Easy methods like charging by the word or the page seems great — until you get hosed by higher-than-average research requirements or a helicopter client who calls every hour to check on your status. Then suddenly an article that should have taken you eight hours to finish takes closer to fourteen and your fee-to-profit ratio has sailed down the drain alongside the Ty-D-Bol Man.

I know my fees on a per-hour, per-page, and per-word basis, but I rarely bid them straight up.

Alone, they almost never translate to the work an individual project will require. Instead, I use a formula I’ve refined over many years.

It accounts for multiple factors including research, client communication, and other ghostwriting tasks. I share it so you, too, can use it. And if you improve on the formula, even better ⏤ drop me a comment and let me know how.

My bidding formula

As stated, there a several key factors in accurately estimating a ghostwriting project. The five factors I account for are as follows.

Factors

1. Hourly rate (HR): My rate varies from $75 to $200 an hour based on the level of expertise required, as well as turnaround time (yes, freelancers, you should charge a rush fee.

2. Interviews (I): This accounts for live, in-person (phone or video) interviews. These are more often a significant factor in long-form projects than in shorter articles or blogs, but are overlooked only at the peril of one’s profit.

3. Research (R):These are your Google searches, the articles you dig up in the library archives or the news clippings your client emails one-by-one like a slowly dripping faucet.

4. Client communication (CC): Every email you read, every phone call you answer is an investment of your time. Plan for it.

5. Hours per final page (HFP): I know how long it typically takes me to write a single page (250 words) of content. Like other freelancers, this is insight I’ve gained with experience. As I calculate by final page, I account for editing time in this number as, well. Typically, I reduce the time per page by 50 percent for each draft. For example, if I average one hour per page to write a first draft, I calculate 30 minutes per page for a second and 15 minutes per page for a third ⏤ or 1.75 hours of work per final page.

Formula

HR x ((I + R + CC) + (HFP x page estimate)) = Fixed fee estimate

or

HR x ((I + R + CC) + (HFP x page estimate)) / estimated word count = Fee per word estimate

Putting the formula to real use

I had a client contact me about co-writing a 50,000 word memoir.

She was an established writer and had already done significant outlining and research.

However, she was struggling to identify her core message and to gain sufficient distance from the work to tell an honest story. After discussing the work, she asked me for a fixed fee bid.

Here’s how I calculated it:

HR: $75. Knowing she was an accomplished writer in her own right, I knew that working with her was not going to be strategically or editorially heavy. I kept my hourly fees on the low end.

I: Minutes into our initial meeting I could tell that my potential client was a talker! That’s fine, I enjoyed our conversation. But it did mean that getting the information I’d need from our interviews would take longer than usual. I added 25 percent to my typical estimate for interviews.

R: The client had already done and compiled significant research, so I reduced my research hours by 25 percent.

CC: The client asked several questions about how often she could call me and how often we’d touch base. She wished to be able to pick up the phone whenever she had an idea come to mind. Again, I don’t mind that, but it does affect my estimating. I added 15 percent to my estimate.

HFP: The key challenge for this client was finding her core message, so I knew we’d have to invest time in initial outlines and drafts. However, her skill as a writer offset the additional time required for finding a message. I used my standard HFP.

75 x ((12 + 12 + 16) + (2 x 200)) = $33,000

or

75 x ((12 + 12 + 16) + (2 x 200)) / 50,000 = $.66 per word

Giving a client an estimate in the tens of thousands of dollars is never a breezy conversation.

However, performing due diligence in my estimates grants me the the confidence I need to defend my fee. And it gives my clients insight into the work I undertake on their behalf. Per-word and per-page fees are easy to give, but harder to defend. I feel I owe it to my clients to do better.

I’d love to hear your formula for estimating your projects. What works for you?

To be fair, I spent much of my career as a salaried employee, so I didn’t have to function with a freelancer’s mindset. But after leaving corporate life, I faced the thorny issues common to all contract ghostwriters.

Namely, how can I prove I wrote what I say I wrote?

It’s a layered problem. For starters, ghostwriters don’t put their names on their work. We get lots of writing experience, but we don’t get bylines.

Then, too, there is the very real fact that many clients fear being “outed” for hiring a ghostwriter. As one of mine once said, “My name is all over the internet. I can’t exactly admit I didn’t write any of that stuff.”

I was years into my freelance career, and I found myself with a hard drive full of well-written content, zero author cred and a client base who preferred I stay in the shadows. Before long, my work felt more like a theoretical exercise than a future. But, thanks to economic necessity and a handful of forced errors, I eventually freed myself from the ghostwriting hamster wheel.

1. Include a portfolio permissions clause in every contract

While this type of clause is standard for most types of freelancing, ghostwriting clients have anonymity concerns. Many feel embarrassed they’re not writing the content on which they put their name. I respect that. But it does not have to be a roadblock to business development.

Ghostwriters should include a permissions clause in every contract.

Mine is typically very simple. It states that I reserve the right to include the contracted work in part or in full within my professional portfolio.

That is sufficient for most clients, though some stipulate additional parameters. For example, some clients allow me to use their pieces in my portfolio but request I remove their name. Others specify word count limits.

2. Excerpt fee-based content

The rise of ebooks and other fee-based content presents a new challenge.

Long-form ghostwriters, for example, are currently in high demand to write self-help books, memoirs, and romance novels — all of which are revenue-generating products. Obviously, it’s bad form (if not outright theft) to freely distribute an ebook, for example, that otherwise sells for $10. And yet, contract writers still need to showcase the work.

