voiceover rates

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!


The Power Of Pricing

by Paul Strikwerda in Articles, Career, Freelancing, Money Matters 23 Comments

Snow stormSNOW EVERYWHERE… and Max was in the thick of it.

His client was expecting him within the hour, and he was all dressed up but couldn’t go anywhere.

This was the account he had been grooming for months, and today was D-Day: Deal or No Deal. Snow or no snow. He had to get out of that airport.

“This is the worst snow storm we’ve seen in decades,” said the dispatcher. “No cab driver is going to go anywhere today. I’m afraid you’re on your own.” Max headed out anyway. Perhaps he could hitch a ride with one of the other passengers that was being picked up by brave friends or family members.

As the snow was coming down, visibility was at a minimum. All flights were canceled until further notice. Just as Max was about to head back inside, a black SUV came out of nowhere, and stopped at the pick-up spot. The driver rolled the window down:

“Need a ride?”

“How did you know?” said Max, as he hopped in. “I have to get to my presentation. Are you here to pick somebody up?”

“No one in particular,” said the driver. “But I’d be happy to take you.”

“Well, that’s awfully nice of you,” said Max. “Thank G-d for Good Samaritans.”

“Dream on,” said the driver. “It’s going to be one hundred dollars. Cash only.”

“You must be joking,” replied Max. “They said a cab would cost me no more than ten.”

“Well, why don’t you get a cab then?” asked the driver. “I’ll go and rescue some other grey suit in a hurry.”

“I’ll offer you 50,” tried Max.”

“Listen,” said the driver. “You look like a smart businessman. You and I, we don’t run charities. We’re both entrepreneurs. We see an opportunity. We jump on it. We take risks. Today I am risking my life and my car just so you can get to your meeting. That must be worth something, don’t you think?

“How about 60?”

“You don’t get it, do you?” said the driver. “My economics teacher taught me: ‘When something is scarce, it becomes more valuable.’ You have a major problem. I am offering you a solution. No one else will. If you want to stay, you’ve got to pay.”

“70?”

“Think of it this way,” sighed the driver. “This meeting you want me to take you to, must be important, right? Otherwise, why bother? Is there a lot of money at stake?”

“You got that right,” answered Max impatiently. “I’ve got one shot to seal a deal.”

“Well,” said the driver, “It’s none of my business, but what’s 100 bucks compared to the money you’ll bring in after that contract is signed?”

“Alright,” said Max as he took out the cash. “I get it. Now, drive!”

While the SUV was battling the elements, Max looked at his chauffeur and said: “I gotta give it to you, man. You know what you’re worth, and you’re not afraid to ask for it.

Some ten years ago, when Max started his freelance business, he had had such a hard time putting a price on the service he was providing. To help him focus, his startup coach had asked him a couple of simple questions:

  1. Do you consider yourself to be a pro?
  2. Do you want to run a for-profit business?
  3. Do you want that business to grow?
  4. What are the costs of running that business?
  5. What’s your break-even point?
  6. How much do you want to make?

In the past, Max had always treated his services as a hobby. That’s exactly what it was. There was no plan. No purpose. Just a passion. He spent hours and hours helping people and never worried about what to charge. That is, until he lost his day job, his benefits, and his security. Perhaps this was an opportunity to turn his hobby into a real business. That’s when things got serious and complicated.

“Here’s the good news,” smiled his coach. “You’ve got clients, don’t you? I mean, you’ve been helping friends all along. If you want to turn your hobby into a genuine profession, why not start close to home. You obviously offer something people want. You already have a market… Go for it!”

“Here’s the problem,” said Max. “I never really charged my friends anything. Most of them gave me pizza and a six-pack. I can already hear them say:

Why would we ever pay you if we can get you for free?

“Good point,” admitted the coach, and he went on: “My brother is a computer geek and he’s crazy about technology. But if he would do every single friend ‘a favor,’ he’d be fixing broken laptops all day and night and not make any money. Free pizza does not pay the mortgage. Besides, I don’t think he’d make the guys happy who repair computers for a living.

Now, I’m not saying that it’s not okay to help out a friend in need, but as soon as people found out that my brother knew how to fix a computer, everybody wanted to be ‘friends’ with him. He had to draw a clear line between real friends and those who were well below the rank of Facebook buddies. That’s what you have to do too, Max. No more giveaways. From now on, you run a business; not a charity.

One of your jobs as an entrepreneur is to manage your client’s expectations. Let me give you an example. If you take on a project you know you can easily do in two days, tell your client you can get it done in three. Guess who’s going to look good when you hand it in 48 hours later?

That way you not only create the expectation that you can beat a deadline. You’re also showing your client that she’s a top priority, and that you really know your stuff. Meanwhile, you’ve allowed yourself an extra day should anything unexpected come up. Does that make sense?

Pricing is one of the most important tools for managing your client’s expectations, as well as your bottom line. Your price point sends a clear signal to your market:

This is what I am worth.

Like it or not, there is a clear link between perceived quality and price. Otherwise, every wine connoisseur would drink Beaujolais out of a box, and Pottery Barn would be out of business.

Remember this: Your fee structure will help you attract the kind of customers you want to be working with, and the type of jobs you are shooting for. At the same time it will weed out the folks that cannot or will not afford you; the ones that are most likely to give you a hard time anyway.

Here’s the deal, though: Your fee must be backed up by experience and expertise on one hand, and by a realistic sense of your value in the market place on the other.

Simply put: Be an expert and do your homework. Don’t just pull a rate out of a hat. That’s lazy and crazy. Find out what the competition is charging. Then ask yourself: “Do I want to charge more, less, or the same?”

“I can’t imagine it’s that simple,” said Max.

“It’s not,” answered his coach. “Smart pricing decisions require at least three elements:

  1. Facts about your own cost of doing business
  2. The client’s evaluation processes
  3. Competitive activity

I know you really care about your work, Max. To you, it’s much more than a way to pay the bills. You’re an artist and somehow, some artists (and clients) believe that there’s a clash between creativity and cash. Doing what you love should be enough of a reward.

I don’t think Andy Warhol or Keith Haring would agree with that. Being creative and being commercial can go hand in hand, and since you’re in business to make money, let me give you a simple formula:

Profit = sales volume x price – cost

Have you ever heard of Hermann Simon? He’s a German economics professor and one of the leading experts on pricing. Together with Robert Dolan, he wrote a book called Power pricing: how managing price transforms the bottom line. He calls volume, price, and cost “profit drivers.”

