Do You Make These 5 Common Negotiating Mistakes?
Posted January 16, 2012 in How-To, Managing Clients
Negotiations are key for successful freelancers. Nearly every project starts with negotiations (or if it doesn’t, it should). Freelancers who can’t negotiate a profitable deal are at risk for losing money, or even worse, going out of business.
So, it stands to reason that negotiating skills are also important. In this post, I identify five common negotiating mistakes that freelancers often make. Read the post to make certain that you’re not guilty of making any of these errors yourself.
Mistake #1: Being Dazzled by a Large Dollar Figure
A large dollar figure can seem enticing. If you’re offered one for a project it’s easy to forget to take into consideration the amount of effort that the project will actually take. This is especially true if it’s your first really big project.
But a large dollar figure is no bargain at all if the amount of work required is out of proportion to the amount of money being offered. Always take the time to make an estimate of the number of hours you think a project will take you before accepting the project. If you don’t, you may wind up sorry later on.
Mistake #2: Accepting Rush Work
Many freelancers accept or even encourage rush work (work with an extremely short deadline). One reason is that rush work often comes with a bonus.
However, over the years I’ve come to the opinion that accepting rush work is usually a mistake for most freelancers. Here’s why:
- Once you accept a rush work project, the client is likely to expect you to always be available for rush work.
- You are much more likely to make a serious mistake when hurrying to complete a rush assignment.
- Taking on too many rush assignments can lead to freelancing burnout (and we all know where that leads).
The fact is, many deadlines can be negotiated. This is often true even of so-called rush deadlines.
Mistake #3: Assuming the Client Wants to Pay Less
Freelancers often assume that the client is most concerned about lowering costs, when in fact they may not be. Consequently, some freelancers lower their prices at the first sign of any resistance from the client/prospect.
This is not a good policy. If you’be been doing this, stop it right now. Instead, take the time to find out what the client really cares about. Then, you can go about discovering a way to provide what is really most important to the client.
Mistake #4: Not Being Specific Enough
It’s not good to be vague, especially if you are a freelancer. Being vague can lead to misunderstandings.
Make sure that all of your client agreements contain specific language, even down to specifying exact due dates and identifying differences between the client’s time zone and the freelancer’s time zone. Here are just some of the details freelancers frequently forget to include:
- Number of revisions included in the price–While it’s a matter of professional courtesy to provide some revisions (especially if they are minor), consider setting a reasonable limit on the number of revisions included in the cost of the project. You don’t want to get stuck doing the same task over and over.
- Cost of updating or supporting service provided–This point is similar to the one above and applies specifically to web developers. A limited amount of customer support is reasonable and expected, but providing support does take time. So, after a while, it’s reasonable to begin to charge for support.
- Payment details (PayPal vs. Direct Deposit vs. snail mail vs. …)–Never take on a project without knowing how (and when) the client intends to pay you. Even if you have specific payment preferences (as many freelancers do), you can’t assume that your client will adhere to them unless you spell them out.
- Penalties for late payment–Nearly all businesses add a fee for late payments and there’s usually no reason why you shouldn’t also. You may want to check with your attorney to get the language right, but don’t be shy about adding a late fee to your client agreements.
- Details of delivery–When will the client consider the project to be complete? Make sure you know the answer to this important question since it can make a real difference in when you get paid.
Mistake #5: Not Negotiating at All
This last mistake is perhaps the biggest one of all. Many freelancers fail to negotiate at all. Instead, they let the client totally dictate the terms of the agreement without any negotiation.
This is a mistake because the client doesn’t always know what’s best. They may not understand the amount of work involved or even what they really need. Remember, the client contacted you because of your expertise in your field, so don’t be afraid to use that expertise and make a few recommendations.
Your Turn
Did I miss any negotiating mistakes? Add them into the comments.
Image by ke9v
Related posts:
- 26 Common Freelancing Mistakes to Avoid
- 20 Writing Mistakes that Make Any Freelancer Look Bad
- How to Avoid Common Freelance Writing Business Mistakes
- 13 Serious Mistakes No Freelancer Should Ever Make
- Four Freelancing Mistakes You Don’t Need To Make
About the author: Laura Spencer is a freelance writer from North Central Texas with over 20 years of professional business writing experience. If you liked this post, then you may also enjoy Laura’s blog about her freelance writing experiences, WritingThoughts. Laura is also on Google+.
