Negotiating yourself the best rate possible is crucial to your financial success as a freelancer or contractor. However, it is also one of the most daunting prospects if you have never done it before. This guide outlines a few things to think about when trying to secure yourself the best deal.
Before you go for that great rate….
- Decide your ideal price and the lowest compromise you are willing to settle for.
- Know your strengths and make sure you have facts or quotes to back these up with.
- Find out what other freelancers or contractors are charging.
Remember that the rates you charge as a freelancer or contractor are designed to compensate for job insecurity, lack of employment benefits (sick pay, holiday pay, pension), working costs and admin costs. So don’t be afraid to include them in your price.
While you negotiate that great rate….
- Treat yourself as a business
You wouldn’t sell your stock below cost price, so don’t undersell your skills either.
- Ask lots of questions
The more you know, the more you can properly work out the right rate. For example: “What is the target audience?” “Will you be using online or offline media?”
- Think about the commercial value of the work you are being asked to do
Remember you can charge more for exclusive or unusual work.
- Work out the ‘time-cost’
How long is the project going to take you? The more time consuming it is the higher rate you should charge. Use past experience to gauge your own working speed.
- Find out if there will be on-going work
For example: ask how often client works with freelancers/ contractors, what type of projects are usually outsourced, whether this is the first time they have outsourced etc. If it looks like there will be on-going work be more willing to compromise on price as it will be beneficial in the long run. However if it’s a one-off; charge a premium rate.
- If the client won’t move on price, try offering less of your services for the reduced rate
Possibly suggest a weekly rate instead of hourly (although here it is important to have worked out ‘time-cost’).
- If you decide to go for a ‘set-rate’ be very clear about what that rate includes
For example: £2,000 per graphic (say how many samples and revisions that includes), £500 per 1,000 words (outline the planning and editing process).
- Find out if your work is going to be used in more than one medium e.g. print or online
Negotiate extra fees if it is (within your First British Serial Rights). This also gives you the chance to re-discuss the total rate, even after a decision has been made.
- Be clear whether you plan to include costs such as travel, meetings or anything else.
- End on a positive note.
After you have bagged yourself a fantastic rate!
Get the terms and rate you have agreed on in writing.
Image by DavidDennisPhotos
