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How to Stop Leaving Money on the Table and Get Paid Your Worth -- Every Time!
In this Special Report you'll learn how to negotiate more
effectively so you can add hundreds of dollars -- or even
thousands -- to your income this year.
Most freelancers hate to negotiate. Some are even so bad at the
money end that they don't invoice, leaving the paper trail up to
the client. (My favorite Webmaster is one; he won't invoice me,
so I have to do it for him!)
Because dealing with money is such an important part of
freelancing, this Report focuses on the art of successful
negotiation. Believe it or not, most clients don't want to get a
"great deal" at your expense; they simply want an agreement
that's fair to both parties. Because when both parties feel
there's a fair exchange, it opens the door to a continued and
mutually profitable relationship.
So if you've kicked yourself in the past for coming in way too
low on price...if you've hated a job you'd have enjoyed if only
you were paid more...then print this article and keep it handy
for your next negotiation. By understanding how the freelance
negotiation process is supposed to work, and by effectively
playing the part you're supposed to play, you can literally add
hundreds of dollars each month to your bottom line.
THE FIRST RULE OF FREELANCE NEGOTIATION
I'm convinced that the foundation of a good business
relationship rests on fairness and integrity. By starting from a
place of honesty and fairness, you can spend your energy on
arriving at an agreement rather than trying to be the winner, as
some misguided "old school" negotiators do.
That said, let's get to the details of how you can become a good
(or even better than you already are) negotiator.
ESTABLISHING YOUR "BASELINE"
Have you ever felt bewildered in the initial phase of a
negotiation because you didn't know where to start? The problem
may be that you don't really know how much time it takes you to
complete a particular type of job...and that makes you unsure
about what to charge.
In an advertising agency, filling out your timesheet is an every
day occurrence, so getting adept at estimating jobs is a fairly
quick process.
When I left the agency and went freelance, however, I wanted to
get estimating down to a science. My friend, master designer
Steve Colich, told me about StopWatch, an inexpensive timesheet
software. So I bought it.
Using StopWatch helped me keep track of my time and gave me a
huge advantage (and loads of confidence) when it came time to
submit a bid. Knowing how much time it will take you to do a job
is the strongest negotiating "tool" you can have in your
freelancer's bargaining kit.
PHASE 1 OF YOUR NEGOTIATION: PREPARATION
Assuming you have a pretty good idea of how much time a
particular project should take, your next job is to size up your
potential client, and consider your current situation as well.
Factors that will determine what you ultimately ask for include:
* Is the client a mid-size or large company that's used to
paying professional rates? Or is it a small, local Mom & Pop
stretching finances to get a simple brochure?
If you want to work with the Mom & Pop shop, you'll need to take
their tiny budget into consideration. Conversely, if you're
providing copy for a large company that's mailing
fifty-thousand, five-hundred-thousand, or a million
pieces...then obviously you shouldn't be paid peanuts for your
work and expertise.
* Are you new at copywriting and trying to build a portfolio? It
may be more important to add a sample to your portfolio than to
get top dollar.
* What's the economy like for your client's industry? If it's
been a tough year, you may be viewed as insensitive if your
rates don't accommodate tighter budgets. Not surprisingly, some
technology writers have reported a depressed market over 2003.
I'm betting that they, like me, looked for ways to service their
technology clients at a lower cost.
* What is the client's actual budget? Because talking about
money intimidates most freelancers, many don't ask what the
budget is. But as copywriting guru Bob Bly points out, if you
ask what the budget is, many times the client will tell you. Now
all you have to do is consider how long it will take you to do
the work, and submit your bid within the budget's range (if it
is indeed, a reasonable budget).
* How badly do you need the job? If you really need the job,
then you're at a serious disadvantage in the negotiation
process. It's tough to deal with the tension, and very tempting
to come in low on price in order to get the job...and some
anxiety relief.
The problem is, once you've done a job on the cheap, your client
will expect the same price again. If you're faced with a
situation where you really want the job, try to strike a deal
where you do the first job at a discount, but all subsequent
jobs are at "market rate." Position yourself as giving a
one-time discount, and -- this is important -- get it in writing.
This may seem like a lot to do in the "preparation" phase, but
there's still a few more things you should know, such as...
* Determine what you'd like to get for the job, know what the
absolute minimum is that you would accept happily, and determine
the price you want to start with.
In our culture (an in many others), the purchaser assumes the
seller will start high so there's room for the customary
bargaining. You have an expected role to play, and if you err in
the first round by coming in too low, you have nowhere to go but
down, potentially putting yourself between a rock and a hard
place if your client is a strong negotiator.
