Stop leaving money on the table with your freelance rate

Ryan Castillo writes:

When I took on my first client, I had no idea how to set my freelance rate. Asking for too much would make me seem greedy. Asking for too little and I would fall into the trap of being overworked and underpaid. It has taken a couple years, but I’ve finally come up with a system to set a rate that is best for me and my client.

Stop leaving money on the table with your freelance rate

Speak with prospective clients with less worry

C.J. Hayden writes:

It’s a rare self-employed professional who has no qualms about talking to prospective clients regarding doing business together. Much more common is to feel anxious, resistant, or awkward about those conversations. Sometimes enough so that you find yourself avoiding them completely, or delaying for so long that someone else gets the business.

But it is possible to speak with prospective clients with less worry.

When you find yourself delaying or avoiding talking with prospects, don’t ignore it or try to push through it. Instead, take time out to identify what may be making it so hard.

How to take the angst out of talking with prospective clients and how to make the whole process easier.

Time and Solo Consulting

It’s difficult for a small organization or a dedicated craftsperson to run an operation as punctually as a large bureaucracy. After all, the bureaucracy exists mainly to be sure that deadlines are honored and variances are not exceeded.

Your customers are aware of this. It’s one reason that they chose you–because you’re doing the work yourself, you’re a person, not an industry.

Seth Godin, writing on his blog in “Craftspeople and Time.”

Tech Consulting in a Tight Economy: COVID-19 Edition

During the Global Financial Crisis of 2007-08, I published a post of a similar title as this one. In light of the current humanitarian crises and resulting economic fallout that COVID-19 has triggered, it seemed worth revisiting that old post as well as sharing an up-to-the-moment opportunity example.

My opener is just as relevant today:

Independent consultants may be in an enviable position within the world of business. Our services – by their very nature of not being tangible – allow us to be more agile. We can adopt to changing market demands.

Adapting, accepting reality, making adjustments, experimenting, learning, brainstorming, analyzing results, incrementally getting better – these are things an entrepreneur does. And make no mistake: consultants and freelancers are entrepreneurs.

Aaron Cruikshank of Friuch Consulting writing on his blog around that time period said:

Find new pain points, serve them.

And also:

People starting out in consulting today might think that they need to go down market to succeed in a shrinking economy. I respectfully submit that such thinking is bunk. What you need to do is find a niche that is not something everyone else is doing and sell it at a premium. For example, when the economy is tight – offer a service that makes people think they’re saving money. You’re a webmaster? People still need websites, even when the economy is in the toilet. Make your niche designing websites in the most affordable way possible or link your design techniques to a measurable return on investment (ROI) so that the client can be sure they got their money’s worth.

I don’t think his statement just applies to those just starting out. It applies to all of us at all times.

Expanding on his example, I’ll dig into this a bit deeper so that you can see how it might apply to your own situation one way or another.

SITUATION: Restaurants (and other businesses too) are focusing on pick-up / take-out service with an emphasis on contactless service, social distancing enforced through scheduled pick-up and pacing, and the like.

OPPORTUNITY: Many restaurants have sub-par to horrible ordering processes on-line and off-line. They’re also suffering from cash flow and liquidity problems. They need orders, they need streamlined processes, they need a good customer experience, they need low hassle, and they don’t have any extra capital to invest in accomplish this.

SOLUTION: Utilize your web skills, business process skills, availability, and expertise with third-party technical solutions to pull together a tailored solution for a restaurant client in exchange for a % of sales (up to a fixed dollar figure roughly equivalent to what you’d have charged for the same work with paid ahead of time payment terms – or even 15% to 25% higher – to compensate for the added risk you’re taking on).

“We’re not paying invoices due to the pandemic” – How to Handle These

A thread that is not to be missed on Twitter on this topic, started by the ever thoughtful Patrick McKenzie:

You’ll have to click through to read the thread in its entirely, including additional suggestions on how to address more complicated situations.

Why Marketing Really Matters for Solo Professionals

What getting good at marketing can do for the individual is to help him or her find the clients they could care about and be eager to help, and the types of work that would be truly stimulating. The better you are at marketing, the more truly professional you can be, because you are not forced to take money from anyone and everyone just because you need the cash.

— David Maister in “Doing It For The Money

A business does marketing and sales for the money, but that’s not the sole reason to get good at it.

David’s original article is a bit long, but there are some other tidbits wrapped around this quote if you feel inclined to dig them up. I also recommend two of his books, “The Trusted Advisor” and “Strategy and the Fat Smoker“ and/or spending a morning with your coffee in hand while perusing his articles and blog archive.

Amateurs Get Angry With Clients. Professionals Educate Them.

Paul Jarvis, writing for 99U:

As most experienced freelancers know, sometimes we have to fire our clients, for their benefit and ours. But it doesn’t have to be this way.

I used to think dealing with frustrating clients was just part of being a creative. But then I realized while, yes, there are frustrating parts of any relationship, frustration should be the exception rather than the rule.

There are certainly times when we want to turn into the freelance version of Donald Trump, screaming “You’re Fired!” at everyone we disagree with. But the truth is, we deserve the clients we get. Bad clients aren’t the result of some cosmic force working against us, they’re more likely the result of our own actions.

Frustrating clients are the result of some misstep we’ve made along the way. To do our best work and work with the best people, we need to be diligent in our relationship with our clients.

Amateurs Get Angry With Clients. Professionals Educate Them

Read his suggestions on how to accomplish this.

Flaws in Handling New Business Inquiries

The WAV Group had researchers pose as consumers and make inquiries with real estate brokers. The results were depressing. They found that:

  • 48% of buyer inquiries were NEVER responded to.
  • Average number of call back attempts after the initial contact was 1.5
  • Average number of email contact attempts was 2.07
  • Average response time was 917 minutes (or 15.29 hours)

Their results were about right for solo technology professionals as well, in my experience.

Unfortunately, that’s not the the most depressing part. It’s embarrassing for me to admit this, but the very week this study came across my desk I blew off a new contact …and we were discussing some ways we could work together. I didn’t ignore him intentionally. I simply completely dropped the ball on getting back to him in an email thread we were having.

I never like to leave somebody hanging. I have no excuse, though I told myself I was too wrapped up in a couple of projects that suddenly picked up momentum that week to continue the thread wholeheartedly. I still should have acknowledged him and said something before it became a 14 (!) day gap of silence. This is Customer Service 101 and I blew it. Learn from my mistake.

Learn all you can from the mistakes of others. You won’t have time to make them all yourself.


Alfred Sheinwold