voiceover rates

Does Money Make You Uncomfortable?

by Paul Strikwerda in Articles, Career, Freelancing, Money Matters 7 Comments

“Why are you so expensive?”

The question came out of nowhere. I was talking to a client about a job he wanted me to do, and he verbalized what many customers are thinking when they hire a voice-over:

“Why should I pay you over four hundred dollars for three measly minutes of audio? It’s outrageous!”

“Why are you so expensive?”

How would you react to that question? Would you start doubting yourself? Would you apologize for your fee? Would you say: “Well, if it’s too much, perhaps we can agree on a different amount?”

The truth is this: money makes many people uncomfortable. Especially those who have chosen to do what they love. Creatives like musicians, writers, photographers, and yes, voice-over artists. If you are fortunate enough to enjoy your dream job, the wonderful work itself should be rewarding enough, shouldn’t it?

For years, the Concertgebouw, Amsterdam’s Carnegie Hall, didn’t pay young musicians a penny for playing lunch concerts. Not even travel expenses were reimbursed. Meanwhile, the ushers, sound engineers, and other staff members making these concerts possible were receiving a salary. How could that happen?

The Concertgebouw said it was giving artists a unique opportunity to gain some experience and get exposure. The same reasoning was used by schools “hiring” musicians for educational concerts, by pubs, churches, charities, and even TV shows. This went on for years and years. Why?

Because the artists agreed to it, thus teaching clients how to treat them.

Many had to give up their dream career because exposure doesn’t pay the bills.

JUSTIFYING YOUR FEE

As a for-profit freelancer, you have to answer the question “Why are you so expensive?” on at least two levels. First, you owe yourself an explanation. Secondly, you have to explain it to your client.

Before you do that, you have to realize that most questions are based on unspoken assumptions. If you buy into these assumptions, you buy into the client’s way of thinking, which is not such a smart thing to do.

Let’s unpack.

The question “Why are you so expensive?” has three elements. WHY, YOU, and EXPENSIVE. The word WHY demands justification, immediately putting you on the defensive. Do you wish to go there?

Here’s the thing: if you are comfortable with your rates, there is no need to defend them. The moment you feel unsure about your prices (and your self-worth), you’re more likely to lower your fee at the first sign of resistance.

In the beginning of my career, I was afraid to lose jobs because my fees might be perceived as too high. As soon as a customer uttered the magic words “we have a limited budget,” I believed them, and I lowered my price. Big mistake.

These days I know that there is no way of knowing how much a client -big or small- can or cannot afford. I do know that I cannot afford to work for low rates. Here’s the kicker: low fees are often seen as a sign of inexperience and amateurism. Charging less may actually result in not getting hired!

Bottom line: stop being so desperate. Have some dignity. If you are running a for-profit business you must be okay to walk away from a bad deal. Let others record that lengthy, self-published, shitty novel for $75 per finished hour thinking they have landed the deal of the century. You can’t convince stupid. Stupid has to learn from experience or repeat the same mistakes over and over again.

THE REAL DEAL

This brings me to the YOU in “Why are YOU so expensive?”

The question behind the question is: Compared to whom? The unspoken assumption is that there are others who are willing to do it for cheaper. That may be true, but you have to realize that the client is talking to you for a reason. You are not a dime a dozen. You sound like a million bucks and they know it.

Your voice is used by multinationals, world-famous brands, and well-known organizations. You need no hand-holding and no sound engineer to fix your audio. You’re easy to work with and you always meet your deadlines. That’s worth something. A lot, actually.

And if you’re a voice talent that’s just getting started, you know you have this fresh voice no one else has. You have a solid studio with decent equipment, and you’re a natural at making the words in the script dance off the page. You listen to your clients, and you give them what they need without an attitude. You may be new to the business, but you are a pro!

DEFINE EXPENSIVE

A wedding photographer I used to work with got this question all the time: “Why should we pay you a fortune for a few hours of your time?”

She learned that the first thing she had to overcome was the costumer’s ignorance about pricing and ignorance about what’s involved in doing the job. Most people had no idea of the going rate, so they had no way of telling whether someone was expensive or not. They just heard a number that seemed high. They made a mistake many beginning freelancers make:

Thinking that what you make is what you take home.

