Thanks for the tips, Thursday. I do hate negotiating my rates. Usually, I’d rather decline the client than go through this. However, recently, a very good client wanted to negotiate my rates. Usually, I tend to just give in, but this time I asserted myself and we did end up with a win-win agreement.

While that experience has given me more confidence about negotiating, it’s still something I probably wouldn’t do with a prospective client.

Nice post! I am in the process of writing contracts…

I don’t normally negotiate my rates because I think that can backfire and show that you don’t view yourself as a real professional (as lawyers, doctors, etc don’t normally negotiate their rates) and clients who ask for a discount are often problem clients anyways.. I might do it a few times if I’m slow, but luckily I’ve been busy enough where I can turn down the clients who want a discount.

Thanks for the information. I struggle with the idea of describing the value of services, when there are no shortage of inexperienced people offering sub-par services for next to nothing.

Nice and helpful post, this can definitely be a tough subject to go through at times.

Negociation should be a win-win situation

All points are worth focusing on, gives proper insight on how to negotiate a freelance deal.

I want to know about what paper work should be done in a freelance deal and how it should be properly carried out, can you please refer me any good article regarding it. Thanks.

Know your worth before you negotiate, and know what you must bring in, in order for your business to survive. Listen to your gut! If you feel that you are not getting anything out of this deal; step away from it. It will turn into a headache for you.

But once you put it out there to the universe, that you are willing to negotiate you prices or service, then that’s what you will be getting for your business.

Nice post!

Great article. My rates are already lower than most simply because I’m still in school and I feel my current rates reflect my ability (for the most part) at this point in my education/skill level.

I negotiate my price often because of my busy schedule with school and most of my clients are open to the discussion of pushed deadlines. On some cases, it’s just not within their budget so that’s another reason I would lower my prices a bit (simply because at this point, any income is good income). As a student, I need to prioritize my time really well… which can be difficult if I get approached with a tight deadline project and know I have a lot of homework to do.

Nice post. I too have had my moments with the concerns of my rates – but now I see them as fair in that my knowledge base continues to grow making them justified. I still think they are a bit on the low side but I’m working on that. I also agree in that Doctors, Lawyers etc do not negotiate their rates and clients that expect that will more than likely be problematic.

The upside for me is that I used to dread writing up a contract. But now I embrace it in that it has helped to build my confidence as I can itemize what I am contributing to the project and how the rate is justified. All in all a positive thing.

I’ve found that, when clients wish to negotiate rates with me, they turn into real grinders. Meaning that they’re going to be grinding me down on every additional project, and not just this one. Such people are usually not worth having on one’s client list.

I hope prospective “clients” are not reading this.

Impressive post, as usual.

Excellent article! I’ve found that point #4, Break down your price, has been the most helpful to me in my freelance endeavors. Sometimes I’ll get clients who will balk at my initial quote or at something in my contract, but if I simply take the time to explain WHY I charge a certain amount or retain copyrights to my images, they understand and are usually more than happy to move ahead, trusting me more and therefore spreading good referrals to other clients. Sometimes it can be as simple as putting things in everyday terms like “I can’t afford to supply 50 illustrations for only $100, because it breaks down to only $2 per image, which translates to only pennies per hour to create this detailed picture.” Sometimes we have to remember that clients need to be educated about our field…they aren’t always trying to lowball us to be mean.

Like a few of the other commentators, I try to avoid negotiating my rates for two reasons. First, negotiating tells the client that you overpriced your services and are willing to drop the rates that you’ve already set. Second, would you walk into a mechanic’s shop, a clothing boutique, or a printing service and start haggling? Instead of negotiating, I offer discounts, which I apply to big-dollar projects and for repeat, loyal customers.

Having said all that, I know that many freelancers welcome negotiation and some thrive on it. One thing I do like about negotiating is that it offers flexibility for both the freelancer and the client. For those freelancers who negotiate, these are great tips!

Great tips here! I haven’t worked freelance long, but I will say it can be a pain in the butt working on a contract with clients. It’s best to settle a bit on their grounds though, as they can walk away happy and feeling like they got a great deal. This usually means repeat business

Great post but I have to agree with Martha on this one. I think we have all worked with a client who wants to negotiate on everything from contract wording, to payment schedule. They are more often than not the hardest clients to work with. Once bitten twice shy!

Some great tips here. I especially agree with number 7.

