Negotiation 101. How To Get Paid Your Worth For Freelance Jobs
Negotiation is an essential skill for freelancers, impacting your income, project scope, and professional relationships.
Effective negotiation ensures that you are fairly compensated for your work while maintaining positive client relationships.
Here are the top three principles to master when negotiating as a freelancer, including insights from Chris Voss's "Never Split the Difference."
Suggested reading if you’re unsure about charging: Why You Deserve to be Paid for your Content Creation.
Prepare Thoroughly
Preparation is the cornerstone of successful negotiation.
Before entering any negotiation, understand your worth and the value you bring to the table.
Find out what your peers are charging in content creation here.
Research industry standards for the services you offer and have a clear idea of your minimum acceptable rate.
This should include factors like time worked, filming, editing and opportunity cost.
Preparation also involves understanding the client's needs and constraints, which allows you to tailor your proposal accordingly.
Know Your Numbers
Be aware of your costs, desired profit margins, and market rates.
This knowledge helps you set a realistic and firm baseline for your negotiations.
Ask yourself these questions
“If my highest paying client saw I dropped my rate this much, would they work with me again?”
“Is this worth my time?”
“Does this client work with an agency that handles my existing relationships? Will this impact future negotiations?”
Tip: Clients that barter creatives down to unfair rates are the worst to work with.
They will expect more, ask for reshoots and not respect your creation.
We strongly recommend not wasting time with clients that undervalue your work.
Client Research
Understand the client’s business, goals, and pain points.
This insight allows you to position your services as solutions to their specific challenges.
Large brands that appear in major retailers will also have a larger budget than a small business that is online only, and may require more brand exposure over direct sales.
Pitch and design your content around this.
Scenario Planning
Anticipate potential objections and prepare responses.
Consider various scenarios and how you might handle them, ensuring you remain composed and confident during the negotiation.
Scenario 1: “We can’t meet your rate, we only have $500 for this project”
Answer option 1: “Thank you for explaining the budget restrains. For $500 I can provide [work that you’re happy to do for the limited rate]”
Answer option 2: “Thank you for letting me know. I’d be happy to meet you closer to the budget at $650. I’d be able to throw in an organic story feature for this flexibility”
Answer option 3: “I understand the restraints. As I’d love to work with [brand name] ongoing, and I’m happy to discount my rate to $500 for this campaign, with the intention of continuing to work together on a paid basis. Please let me know your thoughts on this"
Communicate Clearly and Confidently
Clear and confident communication builds trust and conveys professionalism. It's important to articulate your value proposition effectively and listen actively to the client's needs.
This principle aligns with the concept of tactical empathy from "Never Split the Difference," which involves understanding and acknowledging the client's perspective to build rapport.
Value Proposition
Clearly outline the benefits and outcomes the client can expect from your services. Focus on how you can solve their problems or enhance their business. Examples may look like:
Sharing statistics of your page that support a high engagement rate.
Sharing a case study of your previous campaigns or code use result.
Active Listening
Pay close attention to the client’s concerns and feedback.
Use reflective listening techniques to show that you understand their viewpoint, which can help diffuse tension and build trust.
This looks like acknowledging any blunders or concerns along the way.
Assertive Confidence
Speak confidently about your skills and experience.
Avoid underselling yourself; instead, emphasise your qualifications and past successes.
Be Flexible Yet Firm
Negotiation often involves finding a middle ground that satisfies both parties.
However, it's crucial to remain firm on your non-negotiables while showing flexibility in other areas.
This approach aligns with the principle of "calibrated questions" from "Never Split the Difference," where you guide the conversation with questions that prompt collaborative problem-solving.
Non-Negotiables
Identify and communicate your must-haves. Be clear about what you cannot compromise on, ensuring these points are respected. Examples may include:
Turn around times (min 7 days for products you already use, min 3 weeks for new products).
Usage rates.
Discounts.
Project terms.
Trade-offs & Problem-Solving Questions
Be open to negotiating other aspects of the deal, such as deadlines, payment terms, or additional services. Offering concessions in non-critical areas can create goodwill and help close the deal.
Use questions that encourage the client to think about solutions.
For example, "What would it take to make this project a success for both of us?" This technique invites collaboration and can lead to mutually beneficial agreements.
Suggested Reading: "Never Split the Difference"
Chris Voss's book "Never Split the Difference" offers valuable lessons for freelance negotiators.
Voss, a former FBI hostage negotiator, emphasises the importance of tactical empathy, calibrated questions, and mirroring.
These techniques help negotiators understand the other party's perspective, guide conversations toward collaborative solutions, and build rapport.
Tactical Empathy
Show genuine interest in the client's needs and feelings. This approach builds trust and opens the door for more productive negotiations.
Calibrated Questions
Ask open-ended questions that prompt the client to consider your perspective and work towards a common goal.
Mirroring
Repeat key phrases or words the client uses to show understanding and encourage them to elaborate.
This technique helps maintain a positive dialogue and uncovers deeper insights.
To Sum Up
Mastering negotiation as a freelancer involves thorough preparation, clear and confident communication, and a balance of firmness and flexibility.
Like many skills, there is a steep learning curve that will include a few slip ups or blurred lines. Keep going forward through, finding where the fair boundaries for your work is, and continue to push for your value.