* Know what
you're worth and be prepared to defend your
position. Recently the CEO of an Australian software company
balked at my hourly rate for Americanizing their marketing
materials. He felt he was very knowledgeable about the price of
writing because he was also the CEO of a worldwide language
localization and translation company.
In order to appease him I reduced my hourly rate by $25 per
hour. But it was still much higher than the figure he threw out.
So I explained that because I'm a direct response copywriter,
his materials will become much more powerful, with new headlines
and captions whereever I find room for improvement.
I explained that the work I would give him was worth more
because he was getting much more than just editing and
Americanizing. And to make the difference "real" to him I
offered to farm the work out to another writer, for a lower
rate. He quickly agreed to my rate, and we both felt good about
the outcome.
PHASE 2 OF YOUR NEGOTIATION: THE DANCE BEGINS
At some point the potential new client is going to bring up the
subject of price. If not in the first conversation, surely in
the second.
If you're not careful, you can make a fatal mistake at this
point. Loosely throwing out a ballpark figure can come back to
bite you if you don't have a real handle on the amount of work
to be done. I've made this mistake and I'm sure thousands of
other freelancers have too.
The best way to handle a premature discussion of money issues is
to have a few stock phrases tucked away in your back pocket.
With the right words you can push the subject out until you have
more time to study the requirements -- and determine your role
-- in the project.
For instance, will you be expected to fill out a Project Brief,
or will the client handle that necessity?
Will you handle creative direction, or just hand in the copy?
Is there a huge learning curve on the product? Does your client
want high-level concepts or just a teaser on the envelope? Who
is going to hire the designer, you or the client?
Making assumptions at this stage of the game can cost you money.
You want a clear picture of the job before you start throwing
out numbers.
When I want to avoid stating a dollar figure or a price range, I
have a few stock phrases that work well for me. One is, "I'm not
the cheapest, but I'm also not the most expensive"...and then I
follow that statement with benefits I bring to that particular
client.
Another statement that buys me time is, "Whatever your budget
is, I'm sure we can find something that works for both of us."
This reassures the client and the conversation usually moves on
to another topic.
It's at this stage of the negotiation that you'll spend time
"getting your arms around" the project. It pays to take your
time and really think it through. By being very specific about
the scope of the job, you get clear on what it is you have to do
and how much you should charge. Collecting detail also helps you
sell the client on your price by showing them visually, on
paper, what you'll be doing for them.
For instance, consider a Fee Agreement that says "$4,000 for one
lead-generation package." That's pretty naked and the price can
seem high.
Now consider a Fee Agreement that says "$4,000 for one
lead-generation package consisting of 3 concepts with
rationales, one 6 x 9 envelope, one 2-page letter, one standard
brochure, one 8-1/2 x 11 order form, and offer development."
Both approaches take the same amount of work, but the second
approach offers a realistic picture of what the job
entails...and also clarifies expectations on both sides.
THE WAITING GAME
Once you've submitted your fee (I always do so in a formal Fee
Agreement that includes contractual terms), there's often a
period of silence while the client considers your offer. The
bigger the project, and the higher the fee, the longer it can
take to get feedback.
This is where the freelancer can go a little crazy, wondering
"Did I ask for too much?"..."What's wrong? Did they decide not
to do it?"...and "I blew it. They hate me. I'm dead."
Rarely is there a problem, outside of the fact that the client
is taking their time. After all, you're asking them to sign a
contract.
My personal threshold for waiting lasts about three working
days. If I haven't heard back, I send an email asking if they
received the Fee Agreement. In fact, this happened recently.
A client I've been trying to land for two months had not
responded to my submitted Fee Agreement. Because of the volume
of work, the Agreement ran three pages (remember, be specific!).
Three days later I sent an email asking if he'd received it. It
turned out he'd been sick, and he hadn't even looked at it yet.
A day later he sent requests for a few changes that bothered me.
I expressed concern and we set up time for a phone meeting. In
the end, he gave a little and I gave a little, and the Fee
Agreement got signed.
While this negotiation took nearly one month to complete, most
take only a matter of days. The important thing to remember is
to have patience when you're negotiating with a potential new
client.
With a well paced, thoughtfully considered negotiation, where
both parties feel their interests have been served, you have the
foundation for building a lasting -- and profitable -- client
relationship.
About the author:
Master copywriter and coach Chris Marlow publishes a free ezine
for copywriters who want to quickly build a profitable business.
Visit:
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