Why Pricing Your Work Correctly Matters for Licensing and Commissions
It’s easy to get caught up in the creative process and forget about the business side of things, but pricing your work correctly is the single most important step you can take toward a thriving career. Here’s why...
It Proves Your Professionalism
When you give a client a clear, well-researched price, it shows that you are serious about your business and confident in your value. It moves you from "hobbyist" to "professional," which clients appreciate and respect. A firm price communicates that you know your worth and aren't afraid to ask for it.
It Ensures a Sustainable Business
If you’re not making enough money, you can't keep doing what you love. Calculating a sustainable hourly rate ensures that you're not just covering your time but also your business expenses—things like software subscriptions, art supplies, marketing, and taxes. Correct pricing allows you to invest back into your business and continue growing as an artist.
It Prevents Burnout and Undervaluing Yourself
Working on a project for weeks only to find you’ve earned pennies an hour is incredibly disheartening. This can quickly lead to creative burnout. A clear hourly rate helps you stay focused and ensures you are fairly compensated for your effort and skills. When you value your time, others will too.
It Provides Clarity for Licensing
For licensing deals, a solid understanding of your hourly rate helps you negotiate better terms. Whether you're offering a flat fee or a royalty percentage, you can ensure that the deal is fair by having a baseline for what your time and expertise are worth.
Pricing Commissioned Work
Step 1:Â Calculate Your Base Rate (Time-Based Pricing)
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To find your lowest acceptable price, start with an hourly rate. Your rate depends on your experience, location, and cost of living. A simple way to calculate a starting rate is:
 ($$ Annual Income Goal / 52 weeks) / (Hours worked per week) = Hourly Rate
 Example: ($60,000 / 52) / 40 hours = $28.85 per hour
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Step 2: Factor in your Value
Your time has value, but your art creates even more. Consider adding a premium based on the client's size, project scope, and potential revenue.
Pricing Calculator
Calculate your base hourly rate and add value for clients.