Simon says something very interesting:

“The customer’s willingness to pay is not determined by the costs of a product but by its performance and resulting value to this customer.”

In other words: when people get a haircut, they conveniently forget that they’re also paying for the rent the salon’s forking over every single month, or for the training the staff receives so they can make every teenage boy look like Justin Bieber.

Clients don’t care about your costs.

You should.

That’s why you have to figure out the answer to this question: How low can you afford to go? What is your Price Floor?

A Price Floor is a point below which a product or service should not be sold. In the long term, the price must obviously cover the full costs of a product. Otherwise the seller cannot make a profit and will not survive. Volume never makes up for selling below cost. 

Every year, tens of thousands of self-employed people file for bankruptcy because they made one big mistake: they followed a dream and forgot to run the numbers. They are what I like to call ‘under-estimators’. Literally.

Knowingly or unknowingly, they started selling below cost in an effort to drive out the competition or even out of ignorance. Some started giving their work away for free, hoping to get exposure and attract business. Last time I checked, my local baker was handing out free samples but never entire cakes. And between you and me: he doesn’t strike me as a marketing genius.”

“Speaking of prices… a friend of mine just bought a brand name watch at a price that was too good to be true,” said Max. “It turned out to be fake.”

“Were you surprised?” asked the coach.

“Not at all,” said Max. “You get what you pay for.”

“That’s right. In part, price is about perception. That’s probably why your friend wanted to buy that Rolex rip-off in the first place.

Professor Simon puts it this way:

“Price is the economic sacrifice a customer makes to acquire a product or a service. The customer always compares this sacrifice with his perception of the product’s value. (…)

“In essence, a customer buys a product or a service only, if its perceived value -measured in money terms- is greater than the price. If selecting from several alternatives, the customer prefers the one offering the highest net value, i.e. the greatest differential of perceived value over price.”

Go to any tattoo parlor and see for yourself how much pain people are willing to suffer in exchange for the pleasure derived from a name, permanently painted in the perforations of their delicate flesh. Years later, they spend a fortune burning out their ex-hubbie’s initials with a laser beam… turning the man in question into an ex-boyfriend, once removed… But I digress. We were talking about perceived value, weren’t we?”

“You’ve mentioned volume, price, and cost,” said Max. “How exactly does the market factor into this? Isn’t a certain price ultimately the result of the interaction between supply and demand? That’s not something I have any influence over, is it?”

“Great point,” smiled his coach. “First off…

*          *          *         *         *

THE BLACK SUV slowly made its way through the winter weather.

“Care for some hot cocoa?” asked the driver as he pointed at a thermos.

“Yes please!”said Max.

“And help yourself to a muffin too,” said the driver. “This might take a while.”

“Well, you certainly know how to treat your customers,” remarked Max.

The driver smiled. “Always exceed your client’s expectations. That’s my philosophy.”

“Will you pick me up when I am done?” asked Max.

“Of course,” said the driver.

“I love return business!”

Click here for part 2.

Paul Strikwerda ©nethervoice 

PS Be sweet. Please retweet!

photo credit: It’s been DUMPING snow at Heavenly… via photopin (license)


The Ugly Truth

by Paul Strikwerda in Articles, Career, Freelancing, Pay-to-Play 14 Comments

man covering his earsBeginning bloggers often ask me how to write a story that gets a lot of attention and traction.

They realize they have to cut through a lot of clutter to reach an audience suffering from information overload, and they don’t know how. 

In a way, blogging is a bit like a voice-over career. With thousands of hopefuls jumping like Shrek’s donkey shouting “Pick me, pick me!,” how do you make sure your voice is heard?

As far as blogging goes, there are a few tried-and-tested ways to grab people’s attention:

1. Have a strong headline;
2. Use numbered lists (like I’m doing right now);
3. Tap into problems your readers are experiencing, and offer practical solutions;
4. Be provocative as well as entertaining.

Stories that prove to be particularly popular are the ones claiming to reveal success secrets of those who have made it. Content aggregators can’t seem to get enough of articles like:

“6 Behaviors of the Most Successful People”
“4 Remarkable Insights to Inspire Social Media Success”
“8 Habits of Exceptionally Successful CEOs”
“11 Secrets of Irresistible People”

I don’t even have to read these stories to tell you what “secrets” they reveal:

• Be yourself, and believe in yourself

• Work hard and play hard

• Be proactive and stay focused

• Keep on learning

• Stay in shape, mentally and physically

• Be persistent and flexible

• Do what you love, and love what you do

• Don’t get comfortable, stay hungry

• Always exceed expectations

That’s all good, but there are a few things that are frequently overlooked. Here’s one aspect all successful people and organizations have in common:

They are open to feedback, and willing to change course when they’re moving in the wrong direction.

A GREAT TEAM

A management team is useless if it only consists of cheerleaders. Cheerleaders love everything you do, and they will only tell you what you want to hear. We can all use some positive reinforcement once in a while, but a great company builds on its strengths, and it works on its weaknesses.

It takes clever and fearless critics to point out those weaknesses. They have the guts to tell you what you don’t want to hear. For that, critics may get a bad rep, because they are often seen as unsupportive contrarians who only want to disrupt and destroy.

Some companies have developed a culture where any form of criticism is being suppressed, because it is seen as being disloyal. It turns out that those companies not only close themselves off from inside critique. They don’t want to hear it from the outside either. And once a business stops listening to those who use their products or services, it is pretty much doomed.

GOING UNDERCOVER

You’ve probably heard of the show Undercover Boss. It features CEOs of struggling companies. Most of these men and women seem to have one thing in common: they have lost touch with reality. They know something’s wrong with their business, but they can’t put a finger on it because the people they surround themselves with are just as clueless, or they are too afraid to speak up.

So, the boss goes undercover and works a few jobs on different levels to find out what’s going on, and to hear what people are really thinking. What they usually discover is that the employees they work with on the show, are very much aware of what’s wrong. Some of them even have good ideas about how to fix it.

The program always ends with the CEO revealing him or herself, and implementing some or all of the recommendations and suggestions he/she picked up in the field. But there’s more.

The people who spoke up (not knowing they were talking to their boss) are publicly praised and rewarded, instead of being punished for criticizing the company.

