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If practice truly makes perfect, then freelancers should be the absolute best at negotiating their rates—since they do it many times per year, or even per month. But if I’m any indication, then some freelancers have a few issues with the whole “asking for more money” thing. Which is a bummer, because my favorite type of money is “more.”
How To Calculate Your Rates
I never had a clear idea of how much I should expect to be paid for really anything. I give myself a headache trying to measure the exact value of my work. I’m not sure it can be done, even by someone with a Ph.D in Economics (and I say that as a proud student who got a B+ in Econ 101).
Sometimes it’s too abstract. Let’s say I write an article for a website, and that article is seen by 5,000 people. The article is free to read, but each person sees two ads. Of those 5,000 people, only 100 click on an ad, and only 10 buy the product. The product has a profit margin of $10. Does that mean the article is worth $100? And of that $100, how much belongs to me, and how much to everyone else who worked on it? What about the fact that the brand name of the product gets stuck in the heads of those other 4,900 people, and they might be more likely to buy the product later? Anyway, I was paid $400 for the article, which I thought was fine.
If that example is any evidence, I don’t recommend that freelancers try to calculate the exact market value of the services they’re offering. Instead, to understand how much your work is worth, you do need to have some sense of your competitive advantage—some way to pitch yourself as excellent for the job. I’ve gotten hung up on this, too, because I can always think of someone else who might do any job more cheaply. And that’s true—there are an awful lot of people in the world, and it’s highly unlikely that you’re the absolute cheapest or the absolute best. That’s mostly a good thing, though. You’d hate to be the cheapest.
How To Get Your Desired Rate
At the same time, if you’re talking to a company about offering them a service, then you have one major advantage over other freelancers: They’re already talking to you. Finding another freelancer takes time and effort. You’re right there. So focus on what you do well.
While focusing on your strengths might get you a job, it doesn’t answer the question of how to negotiate a salary—and that’s where my only tip comes in. I can’t even take credit; it’s not mine. A friend said it to me off-handedly recently. She’s also a freelancer, and she told me that anytime a client accepted her first offer, she felt disappointed. I pressed her, and she said she tried to ensure that clients always say no to the first dollar amount she puts on the table.
I found this absolutely mind-blowing, for one obvious reason—I hate when people say no to me. It’s one of my least favorite words! I’ve taken too many improv classes to think that “no” could ever be better than “yes, yes, yes, AND.” I wasn’t eager to invite more ‘nos’ into my life.
Besides, the idea of asking for more money has always made me self-conscious. Who did I think I was, demanding money for something I’d be happy to do for half the rate? But therein lay the answer—freelancers do so many different jobs for so many different clients with so many different budgets that there is no standard rate. The correct amount is the most a client is willing to pay. And you can’t find that amount unless you get them to say “no” the first time. It’s all about pushing boundaries. Once you start thinking of negotiating rates as renegade and counter-cultural, you might find it more fun.
My Experience Negotiating
So, I committed to taking her advice. It took me a while to even succeed at it. I was asked to write scripts that I estimated would take about three hours. I initially thought to ask for $300, since the administrative time plus the time spent coordinating the project would add to those three hours, and I wanted $80 per hour.
But I thought of my friend’s advice and did something insane: I asked for $1,500. And they agreed immediately. On the one hand, I failed at my goal. On the other, I got paid $1,200 more than I expected. Who won? Who’s to say! (Spoiler: definitely me, as the client did not end up using my scripts).
Soon after that, I was offered $300 for a job. I asked for $500, and they walked away. I felt regret, since it was a very easy job (that required me posting exactly one picture of a vibrator). At the same time, I’d achieved my goal—they said no to my first number. I just didn’t expect them to walk away entirely. However, two days later, they returned and said they’d pay $500. I won again!
I’ve continued to take this advice, and I’m earning about 50% more per month without doing any more work. Of course, sometimes clients can’t afford me, but that’s part of the job. I’m now one of the 69% of freelancers who is satisfied with their pay, and it’s a real treat. So embrace the “no,” screw improvisers, and keep your fingers crossed for a higher rate!
