Benchmark Report 2021 For Freelancers

Benchmark
Report 2021
For
freelancers
Contents
Big picture 2020....................................... 11
Pricing .....................................................15
The work ................................................ 23
How freelancers spend their time ............... 32
What the future holds.............................. 37

Hello.
All of us at Mailchimp want to thank you for participating in the Of all the things we’ve all learned this year, it’s that the power of
Mailchimp & Co Benchmark Report, our first-ever agency and community—to inspire, to support, to teach, to learn—remains
freelancer survey. one of our most important tools.
Over the years, we’ve heard from many of you that as you’re And with that, we’re proud to share our first ever global survey of
working and growing on your own, you want to learn more about freelancers and agencies, brought to you by Mailchimp & Co.
what others are doing and how they’re finding success. That We’ll follow up with publications where we get into more detailed
sparked this initiative to gather and share our report on the most analysis, as well as information on members-only special events.
important insights of the past year.
And, don’t forget to join Mailchimp & Co—for free—if you
And what a year. None of us could have predicted the tectonic haven’t already.
changes we experienced throughout 2020. From speaking with
many of you directly, I know there were many highs and lows last Please enjoy the study, and again, thank you.
year, and it wasn’t “business as usual” for anyone.
Of everything I’ve observed, the stories that are most amazing to Sean Cook
me are those of resilience and perseverance, innovation and Vice President of Partner Marketing
adaptation. Mailchimp
In a year when it was legitimately a challenge to

survive, so many actually managed to adapt, to
improve, to grow, and to thrive. I see you out there,
and I want you to know that you inspire me.
Here at Mailchimp, the year wasn’t without its challenges. But it

was also a time of huge excitement, as we officially launched
Mailchimp & Co, our global community exclusively for freelancers,
designers, and agencies.
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About
Mailchimp & Co
You help your clients grow their
businesses using Mailchimp.
So we designed a community
to help you grow yours.
Created with the specific needs of agencies and freelancers in
mind, Mailchimp & Co is a community designed to help you
expand your expertise, build your network, simplify your work,
and get rewarded with insider perks and exclusive resources.
Whether you’re just starting out as a freelancer, have landed your

first couple of clients, or are a full-blown agency with lots of
accounts, Mailchimp & Co is here for you and your business.
If you haven’t already signed up, you can do it here.
4 Powered
Sign up atbymailchimp.com/andco
BenchPress © Mailchimp 2021
Who When we started thinking about
this survey, one of our first
completed mandates was to make sure that it

was truly representative of our
the survey community, and truly global in

scope. With your help, we delivered!
We had
2,000+
respondents, including
1,382 agencies and
623 freelancers from
44 countries.

Freelancers
by the
numbers
Here's a snapshot of who took part in 3% 30% 38% 20% 9% 1% 46% 26% 25% 2%
our survey—a diverse mix of freelancers
at all stages. 18–24 25–34 35–44 45–54 55+ <1 1-5 6–10 11–25 26+
AGE YEARS FREELANCING
I left my full-time job 43%
I still have a job and

23%
also freelance
Female 59% 40% Male
I was let go from my
21%
full-time job
45% 20% 25% 10%

Non-Binary I’ve always freelanced 13%
1% $0K– $26K– $51K– $101K+
$25K $50K $100K
REVENUE HOW DID YOU START FREELANCING?

Type of An industry of specialists
Interestingly, only 13% of freelancers described themselves as people working in
freelancer
“marketing.˝ The rest are positioning themselves as specialists, which can help
freelancers carve out their own niches, stand out from the crowd, charge more
for their expertise, and ultimately increase their earning potential. Below are the
words that came up most often when we asked you to describe your business.

