5 Ways to Save Money on Freelancers
This post is a part of our Client Week series (check that page for an index as the week continues).
Many people turn to freelancers to complete project-based work, but some contractors can be on the pricey side. In addition to providing their services, freelancers have to factor in other costs associated with self-employment. Still, there are numerous advantages to seeking a solo worker, and ways to optimize costs in doing so.
Assign Several Projects
If you have a number of projects you need done, consider giving the freelancer dibs on all of them. They may give you a bulk discount for giving them a steady flow of projects, which is in many ways priceless for a freelancer.
Be careful not to try to entice a contractor into a discount by telling them that there is more work available if they “do good on this one.” It’s okay to mention that you have other projects, waiting, but don’t expect a discount for it. Freelancers live in the present; so if you are simply promising more work in order to get a discount, they have likely heard that one before.
Haggle… a little
While some contractors may balk at the thought of their rates being second-guessed, it’s okay to ask if they can do any better. One way to get the rate down is to offer to pay in cash if the freelancer is open to that. If you have a product or service you’d like to give them free, you can also offer that. Many freelancers are open to perks and will bring their price down for say, a free membership or a product they can use.
But try not to push too much. Research going industry rates for freelance professionals (which depend on what they do) so you know the range to expect. If you get a bid that goes over your budget, you can always request a discount. If the freelancer refuses, decide whether you think he or she is worth the money, or if you want to look elsewhere.
Ask for Some Revisions Included
One way to rack up fees on a project after the initial project is complete is during the revision process. A lot of contractors charge an hourly fee for extra touch-ups—and you never know how long that will take. Instead, try to negotiate complimentary revisions into the deal. You may not use them at all if the project comes out spot-on, but chances are you’ll want to fine tune the material. Asking for up to two rounds of revisions is acceptable. I make sure to add revisions into my cost as an extra bonus to clients and let them know that after two rounds, they will have to pay extra. But just one round of revisions included is a huge money-saver. Gauging what the revision process will entail isn’t easy for freelancers or clients, but it is always practical to expect some sort of editing on a project.
Freelancer won’t budge? Ask for a cap on the revision costs. And if you wind up paying by the hour, try to give revisions in as few emails or calls as possible to save you and your contractor time.
Don’t Rush the Job
Two things that contractors usually charge extra for: rush jobs and nasty clients. In addition to being polite, try to give the freelancer a reasonable timeline on the project. If you have had the project sitting on your desk for weeks and expect to have it completed in two days, that’s not fair without expecting a rush fee. Avoid rush fees, which most freelancers charge, by letting the freelancer know that a project isn’t a “rush job”—but be sure to set a deadline with the freelancer so you keep things moving along swiftly.
Be Nice
You will be surprised how much further you get with a little politeness. Freelancers may be more apt to knock a few bucks off a quote or add in some edits for free just because you’re easy to work with. And if nothing else, you can both do some networking together.
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Pay in cash? Typically the implication here is that you are paying ‘under the table’ thus the freelancer avoids taxes and other fees so they can give you a discount. The problem with that is it is illegal. If you ever get caught the government will make you life such a living hell that the small amount you saved will not be worth it.
Please don’t get paid in cash and skip putting in the books. It’s never worth it.
Paying in cash means the freelancer doesn’t need to pay fees to PayPal or other credit card services. I don’t think they were implying that you should help a freelancer circumvent the IRS.
Also, paying in cash usually implies that you pay 100% upfront. I offered to pay my landlord in cash so I could get a discount on my office space. Ended up paying only $2500 total for 6 months instead of about $800/month. (I also gave him some free Cutco and said that if he finds anyone else who pays more, he can kick me out with 2 weeks notice…. He never found anyone.) But it’s much easier to accept an offer when you’re offered $2500 upfront than to offer just $400 per month.
What a great article. Would you mind if I shared these tips with my clients?
Go for it–I put an email blast out to all my clients telling them about the Client Week coverage with a link to FSW.
Great blog. Extremely insightful.
I especially like the first point – if I know I’m going to secure a long-term engagement, I’m more apt to provide a discount. It saves me time in money in acquiring new leads and contracts
Some other thoughts –
* Pay more upfront – I require 40% upfront for most of my projects, but if you want to put more in initially, I’m likely to lower my rate slightly.
* Adopt their process – The consultant/contractor you’re hiring has done this before – they know what they’re doing and a good freelancer will always be looking out for their clients’ best interests. This translates to them wanting to provide you with the most bang for your buck (it means they’re creating more value for you). They should have an optimized process, so embrace it!
