This is probably not what you want to hear during a shaky economy, but lowering your rates is going to backfire.
I was skimming back through my blog posts when I came across this one from 2006. At the time, I’d just had a client whom I’d worked for at a cut rate recommend me to his mother and her business partner. I was excited for the work, and then we came to fees. When I gave her a fair price, she dumped me. Seems she was expecting the same $100 work I’d given to her son. Even though he knew at the time that it was a one-time deal based on our ongoing working relationship, he couldn’t help telling her “She’s good and she’s cheap!” Not exactly the image you want to maintain.
It’s why I’m an advocate for a one-time discount in order to either keep existing clients or bring in new ones. Discounts are a way to say to your loyal customers – “I appreciate you placing your business with me.” Discounts for newcomers allows them to feel a bit better about working for someone who’s perceived to be flexible, even if it’s a temporary flexibility.
Another way to offer a discount without making it a habit is by giving a “bulk rate” for clients who contract multiple projects with you at one time. I did this for a guy I was negotiating with. While that didn’t work out for other reasons(he was clearly bargain shopping), it’s still a great way to line up work, relay your appreciation to the client in terms of a discount, and secure a more trusting relationship going forward.
Are there ways you offer clients discounts without framing yourself as a “cheap” service provider? What has worked for you?
3 responses to “Start Cheap, Stay Cheap”
I agree that lowering rates, even in this economy, is not what freelance writers should do. I will give clients “volume discounts” if I’m working on a series of projects for them; I don’t feel as though I lose dollars because there often is a synergy when writing content for a number of deliverables in the same therapeutic area (I’m a medical writer). Once in a while I’ll have a client for whom I do a lot of work ask me to pull together something they need quickly. If I can do this, say, in a couple of hours or less, and it will lead to a larger project, I might say, “This is on the house because I know when you get the work, you’ll call me to write the content.” Sure, I didn’t make a couple of immediate bucks, but I generated lots of good will with that particular client, which is important. I write it off, in my mind, as a marketing expense. That good will has enabled me to build long-lasting relationships with my clients.
I like bird dog or referral fees too.
I think you are right. I am reaching for much higher paying projects than I started charging as a newbie. I recently (last week) ended a client relationship after raising my fee to make room for something new.