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75% of the total project value if cancellation is given within 24 hours of project commencement25–50% for cancellations made further in advance
Self-Employment Tax Freelancers pay both the employee and employer portions of Social Security and Medicare — roughly 15.3% off the top, compared to the ~7.65% a salaried employee pays.Business Expenses Everyday operating costs add up quickly:Adobe Creative Cloud (~$60/mo)Software licenses & pluginsHardware & equipmentInternet & phoneElectricity & home officeHealth insuranceAccounting & tax prepLegal fees & contractsMarketing & website hostingProfessional development & coursesRetirement Without an employer-sponsored 401(k), you're on your own. Freelancers can contribute to a SEP-IRA (up to 25% of net earnings) or a Solo 401(k) — but either way, that money comes directly out of your gross income before you see it.
Practice Scenario: Negotiating your Day RateClient: "What’s your day rate?"
You: "$400."Client: "$300."
You: "I typically work at $400, but I can meet you halfway at $350."Client: "$300 is our budget cap."
You: "I understand budget constraints. How about $330?"Client: "We can do $340."
You: "Agreed."Practice Scenario: Justifying your Day RateHard Skills:Soft Skills:Unique Value Proposition:Closing Statement (try to tie it to the goals of the studio):
Rate Increase Message Template
Hold — A soft reservation on your calendar. A client is interested but not yet confirmed. You can have multiple holds, ranked by order received (1st hold, 2nd hold, etc.)Booking — A confirmed commitment. A booking takes priority over any holds on the same dates.
"Net 30" is a common industry standard for payment terms (payment within 30 days after invoicing).
Q: Am I expected to provide my own cloud storage (e.g., Dropbox) as a freelancer?A studio or agency should have their own internal file-sharing system (e.g., Frame.io, Dropbox, etc.) and will typically set you up with a temporary account to upload deliverables. When working directly with a client (business-to-business), You're generally expected to support your own storage. This is a standard freelance overhead cost.Q: What if a studio is small and doesn't have a temp/freelancer account system?Q: How long should I keep files/links active?Q: Should I ask the studio to cover my storage subscription costs?
When employed under a company with a STEM Extension and you want to freelance for other studios, it's important to present the arrangement calmly, without creating urgency. Focus on offering a straightforward solution to manage payments properly through your employer.Here's are email templates you can use to explain that you will be working as a “loan-out artist” under your company, which will act as the vendor and handle billing for the studio:
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Pricing
What is a day rate?
A day rate covers a standard 8-hour workday, inclusive of a 1-hour lunch break. If an hourly rate is requested, divide your day rate by 8 — for example, a $500 day rate equals $62.50/hr.
How much do I charge as freelancer when working with a studio?
Day Rate
Level
What It Says About You
$0–$150/day
Student
Building your portfolio and gaining real-world experience. Work is exchanged primarily for learning, exposure, or a modest stipend
$250/day
Internship
Entry-level apprentice rate for learning-focused engagements
$350/day
Junior
New to freelancing or fresh out of college. Capable enough that clients won't question your abilities, but priced as an accessible entry point
$500/day
Mid-Level
Confident, solid reel, a couple years of experience. A reliable freelancer who can execute well (Joey Korenman's starting rate)
$650/day
Senior
Multidisciplinary — 2D, 3D, editing, sound, and more. You contribute to the creative vision, not just execute orders. Your reel and experience back up the number
$750/day
Senior+
Your work has appeared on platforms like Motionographer. Known for minimal handholding — you take work off the client's plate and elevate the project beyond their brief
$800–$1,000/day
Lead / Director
Can run your own studio. Experienced in subcontracting, managing teams, and handling large-scale projects. You may be directing a piece or a team
$1,500/day
Specialist
Few people can do what you do, at your level, at your speed. Realflow, Houdini, simulations (particles, fire, water, etc.)
$2,000+/day
Executive / CD
10+ years in the industry. Hired to oversee projects from start to finish across major clients and studios. They're paying for your direction, creative thinking, and leadership — not just your hands
There are no rows in this table
How much to charge for weekend rates?
Weekend work is typically billed at 1.5x your standard day rate — a $500/day rate becomes $750/day. Those with more experience or stronger negotiating leverage may charge 2x, particularly when deadlines are extremely tight or personal time carries a higher premium.
How much to charge for overtime rates?
Use these as a general guide when structuring your rates — not as rigid rules. Also, ensure to communicate these rates before any project begins!
Hours / Situation
Rate
Under 8 hours/day
1x
8–12 hours/day
1.5x
Over 12 hours/day
2x
Weekends
1.5x
Holidays
2x
There are no rows in this table
How much to charge for kill fee?
