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Freelance to Founder

[Q&A] Upcharge a Client for Subcontracting?

Jul 23, 2024
Kiki, a seasoned freelancer, dives into the intricate world of subcontracting. She raises essential questions about pricing strategies and whether a freelancer should upcharge clients for subcontracted work. The discussion highlights the importance of maintaining clear agreements through separate contracts for each service. Kiki emphasizes the need for freelancers to recognize their worth and navigate the pricing landscape confidently. Additionally, effective risk management in subcontracting is explored, ensuring all parties are safeguarded in the freelance dynamic.
16:52

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Freelancers should charge at least 30% extra for managing subcontractors to reflect their project oversight responsibilities.
  • Clear contractual agreements with subcontractors are essential to protect interests and mitigate risks while ensuring accountability.

Deep dives

Charging for Managing Subcontracted Work

When working with subcontractors, it's essential to understand the value you bring by managing the project. If a web development agency quotes $1,400 for a job you oversee, it is advisable to charge more than that amount, as you are facilitating communication and project oversight. A mark-up of at least 30% is suggested, with some even recommending doubling the cost to account for the effort and risk involved. This approach recognizes the time and responsibilities taken on when managing the project, making it justifiable to increase your fee.

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