On number 5, though, sometimes I find clients will have a slightly lower fee for new freelancers compared to ones they know and trust. So long as that initial fee is – as you say, a fee you can live with – I don’t think it is a bad thing to say yes.

As a former commissioning editor, I have had a freelancers who I would pay the earth for, and others I would be reluctant to scrape pocket money together for. My advice is, if you are new to the business and you are negotiating with a client you would like to strike up a long-term relationship with, say yes to the initial fee, but perhaps mention that once you have proven yourself, you would like the opportunity to re-negotiate the rate.

I had this happen once, where I was paid 10c per word less for the first two jobs I did for a big publisher. Then, on the third job, they rang and said, ‘By the way, invoice for the higher rate now. You’ve proven yourself.’ So, by working hard and being professional, without being too demanding, I was rewarded with an increased rate and regular work.

Great suggestions here, Thursday. Regarding point #6, I would go even further and say that the goal in EVERY negotiation is to reach a win-win scenario. Both sides need to feel as if they’ve won the negotiation. That’s how you know it was successful. I keep a list of terms and other factors I’d be willing to concede on should I get into a negotiation — items I’m OK giving up if I can get something in return. That way, if/when the time comes, I’m just pull out this sheet and I’m ready to discuss/offer ideas.

BTW, another tip I’ve learned from master negotiators is to NEVER concede something without asking for something in return. Even if what you gave up is no big deal to you, ask for something back from the client. Psychologically, they need to feel as if they got the best deal possible — and so do you!

I agree with Amber – doctors and lawyers (and auto mechanics) don’t negotiate their rates, so neither should any other professional. The price is the price.

Of course, much of it comes down to how you structure your fees – hourly vs. per project. I find that per project fees eliminate a lot of the negotiating, because most people pay one price for one thing (a candy bar, a computer, an oil change, a teeth cleaning, etc.) This is called value-based pricing.

Remember, you get hired for your expertise, not your time – when this comes through in how you position yourself, and in how you word the contract, you eliminate much of the negotiating. Just my take.

Thanks for allowing me the share,
James

great article – a couple of my thoughts:

If you start negotiating, start way higher than what you’ll accept. this goes for anything, from salaries to buying cars to freelance rates. the worst thing that can happen is the client will reject it and recommend something else. nothing lost, and now you can “give ground” by coming down to a more normal rate. best case is, the client accepts the higher rate.

also, you need to be assertive here. I know I’m an introvert and avoid confrontation, but it will pay off. you need to illustrate WHY you are charging the rate you are. if your rate is higher than your competitors, justify why it’s so (experience, service, quality, etc.)

I have no problem negotiating rates. above all else I’m looking to get the client on board so I can develop a relationship. I found prospective clients are tentative at first about hiring a new freelancer so a lower rate will help bring them into the fold, and then following projects are easier to negotiate a higher rate.

Thanks for this article. They may seem kind of obvious to some, but for those of us who weren’t smart enough to take a few business classes in college… very helpful.

I agree, great article. Unless you provide a cookie cutter service, web/design/software is rarely sum-amount per project – i.e. non-negotiable. Every project should be based on pricing metrics, scope, and requirements – which makes it negotiable in nature. Factored into that, is expertise, type of client and desired end result. In other words, you should be able to justify every cost the client has to pay, but that doesn’t mean negotiations won’t be a large part of the project.

There is nothing worse than charging ’sum-amount’, and having to sit through a client meeting only to be blown out of the water because you charged too much or too little. This is typically the result of ‘quoting from the gut’. When negotiating comes into play, is when the client usually indicates the amount is to high. There are of course other reasons, but that is a whole other post on ‘how to pick out bad customers’ or ‘how not to quote a project’. From there, you can start subtracting project items (this is obviously assuming requirements were gathered and applied to your pricing metrics and they haven’t walked away).

So in that regard, it becomes much more down to earth, and what people would expect in the real world. Lawyers and doctors have their own metrics and pricing methods. Specifically, software is complicated to manage (thus the 5 million development methodologies that exist) and most people do it badly. Not picking on Ambers post here – but lawyers for example, will require a retainer of X amount, and then have you sign papers that you are liable for anything beyond that. Even the kid working and McDonalds has a set rate they won’t go under – its called minimum wage. For the good or bad, there isn’t a bar association for freelancers or minimum wage law. For example, if you misrepresent your expertise and spend several hours/days trying to implement a JQuery plugin, that isn’t the customers fault and shouldn’t be billed 16 extra hours for our ineptitude. Also a typical customer really can’t assess expert status for themselves. It has to come down to trust in the end (emphasis on ‘typical’ here). What better way to break trust, than for the client to figure out that you are learning on the job, while they foot the bill. Or that you lose steam on the project as the developer, because you know you just drastically decreased how much you made on the project.

