freelance

Right On The Money

by Paul Strikwerda in Articles, Career, Freelancing, Money Matters 9 Comments

This is the conclusion of a 3-part series on how to price your services as a freelancer. Click here for part 1 and click here for part 2. 

When Max walked into the warm conference room, he saw two files on the table. On one if them he recognized the name of a competitor. The other portfolio had his name on it. He knew instantaneously what he was up against.

Only a few weeks ago, he had lost a contract to this rival because their bid had been 30 percent lower. Had he just made a big mistake by coming out here in the midst of a dangerous winter storm?

“John Jarvis,” said the CEO, as he walked in. “You must be Max. I’m afraid it’s just me today. I live a few blocks from the office and practically no else dared to come out in this terrible weather.”

Jarvis sat down and took a sip of his coffee.

“Max, when I heard that you were on your way, I only had one thought: This guy must either be totally crazy or totally committed. But looking back on how you’ve handled this opportunity so far, you don’t strike me as insane. On the contrary. You hit all the marks of someone we’d like to work with. All of them, but one.

First of all, you clearly know the value of personal connections. Not once did I receive a generic email or an automated answer to a question. It was clear from the start that you were the go-to person that would not work for us but with us.

You made an effort to get to know your client and his problems first, before coming up with a solution. You learned our language and you translated your ideas into terms we could easily understand and relate to.

Third:  you consistently showed us that you could meet all deadlines and manage a project efficiently, even though we were only in the beginning stages. As you know, delays are usually costly. Not once did we have to send you a reminder. In fact, you were the one following up with us!

Now, as you can see, we’ve narrowed our choice down to two offers. Both companies were invited to present their proposals today. Only one showed up. I shouldn’t tell you this, but we’ve had to chase the CEO of the other company down to get his final plans here on time. It was his secretary who sent a response. This morning I found out why.

I’ll be honest with you Max. Your rival made us a very tempting offer that was 35% below your estimate. It was much more in line with current market prices for your type of services. We’re not talking peanuts here, but about a significant amount of money. So, here’s my decision.

Max held his breath. He knew that he had done everything he could to win this contract, but he had been down this road before. There was a lot at stake.

The CEO picked his rival’s folder up from the table; looked at it for a few seconds and threw it in the trash can.

“Congratulations Max. Welcome aboard!”

He went on:

“In this business we don’t really care too much about resumes and infomercials, but we certainly do our homework. I know some of the other people you’ve worked with in the past, and I‘ve seen what you have done for them. Every penny spent on you was a fraction of what came back as a result of your involvement. As they say:

Quality will be remembered long after price is forgotten.

And do you know what impressed me most of all, Max? Not only are you committed and conscientious, you know what you bring to the table and how valuable your services are. At the end of the day, it wasn’t just your competence that sold me Max. It was your confidence.”

His startup coach had been right. Max remembered the day his mentor took out a big black marker and wrote on the flip chart:

A fair price is a price you believe in… plus twenty percent.

“I know you, Max,” his coach said. “As an entrepreneur, your greatest strength is your greatest weakness.”

“And what might that be?” asked Max, puzzled.

“You’re not motivated by money,” answered the coach.

“Let’s face it. You’re creative. You’re an artist. You want to contribute. One of the reasons you’re so good at what you do is the fact that you’re absolutely fascinated by it. It’s a magnificent obsession. You want to be the best you can be in your field. It’s that powerful internal drive that gets you up in the morning.

You don’t do what you do just to pay the bills. You do what you do because it matters and it is meaningful. To you, the ultimate reward is in the result, not in the remuneration.”

“Isn’t that a good thing?” Max wanted to know.

“Well, it’s what made Mark Zuckerberg the youngest billionaire in the history of mankind,” said his coach. “As far as we can tell, he wasn’t motivated by money when he came up with Facebook. Sir Richard Branson didn’t open up his record store to make millions. Steve Jobs co-founded Apple because he wanted to ‘make a dent in the universe’. Jobs once said:

“The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.”

The challenge is to channel that passion and turn it into a profitable product people want to buy.

Now, here’s another basic human need: the need for autonomy. Most people want to be able to direct their own destiny; make their own decisions and create their own future. In one word: they want to be FREE.