The power of
benchmarking
Insights to help you run
a better business
This report was created in partnership with Along the way, we'll be sharing some
BenchPress and The Agency Collective. tips and best practices, too—insights
The first truly global benchmarking survey that have the power to transform
for freelancers, it’s designed to enable you your business and help you grow
to compare yourself to freelancers around your own way.
the world in several key areas, including
hourly rates, sales performance, earnings,
and time management.
CREATED IN
PARTNERSHIP
WITH Join Mailchimp & Co

The Headlines Our biggest takeaways
from a year like no other.
Freelancers are Nearly half increased Referrals are the

feeling positive revenue in 2020 most effective
Despite the challenges 2020 presented, 45% managed to increase revenue in sales strategy
many freelancers saw the past year as a 2020, with 22% growing revenue by more
positive professional experience overall, than a quarter. 70% expect to see 37% of freelancers said the #1 way
with 28% saying they “did well” and 16% revenue increase in the next 12 months, they won new business was through
describing it as their “best year ever.” as confidence returns. referrals from existing clients. That said,
freelancers told us they also used a
wide mix of other sales tactics, too.

Key stats Facts and figures to
get you thinking.
The top 10% charge Leading freelancers 36% of freelancers

$197 per hour earn $50K+ per year hope to open
For freelancers billing at a fixed rate for all In North America, 25% of freelancers earn their own agency
services, the average rate reported is $75 $50K per year or more, with the average
within North America and $59 elsewhere. freelancer earning $36,065. Outside of North Despite the challenges many
For those using a variable rate, the top 10% America, 13% earn $50K per year or more, freelancers faced in 2020, 36%
of freelancers were billing $197 per hour with the average being $25,492. Regardless reported ambitions to open their own
on average. of location, freelancers can expect to earn agency in the future, with 17% planning
around $20K per year less than agency to do so in the next 12 months.
owners, on average.

Big
picture
2020
A year to
remember.
And to forget :)
Let’s be honest: very few of us are sad

to see 2020 in the rear-view mirror.
It was a challenging, tiring year.
But your responses reminded us
there’s lots to feel good about at the
end of the day.
Here’s a top-line view of some of
our findings.

The good The
not-so-good
Amazingly, we heard a lot of Still, many others reported a
feel-good stories: tough year:
45 % SAW REVENUE INCREASE 7 % SAID IT WAS THEIR MOST

CHALLENGING EVER
22 % GREW REVENUES BY MORE

THAN 25% 36 % REPORTED
DECREASED REVENUE
Of note: For many, 2020 Of note: Many say they’re carrying more debt,
provided a nudge to rethink and that it may impact their business decisions
and revitalize how they work, for some time to come.
and they think this will pay big
dividends for years to come.
Pro tip: Make this the year you help someone out,
or ask for help. There’s strength in numbers. (A big
reason we created Mailchimp & Co, by the way!)

What were Here’s how you
freelancers described what
happened in 2020. 16 %
saying?
Best year
ever!
Candidly, 2020 was a tough one for freelancers.

Over a third saw their revenue drop in 2020, with
28 %
37 %
around 1 in 5 losing more than a quarter of their
revenue.
That said, many reported they were still feeling

positive. We asked freelancers why. We did well We did OK
First, the pandemic simply prompted many

freelancers to lower their expectations and just be
glad to get through the year intact.
Second, for many freelancers, 2020 provided a

long-overdue nudge to optimize the way they
work and reap the rewards. The year’s challenges
12 %
7
became opportunities to revamp their service
offering, type of clients, new business strategy, and
ways of working.
%
Finally—and maybe most surprisingly—there was We struggled Our toughest
some good news across the industry: 45% of a bit year ever
freelancers actually saw revenue increase in
2020.

Pricing
Pricing
matters.
A freelancer’s identity isn’t just

defined by their clients and their
work—it’s also defined by how they
charge clients for that work.
In the following pages, we explore
pricing models across the industry.

How freelancers
price
Depending on the type of work being undertaken, freelancers
employ a variety of compensation models. Here’s how you told us
you price your work.
FIXED
78%
Hourly rates:
fixed or variable?
Agree to scope of work
up front, attaching a fixed fee
TIME AND MATERIALS

Charge for each hour 61%
worked
AGILE
Break the project down
into milestones, billing as
each one is reached
33%
40 % USE A SINGLE HOURLY
RATE FOR ALL WORK
VALUE
Agree to a fixed fee, which
is calculated solely based 29%
on value to the client
60 % USE DIFFERENT HOURLY

RATES DEPENDING ON
PERFORMANCE
THE TYPE OF WORK
Get paid based on achieving 8%
a business outcome
LICENSING
Get paid based on usage 4%
of products or services