You are saying, ‘but liam, you are proving my point, I am not changing my rate, just what I am offering’. On the contrary, if most designers really take a hard look at a typical project, what they quoted, and how the project ended, they are only making a fraction of what they said they were charging. Factor in concessions, communication, more concessions, and the ‘unexpecteds’ you will see what I mean.

It only proves the point that most developers are really just trying to get the job as their primary objective. Project management in this field is an art; there are many variables, things are constantly changing, and people aren’t able to force their insurance companies to pay the majority of the fees when they need a service. I guarantee doctors would not get away with 3/4 of the stuff they get away with, if people were shelling out all the money directly – not just a co-pay.

So in the end, I think many developers make the mistake of thinking about design or software as a real world project such as construction. In reality the result is only visually tangible and magnetically detectable. So in that sense, we are primarily managing peoples expectations more than anything. I am willing to lay down my money and bet, that if anyone here had a project go completely sour, it had a large part to do with expectations. Either from the client or you, the person managing the project.

In short (despite the length of this post – sorry!), I first try and set the tone through expectations, and from there it is really cake to just lay out the project and state price derived through your project metrics. People then feel much more trust about a process they are very unfamiliar with, and very tentative about. Any negotiating from that point on should almost always be a win-win, as you are not necessarily negotiating anymore, rather you are adding or subtracting cost/features and managing the customers expectations
Just my 2c Actually that was probably 150 cents…

Great article – I wish I had known more about freelancing when I first got started writing ( I’m a student ). Instead, the newspaper that I started writing with just gave me a standard freelance rate, and somehow – by accident – I didn’t even end up signing a freelance agreemend, even though the newspaper I was writing for belonged to a larger chain which recycled some of my articles in other publications and on their main website.

I’m not writing for that newspaper any more ( for that and other reasons ), but I suspect that they might owe me money. So, while I’m here, anybody have any thoughts or suggestions?

Thanks for the article. Luckily, all of my work to this point has come from past colleagues and word of mouth. So, I haven’t had too much push back on my rates. I try to charge a reasonable rate and provide excellent service, and I’m known for that.

It’s all of the inexperienced writers charging pennies on the dollar that makes it difficult to demand a reasonable rate these days.

Hi Walker,
First of all, have you contacted your media or journalist’s union. That could be a place to start to get local advice and assistance.

Secondly, did a rate of pay ever get discussed? If not, it may be difficult to fight them on it.

However, if you have kept any correspondence (emails) of the agreement between you and the newspaper, you may have some back-up to claiming money. Without knowing your case intimately, it is a bit hard to advise, but if you feel you are owed money, then rounding up written evidence to support that and devising a professional letter/email to the company may well help you get what you are owed.

cheers,
Pam

Hi Walker,
When you are new, it is best to ask for the standard rate initially anyway. They are not going to give you a higher rate if you are yet to prove yourself, or new to the game. Once you have become more established, or really proven yourself to a particular publication, then you can start negotiating.

You say a rate of pay was mentioned – did they pay you? If not, construct that email/letter and follow-up with phone calls saying that you still haven’t been paid. Be polite and professional in every dealing with them, but be firm if you feel you are in the right.

Hi Walker,
I am sure Freelanceswitch doesn’t mind us having a conversation here on the commetns page, but our conversation is getting a bit off-topic to the original post because we are moving away from pay rates to copyright. I have posted a response to you personally here.. http://blog.writesmart.com.au/2009/12/writesmart-forum.html

I’ve been very lucky when it comes to negotiating rates. I’ve been freelancing for about five years now working on web designs, blog customization etc. and its been quite lucrative for me so far.

Negotiating rates in Pakistan is quite different as people here do not go with hourly rates but a fixed rate for any project being done. The rates I give them are always below the going market rate and I am willing to negotiate which keeps them happy.

I’ve been lucky with getting projects through word of mouth and referrals from past clients.

Last tip was really useful, talking about long term will build confidence in them, he’s gonna be there even after the work is done will be in their mind