Rate Setting for Creatives Who Hate Talking About Money

Listen, I love a feel-good exercise in self-actualization, and unfortunately today this is not that. This topic wasn't the first I plucked off the pile because it leans toward the brutalist side of our industry - the drab, dry, and sometimes depressing reality behind the curtain. There's the romantic, inspiring, aspirational side of a beautiful and brilliant creative life, and then there's the diarrhea-city that is rate setting, negotiating, invoicing, and chasing overdue cheques.

Rate setting tends to be approached in two distinct and opposing ways. You have the grandiose artiste whose diva-demands blow out every budget, or you have the small, meek, and humble acts that are undercutting themselves at every opportunity. With this entry I want to share some insight on finding your way to the profitable middle ground.

But first, if you're an emerging act who can barely string together a coherent performance, or a developing creative still learning the basics, this isn't for you. Not yet, get outta here, skedaddle. Go focus on becoming undeniably good at what you do before worrying about getting paid fairly for it. There's a difference between undervaluing proven expertise and strategically investing in your professional development. If you're still in the early "getting your reps in" phase, take the low-paying gigs, eat the shit sandwiches, digest them, learn from them, and build something worth paying for. Once you've developed real skills and can deliver consistent value, come on back this way.

Alright, back to it.

Your rates should reflect the brutal reality of what you actually bring to the table: all those years you spent toiling away at your craft while everyone else was getting proper grown-up jobs with health insurance, retirement plans and parental approval. Your rates reflect that unique perspective you developed through countless muddy hours of trial and error, the fertile network you've curated, and yes, those creative problem-solving abilities that can't be Googled or outsourced to ChatGPT. Clients aren't just paying for the final product they're buying your expertise, your reliability, and the luxury of not having to worry about whether their project will be an absolute shit show. Peace of mind isn’t cheap.

Think of setting appropriate rates like quality control. Charge what you're worth, and you'll attract clients with integrity who actually give a shit about good work, people who understand that quality, real meaningful value, costs money. Race to the bottom on price, and you'll find yourself drowning in a sea of penny-pinching sociopaths shilling empty and embarrassing garbage.

Your skills have value. Real, tangible, market value. Charging appropriately isn't greedy; it's the difference between being a professional and being a hobbyist with delusions of grandeur. When you price yourself fairly, you can actually deliver your best work without that raging resentment that comes from knowing you're being exploited.

Research Your Market Value
Do your homework. Look at industry reports, respectfully corner your peers at industry events and ask them what they charge, check platforms where rates are discussed openly. For influencers, tools like Social Bluebook or AspireIQ can provide benchmarks based on follower count and engagement rates.

Factor in All Your Costs
Calculate your true hourly rate by including every single minute you spend on a project; research, revisions, annoying administrative bullshit, travel, and business expenses. Most creators underestimate the total time investment and end up working for less than minimum wage.

Create Tiered Pricing
Offer different tiers whenever possible, basic, standard, and premium packages. This gives clients and fans options while positioning your preferred offering in the middle, where most people will naturally opt-in. For comedians, this might mean different set lengths or add-on experiences like VIP or meet-and-greets.

Value-Based Pricing
Consider pricing based on the value you provide rather than just time spent.
Read that again!
Consider pricing based on the value you provide rather than just time spent.

A writer creating content for a Fortune 500 company should charge exponentially more than for some lifestyle blogger's vanity project, even if the time invested is the same. The corporate client has deeper pockets and much higher stakes. Price accordingly.

Understand the Economics of Your Client's Project
At least once a week I slam my head against a wall when I’m sucked into a “negotiation” with a financially illiterate creator that doesn’t bother to understand the basic economics of what they're being hired for. If you're working on a show where the breakeven is 98% on a 300 cap event, you can't waltz in demanding we add catering for a small army and a $2000 buyout on top. That's not savvy negotiation, you’re not showing me who’s boss, the opposite in fact, because now I know you’re delusional and out-of-touch with our business.

Do your homework on the project's financial reality and limitations. What’s the real return for the client? How much of the pie are you walking away with? Is this a passion project scraping together funding, or a well-funded commercial venture? Understand the budgets and financials put in front of you. If you have questions about the costs and deliverables, ask, do not assume. Get an understanding of your client’s risk tolerance and budget constraints, it isn't about accepting less, it's about knowing how to position your value within their constraints and objectives.

Sometimes that means walking away from projects that can't afford you, and sometimes it means finding creative ways to structure deals that work for everyone. But it always means not being the clueless creative who prices themselves out of the gig and future opportunities because they couldn't be bothered to understand the business they're operating in.

Build in Room for Negotiation
Set your rates sliiiightly higher than your minimum acceptable amount. This gives you flexibility to offer "discounts" while still hitting your target numbers. People love feeling like they're getting a deal.

Regular Rate Reviews
Update your rates every 6-12 months as you gain experience, or as market conditions change. Don't be afraid to raise rates for new clients while honouring existing agreements. I mean, there is “precedent” and industry standards, but your skills are presumably improving, inflation is real, and your time is finite.

Know Your Non-Negotiables
Decide in advance what you won't compromise on; minimum rates, payment terms, or scope creep boundaries. This prevents you from making desperate decisions when some client tries to fuck around. Have standards, stick to them.

Finally, let's talk about Opportunity Cost! Every project you say yes to is simultaneously a no to something else. That low-paying gig might seem harmless, but it's eating into time you could spend on higher-value work, developing new skills, or just living your life. Learn to recognize the difference between a strategic and intentional yes vs. a desperate yes. A strategic yes opens doors, builds relationships, grants you access to new resources, or teaches you something valuable. A desperate yes barely pays this month's rent while slowly eroding your market position, and your magic-sparkle! The most successful and respected creatives aren't the ones who take every job, they're the ones who know when to walk away. Saying no to the wrong opportunities creates space for the right ones. And when you do say yes, make sure it's because the project excites you, pays you fairly, or advances your career in a meaningful way. Everything else is just useless and expensive busy work masquerading as progress.

Photo by Lysander Yuen on Unsplash