A few weeks ago I talked about setting writing rates and some of the advantages of pricing per unit. While pricing per unit (word, page, or project) has its advantages, there are a few downsides to be aware of.

Disadvantages of Per Word Pricing: Word Counts

For starters, your customers may not be able to visualize word counts as easily as you and I can. For example, I know exactly what 400 words looks like because I’ve been writing and paying attention to word counts for years. However, a small business owner creating his first website probably doesn’t.

Disadvantages of Per Word Pricing: Mental Math

Even if a customer has a good sense of word count, quoting a project strictly by your per word rate requires the customer to do some mental math. To overcome both of these problems, give examples when quoting such as “About Us page – 300-400 words – $XX – $XX.” People are familiar with About Us pages, so breaking down the quote by page type can give them a better idea of the word counts involved. Providing the estimated cost means the customer doesn’t have to do the math.

Disadvantages of Per Word Pricing: Unfair Cuts

Another potential problem with per word pricing involves the customer taking your draft and removing large chunks or even entire pages of text and then expecting the bill to be reduced because the word count has been reduced.  This has only happened to me once in the past five years. Depending on the circumstances, you’ll have to judge whether or not to charge for the words eliminated from the final draft. Though rare, this is something to think about addressing in a payment policy. 

Disadvantages of Per Word Pricing: Small Projects

Per word pricing isn’t appropriate for projects that require a great deal of thought and work – and short word counts. For example, it could take hours, if not days, to write a 100-word mission statement.  Instead of charging by the word, either set a minimum charge for small projects or create standard rates for various project types.

While there are definitely a few disadvantages of charging by the word, most of them can be overcome once you’re aware of them. Did I miss any? Feel free to share your thoughts in the comments section.

Related Posts:

• Setting Writing Rates–Per Hour or Per Unit?

Ask ten different writers about setting writing rates and you’ll likely get ten different answers. Some charge by the hour, others charge by the page, others charge by the word, and others set flat rates for specific services. Some take a blended approach. In general, I charge by the word though I occasionally charge a flat rate or by the hour (for services that require extensive time, but yield few actual words such as mission statements or keyword research).

With a per unit rate, whether its by the word, page, or some other unit, you’re able to give customers a better idea of the final cost than an hourly rate. Let’s throw some numbers out to illustrate this. If a customer wants a 700-1000 word article, you can easily quote it based on your per word rate. Let’s say you charge 10 cents per word. You’d then quote a range of $70 to $100 and the customer would know what to expect. In fact, the customer could even direct you to limit the article to 800 words, thereby controlling costs.

If you charge by the hour, let’s say at $75 per hour, your customer may not be comfortable because of the uncertainty of time. Depending on how quickly you write, the project could cost $75, $150, or even $300 or more. Not only could it take longer than expected, you’re asking the customer to accept your word about the amount of time spent on the project. The customer has no control over the cost, either.

Another concern with charging by the hour involves the perception customers may have. While $70 to $100 for a finished project might be well received, presenting an hourly rate may put off some clients. They may compare your hourly rates to their own earnings or think “that’s more than my lawyer charges.” 

One reason I’m not a big fan of charging by the hour is that it limits and undervalues your productivity. Bear with me for a minute because I realize this seems counterintuitive.

Let’s say you can easily write 700-1000 words in an hour. At just ten cents per word, that’s $70-$100 per hour. If you charge a client by the hour at $75 per hour, you’d be limiting yourself to earning that amount. I know, few of us would complain about making $75 per hour, but if you know the material well, you could earn even more per hour by charging by the unit. As you become more familiar with the client’s needs and material, over time, you would work more productively and your per hour earnings would increase. Had you charged an hourly rate in the first place, you’d be outputting more work per hour yet you’d earn the same hourly wage. 

Charging by the word has its downsides though. Let’s explore the disadvantages of charging by the word next week. In the meantime, keep track of how many words per hour you average along with your current charges.

Related Posts:

• Writing Rates – Disadvantages of Pricing Per Word

In the last 8 days, I’ve given two separate private WordPress lessons to people I know. It got me thinking: As online writers, not only do we know the basics of stringing words together, we also know a thing or two about the technologies of our trade. In the old days, I suppose writers gave typing lessons to their friends. Today, we’re teaching our friends about WordPress, Microsoft Office, article marketing, article directories, keywords, social media, and more. . .

What have you taught one of your friends lately? Share your experiences here.

Related Posts:

• The Freelance Writing Process
• Marketing Articles
• A Funny Thing Happened When I Set Up an Editorial Calendar. . .
• The Wealthy Freelance Writer
• 5 Must-Have Tools for Writers

In 2009, I posted monthly Constant-Content.com writing challenges over at the CC forum. These were a lot of fun. After taking a break, it’s time to start up once again. This month’s writing challenge is to learn a new writing trick or technique and then submit an article using that trick or technique to Constant-Content.com.

Challengers can pick anything they want to learn. Whether it’s a new SEO technique, something to do with grammar, or adopting a different writing style doesn’t matter so long as it’s something that you need to learn. Here’s what I want to work on for this writing challenge: Defining a voice.

This comes straight from chapter 3 of the Yahoo! Style Guide. The chapter discusses different voice characteristics and developing a unique voice for a website. It includes what it calls “voice charts” that you develop to ensure that everyone who writes for the site understands the tone and voice to use. I always meant to do this exercise and stretch myself by using an entirely different voice than I’m used to using. So, here’s my plan. I want to write an article using a completely different voice than I usually do.

If you’re a Constant-Content.com writer, head over to the CC forum and join the challenge!

Related Posts:

While I’m a firm believer that Constant-Content customers deserve to see the entire article before they buy, Constant-Content only requires that writers post one third of the article in the “content excerpt” (formerly called the “long summary”) section of the submission form. This excerpt can be the first third of the article or it can be a series of excerpts.

If you choose to post only a portion of the article, it’s smart to include a line that explains that the text is only an excerpt. For example, you might add a line at the end of the sample that says, “End of excerpt. Article continues to cover key point 1, 2, and 3.” Otherwise, customers may think that what they see is what they get. They may be unfamiliar with the Constant-Content system and unaware that excerpts are encouraged. By telling potential customers that there’s more involved, you’ll avoid having customers think that the article doesn’t have much substance or ends abruptly.

Related Posts:

• 5 Constant-Content Mistakes
• Constant-Content Success
• Constant-Content Adds “Writers Pools”
• Is it Necessary to Market Your Constant-Content.com Articles?
• How Do I Become a Freelance Writer?