So most my time is divided between those two areas. And recently I wanted to know how much I’m making per hour as a copywriter vs as an agency owner.
Since I use a free app called Toggl to track all my time, it was pretty easy to figure out.
First, I did the math on a $5,575 copywriting job I just finished. It took me 65 hours to do so I made $85.77/hr.
Then I ran a report on another recent copywriting project I did. My rate was $4,275 and it took me 54 hours to do, bringing my hourly rate to $79.16.
Both of those projects were way below my target hourly rate of $145/hr.
But this client has ongoing work for me so I’ve been willing to invest more time on his projects (probably not the smartest business move but it’s reality).
Next, I ran the numbers on my agency, Insurance Funnels.
The math is a little more complex because I have a team of people I pay: web designers and developers, PPC managers, marketing automation experts and proofreaders.
But even after paying my team and taking into account my hard costs, I was pleasantly surprised to see my hourly wage for the last few months:
May = $288/hour
April = $200/hour
March = $130/hour
March was lower because I had to invest a lot of time into onboarding a new client that took longer than expected.
I also looked at where I’m at for June and it looks like I’ll be around $200/hour.
So this was a good exercise to do!
$204 is a much better hourly average than $82.
It’s massive actually!
So now I’m faced with a choice.
Will I just shrug my shoulders and say, “Hmm, that’s interesting,” and just continue doing what I’m doing… which is only spending ~20% of my time on Insurance Funnels?
Or will I say, “Hey, something needs to change!”
I’m only spending 20% of my time on the most profitable side of my work. Why?
And what changes do I need to make to replace the $82/hour work with more $204/hr work?
Again, I need to look at all the copywriting projects I’ve done over the last 24 months to get a better idea of my hourly rate. I suspect it’ll be closer to $120 but I may be wrong.
At any rate, at least this has me looking at the actual numbers and has motivated me to spend more time marketing Insurance Funnels.
By the way, one day I hope to be free from trading my time for money. But until that day comes I want to optimize my time so I get the best return I can on it!
If you’re building a business or working as a freelancer when it is the last time you analyzed your hourly rate? If it’s been a while it’s a good idea to do.
P.S. I want to be clear that I’m talking about how much I made per hour on these projects. This is different than my take home hourly rate because I’m not always working on billable projects 100% of the time. It’s usually less than 50% actually. So I just want to be up front about that because I know a lot of the “make money online” crowd likes to brag about their “hourly rate” without telling you that they also spend a ton of time on non-billable work which, in fact, lowers their hourly rate.