Why Freelance Photography Prices Are the Way They Are

You might be wondering why a photographer's rate is vastly different than what you are paid at work. Here is why.

As a small business owner, I have noticed that there can be a disconnect between clients and photographers in regard to why pricing is the way that it is.

Why is this?

There are a few different reasons. Creative work is chronically undervalued, the way in which small businesses operate is misunderstood, and freelance workers must manage more expenses (and financial risk) than a traditional employee.

Let's break it down.

Should Photographers Be Paid Less Because Being a Photographer is Fun?

There are parts of my job that I love–interacting with clients, providing them with my expertise regarding archival framing practices, and presenting simple, curated image presentations that combat decision fatigue. 

However, running a business takes a lot of time, energy, and skill. You need to organize paying taxes, providing invoices, organizing contracts, creating advertising, and more.

In the United States, the work that creatives do is unfortunately undervalued. In recent years, this has become exponentially worse, especially with the rise in attempts to replace creative workers with artificial intelligence.

Professional photography requires learned technical skill, an aesthetic eye, and years of practice. Photographers need to cover ongoing expenses such as physical equipment, software, advertising, and professional development.

 

While I enjoy my job, that doesn't change the fact that running a business creates a variety of ongoing expenses.

In my case, I charge my clients a premium price because my business model is full-service; I guide my clients through the process of curating a set of photographic wall art depicting their loved ones.

 

Comparing the pay of freelance workers and traditional employees is like comparing apples to oranges.

Being Employed Versus Being Self-Employed

The way in which a large percentage of the population experiences employment is nearly opposite to the freelance experience.

While full-time employees might expect to receive health/dental/disability insurance and employer-matched retirement benefits via an employer, freelance workers must take these needs into account when pricing their services. Benefits such as paid sick days, vacation time, and maternity/paternity leave, too, must be accounted for.

Charging more allows freelance workers to take these expenses and the lack of built-in benefits into account. 

 

For some business models, like my own, offering services associated with a higher price allows a photographer to invest more time with each client, meeting client needs in a way that lower pricing would not allow.

Small Businesses, Taxes, and Financial Risk

Small business owners can expect to pay approximately a third of their income in taxes. Depending on where a business operates, photographers may be responsible for paying a sales and/or service tax on client transactions. In Maine, photographers must charge a sales tax for both editing services and the sale of tangible products.

While a full-time employee has a reliable set of hours each week and safeguards in place, there is an inherent financial risk associated with providing services to a consistent flow of clients. Having an appropriate rate can help protect freelance workers if they are injured or become sick.

Many of the points that I’ve made not only apply to freelance photographers–they touch upon the experience of many self-employed small business owners.

Conclusion

I hope that this article helps you to have a greater understanding regarding how small businesses operate and why photographers charge the rates that they do.

Naturally, another photographer might have a different business model, target clientele, and provided services than my own. Rates can depend on factors such as location, market demand, cost of goods sold, and level of service.

Note from the Author

If this article resonated with you and you have anything to share in response, please leave a comment below.

If you are interested in my custom photographic fine art services, contact me to learn more. Collectors interested in purchasing my personal fine art can explore online shop offerings here.

 

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