People work primarily to earn money and individuals who work online are no exception but unlike with traditional jobs, compensation and payment for services provided on the internet are not often regulated. This means that employers and clients are seldom subjected to a required minimum pay enforced by a labor or government agency because the transactions usually cross boundaries.
Causes of Low Rates in Online Jobs
Filipino writers may provide content for a New York based publishing firm and Indian programmers may develop software products for an IT company in London and so, what may be perceived as a sweat shop rate in Western countries can be considered as fair pay for some online workers who are based in third world countries such as The Philippines, India, Pakistan and Indonesia where the cost of living is significantly lower. This cross boundary set-up and the lack or regulatory measures manning this become abused by some who offer paltry rates for services provided them.
The emerging popularity of online job marketplaces such as Odesk, Elance and Freelancer also made the situation worse because service providers would have to bid for projects in these sites. Although potential clients may consider feedback from past works and skills prior to granting job, service providers who offer the lowest rates are often favored in these sites. As a result, online workers eager to get hired, particularly those who want to get a client and positive feedback for the first time, often offer the lowest price possible for their services. There are also clients who take advantage by baiting desperate workers with promise of positive feedback in exchange for very cheap and almost-free services.
Determine the Fair Pay for Your Services
Although employers and clients typically offer what they are willing to pay you, it's your call to accept the job depending on whether the pay is fair enough for you so how do you determine the fair rate for your services? Here are some questions to ask:
1. Is the pay you’re receiving worth your time and effort?
Working albeit online would have you spending time in front of your computer doing tasks for another person or company instead of spending time with your family or pursuing a hobby so make sure that the pay is worth your time. If a client offers you work for $1.5 per hour, reflect on whether the amount is enough. You should also consider the efforts needed to get the job done. A web designer should charge more if besides creating a web template, he is asked to optimize a website for the search engines.
2. Does the rate cover the expenses needed to get the job done?
Do you actually earn from your job or does the pay barely cover the expenses you need to get the job done? Remember that you need to spend for internet access and electricity to work online so you have to earn more than the amount you pay for the overheads. Do not forget that you work to earn and to have a decent life so the payments you receive should at least cover your needs. This is particularly important if you work full time.
3. Is the rate a reflection of my skills and experience?
Simply because everyone else is charging $100 for web design services means you should have the same rate. You can charge more so long as you have the skills and talent clients can hardly find elsewhere. You can also charge more if you have relevant experience, education and training to get the job done well.
4. What is the prevailing rate for the job in the job market?
What may be the rate accepted by many freelancers may be unfair to you particularly if you have skills and experience most online workers in your field do not have. Still, it helps to check out service rates from time to time so you know how to charge professional fees that your prospective clients will find reasonable.
