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Free Advice Friday: The Client Discount Debate

What’s on the iPod: The Wild Hunt by The Tallest Man on Earth

It’s been a good week, albeit short. Even with Monday off for celebration and self-contained debauchery, I accomplished a good bit on my work list. I finished interviews for one article, started them for another, and organized a two-part article, which I hope to have completed by next week. I come into Friday in pretty decent shape.

Over on the 5 Buck Forum, there’s a current discussion about rates and what to do when clients ask for reductions or discounts. Thanks to the person who started the discussion (you know who you are), I give you this week’s free advice post.


Free Advice Friday: The Client Discount Debate
One of the first dilemmas freelance writers come up against is that of the discounted rate. When is it okay? When isn’t it? When you’re entirely new to freelance writing or you’re still a little shaky on your feet, it’s not an answer that comes to you easily. Still, it’s a situation that comes up frequently. I still face it on occasion.

When should you discount your rate and when shouldn’t you? Here are a few times in which I’ve accepted a discount situation, or when I would if presented:

When it’s a long-time client with a trusted history. Mind you, I’ve had some long-time clients (now former clients) who would expect discounts, but who haven’t built the trust needed for me to do that. In one case, the client was so scattered about payment, I wasn’t sure a bargain-rate invoice would have been paid any faster than the ones she didn’t pay for months on end. Contrast that with the client who came to me saying her superiors were capping her budget and would I work for less than I had been to date? I jumped at the chance to continue the relationship because of her dealings with me — she treated me like a pro and never assumed I was anything other than a business person and colleague. If you and your client have built a mutually trusting, respectful relationship, you’re in a much better place to want to offer a discount.

When the workload warrants it. If you’ve ever agreed to a lower rate before knowing the full scope of the project, you know the hell and resentment that comes from not having enough information. However, there are time client work is easy/fun/enjoyable/educational enough that you don’t mind working for less.

When it’s a cause you believe in. I volunteered my services once in my life. It was for a charity, and I had a personal connection to its cause. Since then, I have been asked to donate my services, but for businesses, not charities. Unless there’s a really good reason why you’re not getting paid or not paid well enough, such as the money is being funneled to the people in need and not into some pseudo-business’ coffers, it’s probably a lousy idea and not worth your time. An example would be $5 articles for “up and coming” businesses that promise “your income will grow as we do.”

When it’s not expected at the outset. Suppose you’re sitting in a potential client’s office. He’s just shown you around his brand-new office, handed you a unique, top-of-the-line business card, and bragged a little about how much his business has grown. Then he says “Your rate is too high.” What will you respond? If you answered “Thank you for your time” and got up to leave, you’re on the right track. A client who is clearly charging what he pleases is not in a position to tell you what to charge, nor is it your duty to please someone who is spending money frivolously. The same goes for clients who try to strong-arm you, insult you, or guilt you into giving them a discount. A client worth keeping is the one who treats negotiations tactfully and respectfully.

These are just a few situations where negotiating a lower rate could work for you. That’s not to say what I do is necessarily what you should do — to the contrary, each situation is going to be different enough that you should learn to trust your own gut. If you know you’ll be okay earning a little less, or if you know you simply can’t make that kind of concession, you’ll know what to do the next time a discount is brought up.

Writers, under what circumstances are you willing to discount your rates?
Has there ever been a time you’ve given or accepted a discount that you regretted?

12 responses to “Free Advice Friday: The Client Discount Debate”

  1. Devon Ellington Avatar

    I'll occasionally give independent filmmakers a break to script doctor or to help them with media kits. That usually works out well.

    However, EVERY time I've given an author a discounted rate on an edit, I've been screwed, so I don't do that anymore.

    I have one pro bono client, a non-profit whose mission I believe in absolutely. I'm willing to give certain other non-profits a discount, as long as the bulk of their money goes into their mission and not into high executive salaries while expecting everyone else to work for free.

  2. Lori Widmer Avatar

    That's a good policy, Devon. I like it.

    I agree — whenever there's a discount at the outset, there's usually someone on the other side wanting to avoid paying. Not always, but whenever I've had to fight for my money, it's been in a discounted-rate situation.

  3. Eileen Avatar

    If a client wants a discount, I try to get a concession on their end — 100% payment up front, a more fluid deadline, etc. But rarely do I offer a 1st time client a discount; if I do, I've checked them out thoroughly, there's a strong possibility of a long-term relationship, and they're clear that moving forward my normal rates will apply.