The most dissatisfied workers are the ones that are being told what to do. They have uninteresting, low-paying jobs and no hopes of ever escaping the rat race, other than winning the lottery.

In order to gain autonomy, having an interesting, purposeful job is not enough. Being able to contribute to something greater than yourself is nice but not enough. Without money -or with very little of it- we operate in survival mode, focused on taking care of our basic needs. Without money, we’re dependent, we struggle, and we’re stuck.

You might be the most promising painter of your generation, but you need money to buy canvas, brushes and paint. You need money to rent a studio and promote your art. You want to be able to take trainings and hone your skills. The better you become, the more you will require: more expensive canvas, better brushes and the highest quality paint… a bigger studio. Someone’s got to pay for that!

You might think it’s mundane, but one way we express how much we value things, is by putting a price on it. Rumor has it that super model Heidi Klum‘s legs are insured for $2.2 million, but one leg is insured for $200,000 less than the other because of a scar. 

What I’m trying to say is this: money is a means to a beginning. That beginning is called “autonomy.” As long as you lowball whatever it is you’re offering, you’re telling the world that you don’t believe that you’re worth a penny more. That’s not the road to independence. It’s a road to nowhere.

In 2008, Dara Torres became the first woman in history to swim in the Olympics past the age of 40 in her fifth Olympic games. On July 5th of that year, she qualified for the finals in the 50-meter freestyle breaking the American record. In the finals she broke that record for the ninth time, winning a silver medal, only one hundredth of a second behind the German girl who won the gold.

The hours and hours of resistance stretching and time in the pool played a huge part in this phenomenal achievement, but it didn’t win Dara the medal. She won because she believed she could do it

You might not operate this way, Max, but people tend to not value things that don’t cost them much. That alone should be reason enough never to devalue your talent.

If you want your business to grow, you’ve got to start thinking long-term. Today you might be offered a dream deal. But what about tomorrow and the day after tomorrow?

Not only do you need money to cover costs, you need it to invest, to expand, and to contribute. Passionate people have a tendency to be stuck in the now, absorbed in the moment. But even those who have reached the top will tell you that you need to think ahead if you want to stay ahead. If you want to manage your career, you have to learn how to manage your money.

“But what if a client can’t afford me?” asked Max.

“And how would you know they can’t afford you?” countered the coach.

“Well, because they’d tell me!”

“And you always believe what clients tell you?” asked the coach. “Oh please… The two oldest excuses in the book are not enough time and not enough money. Time is something all of us happen to have the same amount of. It’s how we choose to use our time that matters. Not having enough money is a comparative deletion: compared to what?

If you’re stuck in the middle of a snow storm and you absolutely need to be somewhere, are you going to nickel-and-dime the only driver who’s willing to take you to your destination? It boils down to this: what’s it worth to you? Does the added value or benefit outweigh the cost?

The more valuable your product or service and the greater the need for it, the more leverage you’ll have to name your price.

Listen to me Max. Never assume you know how much or how little a client can afford. You don’t. Do your homework instead. Ask questions. Make your offer as relevant as you can… not to you, but in the eyes of your client. Make it irresistible.

Think about all the objections they might throw at you. Be prepared to answer the most difficult question they could ever ask you. It may never come up, but if you have an answer to that question, you know you can handle anything else that comes your way. That’s how you prepare for negotiations!”

“Max, are you okay?” asked John Jarvis.

“For a moment it looked like you were lost in thought.”

“I guess I was processing what just happened,” said Max. “Thank you so much for choosing me. I couldn’t be happier!”

“Well, the feeling is mutual,” said Jarvis. If all of this works out -and I don’t see why it shouldn’t- we’re looking at long-term cooperation. And by the way, call me John.”

Max stood up from his chair.

“Can I ask you something, John?”

“Sure, Max. Shoot.”

“Just out of curiosity… you mentioned that my competitor didn’t hand in his plans on time, and he wasn’t here today. Any idea what happened?”

“I know what happened,” answered Jarvis.

“His secretary told me this morning that his company went under. Apparently, he had a tendency of over-promising and under-delivering. His work looked great on paper, but in reality, he couldn’t meet minimum quality standards. Because of his aggressive pricing, the money that was coming in wasn’t enough to keep the company afloat.”