The moral of the story? Whether you’re a public organization, a publicly traded company, or you run your own business, feedback is necessary for your survival. Otherwise you’re operating in a vacuum. Even if the criticism is harsh, and feels like a personal attack, you are being given a gift. How you handle that gift is up to you.

FLYING SOLO

Now, if you’re a solopreneur like me, you can’t go undercover in your own business. You need some other system to get feedback. That’s where a coach or mentor comes in.

Being a coach myself, I often have to be the bearer of bad news. It’s no fun telling people what they don’t want to hear. Hopes are high and egos are fragile. Susceptible people love to believe that they are special, and that they have what it takes to be the next Mel Blanc or Tom Kenny.

When that’s clearly not the case, it’s easier for a student to blame the messenger, and find another coach who will take their money and tell them what they want to hear. It’s just as easy to sign up for a site that will validate their status as a “professional” voice artist, in spite of their lack of talent. But “easy” won’t get them anywhere, because easy is an illusion.

Here’s the ugly truth:

If recording voice-overs was easy, everybody would be doing it, and they all would make tons of money. Instead, it’s the companies and individuals that want you to believe that it’s easy, that are making the money.

But I digress. The topic was feedback.

VOICES on “VOICES”

Over the past few weeks, this blog sparked a wave of criticism directed toward voices.com, one of the many online casting services. Colleagues like Iona Frances, who would normally bite her tongue on this topic, felt compelled to respond, and she shared her experience, as did many others.

The big question is: What will voices.com do with this feedback? I’m pretty sure the management has read the articles as well as the comments, and they can’t be too pleased. Countless colleagues have called Canada to cancel their membership, and have asked for a refund. Some have even contacted a lawyer.

If I were the CEO of “Voices,” I would listen, and listen carefully. This is an opportunity to learn and grow as a company. If the critique is valid, changes must be made. If the feedback is based on false assumptions, the company needs to set the record straight. What it cannot do, is to remain silent.

Ignoring a problem does not make it go away.

The worst thing “Voices” could do, is to give those who give them feedback, a hard time. But based on what I have heard, that’s exactly what’s been happening.

Instead of trying to regain the trust of members who each paid $399 or more for services they feel they’re not receiving, callers are getting an earful. That’s not how you treat the talent your site supposedly supports. Moreover, it only confirms the negative impression people had in the first place.

As for me, I have always retained a free membership that allowed me to monitor developments and changes at “Voices” from the inside. Rather than have other people tell me about sliding rates and managed projects, I could see for myself what was going on.

When I tried to log on yesterday, I made an interesting discovery: my account had been removed.

Without any warning or explanation.

Apparently, that’s how this company deals with those who dare to criticize it. You have been warned!

I have only one thing to say:

“Voices.com, thanks for the feedback.

Keep on doing what you’re doing, but know that we’re on to you!”

Paul Strikwerda ©nethervoice


Debunking Bottom Feeders

by Paul Strikwerda in Articles, Book, Career, Freelancing, Money Matters 46 Comments

Keep Calm and Grab A BargainSomething strange is happening in the voice-over world, and it scares me.

I know of no other profession where colleagues (and I use the word loosely) denigrate other colleagues simply because they’re advocating for decent rates.

Those who favor higher fees are regularly labeled as greedy, unrealisticelitist, old school, or as misguided union members.

Since when did it become uncool to want to make more money, or at least earn a living wage?

Is it bad for business? Would it tarnish our reputation? What are people afraid of?

Some voice-overs who operate on the lower end of the scale have even come forward to proudly defend why they’re charging next to nothing. People like Rebecca Schwab, who confessed in a recent blog post that bloggers like me sometimes make her feel like “a voice over fraud.”

She goes on to describe her method of breaking into the voice-over business: by selling her services at rock bottom prices. In another blog post Rebecca writes:

“Whether or not I was “undercutting” anyone was the last thing on my mind. It was simply a matter of economics.”

I’m not going to copy and paste her articles here, but I think Rebecca needs to learn a thing or two about economics and collegiality.

The frightening thing is that she’s not alone. If you frequent certain Facebook voice-over groups, you’ll notice that even some moderators have become very defensive when the subject of rates comes up. What’s even worse, you can’t argue with these people because they will kick you out of a group if you try to start a dialogue about money.

So, rather than get into a discussion with people who are unwilling to listen, let me give you my take on some of the arguments that are being used to defend, excuse, or justify low rates. Even though we’re talking about voice-over services, you’ll find the same type of reasoning when other freelance rates are discussed.

Let’s start with something I hear almost every day:

1. There will always be a high end and a low end of the market. Accept it and move on.

That’s a given, and it’s not addressing the real issue. We all know that there’s a market for KIA and Rolls-Royce. The point is: how low is the KIA dealer willing to go to make a sale? Is he prepared to sell his cars at a loss, just to get his business going? How long can he keep that up before he goes bankrupt? It’s not a way to get loyal customers either. Next time, they’ll just buy from someone who’s willing to go even lower.

Bottom line: You need to cover your costs, and then factor in a profit. Once you get clients hooked on cheap fees, they will never pay full price again.

2. You may lose money on every sale, but you’ll make it up in volume!

That’s like buying ten melons for a dollar each, and then selling 12 for 10 bucks. Does that make any sense? No matter how many KIAs a dealer sells, if he sells them below cost, he’s not making any money. A small business owner once said: “Sales numbers feed egos. Profits feed families.”

It’s not how much you sell, but how much money you get to keep that matters. Business is a game of margins, not volume. Bargain airlines tried making money on volume. Guess what? They’re gone! Would you rather do less for more, or more for less?

3. Purchase decisions are primarily based on price.

If that’s the case, Mr. Client, I will send you your order in two years, okay? I’ll also make sure that it will fall apart in two weeks, and you won’t be getting your money back. Don’t bother calling me, because I just closed our customer service department.

Most people do not buy on price alone. They will talk about price, but what they really mean is that you haven’t offered enough value to justify paying the price you’re asking.

There’s this cartoon with a picture of a brother and sister each with their own lemonade stand side by side. The brother’s lemonade stand reads “Lemonade 25 cents.” The sister’s lemonade stand reads:

Lemonade 50 cents (clean water).

Do you want your service to be known for being the cheapest on the market, or for high quality? Competing on price is a losing battle.

