What's Your Margin Of Profit?

[Cameradude]

That's a question that will baffle most, send most Googling, and a few will answer with little thought....of course a lot of folks will avoid an honest answer with "it depends" diatribes.

What's YOUR marigin of profit as a freelancer?

It's a fairly simple to figure. You billed for $100,000, but you spent $50,000 on contract labor, amortized gear cost, mileage, travel, etc., so your margin of profit was 50%. I doubt anyones profit margin is that high, but it gives you the basic math for the formula. If you employ an accountant they will become aroused figuring the answer, and will probably provide it fairly quickly!!!

 

[Run&Gun]

I haven't paid out anywhere CLOSE to $50k in contract labor in probably 7-10 years. Hell, I think I paid out maybe $15K TOTAL to audio last year from a high of around $45K back in the "mid 00's".

 

[Cameradude]

It's way more than contract labor...

Amortized equipment costs, mileage, cell phone bills, business insurance, travel meals, client entertainment, health care costs, etc. All of these numbers factor in to the equation.

 

[Capt. Slo-mo]

some years it's 30-40% (just in the amount passed through the S-Corp), then living expenses siphon most of that away.

Some years, by the time taxes and all are taken out there are ( )s involved.

 

[prosheditor]

What's your marigin of profit as a freelancer?

Never enough.