This report is based on input from 29 freelance technical writers, one of whom does a combination of technical writing and copy editing. This represents a drop in participation. Part of this drop may be due to the introduction of a separate survey for freelance copy editors and part may be due to some writer not reporting while on vacation. Although this is far fewer than for salaried employees it is by far the most detailed survey yet. All rates are those actually charged, not asking rates.
How Rates Were Calculated
The way rates are calculated affects the outcome. Rates below are calculated in units of rate per writer with no weight given to the number of hours each writer works. In other words Avg = (RateForA + RateForB) / NumberOfWriters.
For example, if writer A works 200 hours/mo and charges $10/hour, while writer B works 100 hours/mo and charges $20/hr the average is calculated as follows:
Avg = ($10 + $20) / 2 = $15 .
Direct Rate vs. Market Rate
Direct Rate = the rate charged by contractors who work directly with the client and does not include data from subcontractors.
Market Rate = the rate charged the client. This includes data from subcontractors who know what rate the client was charged.
Sub Rate = the rate received by the sub contractor.
Note: The rate used in the Affiliation breakdown is based on the rate received for direct and subcontract work according to the percentage of direct work reported.
Rate = (DirectRate * %Direct) = (SubRate * (1-%Direct))
Exchange Rates
Rates that were listed in NIS were converted to $USD at the July 15 exchange rate of 4.272. This is the reason that some of the percentile rate are uneven amounts (that percentile happened to be an NIS rate converted to $USD.
The exchange rate dropped dramatically at the start of April and began to rise again in July. The affect of the drop in April was not felt in the last report, but is probably a factor in the changes that appear in this report. The recent increase in the exchange rate came too late to affect this report except for rates that are set in NIS. At the moment most contractors still set rates in $USD, but there is a trend toward setting rates in NIS with 26% of the respondants setting at some of their rates in NIS.
Average, Median and Percentiles
Average is calculated by adding up all rates and dividing the sum by the number of rates reported. Average = SUM / # of entries.
Median is what is the rate for the person in the middle, with the same number of people earning the same or more as those earning that rate or less.
Percentiles are a ranking of entries with the lowest at 1 and the highest at 100.
25% rate means that 25% earn that rate or less, and 75% earn that rate or more. This is a low-end rate - most writers earn more.
50% rate means that 50% earn that rate or less, and 50% earn that rate or more. This is what the average, run-of-the-mill technical writer should expect to earn.
75% rate means that 75% earn that rate or less, and 25% earn that rate or more. This is what a writer who is the starting point for a high-end rate.
90% rate means that 90% earn that rate or less, and 10% earn that rate or more. This is a high-end rate - these figures are not included in this report, but I do have them for personal consulting.
General
Overall we see an increase in rates for technical and marcom writing services, but subcontractor rates are dropping. The reasons for the drop in subcontracting rates is unclear, but there are a number of factors that could explain the difference in trends. One is the tendency of some technical writing companies to subcontract work to graduates of technical writing courses that they run. Another is that some of the contractors who subcontract when they don't have enough direct work may not have worked as subcontractors this quarter.
Professional Organizations
A higher percentage of the writers reporting are members of at least one professional organization. This may indicate that a number of writers joined at least one professional organization after reporting last quarter. There appears to be a relationship between affiliation with a professional organization and rates, but it is unclear exactly what that relationship is. The rates included both direct rates and subcontracting rates according to the percentage of direct work reported. One explanation may be that affiliated writers manage to get a higher percentage of direct work, thus increasing their rates. Another may be that subcontractors and lower paid writers are less likely to pay membership dues. It is interesting to note that the high end did not follow the expected pattern of higher rates for members of a professional organization.
Experience
Rates for direct contractors went up for both the least experienced and most experienced direct contractors, while rates for those in the 5-10 year category stayed relatively stable.
At the same time that market rates rose, the subcontracting rates drops. A simple look at the statistics would appear to show that technical writing companies are increasingly taking advantage of their subcontractors by paying them lower rates than in the past.