Fixed hourly rate Average rates for freelancers
using a fixed hourly fee model
A lot of things can affect pricing: WITHIN NORTH AMERICA OUTSIDE NORTH AMERICA
your service offering, the number
of years you’ve been operating,
or where you’re located, to name $150 – Top 10% $121 – Top 10%
just a few.
That said, we wanted to get a

sense of the average hourly rates $120 – Top 25% $89 – Top 25%
across the globe, just so you can
see where you fit in.
$75 – Average $59 – Average
$50 – Bottom 25% $36 – Bottom 25%
$30 – Bottom 10% $22 – Bottom 10%

Variable
hourly rates
Average rates for freelancers
billing a variable hourly fee
AVERAGES
NORTH AMERICA OTHER COUNTRIES
High hourly rate $100 $89
Average hourly rate $71 $57
Low hourly rate $50 $42
WHAT THE TOP 10% CHARGE
NORTH AMERICA OTHER COUNTRIES
High hourly rate $197 $178
Average hourly rate $124 $124
Low hourly rate $99 $94

What freelancers earn
We spoke to a wide variety of freelancers across many markets and areas of expertise;
as a result, we also got a wide range of responses when it came to earnings.
ANNUAL PERSONAL INCOME OF FREELANCERS ANNUAL PERSONAL INCOME OF FREELANCERS

(WITHIN NORTH AMERICA) (IN OTHER COUNTRIES)
$75K + 10% $75K + 4%
$50K–74K 15% $50K–74K 9%
$25K–49K 19% $25K–49K 21%
$1–24K 41% $1–24K 57%
$0K 15% $0K 9%
THE AVERAGE FREELANCER IN NORTH AMERICA THE AVERAGE FREELANCER OUTSIDE

EARNS $36,065 PER YEAR NORTH AMERICA EARNS $25,492 PER YEAR

Agency aspirations 46% report earning more as
freelancers than they did in their
previous full-time positions.
Based on their successes in freelance life, many declared their

intention to take things to the next level and open their own agency.
DO YOU HAVE PLANS TO LAUNCH AN AGENCY?
Yes—within the year 17%
Yes—within 3 years 17%
Yes—within 10 years 2%
No plans yet 36%
No 28%

Tips to unlock
your profits
(and increase your earnings)
1 2 3 4
See what’s Review your Get more from Increase
profitable (and pricing your existing your capacity
what’s not) Your costs go up every year; clients You don’t need to hire people to
your pricing should, too. For a increase your capacity. There’s
Profits aren’t derived evenly Make sure you have a plan for
step-change in your pricing an army of talented freelancers
across all the work that you do. your key clients and set revenue
(and profitability), you’ll need to out there that you can call
It’s really important to understand targets. Once you’ve established
sell value, not time. Show your on to work with you on key
where you make money (and a relationship on one part of their
clients that you truly understand projects. When doing this, make
where you lose it), so you can business, see if you can expand
their needs, and that you can sure you add an appropriate
make more informed decisions into others. Find new ways to
deliver solutions nobody else margin for the time you’ll spend
about what to take on and what learn more about their challenges
can. That’s what your clients communicating with everyone
to avoid. Which clients and and demonstrate that you can
value, and what they’ll pay involved and managing the
projects are the most profitable? help solve them. Got a great
more for. project for the client.
What do you want more of idea? Pitch it to them, just as
in 2021? you would with a new business
prospect.

The
work
No two
freelancers
are exactly
alike.
Especially in the ways they do what
they do.
We dug in to learn more about how
you’re approaching everything from
billing structure to winning clients.
What tried-and-true practices are you
following? Is there anything you could
do to mix things up for 2021?
Read on and find out.

Getting paid
At some point, almost every freelancer has experienced the need to chase
down an overdue invoice, but fortunately, a large percentage reported using
the industry best practice of getting at least some payment up front.
WHEN DO YOU BILL FOR CLIENT WORK?
At regular intervals throughout

the project, based on milestones
33%
Monthly, depending on what

I’ve done that month
32%
In full, upon project completion 22%
In full, prior to project start 10%
Weekly/fixed schedule 3%
Scroll down for some
great tips to help you
get paid quicker.