They did not realize that the fee for a photo shoot paid for professional cameras, lenses, lights, a shooting assistant, computers, editing software, a website, advertising, accountant’s fees, taxes, memberships of professional organizations, insurance, continuing education, a retirement plan, transportation, a photo studio, time spent looking for work, doing the books, editing photos, et cetera. Whatever is left has to pay for rent or mortgage, groceries, utilities, childcare, vacations, charitable donations, and many other expenses.

CLUELESS CUSTOMERS

Believe me: your clients have no clue about your cost of doing business, and they do not care.

However, if you don’t build these expenses into your fee, you will go broke. All the talent, skill and experience in the world is not going to save you if you’re not turning a profit.

So, the next time someone asks you “Why are you so expensive?” think twice before you answer.

Personally, I am comfortable with what I charge. I think it’s more than fair, and I deserve it.

When people ask me why I charge what I charge I tell them in a friendly but self-assured way:

“That’s my rate,” and I leave it at that. And you know what? Nine out of ten times, they accept it, and that’s understandable.

I mean, I don’t go into a restaurant challenging the chef why he charges $35 for the main course.

It’s simple.

If I don’t want to pay that much, I should eat somewhere else.

There’s fine dining, there’s fast food, and anything in between.

What are you cooking up for your clients?

Paul Strikwerda ©nethervoice

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Debunking Bottom Feeders

by Paul Strikwerda in Articles, Book, Career, Freelancing, Money Matters 15 Comments

Something 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, unrealistic, elitist, 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 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

*since the publication of this article, Rebecca’s blog posts are no longer available

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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.

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Stop Selling Yourself Short

by Paul Strikwerda in Articles, Career, Freelancing, Money Matters 10 Comments

A while ago it happened again.

One of my contacts sent me the following message:

“Paul, my client would like you to voice two 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? Should I charge the full €500, or even more?

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 should 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 contributing to a downward trend.

RATE REDUCTION

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 bad habit of giving discounts to all 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. Don’t be 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 so worth it!”

Paul Strikwerda ©nethervoice

PS Be sweet. Please subscribe &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.

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Divided We Stand

by Paul Strikwerda in Articles, Career, Pay-to-Play, Promotion 36 Comments

Is the voice-over world one big love fest?

If you go to pretty much any VO-conference, you may get that impression. There’s a lot of hugging and endearing cheering going on. People speak of “my voice-over family,” and will introduce you to their “Sister from another Mister.” It’s all hunky-dory on cloud nine. Why is that?

Is it because voice-overs tend to be part of an inherently “nice” and unpretentious group of people who avoid conflict at all cost, or is it because all the “nasty” people stay away from these social gatherings? Perhaps the bad apples congregate at conventions we know nothing about, sponsored by voices dot double U dee (wd stands for world domination).

But seriously, not all is well in voice-over land, and you know it. As in any community, there is camaraderie and controversy. Not to stir the pot in any way, but there still are a couple of hot-button issues we shouldn’t sweep under the carpet. Let me name a few.

1. Rates: publish them, or keep the client guessing?

Out of all the topics, the greatest shift in thinking happened on this one. In 2012 I made the case for colleagues to publish their rates on their website. Why? Because in the twenty-first century, people want to know how much things cost. That’s the way they are wired.

The nay-sayers argued that listing prices would hurt negotiations. It would scare away customers, and we’d make it easier for the competition to put in lower bids. Besides, there was no consensus as to what was considered to be a standard rate.

Fast forward five years. The Global Voice Acting Academy’s Rate Guide has taken our community by storm, and is widely used as a point of reference. It’s been sent to some Pay-to-Plays, and the latest version was edited so it could be presented to clients. More recently, UK-based Gravy For The Brain published a guide to voice-over rates typically charged by voice artists in the United Kingdom.

In short: voice-over rates are no longer a big mystery. More and more colleagues are publishing how much they charge. Still, a fair number of colleagues feel we don’t do our industry a favor by being open about our prices, and thus the discussion continues.

2. Rates: how much or how little to charge

Critics of rate guides almost always use the same argument: “Who are you to tell me what I should charge? Mind your own business!” Oddly enough, it’s usually people on the lower end of the scale who seem to be defensive, and I have trouble understanding why they respond that way. If you’re running a for-profit business, isn’t it helpful to know what the going rates might be?

Secondly, these rate guides are called guides for a reason. No one will force you to charge a decent fee for decent work. If you feel your voice-over isn’t worth more than a fistful of dollars, welcome to the Wild West where the deaf lead the blind.