However a more careful reading of the statistics shows that there were too few writers with over 10 years experience who reported to include their data in this report. When we combine this with the many techshoret announcements made by many course providers regarding placements of recent graduates it appears that technical writing companies are using less experienced subcontractors than in the past. While this may be profitable in the short run it can lead to loss of reputation for these companies if they are not careful.
Home » Salary&Benefits » TW and Marcom Freelance Rates » Q3 2007 Rate Report
Q3 2007 Rate Report
August 14 2007 Posted by elephant (Svi Ben-Elya) under TW and Marcom Freelance Rates
This report is based on input from 29 freelance technical writers, one of whom does a combination of technical writing and copy editing. This represents a drop in participation. Part of this drop may be due to the introduction of a separate survey for freelance copy editors and part may be due to some writer not reporting while on vacation. Although this is far fewer than for salaried employees it is by far the most detailed survey yet. All rates are those actually charged, not asking rates.
How Rates Were Calculated
The way rates are calculated affects the outcome. Rates below are calculated in units of rate per writer with no weight given to the number of hours each writer works. In other words Avg = (RateForA + RateForB) / NumberOfWriters.
For example, if writer A works 200 hours/mo and charges $10/hour, while writer B works 100 hours/mo and charges $20/hr the average is calculated as follows:
Avg = ($10 + $20) / 2 = $15 .
Direct Rate vs. Market Rate
Direct Rate = the rate charged by contractors who work directly with the client and does not include data from subcontractors.
Market Rate = the rate charged the client. This includes data from subcontractors who know what rate the client was charged.
Sub Rate = the rate received by the sub contractor.
Note: The rate used in the Affiliation breakdown is based on the rate received for direct and subcontract work according to the percentage of direct work reported.
Rate = (DirectRate * %Direct) = (SubRate * (1-%Direct))
Exchange Rates
Rates that were listed in NIS were converted to $USD at the July 15 exchange rate of 4.272. This is the reason that some of the percentile rate are uneven amounts (that percentile happened to be an NIS rate converted to $USD.
The exchange rate dropped dramatically at the start of April and began to rise again in July. The affect of the drop in April was not felt in the last report, but is probably a factor in the changes that appear in this report. The recent increase in the exchange rate came too late to affect this report except for rates that are set in NIS. At the moment most contractors still set rates in $USD, but there is a trend toward setting rates in NIS with 26% of the respondants setting at some of their rates in NIS.
Average, Median and Percentiles
Average is calculated by adding up all rates and dividing the sum by the number of rates reported. Average = SUM / # of entries.
Median is what is the rate for the person in the middle, with the same number of people earning the same or more as those earning that rate or less.
Percentiles are a ranking of entries with the lowest at 1 and the highest at 100.
25% rate means that 25% earn that rate or less, and 75% earn that rate or more. This is a low-end rate - most writers earn more.
50% rate means that 50% earn that rate or less, and 50% earn that rate or more. This is what the average, run-of-the-mill technical writer should expect to earn.
75% rate means that 75% earn that rate or less, and 25% earn that rate or more. This is what a writer who is the starting point for a high-end rate.
90% rate means that 90% earn that rate or less, and 10% earn that rate or more. This is a high-end rate - these figures are not included in this report, but I do have them for personal consulting.
General
Overall we see an increase in rates for technical and marcom writing services, but subcontractor rates are dropping. The reasons for the drop in subcontracting rates is unclear, but there are a number of factors that could explain the difference in trends. One is the tendency of some technical writing companies to subcontract work to graduates of technical writing courses that they run. Another is that some of the contractors who subcontract when they don't have enough direct work may not have worked as subcontractors this quarter.