Lawrence Steinmetz and William Brooks are the authors of How to sell at margins higher than your competitors. Winning every sale at full price, rate or fee. They say:

“If you want to earn a solid living in sales, you need to remember that you are going to face a consistent challenge to hang on to a higher price, because you will always find yourself competing with a fool who is going broke cutting prices.”

The key is adding value. If you don’t offer exceptional value, then your product or service becomes just another commodity. People buy commodities on price. If you’re just another web designer, voice-over artist, or car dealership, you’re in trouble.

Value means: offering more at a higher price.

4. Price does not influence the perception of a product.

If that were the case, why are people prepared to pay thousands of dollars for a Rolex, instead of buying a $50 Seiko? Most watchmakers agree that the Seiko is the better time piece.

Let’s talk about brain surgery. Why don’t people go to the cheapest surgeon in the area? Because low prices make people think he isn’t any good. Price makes a statement. Cheap = cheap. What does your rate tell the world about what you think you’re worth?

5. Some clients just can’t afford paying higher rates. I cannot change that.

How do you know they can’t pay you a better rate? Buyers lie in order to get you to lower your price. It’s the oldest trick in the book. If they could get it from someone else at a better price, why are they still talking to you?

Stop making excuses for those who don’t respect you enough to pay you a decent fee. Unless you’ve seen their balance sheet, you don’t know what they can or cannot afford. 

Know your bottom line. Add value. Don’t compromise so easily. Negotiate. Dare to say NO to a bad deal. Study the art of making the sale. It’s part of being a pro.

6. I don’t set the rates. The market does.

So, what you’re saying is that you don’t take responsibility for your prices? They are forced upon you at gunpoint? You’re just a helpless leaf in the wind?

Let me put it bluntly: The market doesn’t determine your price. Your client doesn’t set your fee. YOU do.

It’s just very convenient to tell the world that you don’t have any influence over your rate. If you can’t control it, you can’t change it. You’re a victim of circumstance. End of story. Now go feel sorry for yourself.

Market trends are the result of millions of individual decisions. Decisions you and I make, each and every day. Change the decisions, and you change the trends. 

Price-cutting is a self-inflicted wound. Should you decide that $5 for an eight paragraph voice-over script is fair compensation, so be it. Contract law states that parties must agree to enter into a contract freely, and must be of sound mind.

I’m not saying that you should ignore the competition or forget about the rate cards that are floating in cyberspace. It’s up to you if you want to look at Odesk, freelancer.com, or the $100 voices.com minimum rate, and decide that that’s what “the market” is willing to pay. After all, the only thing the client cares about is price, right?

Or you could decide to look at union rates, and make those the basis of your pricing structure.

Why not talk to a few agents? If you’re any good, they might want to represent you. They will fight for a decent rate because if you do well, they will do well.

7. I’m not a sales person. I’m an artist. I don’t know how to negotiate.

No, you’re a wimp, and you need a firm kick in the pants! Nobody is forcing you to be a full-time freelancer. But if you tell the world you are doing this to make a living, it automatically means that you’re the head of the sales department, whether you like it or not. Lawrence Steinmetz has this to add:

“The first thing you have to understand is that the selling price is a function of your ability to sell and nothing else.”

Any idiot can cave in at the first sign of buyer resistance, and offer a price cut. That’s not selling. That’s being lazy and fearful. It’s a sign that you don’t believe in the value of your product or service. Clients always pick up on that, and it will cost you dearly.

Being extraordinarily talented in what you do, doesn’t guarantee instant success. Life might have dealt you a pretty good hand, but if you don’t know how to play the game, even the best cards are useless. We all know starving geniuses.

The way I see it, you have two choices. You either learn the rules and become good at playing the game, or you stay out of it. Remember: experience is the slowest teacher.

8. Low-end rates do not affect high-end rates.

If that were the case, why aren’t rates going up, instead of down? Why have so many auditions turned into a bidding war? Actor, writer and producer J.S. Gilbert:

“While it’s not being broadcast, I’m seeing people I know who have made six-figure+ incomes at voice-over for years now, looking at incomes that are fractions of what they were a few years ago.”

I understand that we’ll never get back to the golden days of Don LaFontaine (a.k.a. “The Voice of G-d”) and his limo. Thanks to the internet, the rise in home studios, and online job boards, clients no longer have to book union talent at union rates through an agent. Talk has become a lot cheaper.

As Gilbert pointed out to me, a job that used to cost the client $1000, is now offered at $250. But why pay $250 if some fool is willing to do it for $25?

As I said before, once clients are taught they can get it for less, why should they pay a penny more? Give me one reason why this trend does not impact today’s prices, and has never done so in the past. 

9. But I’m just getting started. I can’t possibly ask full price.

Some beginners admitted to me that they’ve offered their services for free, just to be able to build a portfolio. Mind you: they were not talking about doing stuff for charity.

I think a freebie only makes sense if you have something else to sell. That’s why a baker hands out samples, and that’s why my custom demos are free of charge. But if you’re giving 500 dollars worth of services away for free, you’re not only creating expectations, you’re in fact saying: “This is what I think my work is worth.” Meanwhile, you’re robbing a colleague of the chance to make five hundred bucks.

Jason Fried is the co-founder and President of software solution provider Basecamp. He recommends you practice charging a reasonable rate from day one. But what he said next was a real eye-opener to me:

“It’s very safe to charge low rates, because you don’t have to prove anything. But as soon as you charge a customer a good price, it gives them the power to demand something from you, such as good quality and great service. Those are the types of pressures you want on you as a small business owner. You want to be forced to be good. Charging for something forces you to be good.”

10. I don’t need to make a full-time income. It’s only a hobby.

If it’s only a hobby, then why are you advertising yourself as a voice-over professional? I play the piano, but I don’t market myself as a concert pianist.

If you enjoy reading to other people, go volunteer at your local children’s hospital or elder care facility. You will probably get more appreciation for doing this, than for anything you’ve ever done before.

Most talents I know are only freelancing part-time, because they’re still building what they hope will become a full-time business. A part-time teacher only gets paid less because she puts in fewer hours. Does a part-time cab driver fix the meter so he can drive you around at half-price? So, why should you offer your services at bottom dollar?

Oh… I see. Your partner has a steady job, and the money you make doing the occasional voice-over doesn’t have to pay the mortgage, right?