But let’s put all of that aside. Why shouldn’t we have a rate debate? Why can’t we issue guidelines? Almost every professional organization on the planet deals with compensation. That’s just one of the things professionals talk about. Only amateurs don’t have to concern themselves with what they charge. And that’s perhaps the crux of the matter.

The never-ending influx of amateurs has weakened the position of professionals. That’s why pros are taking a stand, and say:

“You may want to work at any rate, but it is immoral and unwise to do so. If you don’t value what you have to offer, you cannot expect others to value it either.”

3. Union membership

This is another hot topic in the voice-over world. Some prominent voice-overs feel the answer to all our troubles is to join SAG-AFTRA (or if you live outside of the U.S., to join another union). We’d all be paid a fair amount, we’d get health insurance, and we’d be in a much better position to negotiate with the big players. United we stand!

The problem is that many voice-overs feel that SAG-AFTRA has been treating them as unwanted stepchildren, once removed. Compared to on-screen actors, we’re the invisible small potatoes. Who cares if we ruin our vocal folds, dying a thousand screaming deaths for some silly video game? We don’t deserve extra compensation for that, do we? (please insert sarcasm)

After the longest strike in SAG-AFTRA history, there’s a tentative deal on the table that includes a promise that companies will work with the union to “examine the issue” for the next three years.

Things like that make me scream, but I have to be careful!

In a recent article, the Washington Post concluded: “In a $24.5 billion U.S. video game market that has turned some voice actors into celebrities, they still aren’t treated with the same respect as actors in television and in movies.”

Did you know that video games don’t pay residuals, and a union-proposed bonus structure for voice-overs didn’t make it into the tentative contract?

On top of that, a lot of union jobs are now turned into non-union, and SAG-AFTRA has done little or nothing to stop that trend. Oh, and did you get the news that a certain Canadian voice casting site has introduced a platform for talent agencies to access SAG-AFTRA jobs? They’re also going after ACTRA and other performance unions around the globe. Did the union(s) speak out about that, yet?

All I heard was crickets, so let’s turn to another topic.

4. WoVO

The World Voices Organization (WoVO) was incorporated on April 25th 2012, and it was launched a day later. WoVO is a non-profit international industry trade organization. Its mission is:

“to inform and educate members of the voice-over community and other business professionals about best practices, standards for ethical conduct, and professional expertise as it relates to the voiceover industry.”

WoVO is run by voice-over talent for voiceover talent, and I am one of its members.

Why do I list WoVO as one of the hot-button topics in voice-over land? Because there must be thousands and thousands of voice-overs in the world, and only about eight hundred or so are WoVO members. If WoVO-membership would be a no-brainer, this number would be much higher. Apparently, it’s up for debate.

If you are reading this blog, and you are not a member, what are you waiting for?

5. Voices dot wd

In one way I’ve got to give it to the leadership of this greedy, unethical company: David C. has always been clear about his ambitions. He wants to be THE middleman in voiceoverland, taking a big fat cut from every party involved in every transaction on his site. This year, Morgan Stanley Expansion Capital gave him eighteen million reasons to demonstrate he can deliver.

The pressure is on!

David’s strategy is straightforward: gain the biggest share in the voice-over market by creating a streamlined system that’s simple enough for stupid people to use. The next step is turning his VO-services into a commodity by encouraging the lowest bidders to sell to the cheapest clients.

How do you get voice-overs to buy into this scheme?

1. Appeal to the laziest hopefuls by promising to deliver lots of leads via email.

2. Have them pay an annual membership fee for the privilege of bidding on jobs they’re likely to never land; a privilege shared with over 200,000 other voice actors in 139 countries.

3. Make it easy to sign on the dotted line. No talent needed. Just a credit card.

Why is this still dividing the voice-over community, you wonder? There are two hundred thousand reasons why. Without them, there would be no voices dot wd.

BONUS: The Voice Arts® Awards

On Sunday, November 5th, people were flocking to New York to attend The Voice Arts® Awards Gala, known to some as the “Joan & Rudy show.”

There are voice actors who believe our profession needs these awards to provide international acknowledgement of the extraordinary skill and artistry that goes into voice-over acting. Others like me, question the value of these awards.

In case you didn’t know: the Voice Arts® Awards do not give a prize to the best performance in a specific category. They only nominate and award those who paid a significant amount of money to be evaluated. In other words: you pay to play. So, a phenomenal voice talent might never win an award because he doesn’t want to spend his money on some competition.

