Question 1

Why are billable hours lower than working hours?

Accepted Answer

Freelancers spend time on admin, marketing, proposals, learning, client calls, and unpaid revisions, so not every working hour is billable.

Question 2

Should I charge hourly or project-based?

Accepted Answer

Use hourly rate as a floor. Project pricing can be better when value, risk, urgency, and scope are clear.

Question 3

How much should freelancers add for taxes?

Accepted Answer

It depends on country, income, deductions, and business structure. Many freelancers reserve 20% to 35% or more for taxes and insurance.

Question 4

What is a project retainer baseline?

Accepted Answer

It is a monthly minimum fee estimate based on a predictable block of billable hours, useful for ongoing client work.