Guess what? In this economy there’s no such thing as a steady job anymore. What would happen if your partner gets laid off and you become the sole breadwinner? Can your beer money pay the bills? Do you really think you could raise your rates to make ends meet?

Price buyers are the first to look elsewhere. They don’t care about your personal situation. They care about cutting costs. But stop thinking about your own situation for a moment.

There are people who depend on doing this for a living right now, and they think your price dumping is nothing but unfair competition. I must admit: you’re quite talented, and by charging these low rates you are making it harder and harder for them to justify their fees.

I think it’s time for you to think about the bigger picture.

Asking for a reasonable rate is not about shameless greed or about becoming filthy rich and famous. This is about being able to provide for your family; being able to send your kids to college, and save some money for a rainy day.

Your voice could help sell millions of dollars worth of product. It can introduce people to brilliant books that enrich their lives. Your voice can be the voice of a mentor, teaching valuable skills to e-learners across the globe. Your voice can inform, entertain, sell, and assist. Surely, that must be worth something?

However…

Those who fail to build value, have nothing left but to compete on price.

Paul Strikwerda ©nethervoice

PS Be sweet. Please retweet!

PPS The above article is an excerpt from my book “Making Money In Your PJs, Freelancing For Voice-Overs And Other Solopreneurs.” Click on one of the buttons below to get your copy.


To Discount Or Not To Discount

by Paul Strikwerda in Articles, Freelancing, Money Matters 37 Comments

Famous Dave’s Signature Spicy Pickle SpearsA month or so ago it happened again.

One of my contacts sent me the following message:

“Paul, my client would like you to voice two English animations. Both advertise the same product on the same platform, but each one appeals to a different audience. Both scripts are no longer than 125 words. Normally we’d pay you €250 per video, but the client was wondering if you’d record both videos for €250. After all, these things are very short, and this is for the same product on the same platform. Another option would be to offer the client a $150 discount. Let me know how you’d like to proceed.”

What do you think I should do? Should I voice these two videos for €250 or $350, or should I charge the full €500?

Well, the answer depends on your pricing strategy, and on how you position yourself in the market place.

Let me explain.

A TALE OF TWO PICKLES

In front of me I have two 24 ounce jars filled with pickle spears. One is a store brand retailing for about two dollars. The other is a jar of Famous Dave’s Signature Spicy Pickle Spears, selling for about five bucks. Both jars contain the same basic ingredient: crunchy cucumbers immersed in an acidic solution.

Why would people pay five dollars instead of two, for ten to twelve pickles, you may ask. The answer is simple. Dave’s spears are distinctly different. His spicy cucumbers tingle your tongue with a signature blend of sweet and heat. They are addictively delicious.

Last weekend I was entertaining guests, and I served Dave’s pickles without telling them. I just put them on a plate. After the first guest took a bite his whole face lit up and he said: “Wow, where did you get these pickles? They are incredible!” Two minutes later everyone in the room was crunching away, and wanted to know where they could buy these special spears.

Yesterday I talked to one of my friends who was with us that evening, and he said: “I had so much fun last weekend. And by the way… those pickles were amazing!”

So, let me ask you this:

Would you rather be an ordinary pickle, or one of Famous Dave’s Spicy Spears? 

MAKE A CHOICE

Are you a dime a dozen, or do you have something unique to offer? If you fall into the last category, in what way do you distinguish yourself, and how do you convey that to your clients? You see, believing that you’re special doesn’t get you anywhere. You need to prove it.

Famous Dave is a smart guy. He knows he’s got something awesome going, and that’s why he’s not competing on price. He is competing on added value. Added value can be defined as an improvement or addition to a product or service that makes it worth more.

As a voice-over, you add value to a video, a computer game, an ad campaign, an e-Learning program, a bestseller or a major brand. The right voice can bring credibility and authenticity to a message. That alone can be worth millions of dollars, and advertising agencies know it.

You will never see those millions, but I happen to think that you deserve to be well compensated for your contribution. That will only happen if and when YOU value what you have to offer in terms of your expertise, and your experience.

PRICE LIKE A PRO

One way to convince a client that what you’re offering is valuable, is by using the link between price and professionalism. I’ve said it before, and I’ll say it again: Your rate is more than a number. It is a powerful statement. It says: This is what I believe I’m worth. It is also a way to prequalify your clients.

My rate sheet tells them: I take my job seriously. Lowballers better stay away. Quality clients are welcome. I will treat you with respect, and I will do the best job I can. 

Like Famous Dave, I know that what I have to offer is different. My English has a European quality that adds a special flavor to a script. Those who like that flavor have no reason to haggle.

WHY COMPROMISE?

Now, let’s discuss that discount I talked about in the beginning of this blog post. Here’s my take on reducing a fee. 

1. Discounts are for people who compete on price only, and for clients for whom price is the determining factor.

Here’s a hint: price is rarely the sole determining factor in a purchasing decision.

If clients would buy based on price alone, it would be perfectly fine to take months to send them a poorly made product, right? They wouldn’t dare to complain because you were the cheapest. 

2. But Paul, didn’t the client say that these two jobs combined would be no more than 250 words? Why not give in a little? 

Well, there are two hidden assumptions behind that argument. One: This job is something I could record in a heartbeat. Two: Clients pay me for my time. Both assumptions are false.

We all know that most clients have no idea how long it takes to deliver any length of finished audio. Secondly, I don’t charge clients for my time. They pay for my talent, my skills, and for my experience. They pay me for the added value I bring to their production. 

3. If I were an on-camera actor, and I’d be featured in two videos targeting different audiences, wouldn’t I get paid in full for both? Then why should a voice actor accept a huge pay cut? Does that make any sense? Just because we’re invisible doesn’t mean people can take advantage of us. 

A MATTER OF TRUST

4. The client promised that both videos would be for the same platform, but how can I trust a claim made by someone I’ve never worked with? Clients will tell you anything to bring your price down. What guarantees do I have that these two videos won’t end up on different platforms? Who’s going to check that? 

5. In the beginning of a relationship with a new client you set the parameters. If you accept a certain fee for whatever reason, that becomes your going rate. Don’t blame it on the client. That’s what you’ve trained them to expect.

So, the next time you ask for more money, don’t be surprised if your client comes back with: “But last week you did a similar job for X amount of dollars. Why should we pay you a penny extra?” And you know what? They’re right!