* Do your due diligence before engaging – think long and hard about what you want – outline your goals and objectives, sketch some ideas on paper – be prepared to execute and move quickly with your freelancer. If you don’t know what to do in order to prepare, ask them. They’ll be delighted to help you prepare.
Curtis is right on. Offering to pay me in cash is a big red warning sign–what else is this client looking to bend the rules on? I don’t think so.
And–please don’t offer to pay me in trade with your service/product. That’s reserved for close friends/family. Unless, of course, you run a great winery…;-)
Whoa whoa whoa guys. There is no problem paying anything in cash, and there is absolutely no finite implication that being paid in cash is “bending the rules” or that those who get paid in cash are avoiding taxes or cooking the books. You could do that just as easily with any other method. Paying in cash avoids the freelancer losing 2 – 4% of the total in credit card fees when credit cards are used. You see this at gas stations all the time — paying in cash gets you a discount because the gas vendor doesn’t have to pay the credit card fee. Let’s remember that cash can be used “to pay all debts, both public and private” and not link the use of cash with deceit.
I’m a huge fan of saving money, just like everybody else here haha! I’ll take these points into consideration my next freelance gig I land.
If you offer to pay in trade, it helps if it is a product or service that isn’t tax deductible for the business in question.
I might train someone for some carpentry work on my house, but I won’t train someone for doing my taxes. I can write off my accounting expenses at the end of the year, but not the carpentry.
Paying in cash is definitely not the way to go. However, another way you could save some money is to use a crowdsourcing site. I have used sites such as these where, for example, designers will compete for your business by entering logos in your “contest”. Generally speaking, these sites are not for the established freelancer since most of the work is spec, but rather for the newcomers just starting out. For the most part, the work you get to pick from is high quality and you get to see what your getting before you pay, so it saves you the money of having to hire another writer/designer to fix the mistakes of another. Great article and site!
Wooooaaaa! Crowdsourcing is NOT the way to go. I’m too busy to elucidate you myself. Visit http://www.no-spec.com/ and http://www.specwatch.info/ for in-depth explanations.
Gotta say I do not believe crowdsourcing is the way to go. Sure it’s cheap but you get what you pay for. I believe the work typically is viewed as ‘high quality’ by the client but any designer that looks at it can point out many mistakes that just should not and most often would not have been made by a designer.
At some points it may be the right choice if your main motive is price but most times you end up with a weaker brand. I actually know of a local company that used a Crowdsourcing service and ended up with a stolen logo.
@Ron Evans while I agree that cash can be paid I have never encountered someone that asked for a discount for cash paid that didn’t also talk about it not being on the books. If it’s just paid in cash as a form of payment I’m fine with that but I’ve never had the offer without the suggestion I mentioned as a concern.
I agree with the multiple projects part, if someone tells me ‘can you do x?’ and ‘x’ is a small item, I’ll often ask if there are other things they can throw in with it.
“A lot of contractors charge an hourly fee for extra touch-ups—and you never know how long that will take.”
^^^^^^^^^^^^^^^^^^^^^^^^^^^
“Never know how long it will take” smacks of awfully of bad planning which is unfortunately seen much too often.
Sorry but I always say up to x hours worth of revisions will be done free – x hours is a more quantifiable than a revision
I agree on quantifying a revision. That is a great idea, rather than trying to measure what a “revision” entails. Still could vary from project to project depending on the type of work. Logo vs. web ect.
Also on another note, I agree with being nice! You make us happy and we’ll do the same for you. The rule applies to all things in life!
Wow guys. Here’s the deal: These are tips for clients. You may not agree with all of them–that’s okay. Every freelancer has to decide for him/herself what they are comfortable with. I’m just putting it out there:)
As with all of my articles, these are just suggestions. And for clients, I think they are very practical ones!
Pass on the article as you wish:)
I think this is one brilliant post. Thanks for sharing. It’s really healthy to put oneself in someone else’s shoes from time to time… guess it gives you a better view on both sides of the coin, and that is handy when it comes to polishing your negotiation skills. What do you reckon? Cheers.
I’m not some guy selling fake watches on the street….so haggling isn’t really appropriate. In fact – I think its distasteful and disrespectful!
Kinda makes me think of this video: http://www.youtube.com/watch?v=R2a8TRSgzZY
I try to give quite a bit of detail in my estimates to prevent this very thing. I probably wouldn’t want to work with a client that wanted to haggle me on price anyways – would you Kristen?
I am loving it !!