Tips to keep
your cash flow Managing cash flow has
never been more
important, so we put
flowing
together some tips to
help you make it happen
with your clients.
1 2 3
Open with Set up for success Take a phased
openness If you need a deposit to get started,
make sure to let your client know it’s not
approach
Be candid about your terms in just necessary, but actually the fastest Avoid scheduling a large payment for the
proposals and pitch docs. Getting way to get your resources allocated. Try very end of the project. Link your payments
clarity from the start will go a long way to avoid saying it’s just your policy, so to key project milestones and invoice
in defining your relationship. that clients don’t feel overly pressured. regularly throughout the process. It keeps
your business more liquid but also avoids
end-of-project sticker shock.
4 5
Find allies in Be systematic
accounting Make sure to review your receivables at
least once a week and schedule time to
Especially with larger clients, your invoices make check-in calls if necessary. If you’re
can unfortunately get lost in the shuffle one of those people who’s not comfortable
sometimes. If you can, build a relationship making calls like this, is there someone on
with someone in accounting so you can your team who could help?
check in if an invoice or expense report
seems to be stuck in the system.

Breaking
it down
Two trends are continuing to change the way we work:
the shift from retainers to project-based work, and an
increase in the amount of work for remote clients.
PERCENTAGE OF CLIENT WORK ON RETAINERS PERCENTAGE OF CLIENT WORK FROM OTHER COUNTRIES
0% 55%
1–20% 28%
21–40% 5%
41–60% 4%
61–80% 3%
29% 15% 14% 15% 14% 13%
0% 1-20% 21-40% 41-60% 61-80% 81-100% 81–100% 5%
Project vs. retainer Are freelancers ready to get more global?

It’s the age-old question: what’s the optimal mix of The rise of remote work and video conferencing has done much
project-based vs. retainer work for you? What targets more than create a boom for sweatpants. It’s unlocked new opportunities
are you setting for each for 2021? for freelancers to work beyond their previous geographical boundaries.
45% are already taking advantage. Are you?

Reliance on
a single client
LARGEST CLIENT AS A PERCENTAGE OF REVENUEAT
Regardless of their project vs retainer mix, many
ANY POINT IN TIME?
freelancers reported heavy reliance on a single client.
0–20% 25%
21–40% 33%
41–60% 22%
61–80% 13%
81–100% 7%
5% 67% 20% 8%
For most freelancers, there are definitely lots
1 2–5 6–10 11+ of advantages to having a single flagship
client. But if that client represents more than
20% of your billables, there are potential risks,
HOW MANY CLIENTS DO YOU TYPICALLY WORK WITH
AT ANY POINT IN TIME? too. Read on to learn how to mitigate them—
or even turn them into advantages.
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Simple tips to If your biggest client
left tomorrow, would
reduce your risk you be ready?

A tough question. But one worth asking when
things are stable and you have the clarity of
mind to plan. Here are some others:
As long as they’re keeping you busy, there’s absolutely

How long is your runway while you
nothing wrong with having a single large client. That said,
look for new business?
it can be tricky to diversify and shelter yourself from risk.
Here are two strategies that can help.
Do you have access to financing

if you need it?
1 Make hay while

the sun shines
The good news about large clients
2 Be ready for
anything
Even when the relationship is great
Would you have to cut ties with any
support staff or regular partners?
providing consistent work is that they and you’ve delivered the goods,
can sometimes be easier to manage remember that your clients sometimes Who are the first 5 people you could
than multiple smaller ones, and more struggle with uncertainty too. That call to generate additional work?
profitable too. Remember that the means the risk that projects may get
better you know a client, the more put on hold or disappear altogether.
knowledge you have to help them with Stay supportive, and remember that
their marketing efforts. Always ask proactively helping them navigate
yourself—and them—if there are new their business challenges might be
areas of their business you can be a new way to unlock more business
helping with. with them—if not now, then in
the future.