By the way, the costs don’t end there. As a nominee, you’d have to travel to the awards, pay for a hotel and meals, pay for a ticket for your partner, and if you win, you also have to fork over $350 for your trophy. Is that worth it? And get this. Even though all VO’s pay to enter the competition, only VIP’s get to walk the red carpet, and last year there wasn’t enough time in the show for everyone to accept their award on stage. One of last year’s nominees told me:

“I was sold on going to this show and spending about $2000 because I’d have my name and work announced (marketing!), and I would have my moment like all the other nominees (fun!). And I was robbed of both. Those were the two reasons for going to the VAA.”

Another colleague wrote:

“There are no stars in VO. We both know it’s not glamorous. A big party is fun when we’re all together. But to get together to honor the dubious distinction of buying temporary adulation and ‘stardom,’ seems to me to be so disingenuous.”

So, is the voice-over world one big love fest? Of course not!

You may not agree with half of what I just wrote, and that’s fine with me. As long as we keep on talking. Every time I make a contribution to this blog, I want it to be the beginning of a conversation. Never the end.

What you are reading here is just my opinion,

and my opinion is always up for debate!

Paul Strikwerda ©nethervoice

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Who’s Afraid Of Decent Rates?

by Paul Strikwerda in Articles, Freelancing, International, Internet, Money Matters, Pay-to-Play 34 Comments

Newsflash!

The great rate debate is still going strong.

I’ve been writing about the erosion of voice-over rates for years, and every day, clients and colleagues are arguing privately and publicly about the value of our voices.

One thing is certain: that value keeps going down. Talk is getting cheaper and cheaper.

What’s going on?

Let’s begin with our clients. It’s so easy to blame clients for this downward trend, because they’re the ones paying us. However, I think it’s time to cut them some slack. So many of them are small players in a big, international market. Because that market is unregulated, and there are no universal prices, they have a hard time figuring out how much they can expect to pay for our services. That’s not really their fault.

A majority of voice-overs do not list their rates, hoping clients will contact them and ask for a quote. Those quotes may differ greatly because we need to take so many variables into account, and frankly, many of us don’t always know what to charge. Go to a VO Facebook group on any given day, and you’ll find someone asking for advice on price.

TURNING A PROFIT

Because I run my own business, I completely understand that my clients want to keep their costs low, and their revenue up. If you can get great service at a great price, why pay a penny more? I also understand that there’s a link between what you pay and what you get, no matter what industry you’re in. It’s foolish to expect top quality at a bargain-basement price, unless you’re benefitting from a liquidation sale.

These days, everyone’s online, and that complicates matters. It may seem that we’re all operating on a level playing field (the world wide web), which is not the case. It is anything but level, but try explaining that to an imaginary photographer in Latvia, who needs a few English voices for a website he’s launching. He’s offering $20 for 5 minutes of VO, which he believes is perfectly reasonable because he’s hired local talent at that price. He wants to know:

Why should I pay $250 for a 5-minute voice-over, if Olga in Riga is willing to do it for $20?

I told him: “Your job posting tells me that you’re looking for voice-overs with an authentic British accent. If Olga can pull that off, why not hire her? The reason you’re posting your job overseas is that ’20-dollar Olga’ has no idea what she’s doing. Her accent is clearly from Latvia, and not from London. And because it’s cold in the Baltics, she’s probably using a Snowball microphone, guaranteed to give that crap amateur sound the Fiverr crowd is so proud of. You pay for professionalism, or lack thereof.”

The photographer responds:

I understand that it might be hard for me to find a native British voice-over in my neck of the woods, but that still doesn’t explain the huge difference in rates. $250 for five minutes? I think people are just greedy.

I said: “Location makes a big difference. Let me give you an example. Why does a Big Mac cost $7.80 in Norway, and only $1.62 in India? Why doesn’t McDonalds charge the same price for the same product, regardless of the location? Because the price of a Big Mac is a reflection of its local production and delivery cost, the cost of advertising, and what the local market will bear.

The cost of living is much higher in Norway, and consequently, people make more. According to the CIA, the 2016 per capita income in Norway was $69,300 and in India it was $6,700. If I were a Norwegian voice-over artist and I would charge Indian prices, I wouldn’t be able to make a living. That has nothing to do with greed.

As a freelancer, you have to price for profit wherever you’re located, because that’s where you’re buying your Big Mac. It’s where you pay your bills, and your taxes. That’s why a UK talent charges more than someone in Latvia, or in India.