6. If you accept doing two jobs for the price of one (or even less), you’ve just stabbed your colleagues in the back. We are not independent contractors. We’re interdependent contractors. We are connected. A going rate is nothing but the prevailing market price. Every individual pricing decision -big or small- impacts that market. Before you know it, you’re setting a downward trend.

Having said that, here’s where I’m willing to give a discount:

A. When a client commits to a long-term working relationship, and a high volume of jobs. 

B. As an incentive for a client to pay in full upon receipt of the invoice.

Some colleagues are in the habit of giving discounts to charities, but I make that determination on a case-by-case basis. More about voice-overs and charities in my article “Work For Free For Charity?

STICK TO YOUR GUNS

Listen carefully. You don’t have to agree with me when it comes to discounts. In fact, you don’t have to agree with anything I’m saying in this blog. It’s just my opinion. But if you haven’t thought about your value, your pricing, and about your position on discounts, simple questions like the one from my contact can get you in a pickle.

I decided to charge full price for those two animations, and I told my contact why. Taking a stance means taking a risk, and I ended up losing the animation job to a colleague who was willing to do it for less. But the story doesn’t end there. 

Two weeks later my contact called me again. Working with the cheaper voice-over had left a bitter taste in the mouth of the client, and they wanted me to step in.

“At full price?,” I asked.

“At full price,” he said.

Being cheap often costs more, but some people have to learn that lesson the hard way. I hope you’re not one of them.

That day I went to the post office to send my contact a small thank you gift.

“Does this parcel contain anything fragile, liquid, perishable, or potentially hazardous, including lithium batteries and perfume?” the woman behind the counter wanted to know.

“Yes it does,” I said.

“What’s in it?” she asked.

“It’s a jar of Famous Dave’s Signature Spicy Pickle Spears!”

“Oh, those are the best,” she said. “Not cheap, but it’s so worth it!”

Paul Strikwerda ©nethervoice

PS Be sweet. Please retweet!

PPS The word ‘pickle‘ comes from the Dutch word ‘pekel,’ meaning ‘something piquant,’ and originally referred to a spiced, salted vinegar that was used as a preservative (source.) You should know that I am in no way compensated to promote Famous Dave’s delicious pickles. 


Asking for a Raise

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

The project was perfect.

It had my name written all over it.

Better still, I didn’t even have to submit a demo. It was mine!

There was only one problem: the budget. It was a bit low.

I asked myself: “Shall I do it anyway?” It would certainly be nice to add another prestigious brand name to my portfolio. And if they liked me, perhaps they’d hire me at a better rate next time.

Seconds later I knew I wasn’t making any sense. Big brands have big budgets. Even for voice-overs. And every sales person on earth knows that the first offer is never the best. It’s a test.

Assume I’d say yes to what they were offering right now. I’d set a precedent. Why would a client feel inclined to pay me more next time? 

If I really wanted this job, there was only one solution:

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


Spending a year with me

by Paul Strikwerda in Articles, Career, Freelancing, Gear, Internet, Journalism & Media, Money Matters, Promotion, Social Media, Studio 15 Comments

2012 is a year I will remember for many reasons, but the main reason is this: 

Your generosity.

Did you know that readers of this blog donated $2,500 to the National MS Society this year? Thanks to your contributions, our Walk MS team raised a total of $6,504!

When I told you that my friend Patrice Devincentis had lost her Sonic Surgery recording studio in Hurricane Sandy, you stepped up to the plate big time.

Donations to Sonic Surgery

Donations to Sonic Surgery

Right now, part of my basement is taken over by audio equipment that was donated to Patrice, mostly by friends in the voice-over community.

Just when she thought her career was over, your help gave her hope and a chance to start rebuilding a studio and a career. 

As soon as her recording space is ready, I will deliver all the gear on your behalf, but that’s not all.

When you go to the Sonic Surgery GoFundMe page, you’ll see that together we’ve raised over $2,600 for Patrice. We still have a long way to go before we’ll reach our $10,000 goal, but it’s a great start.

SPREADING THE NEWS 

As readers, you’ve also been generous with your blog comments (all 2,658 of them), retweets, Facebook “likes” and all the other ways in which you helped my stories reach a wider audience. Thank you so much for that! It works and here’s the proof.

A story like the introduction of Studiobricks (a new type of vocal booth), has reached almost two thousand readers. Mike Bratton’s interview and review of the Studiobricks ONE cabin, has been seen over fifteen hundred times. But there were more reviews this year. 

In collaboration with recordinghacks.com, I put the Microtech Gefell M 930 Ts microphone to the test; the amazingly affordable and brilliant CAD E100S mic, as well as a shock mount for the 21st century, the Rycote InVision™ system.

I presented seven reasons to hate home studios, and most recently, I had a chance to review Jonathan Tilley’s new eBook “Voice Over Garden.” 

THE NEW NETHERVOICE

Let’s remember that 2012 was also the year my website got a major facelift. It gave me a chance to write about why your website stinks, how analyzing web traffic can help you craft content, and how you can use social media to spread your message (as long as you don’t step into the filter bubble). 

If you’ve been following this blog for a while, you know that I love writing about the business of being in business. Having a great voice doesn’t mean that you’ll automatically have a great voice-over career. You have to be a savvy entrepreneur as well. 

When you open up shop, you’re all of a sudden the head of the advertising, marketing, sales and the customer service department. Are you sure you can handle that? Some customers can be a royal pain in the tuches, but you have to attract them first.

Over time you’ll notice that there are at least 10 things clients don’t care about, and that there are many things your clients won’t tell you that you absolutely need to know before you hit the record button. This year, I finally revealed my personal marketing strategy and the four keys to winning clients over.

Now, all these ideas didn’t appear to me in a dream. It has taken me quite a few years of running a freelance business to come up with certain vital concepts. Trial and error are the slowest teachers, and I had to learn many of my lessons the hard way. I still remember the day I almost made a $10,000 mistake.

Nethervoice studio

Nethervoice studio

STUDIO STORIES

On an average day I spend at least eight hours in my vocal booth/office, and of course I blogged about life behind the mic. I gave you the grand tour of my studio in two installments. 

First you got to see how I have outfitted my voice-over booth, followed by a review of the equipment I use to make my clients happy.

