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Freelance to Founder
[Q&A] Upcharge a Client for Subcontracting?
Oct 17, 2023
The podcast discusses whether clients should be charged extra when using subcontractors. It explores the benefits and risks of subcontracting, including the importance of two contracts. The hosts provide valuable insights and advice on pricing strategies and managing project risks.
14:52
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Quick takeaways
- When working with a subcontractor, it is recommended to upcharge your client by at least 30% to compensate for the additional time, effort, and risk involved in managing the project.
- It is important to have separate contracts with both the client and the subcontractor, outlining responsibilities and potential contingencies, to reduce legal and financial risks for the freelancer or agency.
Deep dives
Upcharging for Managing a Subcontractor Project
If a freelancer or agency manages a project with a subcontractor, they should consider upcharging their client. In this scenario, the freelancer takes on the responsibility of managing the project, communicating with the subcontractor, and assuming the risk. It is recommended to upcharge at least 30% or more to compensate for the additional time, effort, and risk involved.
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