When calculating the effective hourly rate for a project, what non-billable activities must the freelancer account for that cuts into the final realized income?

Client consultation, proposal revision, and invoicing/chasing payment time

A critical element of sustainable pricing involves distinguishing between stated billable work hours and the total time required to secure and finalize payment for a project. If a project is quoted based on ten hours of design work, the quoted price must also absorb the necessary administrative overhead. This overhead includes time spent in initial client consultation, the hours dedicated to revising proposals based on feedback, and the time used for administrative tasks like invoicing and following up on payments. Since these activities are generally not billed directly to the client, the freelancer’s effective rate for the actual design work becomes considerably lower than the simple stated hourly rate unless the initial project price incorporates a sufficient buffer for this non-billable business administration.