TJM definition - How to calculate it?

What is TJM? In this article we will define the concept of TJM (Average Daily Rate) in the world of freelancing. If you are a freelance or are considering starting this business, it is crucial to understand what TJM is, how to calculate it and how to use it to effectively manage your business and optimize your revenue. In this article, we'll provide you with a clear definition of TJM, guide you through the calculation process, and give you practical tips for setting your daily rate wisely.

TJM Definition

The TJM, or Average Daily Rate, is an essential indicator in the field of freelancing. It represents The daily rate you charge to your customers for your services as a freelancer. In other words, TJM is the amount you want to earn for a day of work.

The TJM is used to assess the value of your times, of your skills and of your expertise as an independent professional. It allows you to set a fair and equitable rate for your services, taking into account both your costs and your financial goals.

It is important to note that on some freelancing platforms, it is required to mention your TJM. This allows potential customers to have an estimate of your rates.

Now that you know the Definition of TJM, it will also be important for you to know what information to take into account to calculate it.

How to calculate your TJM?

To define your TJM, you need to follow a few steps:

Step 1: Assess your costs and needs

Start with Evaluate your monthly expenses, including your professional expenses, social security contributions, insurance and other expenses related to your freelance activity. Then, divide that sum by the number of days you plan to work per month to get your daily costs.

Step 2: Set your financial goals

Determine the mounting that you want to win monthly as a freelancer. Add this amount to your daily costs to get your monthly income goal.

Step 3: Calculate your TMR

Divide your monthly income goal by Number of working days that you plan to do per month to get your TJM. This will give you the daily rate you need to charge your customers to reach your financial goals.

Tips for optimizing your TJM

Plus, here are some practical tips to optimize your TJM and maximize your earnings as a freelancer:

• Know the market demand : Find out about the rates in your field and region. Take market demand into account and adjust your TJM accordingly.
• Valuing your skills and experiences : Identify your unique skills and highlight them. The more experience and specialized knowledge you have, the more you can justify a higher TMR.
• Adapt your TJM according to the complexity of the projects : Some projects may be more complex and require more effort. Consider these factors when setting your TJM.
• Regularly review your TJM : Market prices are constantly changing. Reassess your TJM regularly to ensure that it remains competitive and reflects the value you bring to your customers as the market evolves.

Now that you have learned what the TJM is, that you know how to calculate yours and that you have tips for optimizing it, all you have to do is get started!