Are you an illustrator struggling to figure out how to price your services? Don’t worry—you’re not alone. Pricing is one of the biggest challenges for freelance illustrators, whether you’re new or experienced. In this guide, I’ll help you understand the core elements of freelance illustration pricing, so you can confidently set your rates and get paid what you’re worth.
The Freelance Illustration Pricing Guide
Step 1: Understand Your Costs of Doing Business
Pricing your illustration services starts with understanding the costs of running your illustration business.
This includes your expenses for software, hardware, studio space, and even marketing. You also need to consider your personal expenses—rent, food, insurance—as they impact what you need to earn to stay afloat.
For example, let’s imagine Susan, a fictional illustrator.
She has calculated that it costs $900 per month to cover her business expenses, including rent for a small co-working space and software subscriptions. This becomes the foundation of her pricing.
Step 2: Define Your Base Rate
A solid way to approach pricing is by determining a base rate, which acts as the foundation for any project you take on. Your base rate should account for:
- Your Monthly Expenses: Consider both business and living expenses.
- Your Desired Profit Margin: Don’t forget to factor in profit. A common mistake among illustrators is to only cover costs without building in profit.
For Susan, she decides her base rate is $250 per day. This base rate helps her understand what she needs to charge to ensure she covers her expenses while also earning a decent profit.
Step 3: Price Based on the Project Scope
One effective way to price your services is to offer a project rate. This helps clients know exactly what they’ll pay and allows you to account for all aspects of the work involved—including revisions, communication, and file delivery.
For instance, Susan gets her first client—a project that requires 14 spot illustrations for a popular blog. She estimates that the project will take about 14 days to complete. Using her daily base rate of $250, she sets the project price at $3,500.
Add Profit and Usage Rights
To ensure profitability, it's essential to add a profit margin. Susan builds in a 10% profit, adding an additional $350 to the total, making it $3,850. She also negotiates usage rights, giving the client the right to use the illustrations for one year on their website. After that year, the client can renew the rights for a fee. Including usage rights in your pricing can lead to recurring income from your work, increasing your earning potential without additional creation.
For a deeper dive into pricing usage rights and creating strong agreements, check out my illustration contract guide.
Step 4: Value-Based Pricing
Another powerful way to set your rates is by considering the value your illustrations provide to the client.
For example, imagine you’re creating illustrations for 10,000 tins of gourmet chocolates, which will be sold for $25 each. That's $250,000 in potential sales. Your illustrations will help these tins stand out on the shelves and attract consumers, directly impacting the client’s bottom line.
In a case like this, charging $600 wouldn’t make sense given the significant role your artwork plays. Instead, a $20,000 fee or more, possibly paired with a percentage of sales, is entirely justifiable because of the value your art adds. This is a good example of why it’s important to think beyond simple time-based rates and consider how much profit your work will generate for the client.
Step 5: Creating a Portfolio that Supports Your Pricing
A well-crafted portfolio is key to communicating your value and justifying your pricing.
You should aim to build collections of artwork that showcase the range of your abilities and the versatility of your style. This helps potential clients understand the breadth of what you can offer and visualize your work in their product lines.
To make your portfolio effective for art licensing, organize your work into clear, thematic collections. Think about creating collections that could be licensed for specific products or industries—such as children’s illustrations for book publishers or botanical patterns for home goods. By presenting your work in an organized and professional manner, you make it easier for clients to see the value of your services.
For more insights into creating an impactful portfolio, visit my guide on developing an art licensing portfolio.
Step 6: Determine When to Raise Your Rates
Once you establish your pricing, it’s important to recognize when it’s time to raise your rates. As you grow in experience and reputation, your pricing should evolve as well. If you’re consistently booked, that’s a good sign that your skills are in demand and that it may be time to increase your rates. Also, if your work has been featured prominently or you’re getting positive feedback on your projects, it’s a strong signal that you can command higher fees.
Raising your rates also makes sense when the cost of living or your business expenses increase. You should ensure that your pricing reflects both your growing expertise and the economic realities of running a business.
Your freelance illustration pricing is up to you
Ultimately, pricing is about more than covering your expenses—it’s about reflecting the value of your work.
By understanding your costs, defining a base rate, and considering the value your illustrations provide to clients, you can confidently set rates that are both competitive and sustainable. Don’t forget to incorporate usage rights as an additional revenue stream, allowing you to continue earning from your artwork even after the initial project is complete.