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Working at Home: Hourly Vs Contact
When it comes to working for yourself, and especially from home, one of the most import points to consider is your rate of pay.
There are two ways of looking at it. First: do you want to be paid by the number of hours you have put in? Secondly: would you rather paid the full amount once the work is done?
There is a lot to be said for the hourly rate. If you agree to provide a service on a regular basis, then an hourly rate might suit you best. Of course, this can only be worked out by you and the client or customer. But there is a lot to be said for an hourly rate.
Trades people like the hourly rate, as it makes sure you get paid for the amount of time you put in. There can be a great deal of suspicion and mistrust, when it comes to getting paid. The best way is to make sure you do what was asked of you at the rate you both agreed.
A Trades person will not try and squash a massive amount of work into a smaller time. The work will be sub standard, and any decent trade professional will have their pride and reputation to consider. If there is an agreed rate set over a certain time, then this must be rigidly stuck to. Anyone offering to do more work in less time, cannot possible complete the task. This is usually a sign of young and brash workers who want to make a quick buck in the market. The reason why the old veterans don't do this, is because they have had their fingers burnt in the past.
So bitter experience has driven the market to that price. There are more attractive offer, but at a price.Many trade's people will set a minimum price for the number of hours they will do at any one time. If you are asked to come and decorate a house, you will be asked what your rate is. If the customer barters you down from your top estimate for the job, this is a good sign.
But, if they ask you to get done as much as possible, in just a few hours, then beware!You cannot possible do the job in that time, and if it is that small a task you must ask yourself: is it worth taking? No job is worth entering into, if you cannot make enough money. So this dictates an hourly rate.
No builder will turn up and start erecting your new garage extension if they know they can't get it finished. They will not see how they get on, then come back in a few weeks, to do a little more. Any business that works like this will fold. You either complete the task, or don't start it.
Most people who work at home will be creating a piece of work to sell to a customer over the Internet. This can go well, but what you have to take into account is how much is in it for you?
When you worked for that boss, you might have noticed that they charged the company rate on every price. This was to cover the cost of the wages, and they would be worked out on two principles.First, that they are the market rate. Secondly that they will be getting in enough during the month, to meet your wage bill. The price will be divided up and split amongst the workforce, to cover the amount of work they have done in that time.
So if you are doing something like selling on Ebay, it is no good just putting a couple of dollars on the price and hoping it pays you a living wage. Do it the other way round. Work out how much you want in a month, then work out how much you think you will sell, and divide the first figure by the second. In this way, you can be sure you will get enough money in the month to live on.
Of course in time you will be moving into the big time, and here things are very different. Many large firms have already worked out what can be done in so many hours, for so much. Armed with this knowledge, they will offer a contract of work.
This is the other way round to the hourly rate, as it will offer you a fixed amount of money for the completion of a job, based on a certain amount of time.The music industry exists from fashion to fashion. So a contract will only exist for the lifetime of that performer. If the artist goes on tour, the workforce for the stagehands and the canteen staff, may be offered a short term contract. There is little point in employing them after this, as the fashion may change, for them all to meet up with a new flavour next month.
Another point to consider with contracts, is that many firms may agree on your hourly rate, but are not sure how long the job will last. Many computer software companies, will employ people on the minimum contract, in case the project folds before completion. The reason being, that they do not have to cover the employees for redundancy costs. This may effects their Heath and Insurance plans. So the amount of money you get in during the time of the contract, must make this worth while.
