It's true that the freelance market has changed drastically over the past year or so, forcing some freelancers to consider lowering their rates. I, too, would never say that someone should never do this. No matter what anyone's opinion is on the subject, in the end, it is a very personal financial decision that you have to be comfortable with. There's always the fear that if you resist the rate change, then the client will just move on down their phone list, conveniently losing your number for good. But before we panic and take the first offer thrown out there, perhaps some compromises can be made.
Recently I read a great book entitled, My So-Called Freelance Life: How to Survive And Thrive As A Creative Professional For Hire by Michelle Goodman. It has some great tips for all types of creative freelancers, whether you've just left the cube or could use some fresh ideas after working it solo for awhile. When I initially read her chapter on rates and negotiating, I thought much of the information did not apply to me. Having just left the agency side, I hired freelancers to help with heavy workloads all the time, but I seldom cared (or even knew) their rate. The attitude was to just get someone in as fast as I could. While there is certainly more room for discussion when estimating an independent project, when freelancing on-site, we’ve been used to the idea that the rate is the rate. But times are changing and unfortunately we will be forced to evolve with them.
We have entered a time when everything is negotiable. Here are some compromise options (some I have personally used with success) which might make it easier to get what you’re worth for the job.
Take A Moment To Think It Over. Don’t feel like you have to accept an offer right off the bat. If you’re feeling uneasy, ask to touch base in a few hours or even the next day. Give yourself some breathing time to think about how to react and whether or not you might need to form compromise plan.
Can You Work From Home? Invest in Apple’s iDisk, or an easy file transfer server. The client can upload the files you need and you re-upload them when you’re done. In doing this, you promise them a lower cost because you will only charge them for the amount of time it takes to do the work, instead of a full day of sitting in an office.
On-Site Fixed Schedule. Sometimes help is only required for a short burst of time, before something has to be released or go to a client. Other times, a freelancer may arrive at 9AM, but it might take an hour or so for the staff to focus on what they should work on. Agreeing on a shorter day like, 10AM-4PM, will enable you to keep your rate while your client stays budget conscious.
Consider A Day Rate. Offer incentive by creating a lower day rate, if the client can book you for 3 or more days. Securing a longer booking affords you a small hit on the cost. But if the booking is only for one day, work the math with them so they can see that their savings is not significant by lowering your rate.
Reflect A Discount. If compromise still cannot be reached, come to a reasonable reduction, but reflect the price in your invoice as a discounted rate. Consider adding some language that this rate is a limited time agreement or needs to be re-negotiated with each booking.
The bottom line is when a client needs to save money; they see no harm in asking you to lower your rate. By the same token, there isn’t always harm in you saying no. But if there’s something I’ve learned about dealing with clients, it’s never to give a flat out “no” without offering an alternative solution.
“They may say, ‘Sorry, I can’t go higher.’ But unless you behave like a total ass, they’ll still hire you. After all, a talented freelancer in the hand is worth two hundred unread resumes in the bush.” – Goodman p.109
(Note: For those interested in this book, please note that the writing is primarily geared to women, as it is written by a woman and women are often more reserved when it comes to negotiation.)
