Third of three posts from Sam Howard on the commercials of freelancing: How not to give away your work as a PR freelancer:
The last two posts, looked at how to calculate your base rate ( how much do you need to charge to survive) and your ceiling rate, (what the market will bear).
Hopefully the first calculation is lower than the second one, if not please stop reading this now and use this time to send out your resume. You’re are not going to be able to make it work as a freelancer.This post briefly covers what factors to consider when contemplating discounting your work.
Reasonable reasons to discount
- Do you know the client? Sounds obvious but if you know them already, then proving you’re the right person for the job, aka pitching and then over-servicing, shouldn’t take too long as your immaculate reputation will proceed you. So the time you save in not going OTT in the early months can be passed on in a discounted rate for the same period. (not indefinitely)
- Do you know and like the client? By that I mean do you know that they are really easy to work with? That your judgement is valued, that the client will take risks, that emails can be six words long (and four of those spelled incorrectly), that decisions are made in real-time and it’s OK to vent rather than labouring over such a delicately worded email you might as well have crocheted it. (This is my idea of a perfect client, I concede you may have a different set of selection criteria.) If you have a perfect client, then treasure them, working with them is a pleasure and you’re rate should reflect that.
- Is it something that will help you grow? OK so moving into an adjacent sector, expanding your skill set, working with a client that you can learn much from, these are all reasons to invest in your portfolio and discount.( again just for a while say six months while you ‘come up to speed’).
Just double check the sum total of all these discounts isn’t lower than your basement rate and for every client you take on that skims or even dips below that rate you need to take one with a higher yield, remember this always has to be win/win.
Rubbish reasons to discount:
- You’re really broke: So you’re staring at your laptop, willing for that one email to arrive, that will put a smile on your face and some cash into your account. But when it comes, (and it will) think carefully about pricing. It’s so tempting to come in really low, ‘cos you’re desperate. But what does it say about the value of your work? As scary as it is, put in the right price, that reflects the skill and effort involved to do a great job. Yes, you may end up negotiating down, but no one ever gets to negotiate up.
- They’re really broke: Whether they’re those sparkly eyed start-ups or family friends, those customers that really, really want to work with you, but have no money… FYI they’re not customers, they’re window shoppers. So move them along and find someone to work with that can treat you with the respect you’ve earned. And with the money generated from real work for real customers you can afford to buy the sparkly eyed start-up or the family friend a pint – or three if they really do need your support.
- Discounted trial projects: Not convinced myself. You need to be hanging out with people that know how to be professional in business, after all you have to represent them. If they come across as timid amateurs to you then that’s how thy are going to come across to press.
Doing it for free
I hate working on the cheap, feeling like someone has got something over on me, de-valued my contribution – but I love working for free. One of the best bits about working for yourself, is being able to contribute your skills and expertise to a cause you believe in and make a small difference in the world. Maybe it’s providing your professional services to a cause, or painting fences or washing out kennels. But if you’ve managed your finances and time sensibly, then you can afford to give it away and come home with your pockets full of physic income and your conscience having had a spa day.Image courtesy of wallpaper.com