ONGOING ADDED VALUE

And let’s remember that a voice-over is not some hamburger you order at the drive-through. Every Big Mac should pretty much taste the same, no matter where you order it. It’s generic. Once it has been consumed, it has served its purpose.

Every voice is unique, and every voice-over artist brings special talents and experience to the table. Once recorded, that commercial, trailer, or eLearning course can be played again and again, adding value every time someone’s listening. That’s worth something.

Last but not least, just because you’re paying $250, doesn’t mean the voice-over always gets $250. Some online casting companies like Canada-based voices dot com, pocket a considerable amount without telling you or the talent. If you want to talk about greed, talk about that!”

THE TROUBLE WITH COLLEAGUES

The Latvian photographer still doesn’t understand why he can’t hire a UK talent for $20. However, in my experience it’s much easier to talk sense into some clients, than to reason with certain colleagues (and I use the term colleagues loosely, because they’re acting anything but collegial). Most of my clients know how to run a for-profit business, but so many ‘colleagues’ seem to be clueless. They don’t know the difference between “selling,” and “selling out.”

Every time the issue of reasonable rates comes up, there are always voices saying:

“Who are you to tell me what I should charge? It’s a free country, and I can charge whatever I want!”

Yes, and I can sell my Subaru Outback any time for $300, but does that make any sense whatsoever? Why should I settle for a handout if the market value of my car is at least $3,000? How stupid do I have to be to practically give my car away to the lowest bidder?

By the way, this whole free country argument is a load of bull, used by imbeciles to defend all kinds of idiotic practices. Here’s the thing:

Just because you can, doesn’t mean you must, or that it’s wise.

“But who cares if I sell my voice for five bucks? Mind your own business! I’m not telling you what to charge. My bottom line doesn’t affect yours.”

Is that really so? What would happen if half of all car owners would decide to sell their vehicles way below value? Tell me that has zero impact on the used car market!

If what’s happening at the bottom of the VO-market does not affect the rest, why aren’t voice-over fees at least keeping up with the rate of inflation? Why are rates across the board in a steady decline?

WE NEED EACH OTHER

In the grand scheme of things you may feel insignificant, and believe that your choices only influence your bottom line. But hundreds of these individual choices send a message, and thousands create a trend clever clients have picked up on.

To put it differently: if you really believe that one, individual decision has no impact on the overall outcome, then there’s no reason to live in a democracy. You might as well move to North-Korea. But since you’re still here, and (I hope) you vote, you must believe that you can make a difference.

Your choice of what to charge makes a difference. It impacts our professional community, and the families that depend on it.

You can either cheapen our profession and our community, or enrich it. You can build it up, or tear it down.

You can price like a predator, or like a professional.

Or are you afraid to charge a decent rate? Are you afraid the client will reject you?

Are you not convinced that what you have to offer can command a fair price?

If that’s the case, here’s a suggestion: perhaps you should find another job.

A certain Pay to Play call center in Canada might be hiring very soon.

Paul Strikwerda ©nethervoice

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PPS Below you’ll find links to some of the other articles I’ve written about rates and pricing

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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

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The Power Of Pricing

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

SNOW 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:

Do you consider yourself to be a pro?
Do you want to run a for-profit business?
Do you want that business to grow?
What are the costs of running that business?
What’s your break-even point?
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:

Facts about your own cost of doing business
The client’s evaluation processes
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.

PS Be sweet. Please retweet!

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

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The Ugly Truth

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

Before you begin, please note that the following article was written in September 2015, long before Voices dot com bought VoiceBank. I think my story proves that past behavior is a good indicator of future behavior.

Beginning 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 (VDC), 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. It’s easier for an elephant to fly in the sky using his ears, than for VDC users to cancel their membership. Even those who thought they had been removed from the VDC database years ago, found out that they’re still in the system!

Instead of trying to regain the trust of members who each paid $399 or more for services they feel they’re not receiving, VDC is giving callers 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.

After a deluge of devastating one-star reviews in August 2017, the moderator of the VDC Facebook page removed the review option altogether, deleting all the comments. Why does the image of an ostrich sticking its head in the sand suddenly pop up?

PERSONAL CONSEQUENCES

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.

One day in September 2015 when I tried to log on in, 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.

WE HAVE HAD IT!”

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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.

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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

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

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: