07/17/2020
During my first years as a freelancer, I had no idea what to charge for my services, and always felt relieved if the client had a set fee, so that I didn't have to come up with my own numbers. And whenever I had to present a budget, I was terrified it would be too high, so I always priced myself on the lower end to make sure I wasn't charging too much. Sound familiar to anyone?
As a freelancer or small business owner, money-talk is IMPORTANT.
In the beginning, you may not have a team or an agent who takes care of the financial side, so it's all up to you. If you are uncomfortable negotiating and discussing your worth, chances are you end up charging too little. Negotiating is a natural part of selling, whether it's a product or a service, and it's your chance to communicate your worth to the client or customer.
Here are some advice that helped me get over my fear of money-talk, and made me understand my worth:
- Know your bottom line. Whether you charge an hourly, daily or project based fee, know your lowest possible price. If you were to break down a project by time, what's the lowers hourly rate you are willing to accept? Find your bottom line, and don't go below it. Based on your lower numbers, find your "ideal number". This is the rate where you feel valued for your time and expertise, and the rate most project should meet.
- Create a small private circle of creatives in your field. Start an open discussion about your fees, and together you can build a guideline for what to charge in different situations. It will always be up to you if you wan't to charge more or less, but knowing a baseline is key. This takes away the insecurity, and you know you are charging a fear rate.
- Don't rush it. When you're talking to a client about a potential project, tell them that you will take some time to look at the details, and that you will get back to them with your budget/ feedback on the budge they presented. Break down the project based on how much time you think it will take, and if the budget is too low, start the negotiation.
- When asking for a higher budget, make sure you are detailed in why you want to charge more. How much time will this take you, how much expenses will you have? Be transparent with the client, so they can see for themselves why you are asking for more money.
You're not going to win all negotiations, and even though it may seem impossible in the very beginning (when some money wins over no money) , you will eventually have to turn down jobs that don't pay enough. As you gain experience, you will be worth more, and in order to grow, you will have to charge more.