Let's talk pricing! The subject that is at once eternally-dreaded, yet constantly-searched-for by illustrators and artists everywhere. It can be so tricky to understand how to price your illustration work, but understand the differences between hourly-based and value-based pricing is a key starting point!

Formula for figuring out your hourly rate:
A is the amount of money you need to make in a year: $_____
B is your expenses (supplies, utilities, equipment, marketing, software & apps, professional services like accounting, etc) $_____
Add A and B
C is your profit margin which could be anywhere from 10% to 20%
A+B x .10 (for 10%) or .20 (for 20%)
A+B+C is the total amount you need to make in a year to cover your basic needs, your business expenses and your profit margin

Now you need to figure out how many billable hours you’ll have in a year.
Each year is 52 weeks, with 40 hours in a week.
If you take a 2 week vacation, that leaves 50 weeks x 40 hours which is 2,000 hours.
Then you also need to account for the fact that not all of your hours will be billable. Anywhere from 30%-50% of your hours in a given week can be taken up with things like admin, social media, housekeeping, etc.
So let’s subtract 40% from 2000 which gives us 1200 billable hours.
Then, to come to an hourly rate, we’ll divide A+B+C/1200, which gives us an hourly rate!

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Edited by the amazing Meg Potter -- THANK YOU, MEG!!
Channel: https://www.youtube.com/user/MeganKate92
Website: www.megscreations.com

Filmed with:
Camera - Nikon D3300 (http://amzn.to/1Vogb8B)
Lens - Nikon AF-S DX NIKKOR 35mm f/1.8G Lens (http://amzn.to/1p23UIM)

Music:
Mama’s Whisper - The 126ers