Jarvis put on his winter coat and said:

“But let’s not worry about that, shall we? Let’s just say that Karma is alive and well in this country. More importantly, we need to get you home safely. I can’t afford to lose you at this stage of the game. We’re barely out of the gates. Let me call our driver. He’ll take you to a hotel near the airport. This storm is not going to last forever.”

“That won’t be necessary,” said Max. “There should be someone waiting for me outside.”

“You mean that black SUV in the parking lot?” asked Jarvis.

“Yep, that’s my driver,” replied Max. “His name is Anatoly but his friends call him Stoly.”

“That’s not your driver, Max,” said Jarvis.

“What do you mean?” asked Max.

Jarvis smiled as he opened the door. He shook Max’s hand and said:

“Don’t give that man any tips. I paid him a fortune. Stoly works for me!”

Paul Strikwerda ©nethervoice

PS Be sweet. Please retweet!


FU, or the Power of PR

by Paul Strikwerda in Articles, Freelancing, Money Matters, Promotion 17 Comments

Here’s a question for you:

Can ten minutes make a ten thousand dollar difference?

Not so long ago, a colleague introduced me to a client in need of a narrator. His institute was searching for a European voice and for someone who could read an audio book full of names and quotes in German, French, Dutch and other languages. That happens to be my specialty, and I was pretty confident that I could take on the task.

A day later I received an email. The client had listened to my online demos and found my sound to be ‘too commercial’ for this academic endeavor. In other words: Goodbye, Vielen Dank and bonne chance.

Some people might leave it at that and move on to the next best thing. Not me. My response to this client was a short and simple

Read the rest of this story in my new book. Click on the cover to access the website and get a sneak peek. Use the buttons to buy the book.

Making Money In Your PJs cover


The Yin and Yang of Freelancing

by Paul Strikwerda in Articles, Career, Freelancing 13 Comments

IMPOSSIBLE CLIENTS.

We know who you are!

You’re searching for a specialist who can handle almost anything.

Isn’t that a contradiction in terms?

Does your family doctor make a great brain surgeon?

Can a novelist write irresistible advertising copy?

Yet, some clients are looking for a be-all, do-it-all freelancer with young, fresh ideas and years of experience.

Is that too much to ask?

Some psychologists say that the fact that we humans are able to hold two diametrically opposed ideas in our mind at the same time, is a true sign of intelligence. Part of me wants to believe that this is indeed correct. The other part thinks it’s

Read the rest of this story in my new book. Click on the cover to access the website and get a sneak peek. Use the buttons to buy the book.

Making Money In Your PJs cover


How I Beat the Recession

by Paul Strikwerda in Articles, Career, Freelancing, Journalism & Media, Promotion 17 Comments

RECESSION DEPRESSION

I don’t think it has made it into the DSM-IV yet (the Diagnostic and Statistical Manual of Mental Disorders).

Give it some time and the American Psychiatric Association might include it in the next edition (together with Orthorexia nervosa, a harmful obsession with health foods).

If your plate or glass always appears to be half empty, it’s tempting to feel hopeless and helpless about the current state of the nation. Of course your freelance career is down in the dumps. It’s the economy, stupid! It has nothing to do with you.

Here’s the thing:

If it has nothing to do with you, it means that you can’t turn it around.

You’re a victim of circumstance. Now go to your doctor and ask for a happy-pill. You might be depressed, but the least you can do is feel good about it.

SUBJECTIVE REALITY

Remember that no matter where you look, you’ll always find a way to filter your perception of reality to justify your outlook on the world. If you feel that this time of economic crisis is limiting your chances of landing freelance jobs, you’re right. If you feel that the current recession is creating brand new freelance opportunities, you’re right!

What you focus on most, is most likely to materialize. That’s the idea behind the self-fulfilling prophecy.

As a blogging freelancer, I get a lot of emails from colleagues who want to pick my brain. Here’s the number one question people ask me:

How do you beat the recession?

My first inclination is to ask them “What recession?” but that would be insensitive. Of course I know that millions of people are scrambling to get by. I used to be one of them. But feeling overpowered and helpless about it is not going to pull you out of your slump. If you’re giving in and giving up, it’s game over. But that would be too easy. I think you deserve better.

INSIDE INFORMATION

At the risk of sounding like a self-help guru, I do believe that one way to beat this recession is by working from the inside out. Before you do anything, I recommend you look at the way you are perceiving yourself right now.

In Holland we have a saying: 

“Als je voor een dubbeltje geboren bent, word je nooit een kwartje.”

Or in plain English:

“If you were born a dime, you’ll never become a quarter.”

It’s another way of saying: You need to know your place and stay there. Well, if that’s really how you feel, what impact could this have on the choices you make?

If you’re applying for a job, and deep-down inside you’re telling yourself “I don’t deserve this” or “I’ll never make it,” aren’t you setting yourself up for failure?

Other people grow up believing: “I can do anything I set my mind to” or “No matter what happens, I’ll always find a solution.” How do you think this impacts the way they lead their lives?

CONVENIENT ASSUMPTIONS

Here’s the remarkable thing about beliefs: it doesn’t matter whether they’re true or not. Yet, beliefs are a powerful driving force behind behavior. Beliefs can give us hope, strength and courage, or they can fence us in and bring us down.

A belief is not some innocent abstract concept without consequences. Some people are prepared to kill and die in the name of whatever they believe in. Americans wouldn’t be celebrating the Fourth of July, if it weren’t for a set  of certain powerful beliefs!

Proponents of mind-body medicine like Bernie Siegel, M.D., are convinced that our beliefs can heal or harm our body, and that our state of mind has a measurable impact on our immune system.

If you think that all of this is just a bunch of mumbo-jumbo, realize that this too, is a belief. Beliefs don’t have to make any sense. Beliefs don’t need to be scientifically sound. Beliefs give people a feeling of certainty. All that matters is that a belief is plausible. The powerful placebo effect is entirely based on this assumption.

SCIENCE-FICTION

Nevertheless, a group of medical students who firmly believed in a logical, analytical approach to medicine, wouldn’t have any of it. How could ordinary thoughts possibly influence biological functions and seemingly autonomous chemical-electrical responses? That’s just a bunch of New Age baloney!

One day, their professor walked in and said: “By a show of hands, how many of you believe that the mind is capable of influencing the body?” Not one single hand went up in the air. Mind over matter wasn’t science. It was science-fiction.

Then the professor started reading one of the more notorious passages from Lady Chatterley’s Loverby D.H. Lawrence. Soon his audience started to blush. At the end of a few quite explicit paragraphs, he looked up at his students and asked the same question again. “How many of you believe that the mind is capable of influencing the body?” This time, they all raised their hands.

So, let me share one of my empowering beliefs with you. It goes like this:

THERE’S NO ONE LIKE ME

 I can already hear some people’s reaction:

“Well, duh… After all that build-up, is that the best you can do? Thank you Captain Obvious, superhero of platitudes! That’s not much of an eye-opener, is it? Of course there’s no one like you (and that’s probably a good thing).”

Well, once you get past the sarcasm and cynicism, consider the following.

Every day, thousands of people are waking up with a dream. Some want to become writers, news anchors or architects. Some want to find a cure for Multiple Sclerosis or invent an environmentally friendly way to clean up oil spills.

By the time we enter our teens, most of us have learned that dreams are figments of the imagination and that in order to grow up, we must face “reality.” Isn’t it strange? We start out as this helpless but boundless human being filled with infinite possibilities .

Then the process of social conditioning and conforming sets in. If we wish to please our parents and other role-models, we better be compliant and allow ourselves to be conditioned in order to be worthy of their love, attention and affection. We learn to blend in and not to raise our voice. If we do well, we are rewarded. If we don’t fit the mould, we have to face the consequences. Heaven forbid that we should stand out from the crowd…

GO YANKEES

When my 8-year old daughter wanted to go to school in a Yankees-shirt while 98% of the kids were wearing Phillies-Jerseys, some parents thought I was nuts. Why would I expose my daughter to ridicule and make her stick out like a sore thumb? What kind of a parent does that?

Here’s the thing: my daughter didn’t feel all warm and fuzzy about the Phillies. She happened to root, root, root for the Yankees. And when she went to school, she soon found out that a few other kids were Yankees fans too. Yes, some classmates made fun of her and others ignored her. But she held her head up high and felt even stronger because she stood up for something she believed in. Months later, the Bronx Bombers defeated the Phillies to win the World Series.