A kill fee is a penalty charge billed to a client when a confirmed project is cancelled or significantly reduced in scope after work has begun — or sometimes simply after a contract has been signed. It compensates you for reserved time, turned-down opportunities, and any prep work already completed.
Typical kill fee tiers:
When invoicing a kill fee, keep the tone collaborative — present the amount and leave room for negotiation if needed. Studios will ask for a discount if it's too steep.
Example: A 5-day booking at $650/day = $3,250. A 40% kill fee = $1,300.
The exact terms should always be defined in your contract before any work begins.
Putting it all together
When asked “What is your day rate”, you can respond casually with this:
My day rate is $[X]/day. Overtime (after 8 hours), weekends, and holidays are billed at 1.5x, and I have a 25% kill fee for cancellations.
You can omit the cancellation fees if you don’t think it’s necessary, but the two main ones are usually day and weekend rates!
Your rates aren't set in stone. They should evolve or change with your experience, demand, project scope, responsibilities, and turnaround time.
One last thing
Why $500/day Isn't As Much As It Sounds
As a freelancer, your day rate has to cover more than just your time. Before a dollar reaches your pocket, you're absorbing costs that a full-time employer would otherwise cover.
The Real Math: A $500/day rate across ~20 billable days = $10,000/month gross. After self-employment tax, business expenses, and setting aside ~25–30% for income tax, your actual take-home can be closer to $5,500–$6,500/month — before retirement contributions or an emergency fund.
Freelance rates need to account for unpaid time too: pitching, admin, invoicing, and the gaps between projects!
Rates
This is scenario where you can practice negotiating an appropriate day rate if a client or studio tries to lowball you.
A template if you are challenging on your proposed day rate
Studio: "We’re offering $300 a day."
You: "Thank you for the offer, but my day rate is $400."
Studio: "Why do you think you deserve $400/day?"
You:
"Over the past several months, I've consistently delivered high-impact work...
Here's the value I bring:"
Booking & Hold System
The booking and hold system is how freelancers manage availability across multiple clients.
If a 2nd-hold client wants to confirm before your 1st-hold client, you give the 1st-hold client a set window (typically 24–48 hours) to either confirm or release the dates.
Invoicing
How do you invoice?
Payment Terms
Billing & Taxes
I’m working through a company for a client. What do I need to give the client so they pay the company instead of paying me directly?
To have the client pay the vendor (your company), you typically provide them with an invoice from your company along with your company’s W-9 form.
Similarly, what if I am the vendor company, and I’m hiring and paying subcontractors?
If you are the vendor company and hiring subcontractors, you will need to request an invoice and a completed W-9 form from each subcontractor. These documents are necessary for tax reporting and to properly document the payments as business expenses.
Additional Costs
It depends on who you're working with.
Pay for it yourself. Use your own Dropbox account and pay for extra storage that month if needed. Most storage options are pretty cheap (around $10/month). Factor it into your rate and cancel the upgrade after the project wraps.
A good practice is to keep them active for about a month after project delivery.
It's totally fine to bring it up, as long as you frame it in a way that sounds like you're trying to make things easier for them rather than asking for something. For example:
Do you have a practice of providing freelancers a DB account to upload files? Or we expected to use our own personal Dropbox account?"
Rather than asking them to cover your costs, a better approach is to first clarify whether they have an existing practice of setting up temp or freelancer accounts. If they do, they'll handle it. If they don't, that's your cue to cover it yourself — and simply build the cost into your rate.
Navigating Freelance Work with Work Authorization Limitations
Due to my work authorization (e.g., not being employed under STEM), I cannot take on freelance jobs. What can I do?
If your work authorization (e.g., not being under STEM) restricts you from taking on freelance jobs, a viable solution is to work through a friend’s E-Verify-enrolled business. This company can employ you and manage the billing for freelance work.
If no such business exists among your peers, consider partnering with a trusted friend to set up an E-Verified business that can hire you under STEM and facilitate this arrangement. However, keep in mind this is quite a tedious process!
As I am employed by Company A under a STEM Extension, how do I work with Company B and let them know that payments need to be made to Company A?
Email Template (Long version)
Hey [Person]
I wanted to clarify the billing process for this project. Due to my visa requirements, I need to work as a "loan-out artist" through my friend’s company. This means the vendor for billing and taxes will change, but everything else, including communication and the work, stays the same.
Would [Company] be okay with this arrangement? I'm happy to provide more details if needed!
Let me know!
If you have a strong relationship with the studio or feel confident, you can keep the email brief and simply inform them of the arrangement without asking for approval. At the end of the day, they mostly want to receive a W9 and an invoice.
Email Template (Short casual version)
Hey [Person],
Just a quick heads-up about invoicing and tax forms: the vendor for this project will be [LLC/Person]. Everything else, including communication and the work, remains the same.
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