Do you enjoy giving up perfectly good money to someone who probably has more than you?
No? Then this is the blog post for you.
One of the lessons I’ve learnt the hard way in my 3 years as a freelance writer is that giving clients discounts seldom works in your favour.
If you’re new to this profession, you might be swayed into giving discounts so that you can land a writing gig. I know I did. But don’t make my mistake! It’s not a good idea.
Like many freelance bloggers, I started my writing career on a bidding site. I signed up, completed my profile, wrote a few sample articles, and sent applications for every job I felt I could handle. As is the norm with new users on bidding sites, most of my applications got rejected, but once in a while I got a response from a client who was willing to hire me.
After exchanging a few messages about the job and convincing the client of my competence, I would often get a message that went something like this:
Hi Eric. We really love your work and we’d like you to join our team. We have many more projects in store for you once this is completed so we would like you to send us your best rate. What’s your hourly rate for clients who offer continuous work?
There are two ways to handle this scenario and I’ve tried them both. Want to know which one works best?
At first desperation for money, and fear that I would lose the client to another freelancer with more “friendly” rates, always made me cave and lower my price. Sometimes by as much as 50% depending on the client’s requests and promises of more work.
In most cases I got the job. But at what cost?
It’s been longer than 2 years since I last used a bidding site to find a client. Today they either contact me by mail through referrals or I send cold pitches to prospects to sell my services. This has helped me land very lucrative clients, albeit in smaller numbers.
In all cases, when asked about my price I always stick to my initial rate and I don’t budge for any reason. Some clients accept. Others do not and move on to other “less demanding” writers.
Either way, I don’t mind. I always stick to my price.
If you’re in the habit of discounting your rates to suit your client’s wishes then you’re sabotaging your business. Here are 5 reasons why you should stop immediately.
1. You Look Less Professional
In the freelance writing world, reputation and perception are what compel clients to reach out to you and enquire about your services.
If you drop your rates on request, the client might think that your work is not all it’s cracked out to be and lose faith on your ability to deliver. This can happen even if your samples are top notch.
Without knowing it, by lowering your rates you’re lowering your worth in your client’s eyes.
If you believe you’re worth $100 per article then that’s what you should charge. Lowering your price on demand makes you look less of a pro and you may end up losing the client to another writer who has the guts to stick to his guns.
2. You Set a Bad Precedent
The client may perceive you as weak or uncertain and take advantage of this to his benefit. In the client’s mind, you have no backbone. If you’re willing to lower your rates on his request, he may develop the attitude that everything about you and your work is negotiable.
For example, if you tell the client you can finish a project in 10 days, the client may ask that you finish it in 5 days. To put it simply, you might end up haggling with the client on just about every issue simply because you started off on the wrong foot.
3. You Risk Your Financial Security
Consider your financial situation before you lower your rates for a potential client. There’s a reason you charge the prices you do.
If you start slashing your prices every time a client asks you to with the promise of future work, you might start lagging behind on your rent payment, utility bills and other essential expenses. Little luxuries you used to enjoy as a result of your original rate may become a thing of the past. You may be required to work more hours just to maintain your current lifestyle.
It’s just not worth it.
My advice: don’t give in.
Settling for less than you deserve is not the answer. Provided your work is top notch, there are many clients out there who are willing to pay your rates. You just need to be more aggressive at marketing to find them.
4. Your Promised Ongoing Work Rarely Materializes
If you’re communicating with a potential client and he drops this “lots more work in future” line, there’s a good chance that he has a one-off project he wants done for the lowest rate possible. Clients have been known to use this excuse as a dangling carrot to persuade writers to accept much lower rates than is their norm.
Politely tell the client your rate is non-negotiable. It helps if you go into detail and explain why you charge what you do. Sometimes this softens up potential employers and makes them more willing to pay your rates even if they thought them too high at first.
I have to mention that not all clients are tricksters. On some occasions you may meet a client who genuinely needs a writer to work on multiple long-term projects. You may be tempted to agree to a discounted rate in this scenario. After all, you’ll have steady work, something writers are constantly looking for. Even then, don’t do it. You’ll end up working more hours just to make ends meet.