Winning new NEW BUSINESS STRATEGIES, RANKED BY EFFECTIVENESS
business Referrals from existing clients
Networking
37%
16%
When it comes to winning Referrals from agencies/

freelancers
9%
new business, what strategy

8%
works best? We asked that Referrals from other partners
question and the answer was LinkedIn 6%

definitive: referrals from
existing clients. Email marketing 4%
Facebook 3%
Applying for tenders/ 2%

bids/RFPs
Content marketing—written 2%
Instagram 2%
PR 2%
SEO 2%
Other 7%

Five steps to
increasing referrals
Since referrals are by

1 2
far the most effective
sales strategy, we Create a list Let them know
wanted to share a few of the top 10 clients who love what you when you’ve got some capacity
ways to help make do and who would be happy to refer opening up, and that you’d appreciate
them happen. you to others. the referral to work with more clients
like them.
3 4 5
Be specific Set targets Say thank you
about who you’d really like to work with. to call a certain number of people each to clients who help you out. Provide
What type of business would make a week and ask for referrals. Create a feedback that reinforces what a great
great client for you? Create a list of the script if it makes things easier. The more referral looks like.
qualities you most value in a client you do it, the better results you’ll get.
relationship, then build your prospect
list based on your findings.

How
freelancers
spend their time
Time is
arguably our
most precious
resource.
How we spend it determines

our success.
We took some time to find out
how freelancers are currently
spending theirs—and how it’s
working for them. Let’s dive in.

Time
While many reported putting in the long work weeks we HOW FREELANCERS SPEND THEIR TIME
often hear about in marketing, a surprising percentage
seem to be maintaining a more traditional 9-to-5 schedule.
Billable client work 56%
Account management 12%
Sales and marketing 11%
Business administration 8%
Strategy 8%
Collaborating with other

3%
freelancers and vendors
Other 2%
The average
23% 46% 29% 2%
1-20 21-40 41-60 61-80
freelancer
works 35 hours
HOURS PER WEEK SPENT WORKING per week.

Freelancers want ...and more time
to spend less time on these
on these tasks...
Business administration 51% Strategy 60%
Account management 34% Billable client work 57%
Sales and marketing 27% Sales and marketing 40%

Billable client work 17% 9%
freelancers and vendors

freelancers and vendors 15% Account management 9%
Strategy 3% Business administration 4%

Pro tips Tips on how to get more
out of every working day.
Time Management: Money Matters:

Go for peak productivity Make it automatic
Are you an owl or a lark? Most people have a productive peak. You probably didn’t get into this business because you love
Know when you work most efficiently, and plan your schedule paperwork, but if you’re not keeping up with your billing, you can
accordingly. leave yourself vulnerable to cash crunches. Invest in an accounting
app, and take advantage of automated reminders to create
Beware of bottlenecks invoices—and chase existing ones.
Even if they’re informal, try to perform regular efficiency audits.
If you’re spending too much time on non-billable hours, maybe Know your value
it’s time to streamline your admin processes. Consider increasing your rates annually, even if it’s only by a small
amount. Every year you work is another year you’ve honed your skills,
Call for backup so you’re worth more. And if you don’t raise your rates, you may
One great thing about being a freelancer is that you have lots actually be losing money. Inflation is real.
of opportunities to learn new skills on the fly. Just remember
that nobody’s amazing at everything. If you’re really grinding Time to unsubscribe?
on one aspect of a project, consider calling in some support. While certain platforms are obviously essential to your everyday
Hint: the Mailchimp & Co community is a great place to start. business (we’re partial to one in particular), it’s possible that you’re
over-investing in solutions you don’t use much. While a few dollars a
month may not seem like a lot, it all adds up. And don’t forget to turn
off auto-renew unless you’re absolutely positive you’ll still need that
monthly pricing plan this time next year.
Want more tips to keep you leveling up?

Check out mailchimp.com/andco/resources for helpful articles,
freelancer profiles, and reading lists of the best new books in marketing.

What
the future
holds
So much
more’s in store
While it’s been great to review everything
that happened in 2020, it’s more important
to look ahead.
That’s why we’re closing with some trends
to watch in 2021 that'll help you rethink how
you’re working, get you inspired, and
unlock new growth.
And make sure to read the very last page to
sign up for Mailchimp & Co (if you haven’t
already) and stay in touch for updates on
new studies, invitations to exclusive events,
and lots more.
Ready? Let’s go.

