Step 1 - Know Your Floor Rate
Your floor rate is the minimum hourly rate you can charge and still cover your living costs, taxes, and business expenses. Here's the formula:
Floor Rate = (Monthly Living Costs + Taxes + Business Expenses) ÷ Billable Hours per Month
For example, if your monthly costs total ₱45,000 and you plan to bill 120 hours:
₱45,000 ÷ 120 hours = ₱375/hr ≈ $6.70/hr (at ₱56 per USD)
This is the absolute minimum - you should never quote below your floor rate. The goal is to price significantly above it.
Step 2 - Add Your Skill Premium
Your niche, certifications, and experience level justify charging above the floor. General guidelines:
- Certifications (QuickBooks ProAdvisor, HubSpot, Google Ads) - add $3–$5/hr
- Niche specialization (e-commerce, real estate) - add $2–$4/hr over general admin
- English fluency + client-facing communication - add $2–$3/hr
- Years of niche-specific experience - roughly $1–$2/hr per year up to 5 years
Tip: Stack premiums. A QBO-certified bookkeeper with 3 years of experience and native-level English could justify $18–$22/hr on OnlineJobs.ph - well above the $6 general admin floor.
Step 3 - Factor in Platform Fees
Where you find clients affects your take-home. Common platforms:
- OnlineJobs.ph - no freelancer fee. The rate you quote is what you keep.
- Upwork - 10% service fee on lifetime billings with a client (was 20/10/5% tiered before 2023).
- Fiverr - 20% flat fee on every order.
- Direct clients - no platform fee, but you handle invoicing and payment collection.
To earn the same take-home on Upwork as on OJ.ph, gross up your rate:
Upwork Rate = OJ.ph Rate ÷ 0.90
See the Platform Fee Guide for a detailed breakdown.
Step 4 - Choose Your Billing Model
Hourly
Best for variable-scope work (admin, support). You bill for time tracked. Upside: you are paid for every hour worked. Downside: income varies month to month.
Monthly Retainer
Client pays a fixed amount for a set number of hours (or deliverables) each month. Gives you income predictability. Typical formula:
Retainer = Hourly Rate × Guaranteed Hours × 0.90 to 0.95 (small loyalty discount)
Project-Based
A flat fee for a defined scope - website build, Shopify setup, content batch. Price based on value delivered, not hours. Allows higher effective hourly rates but requires accurate scope estimation.
Step 5 - Present Your Rate with Confidence
- Lead with value: "I specialize in Shopify product listing and order management, which typically saves store owners 15–20 hours per week."
- State the rate clearly: "My rate is $12/hr" - no hedging, no "I was thinking maybe…"
- Offer tiers: Entry-level clients may want a smaller package. Offering 10-hr, 20-hr, and 40-hr/week options gives them flexibility while anchoring your per-hour rate.
Tip: Never apologize for your rate. If a client says it's too high, they may not be your ideal client. The
Rate Increase Script page has word-for-word templates you can use.
Step 6 - Re-Evaluate Every 6 Months
Your rate isn't set in stone. Revisit it twice a year by asking:
- Have I gained new skills or certifications?
- Has my niche's market rate shifted?
- Am I consistently booked at 80%+ capacity?
- Have I received strong testimonials or referrals?
If you answered yes to two or more, it's time to raise your rate. Use the Rei Calculator to model the new number.