method worth considering before proposing a rate. A freelancer's experience has a fundamental impact on their daily rate. À For example, the salary of a junior IT consultant will be less than 100%. that of a senior.

The skills exercised by the freelancer also have an impact on the daily rate. Activities such as infrastructure management, mechanical engineering or IT systems integration, for example, require unique and specialized skills. specialized courses. These consultants can therefore set a higher average daily rate.

Additional costs

All professional expenses, with the exception of negotiations with clients, are subject to the burden of self-employed workers. For example: travel costs, equipment, subscriptions, software, bank charges, etc. It is therefore fashionable to include them in the calculation of the Average daily rate.

Another important element, the self-employed worker must pay all of his social security contributions himself (for example, contribution to a health insurance fund, mutual insurance fund, pension, etc.), which often represents a significant amount to pay. at the end of each month. The average daily rate must therefore be calculated based on all this data.

Can the average daily rate be flexible?

The answer is yes! Is there an urgent request from the customer? If so, you can increase your Average Daily Rate. Are you improving your skills? This is another good reason to increase your average daily rate.

The client interests you and offers you a temporary assignment. long term? In this case, you may consider lowering your average daily rate significantly, as you will spend less time working on your project. prospecting and you will have fewer "empty" not working.