I also wrote about certain aspects of (voice) acting. In “Are You a Cliché” I dealt with the downside of doing impersonations. “Why you suck and what to do about it” is all about breathing and how to get rid of those nasty clicks and other mouth noises that can ruin a recording. “Are you playing by the rules” tells you what it takes to maintain a good relationship with your agent. 

MONEY MATTERS

In 2011, 44% of independent workers had trouble getting paid for their work. 3 out of 4 freelancers are paid late or not at all at least once in their careers. That’s why the New York-based Freelancers Union ran a campaign called “Get Paid, not played.

I tend to write a lot about value and remuneration. Just click on the “Money Matters” category over on the right hand side of this blog and you’ll see what I mean. When my website got a make-over, I decided to publicly post my voice-over rates. Not everyone believed this was a wise move, so I wrote a story exploring the pros and cons of being open about fees. 

One relatively new way to fund your business, is to use crowdsourcing. I asked audio book publisher Karen Wolfer to share her experience with Kickstarter. Another money-related topic that came up this year was this: Should you work for free for charity? On paper “giving back” sounds like the right thing to do, but is it always the case? As with any of the stories mentioned above, click on the blue link to read the full article. 

TAKING CARE OF YOURSELF

Let’s move from wealth to health. I shall remember 2012 for one other reason. Never before have I written so much about fitness and well-being. In “Be kind. Unwind” I wrote about the importance of taking a break, being in the moment and leading a balanced life.  

After meeting the globetrotting host of The Amazing Race Phil Keoghan, I discovered four principles to live in the spirit of NOW (No Opportunity Wasted). In August it was time for me personally to cut the crap and rid myself of excuses that had me trapped in an unhealthy, sedentary lifestyle.

MAKE A DIFFERENCE 

All in all, 2012 has been a great year. We’ve had to weather some powerful storms, but the year was also packed with positive change. 

It always amazes me how relatively small changes can have a huge impact. Imagine someone throwing a pebble into a pond. See how the ripple effect moves through the water in ever-widening circles. That’s the effect one individual act of generosity can have.

It happens when people who care, share what they have to give without expecting anything in return. It can be time, it can be money or -as in Patrice’s case- even audio equipment. 

I am grateful and appreciative that you have chosen to take a few minutes out of your day, to see what I have to say. Many of you came back, week after week. Hopefully, you’ve found my stories and ideas helpful and worth sharing. If that’s been the case, I have news for you: 

I’m not done yet!

In fact, I’m ready to push more envelopes, stir more pots and be more outspoken in 2013. 

Do you think you can handle that? 

Paul Strikwerda ©nethervoice

PS Be sweet. Please retweet.


Are You Still Hiding Your Rates?

by Paul Strikwerda in Articles, Freelancing, Money Matters 29 Comments

Whether you’re a voice-over artist, a photographer or a freelance copywriter, sooner or later you’ll have to answer this question:

Is it wise to put your rates on your website?

I used to be vehemently against it, but I have changed my mind. To give you an idea why, let’s explore both sides of the argument.

Business writer and voice-over professional Maxine Dunn describes herself as a savvy solopreneur. Does she think it’s a good idea to post rates? Maxine:

Read the rest of this story in my new book. Click here for the paperback version, and click here for a Kindle download.

Click on the cover to access the website and get a sneak peek.

Making Money In Your PJs cover


The Lowdown on Lowballing

by Paul Strikwerda in Articles, Career, Freelancing, International, Money Matters 70 Comments

You’ve probably heard the story of the priest who preached the same sermon every Sunday.

After a few weeks, some of the parishioners got tired of it and demanded an explanation.

“Do you really want to know why I’m repeating myself at every service?” asked the priest. The crowd nodded.

“I will continue to tell you the same thing over and over again, until you take it to heart and do something with it.

If you don’t change your behavior, I don’t see any reason for me to change my sermon.”

Well, I may be the son of a minister, but as a writer, I can certainly relate to this priest. When it comes to setting rates, I sometimes feel I’m talking to a sea of people with frighteningly short memories and no backbone.

Watch me as I go to my pulpit and address the crowd:

Read the rest of this story in my new book. Click here for the paperback version, and click here for a Kindle download.

Click on the cover to access the website and get a sneak peek.

Making Money In Your PJs cover


Picking Bodalgo’s Brain

by Paul Strikwerda in Articles, International, Internet, Journalism & Media, Money Matters, Pay-to-Play, Studio 13 Comments

“I’m being offered $200 to narrate a 120-thousand word audio book. Do you think that’s a fair rate?”

“A client wants me to record a movie trailer for $150. Should I do it?”

Not a day goes by without someone asking these types of questions on Facebook, LinkedIn and Google+.

Sometimes I stick my neck out and I respond to these questions, especially when I get sentimental and remember the early days of my career.

I was young and unafraid and incredibly ignorant. Back then there was no Internet. Picking brains became my specialty.

On other days I’m not so sappy, as I remember the kind words of my business coach:

“If you’re a Pro, you know what you’re worth. If you’re not, go do your own homework! You won’t learn a thing if I hand you everything on a silver platter.”

He was right.

These days, getting info has never been easier. Search Google for voiceover rates. You’ll get about 5,600,000 results in 0.52 seconds. How’s that for starters?

MONEY TALKS

Bringing up rates usually spells trouble. Talent likes them to go up. Clients love paying less. Where to begin?

The Freemarketeers will tell you to leave everything up to the unregulated forces of supply and demand. After all, it worked well for subprime mortgages, didn’t it? The Interventionists fear a free fall for all. They want rates to be regulated.

Unfortunately, it’s not that black-and-white. Voice-Over rates reflect many variables, and unless you belong to a union or you have an agent, it can be tough to put a price on your pipes.

Enter a parade of Pay-to-Plays. You pay for the privilege of being offered the opportunity to audition and bid for projects, together with thousands of other privileged colleagues. Here’s the catch.

As a member, you often have to subject yourself to an agreed price range per project deemed reasonable by that site. Whether or not you choose to accept that range depends on your personal Price Floor.

A Price Floor is a point below which a product or service should not be sold, or else you’d incur a loss. I bet you anything that most people reading these words right now, have no clue what their price floor actually is.

Be honest. Do you?

A EUROPEAN PERSPECTIVE

If you’ve read my work before, you know that I have written about U.S.-based voice casting sites and their perceived influence on dwindling voice-over rates.

