The secret to landing any freelance job
Is your freelance business going down the drain? Are you sick and tired of rejection? Have you had enough of wasting your time on auditions, bids and proposals that never lead to anything?
Perhaps it is time to make frustration your friend. Be sure to add a strong dose of disgust to the mix. According to success strategist Jim Rohn, disgust is one of the four emotions that can lead to life change. Rohn:
“The person who feels disgusted has reached a point of no return. He or she is ready to throw down the gauntlet at life and say, “I’ve had it!”
RESOLVE
Once your frustration has reached a boiling point, it is time to make up your mind. Are you throwing in the towel, or are you going to take massive action and turn your business around? If you pick the last option, the next question is: HOW?
The secret to landing any type of freelance job is contained in these three words:
PRACTICE PREDATORY PRICING
In other words: start offering your service or product at a price which is either below the going rate or below production cost. Crush the competition by underbidding. You gotta pay the bills, right? It’s better to have a low-paying job than no job at all. Après nous, le déluge.
Most of us live in a capitalist society based on a free market. There are no fixed prices in the unregulated world of freelancing. Today’s economy is based on one principle only: Survival of the cheapest. Is that morally wrong? Don’t be a hypocrite; we’re all accomplices. A few scenarios:
- Two gas stations on opposite sides of the road. Which one do you pick?
- You’re in the market for a new TV. Why are you using a ShopBot?
- Outlet Malls have become America’s number one tourist destination.
NO MORE WHINING
Let’s make a deal. Stop complaining about business being slow. End the self pity because nobody wants to hire you. Your product is not the problem. The problem is your pricing. So get off your high horse and start lowering your rates right now. If you won’t, others will. Ever wondered why almost anything is made in China?
Okay. Time Out.
TV psychologist Dr. Phil McGraw coined the phrase: “If you choose the behavior, you choose the consequences.” Before you start slashing your fees, consider the following:
10 CONSEQUENCES OF PREDATORY PRICING
1. Bargain prices attract bargain shoppers. Low paying customers are usually high maintenance customers. As one freelancer put it:
“People that are only willing to spend pennies will argue over every cent, while people willing to spend whatever it takes, care more about the result than the bill.”
2. Bargain prices create unrealistic expectations. You will attract clients that expect a gourmet meal at a fast food price (and at drive-through speed). Beware: as in mountain biking, it’s easier to go down than to go up. Once your price-level is set, it is hard to justify a higher price.
3. Bargain rates devalue your work. Don’t be fooled. Predatory prices attract clients that pick you based on your rate, not on your abilities. For them, the value of your work depends on your fee, not on your skills or experience.
Product launch coach Dave Navarro wrote: ” Because people tend to not value things that don’t cost them much, they’re much more likely to be dissatisfied with it – regardless of the quality of the product.” Are those the people you really wish to work for?
4. Bargain rates show little self-respect. A freelance web designer put it this way:
“I wouldn’t think of cutting my prices, because higher prices show that you are confident with your work, and confidence sells a lot more effectively to QUALITY clients -more-so than price.”
5. Bargain prices foster resentment and jealousy. What signal are you sending to yourself when you’re working for rock bottom rates?
“Is that all I’m worth? Don’t they appreciate my work? Why am I only making one-third of what he makes in two minutes and it takes me two hours?”
6. Bargain rates bring your quality down. Freelance writer Steven Snell:
“If you are not making very much from a project you may rush through it so that you can finish and move on to something else. I know. It’s easy to say “I’m only making $X for this work, I don’t need to do any better than this.” As a result, your work will be less than your best. If you’re making a reasonable amount you should be able and willing to do your best work.”
7. Bargain pricing leaves less time to do well-paid work. Imagine the frustration of having to say “no” to a golden opportunity because you’re swamped with a project paying peanuts.
8. Predatory pricing is unfair competition. Dumping your product or service will isolate you from your colleagues, and it will negatively impact prevalent prices. Don’t blame the anonymous forces of demand and supply for a steady decline in rates. You are as much part of the problem as you are a part of the solution.
9. Predatory prices leave you working more and earning less. That’s a no-brainer, but didn’t you become a freelancer to have more free time and make more money?
10. Bargain rates lead to bankruptcy. What do JetGreen, DutchBird, and LowFareJet have in common? They were all low-cost airlines that practiced predatory pricing. They went under because they over-promised, under-delivered and couldn’t break even.
GOING DOWN?
What do you do when clients say: “Sorry, I can’t afford you” or “In this economy we simply can’t pay regular rates.” Do you tell them to find a freelancer on Craig’s List, or do you give in and work for next to nothing?
Have you ever low-balled a project in order to get the gig? What do you think of undercutting colleagues? Are they simply trying to make an honest buck, or are they ruining the market for all of us?
Is there a way to increase your competitive advantage, without lowering your prices? Funny you should ask! It’s all about avoiding expensive pricing mistakes. That happens to be the topic of my next article, so stay tuned!
Paul Strikwerda © 2010
www.nethervoice.com
PS Voice-over colleague Mary McKitrick has written two excellent blog posts that are absolutely worth your time: Setting rates in the voice-over business & Perceived value in voiceover. And if you like her writings, wait till you hear her voice!
PPS So many freelancers are quoting a price for their services based on assumptions and ignorance. Could you be making one of the most common mistakes? Find out here!
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[...] This post was mentioned on Twitter by Paul Strikwerda. Paul Strikwerda said: Fed up with auditions and proposals that are going nowhere? Here's a secret to landing any freelance job: http://wp.me/pBTtY-Vr #voiceover [...]
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[...] and colleague, Paul Strikwerda, who has become one of my favorite voice-over bloggers. In “The secret to landing any freelance job” Paul reminds us of “the perils of predatory pricing” and how lowering your rates [...]
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You’re preaching to the choir, Paul, the heathens can’t hear you. :-/
Good heavens, Steve. I’m afraid you’re right. Could this be because I am the son of a preacher and I used to sing in a choir? I have to say though, that not everybody chooses to chime in using this blog. Because it’s sent to various LinkedIn groups, you’ll often find more comments over there than over here.
Yesterday, I decided to add the “Popular Posts” box to give my readers an idea of how many people have found different articles on Double Dutch. Unfortunately, the thing started counting as soon as it was installed, so it’s not a good reflection of past post popularity.
Paul, these are wise words for troubled times. Anyone tempted to lower their rates for new clients should challenge themselves to an experiment and see how much their income really goes down when they stick to their (normal, reasonable) rates. The results may be quite surprising!
Haha! Paul, this made me smile, as I had just opened an enquiry from a potential voiceover client who gives the impression that the cheapest quote will win the day. I doubt my quote will win the day, as so many clients these days have little or no idea of going rates, and their expectations in budgeting for a voice over are often much lower.
Doesn’t it feel great to be a loser? I’m happy to lose the bidding war any day, if the cheapest quote wins the day. Giving in to unreasonably low rates means we’re training clients that paying peanuts is acceptable. It’s a case of classic conditioning.
I happen to be writing a new blog anout rates today, so stay tuned!
For a newish freelancer, this is a fantastic site to find. It’s so full of the answers to questions that I haven’t even fully formulated yet.
Thank you so much