Your Video Editing Rates Are (Probably) Too Low

Reading time: 6 minutes

The biggest questions for every editor, especially those starting out: "How much should I charge for my editing? Is my rate too high or too low? What's the best rate for a new editor?"

Last week, we talked about challenges YouTube Editors face, and today, we're diving into one of them—Money.

So, let's cover:

• How to decide on your rates as an editor

• Exploring different pricing options

• The true reason behind figuring out your rates as an editor

Unfortunately, there's a big problem with setting too low prices in this industry, especially on YouTube. So, let's address that concern first.

How to Determine Your Rates.

As an editor, remember you're part of a community of editors, all seeking work to grow their income.

Setting low prices doesn't attract more customers; instead, it affects your and your peers' chances of finding sustainable work. Clients recommending you for being cheap rather than skilled is not a reputation you want.

Furthermore, it dilutes the industry, pushing editors into less creative roles because there’s more stability. Working at McDonald's for $15 an hour might be more profitable than editing a $50 video across several days.

So, how do you determine your rates?

Calculate your expenses, including rent, insurance, utility bills, subscriptions, hardware, etc., for a month and then annually. Determine how much you need to cover your costs.

Then:

1. Calculate the total hours in a year.

2. Deduct national breaks, sick days, and holidays.

3. Divide the remaining hours by your annual expenses.

To simplify this, I've created a handy rate calculator. Remember, this is your minimum hourly rate—consider adding a bit more on top.

Additionally, consider taxes and accounting in your local area. I'm not a tax expert, so it's crucial to be aware of these factors when setting your rates and calculating annual revenue.

Now that you've figured out your rates, are you good to go?

Not just yet. While determining your hourly rate is essential, charging hourly is likely the worst way to get paid as an editor. Why? Let’s take a look.

Pricing Strategies & Examples

As an editor, you have various options for pricing your services. Let's explore the pros and cons of each.

Hourly

• Pros: A great way to calculate your earnings per hour, establishing day and project rates for clients.

• Cons: Can lead to underselling as it penalises efficiency. For instance, spending only 1 hour on a video might earn you only $25.

• When to Use It: Ideal for determining day rates and projecting project costs over several days. It serves as a deterrent good deterrent when clients go over the revision limit; switch to hourly pricing.

Day/Project Rate

• Pros: Calculated from your hourly rate, summarising the total time spent on a project. Easy for clients to understand and for you to invoice.

• Cons: Can become costly for large projects or those spanning multiple days. I’d also recommend working out a half-day rate just in case.

• When to Use It: Best suited for projects extending over multiple days. Consider creating a deal by offering a discount for a bulk order. Helps create goodwill with the client.

Per Edited Minute

• Pros: Extremely useful for online creators with limited budgets. Short-form editors may charge around $60 per minute of edited content.

• Cons: Requires careful time management to avoid losing money. For example, quoting $200 for a 10-minute video results in $25 per hour for 8 hours. Going beyond 8 hours eats into your profit.

• When to Use It: A great solution for online creators on a budget. Use it effectively by accepting jobs you can edit with a fast turnaround to avoid revenue loss.

The Real Reason Behind Your Rates

Your rates aren't for your clients; they to help you better understand the needs of your business.

Most leads want to know your prices right away, and that's okay. Provide a quote, and if they're not satisfied, no time is lost.

Better yet, jump on a call with them and figure out what they want. During the call, ask about their goals and what success looks like for this project.

Understanding their objectives helps you grasp their challenges, enabling you to guide and assist them way more effectively.

Why is this important? Well, it shows you care about them and the project's outcomes. Additionally, it positions you as a team player.

Winning clients isn't just about charging less or making deals. It's about going the extra mile to ensure their satisfaction.

Editing is just part of the job of working with clients; you also need to be a problem solver first and foremost.

And remember:

• Not every client will say yes; that's okay.

• Some discussions may lead to a "no"; that's also fine.

• Rejecting 90% of clients to be paid your worth is normal; embrace it.

• Your rates are an evolving thing. As your business and ambitions grow, your rates should also.

Another great way to figure out your rates is to talk and communicate with other editors, which is why we have one of the best communities for editors looking to get more work, clients and improve their skills. So join us here:

Until next time, happy editing!
Sam 👋🏻

Work With Me

📞 Book a Call With Me

👥 Join The Best Editing Community On Discord

👉🏻 Remove The Stress of Managing your Channel