in reply to How much is an web-based application worth?

If you're acting as a sub-contractor, wondering what the main contracting party is making is only going to cause you grief. I've seen a lot of people end-up quite bitter because they think that they're getting exploited.

Instead, just look at what you'd want your hourly rate to be if you were a free-lancer. I have a rate that I charge myself out at when I take on a project - whether it's for the end customer or another supplier. I'm happy with that rate, and won't go below it. If I'm sub-contracting to someone else and they make a fortune ... good on them - I've been paid what I asked for

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Re: How much is an web-based application worth?
by perleager (Pilgrim) on Mar 17, 2005 at 08:12 UTC
    As of now I'm happy with 15 dollars an hour.

    I'm not too worried about being exploited, this boss of mine is a friend and helps me a lot.

    I look at it as an internship opportunity.

    As he gives me projects to do, I learn and my Perl skills eventually increase as they go along.

    I'm just wondering if 15 dollars is the right amount of such a task I'm about to be taking?
    perleager
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      I'm just wondering if 15 dollars is the right amount of such a task I'm about to be taking?
      So, if people here would say, no $15 is too low, you should at least be getting $N/hour, for some N > 15, then what? You're happy with what you get now, will you then become unhappy? Will you ask for a raise? What if you don't get the raise? Leave, and become an unemployed programmer without much experience, and without having ever to finish a project, but with a history of walking out of a project because no longer satisfied with the agreed on pay?
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      I don't know what your market rates are. $15/hr is about $30k per year based on a 40hr week (this isn't exact, of course, but I basically take the hourly rate, double it, and add 3 zeros to work out an approximate yearly income). Is $30,000 a year reasonable for an intern? "Intern" isn't a job title where I come from, but from what I understand, it's a trainee postion, so it sounds like it may be an ok rate to me
[reply]
        I'm not sure how you're doing your math, but if it's $15/hr as a contract, and not as a salary, then it's worth about $15,000 a year, not $30,000 a year.

        From your hourly rate, you have to subtract all those things that an employee gets paid for them, such as office space, materials, training, downtime (sick, vacation), healthcare benefits, retirement benefits, marketing costs, administrative costs, and the booking ratio (time spent billing vs time spent on overhead or just no work).

        I've been a contractor and a small business owner for almost 20 years. The formula is about right. $100/hr for billing is $100K a year, not $200K. Proven repeatedly by my direct personal experience.

        -- Randal L. Schwartz, Perl hacker
        Be sure to read my standard disclaimer if this is a reply.

[reply]

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