Every freelancer would have faced the challenge of being under-priced. This is because everybody seems to have the working presumption that hiring a freelancer must be cheaper than using someone in-house to do the same job. This is a label that has stuck because most freelancers are guilty of perpetrating this belief. Getting the right amount for your service is something that can be done without much stress.
The Principle of Value Placement
To understand how to be paid the right price for your service, you have to wrap your mind around what I call the principle of value placement. The value goes beyond the amount people place on that product to cover the satisfaction, assistance and general wellness securing such a service provides for the consumer. For instance, someone might require an article urgently and contact you to write and have it delivered.
The value of that article at that point in time would have to incorporate the urgency and what the timely provision of that article would mean for the client. This is why someone can offer to pay a cab driver double the designated amount to get somewhere. You have to understand how to place a value on your service that would be commensurate with the need you are meeting. However, the art of getting paid good value for the service provided goes beyond knowing what you are worth.
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lukesnellin.wordpress.com[/caption]Changing Your Psyche
The first thing is to deal with the psyche that places you at the bottom of the value scale as a freelancer. The fact that you are freelancing does not mean you should be cheaper than anyone else should. Logic dictates that people bring in the “heavy guns” i.e. people they would wish to have on their team but cannot because they cannot afford them, they bring them in when there is a situation they know that cannot handle in-house. They pay good money for such expertise and get value for money paid.
The concept of hiring a mercenary comes to mind. They are usually paid above what regular soldiers are paid. You as a freelancer are like that roving professional in your field that has more than a few tricks of the trade up your sleeve. Your service is worth more than they can hire permanently. This is why they bring you in from time to time. This is the way you should psyche yourself up as a freelancer.
Proving Your Ability
The next step is to show those doing the hiring that you are freelancing because no one can really afford to keep you permanently. That is, they know you are good and wish they can give you a permanent desk but they can only afford to bring you in when they need the “heavy guns”. This is why it is good to build a portfolio as a freelancer. Building a credible portfolio as a freelancer is another topic on its own; suffice it to note here that you do not have to wait until you are hired to add the job to your portfolio. You can deliberately set out to create a portfolio of your own. More on this here.
Overshooting Your Value
Now that they have a sense of what you can provide, overshoot your value by charging way beyond what you would ordinarily value yourself. If you have been into freelancing for a while, you may have noticed that clients tend to underpay freelancers even when they recognize that the value of what they are bringing to the table is more than what any of the in-house staff can put up (or else they won’t have needed you in the first place). One way to have bargaining power is to overshoot your value. It is necessary to have what you will charge in mind before entering into any conversation. This also applies to your asking price as it concerns what you want to charge them. Go beyond your target.
False Value
This is actually your false value i.e. the amount you drop on them. You must know your false value before the onset of any deal-making meeting. Since you already know the services you provide, you should be able to know your false value in every aspect of it (in case you are not following, false value is the initial price you place on your service i.e. overshooting your value).
Paying Under Your False Value
Now there is a chance that you would not be paid your false value. The trick is to set the deal-making meeting up in such a way that the final agreement still favors you beyond your actual value. This is important if you really want to enjoy freelancing. One way of making this happen is by given them subconscious price options. This is when you create a price range from the onset and they get to “independently” pick the price that suits them. For instance, you can say your charge for writing a press release is $250 but for first time clients they can pick the option of locking down three press releases for $500 where they pay $250 for the first and $100 dollars for the last two whenever they want to done. You can go on to add pressure marketing by setting a time restraint on when the last 2 press releases can be done, like the offer hold for 30 days.
Over Delivering
Over-delivering is the bit of extra that you add to your service that pleasantly surprises your client. It could be something that is without extra charge. This is a concept for another article. Find ways to over deliver and you are on your way to securing a long-term freelancing job. It also projects your reputation, which will in turn increase your actual value. The increase of your actual value gives you the chance to reset your false value and the cycle starts all over.
Demand Based on Over Delivery
This is when you have a greater leverage to charge clients more because you now have a reputation for doing the job and adding a little extra.
Freelancing can become a lucrative business for those who take what we have just talked about to heart. Remember to read the articles on Over-delivery & Building a Credible Portfolio without having a Job.
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