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23 Comments
Gold
January 16th, 2012 at 12:58 pmDropping the price for no reason is a mistake because it shows that you don’t have any idea of what is required or how much money is available for the project.
Laura Spencer
January 16th, 2012 at 4:21 pmGold–Agreed! Actually I think dropping the price is usually a mistake for many reasons…
Laurie Lewis
January 16th, 2012 at 4:22 pmAnother reason not to accept rush work (or assume that it really is a rush): A client in a hurry may not have thought through the project well. You hurry to get it done, based on what the client told you. Meanwhile, the client reconsiders the project and changes it. Then you have to hurry to alter it according to the client’s new vision. Bottom line: Always ask the client if it really needs to be done yesterday. And be sure you get paid for all your time on the first pass as well as on any additional work.
Laura Spencer
January 16th, 2012 at 4:25 pmLaurie Lewis–Excellent points. So often, “rush” jobs don’t really need to be rushed. It’s better to be part of a well-thought out project instead.
Catena Creations
January 16th, 2012 at 7:17 pmDiscounting is one of the worst things you can do to your business if you’re doing it just to get business. Here are some words of wisdom from one of my motivators: Mark Hunter, The Sales Hunter:
http://thesaleshunter.com/the-slippery-slope-of-discounting/
Dr. Freelance aka Jake Poinier
January 16th, 2012 at 7:58 pmI’m actually a fan of rush jobs, because it creates major loyalty when you pull a rabbit out of the hat. But the rules are: ONLY for clients with whom I have a strong relationship, because I can trust they’re telling the truth, and ONLY at a premium price, for obvious reasons, eh.
Oh, and lest I forget, ONLY if they’re generally non-rush. I can’t deal with someone who’s in a constant state of emergency!
I think the trap with #5 is that, by nature, many of us are eager to please–and particularly in a poor economy, may be too quick to get to “yes.” But the reality is that playing hard-to-get (or at least harder-to-get) can psychologically raise your value in the client’s eyes.
Krysha Thayer
January 16th, 2012 at 8:44 pmI’ve only been negotiating my own prices for freelance work regularly for a little over a year now. I find it a thrilling process, but I also find that I’m guilty of some of these little no-no’s. Oopsies!
And yeah, where was this before I accepted a couple rush jobs? Now I get those ‘Needed ASAP’ emails a couple times a day and I’m not really sure how to put a stop to them!
Laura Spencer
January 16th, 2012 at 10:58 pmWow Catena Creations!
Thanks for the link to Mark Hunter’s post. He says it well. No discounting.
Dr. Freelance aka Jake Poinier, Thanks for your thoughtful comment. I can understand wanting to help an existing client with the occasional rush job, but I think your precautions are very important.
Krysha Thayer–It sounds like you’ve experienced the dark side of rush jobs…I’m sorry about that. I’m afraid that the only way to stop them is to start saying “no.” If you suspect that they aren’t really rushes, you could try negotiating by suggesting an alternative (and more reasonable) date. For example, try saying something like, “no, I can’t have that for you tomorrow, but I can have it to you by Friday.” Good luck!
Krysha Thayer
January 16th, 2012 at 10:59 pmThanks for that idea, Laura! I really appreciate it!
Laura Spencer
January 17th, 2012 at 7:35 amNo problem Krysha!
Cathy Miller
January 18th, 2012 at 9:32 amYou offer some great ideas here, Laura. I’m with Jake in the only time I’d consider a rush job is with a trusted client and even at that, I don’t go crazy over it-i.e., long hours, unrealistic turnaround.
I totally agree about getting specific. Some common specifics I include in my Statement of Work under the Scope of Work include:1) Approximate number of words or pages of copy, 2) conference calls (e.g., 1-hour conference call to discuss objective and content), 3) whether or not research is involved and who does what, 4) number of revisions
I also will put a small summary of what it does BOT include – e.g., graphic design, marketing
As always, this post offers great tips, Laura. Thanks!
Cathy Miller
January 18th, 2012 at 9:33 amMake that NOT where’s the coffee? :-)
Tomas
January 18th, 2012 at 11:47 am#3 is a very common mistake. Sometimes it’s better not to accept.
Jeff Schoolcraft
January 19th, 2012 at 10:57 amHi Lauren, another great article. I included it in my latest issue of Freelancing Weekly (http://freelancingweekly.com/issue-10) a once weekly, free newsletter of curated tips, articles and resources for Freelancers.
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