On January 8th, 2008, a new player entered the market: Bodalgo. Based in Germany, Bodalgo is the brain child of a man who once had a very boring job as the deputy editor of Penthouse: Armin Hierstetter.

Armin’s no dummy.

He studied the existing P2P’s carefully, as he set out to take the good and improve the bad to create something beautiful. Unlike similar sites, Bodalgo is available in German, Spanish, Italian and English (American and British).

Now, if you think that you can buy your way into Bodalgo, you are wrong. No matter the credit limit on your Visa Card, if you sound like crap, you can’t join the club.

Bodalgo caters to clients from all over the world, but because it’s based in Bavaria, it’s a gateway to the European voice-over market. This brings me back to rates. How does Bodalgo compare to its American counterparts?

I (PS) decided to check in with the boss: Armin Hierstetter (AH). Here’s a transcript of the interview.

PS I just saw a project posted on your site in the 100-250 USD range. It made me think: Is Bodalgo going in the direction of its American counterparts, or did I miss something? Has $100 always been the minimum?

AH In USD the minimum range starts at 100 dollars (the Euro has a 50 to 150 minimum range as – for example – a local radio spot in Germany is usually 50 to 55 Euro).

If jobs are posted that are budgeted too low (intentionally or not), Bodalgo contacts the voice-seeker suggesting what we believe is a fair rate. Sometimes the voice-seeker sees our point and is willing to raise the budget, sometimes not. If the voice-seeker does not agree on increasing the budget, the job simply does not get posted. Period.

Of course, we hear many times:

“What? You want me to pay 250 USD for a job that is done in five minutes? You must be insane, you [censored]”

Well, depending on my mood, I sometimes try to explain why voiceovers cost what they cost (knowing that with these types of folks it really does not help at all in most cases), or I simply press the delete button and go on with whatever I am doing.

PS Bodalgo’s been in business for a few years now. What’s your overall take on how voice-over rates are established and where they are going?

AH There are many factors when it comes to rates. Here are few of them (this is by no means meant to be a complete list):

Your voice:

  1. Experience
  2. Skills
  3. Uniqueness (most important if you ask me)

Your studio:

  1. Equipment
  2. Recording skills

Other factors:

  1. Currencies
  2. Inflation

I see a link between equipment becoming more powerful yet more affordable, and declining voice-over rates. Let me share three trends with you:

1. The costs for your own studio are coming down, so you can make this beneficial for your clients as well;

2. Because many talents build their own studios, there is much more competition which also leads to lower prices. That’s how the market works.

PS Sorry to interrupt, but clients are saving money due to the increase in home studios. They no longer need to pay for studio time, an audio engineer/editor and a director.

It is my impression that these savings are simply pocketed and not passed on to the voice talent. In the end, we end up doing more for less. Shouldn’t this give us some leverage to raise our rates?

Armin Hierstetter

AH I fully understand that voice-seekers already save a lot of money because they’re used to getting the finished audio from the talent without paying for a studio.

I want to be honest with you. I really think that’s one of the biggest mistakes talents have made for a very long time: They did not charge properly for the studio work, only for the rate as a talent. It will be VERY difficult to change this to an approach where talent charges their normal rate plus editing costs;

3. More and more people of the type “My friends all tell me I should host a radio show,” buy a Shure SM58 microphone and think that their laptop recording is God’s gift to the audio world. Untrained amateurs seem to flood the market.

What’s worse, there are many voice-seekers out there that listen to crap demos thinking they are actually good, because they don’t have a proper recording at hand to compare.

But one thing is for sure: Bodalgo will never start to accept amateurs. Yes, there are a few talents with Bodalgo that have just slipped through the net that might not have passed if I had been pickier the day I activated their accounts. Still, the level of Bodalgo’s talent is much, much, much higher than with any other Pay2Play site that we’ve come across.

PS What’s your advice on how to best play the game? Everybody loves to win an audition, but not at any rate. Do you expect voice-over rates to go up any time soon?

AH If you ask me, the reasons why rates should go up are purely to be seen in costs of living. If those prices would be stable, I’d say it’s fair to assume that our rates would stay stable as well.

With financial markets facing the issues they face at the moment, including all the effects like higher inflation, increased costs for energy, food, rent etcetera, I think that we’ll see rates rising over the next years to cover the rising living expenses.

PS Inflation correction keeps rates at the same level. Talent won’t be making more just because the number on a check is higher. If we wish to increase the amount of money coming in, we need to compensate for the rise in the cost of living, and add e.g. 10% to whatever we’re charging.

AH Well, U.S.-based talent benefits from the weak dollar when paid in Euros by Euro-Zone clients. The opposite is true for Euro-Zone-Talent paid in USD. U.S. clients will not accept higher USD prices just because of exchange rates. It’s really just bad luck for us Euro-Talents. 

So, to cut a long story short: Yes, I see higher rates over the next years. But this is only because everything else will go up in price as well.

PS So, how can we best prepare for the tough years that are ahead of us?

AH 1. If you have not done so already, invest in your own studio.

2. Buy the good stuff (like Neumann or Brauner for mics, for example) as it will serve you well many, many years. Personally, I would no longer waste money on analog equipment. I would solely buy digital stuff (like the TLM 103 D from Neumann).

PS Quality equipment is essential, but owning a state of the art camera does not make one a top-notch photographer.

AH I do appreciate that a cool mic does not make a great voice talent, but this is not where I am coming from at all. I am just a firm believer that successful talent simply needs both: A well-trained voice and great equipment to deliver high-quality audio. There are too many Samsung USB mics out there in my opinion.

I know, of course, that those top shelf brands are pricey. But when you look at what you (and your client) get for the money – it turns out to be an excellent investment.

3. LEARN HOW TO RECORD PROPERLY!!! It’s really, really, really (I mean it) horrible to hear how bad, bad, bad many of the auditions are recorded (hiss, bad miking, bad levelling, bad everything). Use proper headphones to proof-listen your recordings and be super critical about the work you deliver. [Armin insisted this should be printed in bold]

PS Can Bodalgo keep both voice-seekers and voice talent equally happy, or is that impossible?

AH That’s easy: Our main goal is to attract more and more voice-seekers that post sanely budgeted jobs. We want to provide them with the easiest solution available to find high-quality talent without paying any commission. That way, both sides will win.

PS Herzlichen Dank, Armin.

Paul Strikwerda ©nethervoice