What does that have to do with beating the recession? I’ll tell you!

If you want to be self-employed but you don’t believe in yourself, you are sabotaging your success even before you’re out of the gate. You have to be comfortable with who you are and with what you have to offer (comfortable, not cocky).

If you’re in the service industry, you are your product. If you’re producing a product, you will be identified with it. Whether you like it or not, you are your brand and you better embrace it.

RIDICULE AND MOCKERY

When I set out to become a full-time voice-over professional, I knew the odds were heavily against me. Some people said:

“Do you honestly believe that you’ll make it as an actor? Dream on! The restaurants of New York and LA are filled with thousands of hopeful waiters. All they do is wait and wait for an opportunity that never comes. These days, anyone with a mic and a laptop can claim to be the next Don LaFontaine. The market is saturated. The economy is bad. Why don’t you get a real job, my friend?”

Here’s why I didn’t: because I knew that there’s no one like me. Yes, there are tons of people who do what I do, but they don’t do it the way I do it. It’s just a matter of letting the rest of the world know what I have to offer.

Believe it or not, when I wrote this article, my business was less than twelve months ago. A year before that, I had no ‘corporate identity’ and there was no company website or a blog. I didn’t own expensive equipment and I had no big shot agents ready to represent me. All I had, was a bunch of excited neurons bouncing around in my brain forming thoughts about starting my own business.

Well, that’s not entirely true. I had a number of people who believed in me, and who were willing to lend me a very generous helping hand. But before they could believe in me, I had to believe in myself.

GETTING THERE

After less than a year I achieved a lot.

My writings are read and reposted by more people than I ever hoped for. I have built a terrific studio and have invested in top-of-the-line equipment. I am recording voice-overs in four languages for clients on all continents.

Now, this list of personal achievements is not  some vain attempt to show off. Rather, it’s my way of telling you what could happen if you refuse to give in to recession depression.

The skeptics will tell you “I will believe it when I see it”. I am telling you that you have to believe it before you will see it.

When Disney World opened its doors, Walt Disney was no longer alive. Before the opening ceremony, a reporter asked Walt’s brother Roy:

“Don’t you think it’s a shame that Walt Disney isn’t here to see it all?”

Roy answered:

“That’s not entirely true.

Because Walt saw it, we are seeing it today!”

Paul Strikwerda ©nethervoice 

PS My next article is  about freelance dilemmas. Is it better to be a generalist or a specialist?


How much $$ do you need to break even?

by Paul Strikwerda in Articles, Career, Freelancing, Money Matters 5 Comments

7-7-2008

“It will look so good on your resume”
“This might lead to regular work”
“We’re a start-up business”
“It’s such a small project”
“This is an Indie film”
“It will only take a few minutes”
“You’re new and we want to give you a chance”
“Even if you don’t get the job, it’s still great practice”
“You’d be perfect for this… I wish we could afford you”

If you’ve been an active job-seeking member of the voice-over community for… about two weeks, I’m pretty sure these ‘teasers’ have been thrown out at you a few times. They’re getting old quickly, don’t you think? Or are you still falling for them? Be honest!

These days, clients are getting even more efficient by leaving these phrases out. Now it’s just:

“Manhattan-based attorney’s office in need of a male voice for their website. Budget $100.”

Are you kidding me? These attorneys won’t even pick up the phone for 100 bucks. So, why do they expect us to work for a hand-out? Is it perhaps because many of us call ourselves voice-over ARTISTS?

MISCONCEPTION ONE: Artists don’t work. They just enjoy their hobby.

My wife, a phenomenal professional flutist, had just finished an exhausting wedding gig: a ninety minute Mass followed by a two-hour cocktail party. All in all she had had two breaks: one to rush from the church to the banquet hall, and a ten minute bathroom break during the reception.

When she came back to get a refreshment, some guests looked at her as if she was stealing from the buffet. One of them even walked up to her and whispered: “Aren’t you supposed to be playing?”

At the end of the engagement, the mother of the groom walked her out and said it had been “lovely”. She sighed: “I used to play the flute. It must be wonderful…. being able to play music all day long.”

When my wife discretely asked for the paycheck that should have been handed to her at the beginning of the day, the groom’s mother looked shocked. She said: “Are you telling me you’re actually getting paid for this?”