Direct RateMarket RateSub Rate
Average$41.35
+$1.79
$40.35
+$2.18
$25.98
-$2.14
Median$39.79
+$4.29
$38.00
+$3.00
$24.87
-$3.63
Std Deviation$12.87$13.12$12.10
Percentiles
25%$35.00
+3.50
$35.00
+$5.00
$20.88
-$3.44
50%$39.79
+$4.29$38.00
+$3.00
$24.87
-$3.63
75%$45.00
+$4.50
$45.00
+$5.00
$26.81
-$6.94
Professional Organizations
A higher percentage of the writers reporting are members of at least one professional organization. This may indicate that a number of writers joined at least one professional organization after reporting last quarter. There appears to be a relationship between affiliation with a professional organization and rates, but it is unclear exactly what that relationship is. The rates included both direct rates and subcontracting rates according to the percentage of direct work reported. One explanation may be that affiliated writers manage to get a higher percentage of direct work, thus increasing their rates. Another may be that subcontractors and lower paid writers are less likely to pay membership dues. It is interesting to note that the high end did not follow the expected pattern of higher rates for members of a professional organization.
AffiliationNo Affiliation
Average$36.91
-$1.05
$38.16
+4.71
Median$40.00
+$4.00
$35.00
+$2.25
Std Deviation$15.10$18.04
Percentiles
25%$31.80
-$1.13
$30.00
+3.43
50%$40.00
+$4.00
$35.00
+$2.25
75%$42.00
+$1.75
$45.00
+$5.75
% of total46%57%
Experience
Rates for direct contractors went up for both the least experienced and most experienced direct contractors, while rates for those in the 5-10 year category stayed relatively stable.
At the same time that market rates rose, the subcontracting rates drops. A simple look at the statistics would appear to show that technical writing companies are increasingly taking advantage of their subcontractors by paying them lower rates than in the past.
However a more careful reading of the statistics shows that there were too few writers with over 10 years experience who reported to include their data in this report. When we combine this with the many techshoret announcements made by many course providers regarding placements of recent graduates it appears that technical writing companies are using less experienced subcontractors than in the past. While this may be profitable in the short run it can lead to loss of reputation for these companies if they are not careful.
Direct Rates
Direct Rate <5Direct Rate 5-10Direct Rate >10
Average$31.85
+$4.68
$34.94
-$1.31
$48.45
+$4.35
Median$35.00
+$6.50
$35.00
no change
$45.00
+$5.00
Std Deviation$10.50$4.77$12.92
Percentiles
25%$33.57
+$14.18
$30.80
+$0.80
$39.79
+$3.29
50%$35.00
+$6.50$35.00
no change$45.00
+$5.00
75%$39.00
+$4.75
$38.00
-$2.50
$50.00
+$5.25
Market Rates
Mrkt Rate <5Mrkt Rate 5-10Mrkt Rate >10
Average$30.71
+$3.54
$34.94
-$1.31
$48.45
+$4.35
Median$35.00
+$6.50
$35.00
no change$45.00
+$5.00
Std Deviation$10.26$4.77$12.92
Percentiles
25%$23.99
+$4.60
$30.80
+$0.80
$39.79
+$3.29
50%$35.00
+$6.50$35.00
no change$45.00
+$5.00
75%$37.50
+$3.25
$38.00
-$2.50
$50.00
+$5.25
Subcontractor Rates
Sub Rate <5Sub Rate 5-10Sub Rate >10
Average$21.44
-$2.89
$27.17
-$1.60
not enough data
Median$20.60
-$0.32$25.75
-$1.34
not enough data
Std Deviation$6.11$2.45not enough data
Percentiles
25%$16.54
+$1.33
$25.75
+$0.93
not enough data
50%$20.16
-$0.32$25.75
-$1.34not enough data
75%$22.80
-$3.95
$27.87
-$3.38
not enough data
Geography
This is the 2nd quarter in a row that the 04 area has the highest rates. Last quarter the reason appeared to be related to the lower salaries in the 04 area and the high ratio of freelance to salaried writers in that area. However, if we cross reference the salary reports we find that companies in this area have begun offering higher salaries to bring freelance writers in-house. The ratio of freelance to salaried writers has also come into line with other areas.
Sex
The differences between male and female rates continues to be minor and which earns slighly more changes from quarter to quarter. This indicates that there is little if any sex discrimination in this profession.
