Because You're Worth It

“Sorry, would you mind if we just quickly checked in on my invoice? Oh, not at ALL! I had totally forgotten too. Yes, that day rate is… fine.” As a freelancer for fifteen years and counting, I’ve had The Money Talk many times. Right now, many of us – by choice or because of redundancy, a change of circumstance or any of the other earthquakes that are shaking up the world of work right now – are getting ready to navigate a whole new world of work. Here are some Dos and Don’ts to help you ask for (and receive) the best payment for your services.

DO…

Work out what you need to charge. The answer is never ‘whatever the client would like.’ You can get an idea of the going rate for your skillset with a bit of online research. If you’re moving from a full-time salaried role to the same job on a freelance basis, your starting point should be a day rate based on 1.3 to 1.5 times your equivalent full-time annual salary and benefits. This is to cover the days you don’t work, tax, insurance and the benefits you’ll need to replace.

Walk away if it’s not worth it... The client’s fee doesn’t cover your childcare/minimum to get out of bed in the morning / general hassle? Say no but say it politely. “I’m afraid that’s not going to work for me, but I’d be happy to be considered for any future projects at my usual rate.” You can be less polite if the suggested compensation for your work is ‘exposure’ or ‘profile building.’

…but be prepared to do a deal. Guaranteed work for six months at 90% of your rate or a genuine opportunity to move into a new sector or a new title that will get you noticed is worth considering. The golden rule is to charge more for a one-off job than a long-term contract.

Work on your negotiating skills. Find out what the project fee is. Point out your experience, skills and ability to take their pain (read: need for your work) away. Ask yourself, what would Beyonce do? Bury your imposter syndrome and bring out your inner wheeler-dealer. Chase up overdue invoices promptly, politely and insistently.

DON’T …

Apologise for instigating The Money Talk. Never start the conversation about how much you’ll be paid with an apology (“sorry to ask…”). You can roll it into formal or informal ‘Statement of Work’ that sets out what you’re going to do, when you’re going to deliver the work and how much you’ll be paid for this. Although saying what fee you require can make you feel sphincter-clenchingly uncomfortable, remember that by the time you’re at the fee discussion stage, the client is unlikely to walk away just because you name a price that’s beyond their budget. It’s all part of the negotiation process.

Forget to review your rate at least annually. This should be at least the cost of inflation. You could also negotiate a performance-related bonus with your client. If your good work brings them in more clients and more prestige, you deserve a share of the rewards too. Ask for this upfront, don’t try to guilt-trip a client into giving you a handout. You’re not a charity and your contribution is part of their success.

Expect that every job or client will be yours for life. People move on, companies’ requirements change. As a freelancer or contractor, you’re there to fulfil a specific role or deliver a standalone project. If you’re no longer needed, it’s not personal. (Although always ask for feedback on your work, including the fees that you charge: are you too expensive? Not value for money?) This also means that you need to have a pipeline of potential new work on the back burner. Keep your Linkedin or relevant industry profile polished and up to date.

Try to do it all yourself. Get some expert help. There are great software packages out there that will order your receipts, calculate your VAT and help you sort out your tax return. Or you may prefer to pay a little more and have a helpful, all-knowing tax and accounting expert on hand to help year-round. Either way, make sure you know what you can legitimately charge as an expense. Did you know that coffee, when you’re waiting for a client, is legitimate, but a coffee on the way home after a long meeting is a no-no?

Negotiating a fee or a salary is not as hard as you think it is. Like anything else, practice helps you improve. And you can always fake it till you make it.