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.)
Here's the thing:
ReplyDeleteMy feeling is that, for the foreseeable future, freelance as we knew it is somewhat of a dead animal.
Lowering rates, not getting calls, etc. is just the sign that this industry is changing and may never return to the way it used to be. Different, yes. But not the same.
I was asked to lower my rate to an embarrassingly low number for a few days of work... That to me is not what freelance is about.
If we have to reduce our rates so dramatically, it would benefit us to just get a FT job until things pick up. At 35-55 per hour, after taxes and insurance we are on par with the salaried worker. The only difference now is that THEY have regular work and we don't.
Freelance predicates itself on high rates due to our risks. If you remove the very facet that makes freelance freelance, what's the point? For a young person without a family to feed and mortgage to pay, both a FT and Freelance gig is sound - to a degree. But for pros with fam's and responsibilities, the current rates are laughable for the freedom we have.
Honestly, my plan was to get a FT job with benefits, etc. until I CAN freelance again. God knows, that's the last thing I want o do, but to diminish the profession by reducing our survivability is not only insulting but impractical over time.
2¢ in tha Hizz-ouse!
Joe Criscuolo
Thanks Kathy. Well said with lots of good points. And Joe, you also bring up a lot of good points. I think this topic is important to each and every one of us, and deserves as much consideration and discussion as possible.
ReplyDeleteObviously this topic isn't black or white, and there is no right or wrong. Yes, the decision to work at a lower rate can affect the community, but like I have said before, none of us have ever experienced an economy like this. It's only a matter of time before we'll all be put in a situation that we never thought possible, and forced to make choices that we never thought we would have to make. I'm still in shock at how fast I was put in a position where I had to change my tune.
All good suggestions, Kathy.
ReplyDeleteI will add, that, in reflecting a discount, perhaps consider noting it's a 2009 discount. Anything to set the stage that this is, in no way, a permanent rate.
Another suggestion is to discuss what the freelance budget is for a project. Sometimes that leads to an agreement that is closer to your rate.
The other suggestion is to BE SMART about negociating. In this current climate, EVERYONE will use the economy as a shield. Look around-- are people getting laid off? Or is business booming? Who is the person who is asking you to lower your rate? Are they a person in power, or a person that has been asked to do this across the board?
Also, look to work outside of the promotion field. Restaurants need serious help now - maybe you can help them do "special meals menus" and charge them a flat fee? A lot of small businesses need to generate business, and that, people, is SALES PROMOTION!
Also, look to friends and family, who work in corporations. Have they completely cut back on creative? Do they do yearly catalogs? Corporations generally pay creatives less per hour, but at least your lower rate would "be a secret" outside of agency work - and may lead to some regular work flow.