  4. Lori Widmer Avatar

    That's a fantastic approach, Eileen. Super concession — discount in exchange for full payment. That separates the men from the boys, so to speak!

  5. Jake Poinier Avatar

    Yeah, I pretty much reserve this for the good/longtime crowd. I recently ran into this with one of the magazines for which I've been a regular contributor for about 10 years.

    Long story short, the organization is now subcontracting the editor to produce the magazine, and she had to trim the budget to get the contract. Luckily, the rates were already good, so I was willing to help out my friend and took a 15% haircut along with her as she launches her business. It's steady work and cool topics, and she's hoping to increase the budgets over time.

    Regrets? I've had a few, mostly early on, and situations that really I just chalk up as part of the Freelance MBA curriculum!

  6. Paula Avatar

    After I'd done resumes a while, I started doing them on the side, too. I didn't have the same volume of work so I wrote free resumes for my brother and a friend, who then referred me to their friends and co-workers. I offered slight discounts to those first referrals, but my discounted rate was still more than the resume company paid me per resume.

    …not that I do very many resumes anymore. (The skills I developed by writing resumes sure come in handy sometimes, though!)

  7. Lori Widmer Avatar

    Freelance MBA — great phrase, Jake. 🙂 Sounds like you made a good decision on the more recent situation, though. Sometimes you just want to help someone out because of the way they treat you and who they are.

    Oh Paula, I know what you mean about what resume companies pay! I gave that up ages ago because the really good rate was suddenly cut in half with some flimsy excuses being repackaged as "opportunities" for us to get more work. Right. Next!

  8. Paula Avatar

    I think it's been about two years since I did any resumes for a resume company. Now I just do them here and there, totally word-of-mouth. In fact, I have a new resume to start as soon as 1) he sends his info and 2) the check clears.

  9. Jennifer Mattern Avatar

    These days discounts are very rare for me. I have one long-time client on discounted rate, but they're pretty close to my current rates and the hourly usually works out better. That's the key for me. I have to know what the hourly works out to. And it's not enough for a lower project rate to equal my hourly target. It would have to exceed it. As we gain experience and get faster, we should be paid more per hour, not less.

    When I was starting out I did offer occasional discounts, but it was for a combination of consulting and writing at the time. I was one of the earlier folks specializing in my area, and clients were used to the $5 article crowd. They had a lot to learn about PR writing. I taught them what I could. I earned their trust. But budgets were often a touchy subject. So I'd offer discounts on first projects to pull them in. And most of those clients kept coming back (at my normal rates) once they saw what hiring a pro could actually do for them. In that sense, it depends heavily on your market. I wouldn't suggest the same these days for most writers simply because clients are more aware of the low vs pro issues.

    I almost never take on pro bono projects for nonprofits. I worked with a major international nonprofit before starting my business. And I saw how much waste there was first-hand. Knowing what these folks can throw money away on, they can pay me if they want my services. Any exception would have to be something very small and something my heart is in 100% — such as helping a local animal shelter or lending a hand with an organization that supports writers and other artists (which is why I'm happy to volunteer to help out with a writer's organization I'm a member of). Beyond that, it's a no-go.

  10. Lori Widmer Avatar

    Paula, likewise. It's much more lucrative (and less stressful) to work one-on-one with individual clients.

    Jenn, I like how you blazed trails. It does make sense in those types of situations to give discounts.

    My pro bono stuff these days is directly related to family. You can't charge your mother. Well, you could, but she might not pay. 🙂

  11. Devon Ellington Avatar

    Yeah, my pro-bono client has a staff of 2 1/2, they're not paid a lot, and most of the $$ raised goes directly to their mission, which I believe in, so it's worked out. Plus, the work I do for them I use in my portfolio, and those have landed me some excellent other jobs.

    But I no longer give aspiring novelists a discount. What most of them really want is someone to tell them they're brilliant and clean up their messy, lazy structure for free. They don't appreciate the time, skill, and work it takes to do a good edit, and aren't interesting in learning the craft well enough to self-edit.

    I'd rather spend that time on my own work, or on clients who actually understand my skills.

  12. Lori Widmer Avatar

    Devon, I think it's a great idea if it's something you're passionate about, which clearly you are. 🙂

    Don't blame you on the aspiring novelists. It's usually that segment of the population that most needs a strong edit. I've slowed down my editing in that area because I got a bit weary of having people argue my edits and get offended because I changed their words. I take serious clients, and if they're not serious about getting a professional opinion and help, then they're throwing away their money and my time.

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