When it comes to making more money as a freelancer, being able to negotiate well might give you a significant advantage. Negotiation can be a scary thought for many freelancers that makes them reluctant to do it, but it’s necessary to perfect your negotiating skills in order to earn the money you need. So, here we are going to list down Negotiation Tips for Freelancers to Win Higher Rate to make you out of the price war between freelancers.
Having the technical skill such as programming, coding and writing is important for a freelancer, but having negotiation skill is equally important, otherwise you will be trapped in low rate. By learning Negotiation Tips for Freelancers it can give you more money than a more talented and professional freelancer. It is not necessarily the best squad or the finest fighter who triumphs, as it is so frequently in life, but the one who is more confidence in their own value and abilities.
1. Determine Your Minimum Rate
The first negotiation tips for freelancers to win higher rate is you must determine your minimum acceptable rate (MAR). Never get into a discussion without first determining the lowest equivalent hourly rate for which you are willing to work.
How to determine your minimum rate?. You can use the formula from bidsketch here
( (personal outgoings + business outgoings) / hours worked ) + tax
Example : Your personal outgoings (i.e. the total cost of living for you and your dependents) are $50,000 per year and your business outgoings are a projected $10,000 per year. You plan to do client work for six hours per day for forty-eight weeks of the year (1,440 hours total). Your MAR calculation (gross of tax) is as follows:
( (50,000 + 10,000) / 1,440) = $41.67
With 30% for tax and your MAR (nett of tax) is $54.17 That is your MAR per project.
The MAR is your bottom line, but it isn’t always the rate you change your clients. In negotiations, it is a number that you will not go below.
2. Win the Client by Charge per project
Working for an hourly fee provides the client far too much to consider when it comes to their sense of worth. For example, if you are a writer and you usually completed the task in an hour, and you charge $150 per hour to the client. But the client might think that you can complete the job in between 2 or 3 hours. Thus, charging them $150 per hour will make them think they are getting ripped off because you are capable of completing the work so quickly. So, in negotiation you also have to play with the psychological client.
3. Client’s Perception of Value
Too many freelancers work from the perspective of what they believe their services are worth, when they should be working from the other perspective. When it comes to negotiating fees, your view isn’t especially significant; it’s what the client thinks that counts.
As a result, take the time to examine both your client and the project’s nature. The importance of the project to the client influences the rate you can charge more than anything else. Ask the following questions to yourself:
- What are the benefits of your work to the client?
- What impact will it have on their bottom line?
In part, the answers to those questions determine the fee you can charge. A blog post for a small business, for example, is likely to have a limited influence. If, on the other hand, you’re producing sales page content for the next big online product from a Fortune 500 company, the value of your services could be immense, and you should charge appropriately.
4. Start High
For many people, negotiating is a necessary element of doing business. In fact, you’ll undoubtedly work with a lot of clients who will argue over a price only on the basis of principle (regardless of whether they feel it is reasonable).
As a result, you should always propose a larger rate than you would if haggling wasn’t an option. This may appear to be a risky move, but you’re simply getting ahead of the negotiation game. If the client can haggle you down to a number you’d accept anyhow, they’ll feel like they’ve gained something from the process, and you’ll be satisfied with the agreed amount.)
Furthermore, unless you are very out of the ballpark, you are rare to have a client reject your rate outright. If you present a rate that is 10% more than what you are comfortable with and the client rejects you outright, they are likely to reject the lower price as well.
You don’t want to work with clients that feel compelled to stretch their budget to the limit in order to accommodate you; such situations don’t lead to strong long-term relationships. It’s more preferable to go through the bargaining process with the customer and make them feel like they received a fair price.
5. Learn to say No
When it comes to negotiating, the capacity to confidently say “no” is an important part of separating emotion from rationality. When a long negotiation has gone on for too long, the only logical solution is to deny the project since the client cannot reach your minimum pricing.
It’s all about maintaining your composure and standing firm. Clients aren’t used to freelancers declining business too often, and this can sometimes work to your advantage. The client will sense your power, recognize that you are exactly what they require, and pay appropriately.
6. Be creative with your service offerings
Negotiating and freelancing in general necessitate agility. Even if you appear to be at a stalemate in a price negotiation, there may still be ways to secure the job. Being innovative with your service offerings is one of them.
A client may not be able to pay your primary service, but they may be able to purchase something smaller that still meets their needs. When the client sees the outcomes of the smaller project, you’re more likely to be recruited for the larger project. Those with a ninja spirit are always looking for opportunities in any situation.
7. Aim for Mutual Agreeably Outcome
If you want to take advantage of your clients as a freelancer, you won’t get very far. Both parties should feel like they got a good bargain after a productive negotiation. If you believe squeezing every last penny out of a potential client to the point where they unwillingly agree to your increased charges is a good thing, think again.
You want to work with clients who will gladly refer you to their friends and family. You want to work with clients who will return for more work. You want to collaborate with clientele who will give you glowing recommendations. If you desire a win-win situation during talks, you will not accomplish these results.
As you already read all the negotiation tips for freelancers to win higher rate above, the last thing that you need to have is confidence. When you have that confidence with yourself all that tips will come out naturally from yourself. You know your worth and capability, you feel good with yourself then you will easily into your service.
Source : Bidsketch, www.invoiceninja.com
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