Jack Busch’s thoughtful comment to my post on Negotiating Rates: Overcoming the Price Objection led me to think about freelancers and rates and why we do the negotiation dance. A couple of things came to mind.
We’re Still in the Employer-Employee Mindset
When someone is interviewing for a job, part of the hiring process includes a discussion about the salary range the candidate is looking for. The question may come up during the interview process and the job seeker wants to make sure that the range they are looking for fits with what the employer is willing to pay for the position. If it doesn’t come up at the interview, the question of negotiating a compensation package will need to be dealt with when the employer is ready to make an offer of employment.
Freelancers are not employees, though. They work “with” clients, not “for” them. The type of negotiating that takes place when looking for a job may not be appropriate for freelancers.
Other Professionals Don’t Negotiate Rates
If you go to see a lawyer or an accountant for professional services, they don’t quote you a fee and then offer to negotiate it. Neither does your hair stylist or manicurist, or the person who comes over to fix your refrigerator or toilet. We don’t go into the grocery store to buy something and offer to pay less at the cash, so why do freelance writers give prospective clients an opening to change rates?
Alternatives to Negotiating Rates
Since freelancers are business owners, maybe we need to start thinking about the rates we charge from that point of view. Rather than negotiating rates for our services, perhaps freelancers should consider offering discounts at certain times of the year or special offers for new clients. Preferred rates for bulk orders or clients who refer other people to the freelancer are other possibilities.
Do you regularly negotiate rates or do you quote a set fee and stick to it? Have you tried alternatives to negotiating rates? If so, what has your experience been like?
Jodee,
What great points you make about why freelancers get into the negotiation dance with clients! For the past two years as a freelance writer, I’ve had success with clearly stating my prices and letting clients decide if they can afford me. While I do keep my rates low and offer specials and discounts so that the average start-up can take advantage of my services, I know what I need to earn to survive as a freelancer. It’s true that it does take time to get out of that employer-employee mindset as a new freelancer, but what it comes down to is earning what you are worth out there and not settling for less.
I NEVER negotiate rates. I work for a flat fee, it is a standard across everything I do. But, the price of my services varies. What makes the difference on one end of the spectrum to the other is what I include in the service. If someone wants me to design a website there are several things I could do. If they want it on the cheap, there are things I could do, that I won’t. It’s like buying a car. You can buy the standard model or you add rust proofing and seat covers.
I think, for freelancers, that is the best way to approach their rates. It’s like the difference you’ll charge between writing a 400 word article and an 800 word article. The difference you’ll charge for a keyword article vs. an opinion piece. The difference you charge between white-paper and catalog descriptions. The expanse of the service, rather than the service itself is negotiable.
If someone wants you to write 20 keyword articles of 400 words on a topic that requires little research, you have a firm idea of exactly the aspects of service they want you to provide and you should be able to set a non-negotiable price. If you negotiate on that, what you’re really doing is saying, I didn’t estimate the work involved correctly or I don’t value my time as much as I thought.
But, as you said, it comes down to mindset. When I take on a commission, I consider it an opportunity to work WITH a business or individual. They are not my master, they have come to me asking me for aid because I do something they could not do as well as I can. Many freelancers are in the earlier stages of their career where they feel they need to beg and earn work. I think the “bid for jobs” style of job hunting sites are one of the culprits that keep people in that mindset.
Break out! Stop asking other people to put a value on you. Put the value on yourself. Whatever you believe you are worth is exactly how much you can ask for, and earn, from your clients.
I am continually amazed at how low potential clients are stating ‘others are willing’ to work for. I recently got excited about a potential new client. I gave him an introductory rate of $35/hour for the first 8 hour project, but stated I normally make between $45-$65 depending on the project. He replied that he had many available for $15/hour. I didn’t budge, but am ‘hungry.’ I’ve read ‘the well-fed writer’ website comments stating we can easily make between $40-$75/hour. Is it the economy? Am I expecting too much? Can anyone out there give me a good source for ‘average freelance writer rates?” This was an SEO job, which I believe should rank among the higher fees of tech writing.
I don’t think you are expecting too much. Sometimes you need to set your price, communicate it to the potential client (along with the benefits of hiring you) and then stop talking. If he or she wants to pay $15/hour then they are free to do so. You have no control over that.
If the client wants *you* to do the work, he or she will have to decide whether they are willing to pay the rates you have set for yourself.
I have been a full-time freelance writer for 20 years, and I find there’s very little negotiating. A client comes to me with a project, asks what I’d charge, and I give him a quote. He’ll either say yes or disappear. It’s rare that anyone makes a counteroffer or tries to negotiate.
On the other hand, I admit I charge at the high end, so a low-baller isn’t going to bother with me. If someone is looking to pay $200 for a writing project, and I ask for $5,000, he really doesn’t have much room for negotiating.
On the other other hand, I see nothing intrinsically wrong with negotiation. The difference is that negotiating doesn’t mean simply caving in. It’s finding alternative solutions. Maybe I can charge less if they contract more work at once (not vague promises of future work, but 5 jobs now instead of 1.)
I prefer to discuss a project with a client and ask what they are paying rather than give out a rate card. After knowing the scope of the project I set a dollar amount in my head that is the minimum I would do the job for.
If I like what they offer, great. If it is far too low, I move on quickly. If they come close, I let them know I could do the project for a bit more — or I could cut a requirement or two and stay within the budget they have to work with. I find this is a faster way to get jobs booked. The amount of time you need to spend in e-mail and on the phone with a client is less, and you don’t waste precious “writing” time preparing a plan or portfolio for a client who can’t afford you in the first place.
I don’t negotiate to get more money per job, I negotiate to get more work at a rate I am happy with. When a client looks promising for future work, I’ll negotiate lower rates to obtain long-term contracts. If I know a client has an ongoing need for a freelancer, or they currently uses multiple freelancers at the price my initial job was for, I will offer to do 2 or 3 articles at a lower, combined rate and pick up as much steady work as I can from that client. If it is ongoing without an end date in the near future, I’ll go even lower on the combined rate for a 6 or 12 month agreement.
It may seem strange to those who set rates, but this process has worked very well for me.
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