The solution is to provide excerpts.

Product excerpts allow a ghostwriter to show relevant work samples without robbing a client of potential sales.

When you’re writing a contract for a fee-based product, include a clause that grants you permission to use excerpts of that product in your portfolio. As stated previously, some clients may wish to stipulate additional parameters such as word count or other limits. In my experience, these requests are typically reasonable and easy to accommodate.

If you find you didn’t secure usage permissions in your original contract, follow-up with the client.

Include the excerpted text in your request and a brief statement about how you plan to use it.

3. Maintain a client testimonial catalog

On rare occasion, I’ve had clients withhold permission for the use of individual pieces, but instead, offer a testimonial on my behalf. I always take them up on it.

In fact, I recommend all ghostwriters not only maintain a catalog of client referrals, but that they also include these statements in their portfolio.

Even a handful of compliments can help a ghostwriter stand out from the competition. They also go a long way in justifying fees.

The most compelling testimonials address the fact that ghostwriters offer more value than just the production of an article or ebook, etc. The best ghostwriters help clients clarify ideas and strategize arguments.

They reduce customers’ workloads and relieve their content development headaches.

Hiring a ghostwriter needn’t be anyone’s shameful little secret, and I’ve found that a few good conversations can go a long way in assuaging this fear for my clients.

We ghostwriters provide a valuable service to our clients, but it is up to us to advocate for our own careers. Building a strong portfolio not only helps us land more work, it allows us to increase our rates, expand our expertise, and establish our professional standing. We can’t let something as singular as a byline stand in the way of earning what we’re worth.

Thought I was going to say something more profound? Consider this example.

“Lydia” is a therapist with a thriving practice. Her clients tell her, “No one has ever been able to help me the way you have.” They say, “I thought therapy was a scam until I came to you.” They say, “You ought to write a book.”

Lydia nods and thinks, I’d love to write a book. She sees the way the Dr. Phil’s of the world have turned basic ideas into multi-million dollar platforms. Even better, her ideas are unique. She has great client success stories to tell. She should write a book. Or a blog. Or a weekly column.

In my experience, though, most Lydias never start those writing projects. Or if they do, they don’t see them all the way through to completion. Why? Because of the painful process of writing, editing, submitting and publishing.

That’s where ghostwriters come in.

The great news for ghostwriters is that the Lydias of the world turn the adage, “No pain, no gain!” on its head.

Lydia already sees the benefit of a well-written book, blog or article. She knows that great content will act like fertilizer on her growing brand. We don’t have to sell her on product.

What she wants is all gain without the pain. She wants assurances that we’re going to help her reach her goal faster, more easily, and with a greater guarantee of success.

In my experience, there are three sources of pain for my ghostwriting clients: time, skill, and industry know-how.

In fact, one of the first questions I ask prospective customers is this: What’s preventing you from writing this project on your own? With that information in-hand, I’m already several steps down the road to winning their business.

Here’s a glimpse of what I mean.

Pain point #1: Time (Or, “I’ve had this idea for years.”)

More than any other issue, clients like Lydia lack the time needed to write. They have big jobs and growing families. They’re too busy living the life they want to write about to sit down and get typing.

When I know that the client’s main obstacle is her lack of time, I can build a customized proposal that stands out because of its value, rather than just its price. I can say …

• If you hire me, you will regain X number of hours per day because you’ll no longer have to spend it writing.

• I can reduce your content time to market by [(current development speed)-(my development speed)].

• Hiring me now reduces the risk that competing messages or ideas will enter the market before yours do.

Pain point #2: Skill (Or, “If I were capable of writing this on my own, I would have done it by now.”)

Clients who fall into this category aren’t necessarily unskilled writers, and many of mine vary widely in ability.

This type of customer will, however, be the first to admit that he hates to write, or doesn’t know how to organize his thoughts, or has trouble maintaining a discipline.

As one customer put it, “If I were capable of writing this on my own, I would have done it by now.”

Customizing a proposal with a “skills” management bent looks something like this:

• Hire me to do the stuff you don’t like — the writing and organizing and editing — while you remain focused on what you love: sharing your expertise.

• It’s my job to make you stand out by developing a written voice that’s as dynamic as your brand.

Pain point #3: Industry know-how (Or, “I don’t even know where to start.”)

Many clients come to me and admit they don’t know the first thing about how to get something published. To which I respond, “Have you written anything yet?”

Most often, the answer is no.

Clients with big ideas tend to be big idea thinkers — they know what the goal looks like, but they’re not overly interested in reading the maps to get there. That’s our job. And we freelancers are especially good at easing this type of pain because we navigate “the system” every day. We have to know it to profit from it.

To ease a client’s “process” worries requires little more than confirming your skills as a navigator.

• You have great ideas, and I am expert at distilling complex concepts into a single, compelling message.

• You have a worthwhile story to tell, but it needs to be packaged correctly to reach your [audience].
• I like to develop long-term relationships with each client so that I can see you through from pitch to published.

Time, skill, and know-how ⏤ none of us has a perfect balance of all three across the spectrum of our professional lives. That’s why I’ll never fire my bookkeeper; I’m terrible with receipts, and she thrills at organizing them.

But I do like writing. I like bringing ideas to life on the page. And I like to be the one offering a moment of relief to my clients, a respite from the pain they experience when doing what I love.

Anyone who’s ever rifled the medicine cabinet for a bottle of Excedrin knows the value in that.