What is the normal salary for a Product Designer in an early stage startup? I am moving from a contract ($70/hr) and have been offered a salary of $85k, this feels like a huge difference in pay. I also have additional responsibilities now that I didn’t have at the start of the contract, including a website redesign and brand system.

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It’s about right. You could go a little higher, $87,500.

To calculate your freelance day rate, you take a fulltimer’s annual salary and divide by 125. $85K would be $680/day. The hourly is the day rate divided by 10, which is $68/hr. Very close to your $70.

If your fulltime pay feels too low, you should’ve asked for more as a freelancer. For example, if you wanted $100K fulltime, that’s equivalent to a freelancer charging $80/hr.

Remember that freelancers have to charge extra for health and dental insurance, lack of 401k match, lack of paid holidays, vacation and sick days, and a freelancer premium to compensate for small gaps between gigs.

If you don’t compensate for all of this by charging extra as a freelancer, it’s literally cheaper for the company to just keep you on as a freelancer than a fulltimer working the same number of days in a year. The freelance rate has to cost **more.**

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Thank you so much, this was super helpful!

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Id say that pay could be high or low depending on location and experience level. The additional responsibilities come with the territory of early stage startups. Personally I enjoy that. Get to work more holistically.

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$85k product designer seems a little low to be honest.. but because it’s an early stage startup, that may make sense. Ask for equity..

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It depends on where you are located. This also seems a low to me.

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