Negotiation Tactics for Freelancers

By Cassandra Pare

Deciding to take the plunge into Freelancing can be both extremely rewarding and totally terrifying all at once. While you now have control over your time and lifestyle, you’re also now responsible for filling that time with work that can pay the bills. So how do you secure a rate that CAN actually pay the bills? Well you’ll have to learn the art of negotiating of course. Negotiating is par and parcel to becoming a successful freelancer, but its also par and parcel to securing your own personal happiness. Once you’ve mastered the art of doing it well, you’ll have alleviated one of the most burdensome parts of working independently and you’ll be able to painlessly secure the rates you deserve. Here are our 5 favorite tips for negotiating your way to Freelancer happiness:

1. Determine your minimum acceptable rate. This is essentially the lowest number you would be willing to work for. Know that once negotiations drop below this number, you’re willing to walk away.
2. You’ve probably heard of the concept of anchoring before, but we’ll say it again here. Anchoring is the concept that you have an advantage if you throw out the first figure because it will force both parties to suddenly work around this number. So throw out the first figure and make it high. It should be high because most likely, it’s going to be negotiated down. Here something strange too — throwing out too low of a number gives off the perceived value that you are worth less than you are.
3. Consider charging per project rather than per hour. There a number of reasons behind this, but consider a few here. Charging per hour forces your clients to think about perceived value than if you had charged per project. Not only that, but it puts a ceiling on what you can make and can actually penalize you for working efficiently and effectively.
4. Frame the conversation around what the project is worth in value to your client, not what it’s worth to you. That means that a project with high visibility and potentially far reaching impact should be priced out higher, than say a small design for a social media post.
5. Learn how to push back effectively. If a client is still trying to bargain for a lower rate or starts comparing your rate to another hire, explain to them what sets you apart. Maybe it’s your work experience, maybe it’s that you are locally available, maybe you have a degree that warrants your rate. If things are still not working, the truth is your client may just be looking for someone more junior than you. Ask them their budget and if its well below what you can work with, simply explain to them that the person they are looking for at this rate, is not you. After all, in the world of services, just like the product world, you get what you pay for.