Many students (and former students) ask what they should be charging clients when they do contract work (and I have to figure this out when I am working on a proposal). Hourly rates in instructional design can vary widely (and they should). Rates should vary by task and client. First lets start with some of the numbers then lets get into more specific reasons to choose an hourly rate.
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First, the average instructional design salary is around $78,000 a year in the US. So if we were to calculate an hourly rate based on that it would be $36 and hour (which is 78k a year) but we would add 30% for benefits and retirement, which means that the average instructional design hourly rate should be around $47 an hour. However, given that contract work is not guaranteed and sometimes part time, this rate should be around $50-$60 an hour.
Now there are some other statistics. eLearning.net reports that instructional designers typically charge anywhere from $20-$90 an hour. And this will vary based on task, quality, and speed. They report that most of the foreign companies charging $20-$30 an hour purposely take longer on tasks and do not provide the quality that someone charging $50 and hour would do. Additionally given the role instructional designers play, outsourcing to a foreign country has not worked well for many that have tried it due to the language and time barriers – its very tough for a subject matter expert at your company to have meetings with someone who has a 12 hr time difference and doesn’t know how to put american culture into the training.
Finally, and most importantly elearn Magazine has created this image which shows some numbers by task. Keep in mind this is from 2007 but it does show how different tasks and clients should demand different rates.
So here is a list I have comprised based on stats and my own experience. These should vary based on the task at hand, the quality expected, experience of the contractor, location, and client:
1. Business strategy, proposals, needs analysis, needs assessment – $100-$250 an hour
2. Simple Design (articulate, captivate, PPT) – $60-$100 an hour
3. Advanced Design (simulations and games) – $75-$150 an hour
4. Development with Articulate, Captivate, or other authoring tools -$35-$70 an hour
5. Development that includes programming, Flash, HTML5 – $60-$125 an hour
6. Implementation – $50 an hour
7. Evaluation – $75-$250 an hour