How to Negotiate As a Freelancer

Let's discuss how to make the money you deserve – the art of negotiating.

Negotiation happens when you're starting a project, renewing a contract, or dealing with changes within an ongoing contract. Whether someone presents their budget, and you need to adjust it to fit your worth, negotiation is about making it a collaborative experience.

Know Your Worth

1. Market Rates and Values

Before entering negotiations, know your market rates, your values, and your lowest acceptable offer. This ensures you're not wasting time on discussions that don't align with your standards.

2. Evaluate Experience and Knowledge

Consider the experience and knowledge gain. While occasionally working at a lower rate for valuable experience is acceptable, be cautious not to compromise your profits consistently.

3. Know Industry Standards

Research what others are charging in your space. This prevents you from consistently lowballing yourself and helps set realistic expectations.

Building Your Case

Before negotiating, have a solid case for why you're requesting a higher rate:

1. Know Return on Investment

Show clients the value they'll receive in return. Emphasize that they're not just paying for a service but for expert knowledge, advice, and a collaborative, results-driven experience.

2. Demonstrate Expertise

Show examples of your work, highlighting what you've offered to other clients. This helps build credibility and strengthens your case.

Timing Matters

1. Initiate Conversation Early

If a client provides project details, start the conversation early by presenting your base prices. This ensures everyone is on the same page regarding costs.

2. Address Changes Promptly

If changes occur during a contract, address them immediately. Waiting can create tension and complicate negotiations.

3. Discuss Rate Changes

If you realize you've undervalued yourself, have the discussion right away. Waiting for the "right time" may never come.

Handling Objections

1. Budget Constraints

If a client cites budget constraints, suggest milestones or longer delivery timelines to accommodate their financial limits. However, be firm if their budget is unrealistically low.

2. Discount Requests

If a client requests a discount without a valid reason, showcase the return on investment and the value you bring. If they persist, consider if this is a working relationship you want to pursue.

Remember, You Can Say No

Always remember that you're allowed to walk away. If you accept a lowball project, you might miss out on a client willing to pay your worth. Don't compromise your value for the sake of getting work.

Finalizing a Negotiation

Regardless of the negotiation method used, always confirm the agreement in writing. Outline the role, timeline, deliverables, and price. This confirmation email serves as a reference point and helps avoid misunderstandings.

Negotiation is about finding a balance between collaboration and standing up for your worth. Remember, it's okay to say no and prioritize clients who understand and appreciate your value. 

Stay creative!