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I think it depends on where you're working and the client. I have certainly turned down work at < $40/hr (particularly in metro LA or Bay Area).

On the other hand, I've also taken work at near $40 and even less some non-metro areas (even with 10+ years of experience at the time), just because I was available and that seemed pretty closely dialed in to both the general market and/or what the client could pay.

In my mind, the biggest thing to work out is:

1) Can you work a reasonable amount of time at the current rate without having to worry about money? Some places you can rent a decent 2 bedroom apartment for less than $700/month, and $30-$40/hr will be fine.

2) Are you sending the right signal about your value? And are they sending signals about how they're likely to treat you?

Once I made the mistake of pricing myself at $45/hr in a middlin'-sized California town. I later learned that other contractors were being paid in the neighborhood of $60-$75. I wasn't terribly dismayed by this fact alone (though it's always disappointing to know you left potential income on the table), but my perception was that my contributions and opinions ended up being less valued than some of the other more highly paid contractors, none of which seemed to be demonstrably more productive or skilled (and some less).

A year or two later I had another contract gig come up in the same area, and the presented an absolute ceiling of $40/hr (if they were perfectly happy with me). I already knew that was on the low side for the area, so I said no. I later found out an acquaintance had done some time there and said it was a very high pressure situation without much respect for either work-life balance or the professional opinions of contractors.

I've heard it said that you make money as much on the business you don't do as the business you pick up. Try to find out as much about market value for your location as possible. If it seems low -- if you're not sure you'll have enough money or that your contributions will be respected -- keep looking, unless you absolutely need a bird in hand.




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