Freelancer confidence
indicator
First things first: confidence is back. While 2020 saw a huge dip
in confidence, levels have now rebounded to historical averages.
70 71 70 69 69
67
60 60
50 50
40
35
30
Jan 2017 Jan 2018 Jan 2019 Jan 2020 Mar 2020 Apr 2020 Jul 2020 Jan 2021
Scores represent a ranking out of 100, where 0 is least confident and 100 is most confident.

Remote working
While much of the world struggled to adjust to working from home,
freelancers saw a much less seismic shift: just 10% more said they
were now WFH, but hadn’t been prior to COVID-19.
WHERE FREELANCERS SPEND THEIR TIME
BEFORE COVID-19 FROM NOW ON
Home 58% 68%
Own office 16% 17%
Client office 14% 7%
Shared office space 6% 4%
Other communal spaces

6% 4%

In conclusion...
If there’s one thing this report has shown
us, it’s that there’s lots to be excited about,
and huge opportunities for freelancers to
thrive and grow in their own unique way.
We hope you found this study useful, and
in the coming year, we’ve got lots more to
share with the Mailchimp & Co community.
Once again, if you haven’t already signed up
to join us (free!), you can do it here.
Thanks for reading, thanks for sharing,
and thanks for keeping us inspired, too.
Best,
The Mailchimp & Co Team

Stats, analysis,
and insight—
personalized This study is just the beginning. We’ve
created several reports and events with
insights personalized to you. We’ll be
for you rolling them out throughout the year.

Read on to learn when they’ll be available
and how to access them.
* These reports will only be available

to those who have completed the
AGENCIES REGIONAL survey. If you haven’t completed it
FREELANCERS BENCHMARKS*
UNDER $1M yet and want access to specific
benchmarks for your region, take
the survey now.
This report Data from agencies with Coming later in 2021—and

revenue under $1m in your local currency
Go

Events to ignite
your growth
Mailchimp & Co is hosting a series of
events in 2021 to help you take your
plans to the next level. These include
practical events to help you get more
from your email marketing, plus further
insights from the benchmarking data
contained in this report.
Check out the latest events

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The work ................................................ 23

How freelancers spend their time ............... 32

What the future holds.............................. 37

In a year when it was legitimately a challenge to

Here at Mailchimp, the year wasn’t without its challenges. But it

3 Sign up at mailchimp.com/andco © Mailchimp 2021

Whether you’re just starting out as a freelancer, have landed your

If you haven’t already signed up, you can do it here.

completed mandates was to make sure that it

the survey community, and truly global in

5 Sign up at mailchimp.com/andco © Mailchimp 2021

AGE YEARS FREELANCING

I left my full-time job 43%

I still have a job and

45% 20% 25% 10%

REVENUE HOW DID YOU START FREELANCING?

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Freelancers are Nearly half increased Referrals are the

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The top 10% charge Leading freelancers 36% of freelancers

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Let’s be honest: very few of us are sad

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45 % SAW REVENUE INCREASE 7 % SAID IT WAS THEIR MOST

22 % GREW REVENUES BY MORE

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Candidly, 2020 was a tough one for freelancers.

That said, many reported they were still feeling

First, the pandemic simply prompted many

Second, for many freelancers, 2020 provided a

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A freelancer’s identity isn’t just

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TIME AND MATERIALS

60 % USE DIFFERENT HOURLY

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That said, we wanted to get a

$75 – Average $59 – Average

$50 – Bottom 25% $36 – Bottom 25%

$30 – Bottom 10% $22 – Bottom 10%

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NORTH AMERICA OTHER COUNTRIES

High hourly rate $100 $89

Average hourly rate $71 $57

Low hourly rate $50 $42

WHAT THE TOP 10% CHARGE

NORTH AMERICA OTHER COUNTRIES

High hourly rate $197 $178

Average hourly rate $124 $124

Low hourly rate $99 $94

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ANNUAL PERSONAL INCOME OF FREELANCERS ANNUAL PERSONAL INCOME OF FREELANCERS

$75K + 10% $75K + 4%

$50K–74K 15% $50K–74K 9%

$25K–49K 19% $25K–49K 21%

$1–24K 41% $1–24K 57%