It’s Thanksgiving week, and people everywhere are talking turkey. Business owners probably are thinking more about the spread that day than issues like fair pay. But fair compensation is a hot button topic as businesses like Walmart and Hostess face issues with their unions and paying benefits fairly.
Turkeys aren’t the brightest of birds; otherwise we wouldn’t eat them every holiday. It’s not good to be compared to a turkey, but unfortunately, some business owners are “turkeys” when it comes to paying fair rates. How can you avoid being a “turkey” when it comes to hiring independent contractors with your business? Here are a few ways!
Do Your Research
When you’re looking to pay an independent contractor for copywriting, blogging or other services, make sure you do your research on what rates are fair. This might vary if you decide to hire a new indie compared to a seasoned contractor, but knowing the baseline can help you determine if you’re paying a fair rate.
It’s also important for contractors to avoid being “turkeys,” too! Know the fair rates for your work and avoid getting duped. You might do this through your own research, through talking with other professionals, or through analyzing your current rates to see if they are fair for the work you’re doing.
If you’re not sure where to start, look for fee sheets on various websites. Organizations like the Editorial Freelancers Association (EFA) provide a rate sheet on their website, so look for these and rates on individual contractor websites for more information. Some contractors do not post rates, but you can ask them and they may provide them if you are serious about hiring them.
Consider Your Budget
Some business owners become “turkeys” when they plan to outsource work, but don’t analyze their budget to see if they can afford it. They might have numerous projects in mind for the contractor, but the money runs out quickly because they haven’t planned.
You must consider how often you plan to employ the contractor and if your budget is realistic for the work you want. If you find yourself running out of money before the project is done, then you haven’t planned well enough for the work or may have gone outside of the scope of the work, which would result in more fees.
Discuss Rates with Your Contractor
The most important way to avoid becoming a “turkey” is to talk in-depth with your contractor about their rates and what you expect from the project. They may provide you a range or a fixed rate for the project, and some contractors prefer to use hourly rates.
Depending on your relationship with the contractor, you may have them on retainer and pay as projects come in, or have a new contract for each project. I have done both with clients and they work out well for both parties!
What are your tips for paying fair rates to contractors? Tell us in the comments!