#111: Is Everything Negotiable?

“Let us never negotiate out of fear. But let us never fear to negotiate.”
–John F. Kennedy

In This Issue:

Is Everything Negotiable?
by Krista Jones

Last week I talked with a CP reader who submitted a writing sample for a freelance copywriting job. The good news is, she received a request for her fee schedule within an hour. You can probably guess the bad news: she didn’t have a fee schedule.

Although I much prefer to charge by the project, it turned out the project she would be completing was better suited for an hourly rate quote (see today’s quick copy tip for suggestions on what makes a project suitable for this kind of a quote).

The project involved writing product descriptions for an online shopping website, but the scope of the project wasn’t clear. She didn’t know how many descriptions the guy needed nor whether he would provide all the appropriate background information.

We talked about factors she should consider when coming up with her hourly rate, including considering the salary she thought she could make as a full-time copywriter, overhead expenses (such as health insurance and unbillable time), and the expense of running her own home business (computer expenses, accountant fees, etc.).

Of course, there are other factors that will affect the fees you can charge: the market you’re targeting (e.g., financial, health, self-help), what other copywriters are charging in that market, the size of the company, and your status (how long you’ve been in the business and your skill level).

Once you come up with a fee schedule, don’t be too strict about it. Use it as a starting point, knowing you’re willing to be flexible—especially in the early stages of your career.

Many times new clients will accept your fees without a second thought. But, sometimes they might try to negotiate a lower fee.

Should you play?

It depends on several factors. How badly do you want or need the assignment? Is there good potential that this will lead to repeat and better paying assignments? How busy are you right now? Is the client asking you for a discount because it’s a big job?

Our CP reader decided she would be willing to accept a lower hourly rate if the potential client needed a high volume of project descriptions.

Here are the three big questions I consider when I’ve been asked to lower my fee:

  1. Am I willing to risk losing this project?
  2. If I accept the rate (fee) the client is proposing will it diminish my prestige and importance in his eyes?
  3. Will I resent myself later if I accept this fee?

Everyone has a slightly different approach to fees. I recommend that you decide what yours will be early so you don’t get caught off guard. If the approach you choose doesn’t end up working so well for you, change it. After all, you’re the boss.

Resource Referral: Find Out What Others Charge Per Hour

Chris Marlow’s 2007 Freelance Copywriter Fee and Compensation Survey provides a very useful analysis of freelance copywriting fees and compensation. It includes data on both flat project fees as well as hourly rates.

It’s the best way I know of to get a glimpse of what copywriters around the country are charging for just about any type of project. Whether you’re just starting out or have been at this for years, you’ll refer to this survey over and over again.

Find out more here: http://www.marketerschoice.com/app/?Clk=1880065

Quick Copy Tip: When Does An Hourly Rate Make Sense?

Over the past five years, I’ve charged only three projects by the hour. Here are the situations in which I did it—you might want to tuck them away as a reference for the next time you’re asked to provide a quote for a project:

The project can not be estimated accurately: I worked on an hourly basis for an ongoing project that didn’t have a defined scope. As a result, it was impossible for me to give an accurate project estimate.

The project involves work other than copywriting. In this case, the client asked me to consult on marketing strategy. Rather than quoting a project quote, I told her I would perform the work for a fee of X dollars an hour.

The project is very small. A regular client asked me to clean up the language in a 4-page sales letter another copywriter had written. I knew the job would take only a few hours so I decided to do the work on an hourly basis.