Some people just don’t get it, do they? Whether we’re musicians, writers, web designers or voice-over artists, the opportunity to do the things we’re passionate about, should be enough, don’t you think? Well, why don’t we ask Alex Rodriguez about that? Perhaps he’d be satisfied with getting the keys to the Big Apple and a fat World Series ring.

MISCONCEPTION TWO: All you need in this profession is a computer, a microphone and an Internet connection, and you’re in voice-over business. Small investment. Huge ROI (and you can even do it in your PJ’s!).

Well, well…haven’t we heard that one before? If it were that easy, tell me who is paying for your:

  • marketing
  • advertising
  • bookkeeping
  • hours spent finding work
  • taxes
  • overhead
  • continued education
  • attorney
  • sick days
  • paid holidays
  • vacation
  • union dues
  • health insurance
  • dental insurance
  • disability insurance
  • life insurance
  • business insurance
  • unemployment
  • retirement
  • invoices that never get paid
  • … and all other joys that come with running your own business?

 

BREAKING EVEN

Remember, all of the above (and more) has to come out of that job that you almost accepted for $125. Do you even know how much money you need to make in a year, just to break even? How about in a month? How much per week… per day? That’s just to cover costs. How about making a profit? How about saving a little for a rainy day or for college?

If all of this is a little overwhelming and intimidating, let me reassure you. This does not have to be your life! If you don’t have the drive now, do not waste any more time. If you’re not prepared to run your career as a for-profit business, you still have plenty of options… to name a few:

1. Stop posing as a pro and leave the market place to those who are willing to be professional. Stay an amateur instead. No pressure.
2. Get a ‘regular’ job with benefits

GET REAL

However, should you decide to become a professional solopreneur, start acting like one! Don’t do anything else before you take the next step: figure out what your basic minimum hourly rate must be, based on cost, billable hours and the profit you’re comfortable with.

Depending on your input, this could take 5 to 20 minutes of your time. How do you do it? By using this simple on-line rate calculator, developed by one of my favorite websites: www.freelanceswitch.com.

calculatorRUNNING THE NUMBERS

Of course it would be a little presumptuous to tell you what to do. Some people just don’t want to spoil their hopes and dreams by facing reality. These are the folks that purchased a house they can’t afford because they thought they could swing it. And now they’re paying for it.

Some people are more comfortable playing the victim or playing the blame-game. Others use excuses such as: “I was never any good with numbers”.

Sorry, but I’m not buying it!

First off, this rate calculator is so easy, even I can use it. Secondly, you can always ask a friend to help you out; find a mentor, hire a pro… There are business coaches out there who’d love to have your voice on their AVR in exchange for their advice. It’s often better to have an impartial opinion from someone who is not in love with your dream. Have a business lunch with them and bring your calculator and a note pad.

Third, make a small investment and get “The Money Book for Freelancers, Part-Timers, and the Self-Employed” by Joseph D’Agnese and Denise Kiernan. This was the first book about money matters that I actually enjoyed reading. It felt like I was getting advice from friends who knew exactly what situation I was in. Joe and Denise offer very practical, down-to-earth strategies in a language anyone can understand, and they’re actually very funny too!

FINE DINING

So…. next time a voice-seeker holds up one of those carrots I started this article with, imagine yourself walking into a restaurant and telling the waiter:

“I can’t really pay you full-price, but if your food is any good, I’ll be sure to spread the word about this place.”

Please let me know how that worked out for you.

And if that did not go over so well, try going into Home Depot, hoping to get 75% off that professional pneumatic drill. 

“And why would we do that?” asks the manager.

And then you utter the magic words: 

“Well, it’s only for a small project….”

And finally, would you be willing to do me one last favor, please? Once you’ve figured out your desired and minimum hourly rate, look at that $100 voice-over project again, that you were just considering. You know, the one that “will give you great exposure”.

Now look at your hourly rate again.

Get it?!

2-17-2008

Paul Strikwerda ©nethervoice

PS Many thanks to artist N.C. Winters for the comic strips. Find out more about the work of N.C. at the artist’s site and at Freelance Freedom.

PPS A Dutchman visiting the US offers some refreshing insights as he holds up the mirror: Only in America.