5. Your Discount-Hungry Clients Are Too Demanding
If a client likes to haggle over rates, chances are he or she doesn’t understand or appreciate the value of what you do. In my experience, these are the clients who will always ask you to do multiple revisions until a piece is “perfect”. They’re also slow when it comes to making payments.
These are often the clients who are most likely to swindle you, so watch out. If a prospect is asking you to halve your price for the promise of more work. or is making comparisons to other writers who can do the same job for a much lower price, be cautious. You might just end up wishing you had never met them in the first place.
What’s your take on giving clients discounts? Is it something you regularly do, or purposely avoid? I’d love to hear your experiences of dealing with bargain-hunting clients and how you keep your rates on the right track.
Image: jenny downing
Elizabeth says
Great article Eric. I’ve been there too and it’s so frustrating. Thanks!
Francesca Nicasio says
Love the post, Eric. 🙂
I can definitely understand the temptation to lower your rates just to get the gig. I’ve done it myself and I ended up resenting the job because I knew that I wasn’t getting paid what I deserved.
And I can also relate to your 5th point, “Your Discount-Hungry Clients Are Too Demanding”. Tell me about it. It’s a bit ironic, but the clients who pay you lower rates usually end up being very demanding, while those who are more than happy to pay top-notch fees are very professional and a joy to work with.
Gary Peterson says
Sophie,
Great article ! And sooooo true, as I have experienced this myself by starting on ” those sites” ;-). Lucky for me I met you..and took your course. Now I am already getting clients contacting me and offering gigs. My price is now my price, thanks to you !
Cheers Lady,
Gary
Lauren Tharp, BAFB Community Helper says
So glad you’re having a great time here at BAFB, Gary!
Eric Ogero actually wrote this particular article. It was awesome, right? 🙂
Thanks for commenting & keep staying true to your value.
Eric Ogero says
@Elizabeth Thanks for pitching in. The temptation to give discounts can at times be overwhelming especially when you need the cash. Whenever you’re tempted to settle for less than your normal rates just remember you’ll be doing yourself more harm than good in the long run. Glad this article has been of value to you.
Eric Ogero says
@Francesca So true. Might I add you not only resent the job but the client as well. This makes you less motivated to come up with great copy for the person. In such a scenario you have no problem producing work that is merely ‘good’. Why should you be? You’re giving them their money’s worth.
I made a pledge to myself to never work for such people again. To date I save 25% of my earnings. Ever since I started I’ve never been desperate for cash. Even in the rare times when I go weeks without getting a gig. I advice all freelance bloggers to try this.
Thanks for the comment Francesca. I appreciate it. Glad you love the post.
Putri says
So, true… especially no. 2 and 5. Thanks a lot for this.
Lauren Tharp, BAFB Community Helper says
Seriously, right?? (Sounds like you’ve had some personal experience with #2 & #5–unfortunately!).
Thanks for commenting, Putri. Keep on sticking up for your right to good rates! 🙂
Daryl says
I think what’s important here is in choosing the right clients. You definitely don’t want the type of clients who request “free samples” and ask you to cut your rate down to 1 cent per word for “bulk work”. These are the type of clients that I wouldn’t want to touch with a ten foot pole, and are definitely the ones that give the most hassle as you pointed out.
That being said, I think there are exceptions to the rule, and I can be talked into giving clients a 10% discount. I’ve done it and clients haven’t been fussy or tried to haggle on anything else. Client selection is definitely key in avoiding many of the issues that you mentioned.
Lauren Tharp, BAFB Community Helper says
Oh, absolutely. “Free Samples?” HUGE red flag!
When I first started out, I would offer a 10% discount to clients who would order in bulk (or pay in full up front), but it ended up not being worth it. Those clients were never the ones who respected me as a person or valued my work. But, it’s all about doing what works best for YOU–so, if you’ve had good luck, then keep on keepin’ on.
Thanks for reading!
Bhumika says
Great points you have mentioned. I am working as a freelancer from past 1.5 years. I have gone through this.
Lauren Tharp, BAFB Community Helper says
Congratulations on making it through your first 1.5 years! 🙂
Sorry you’ve had to deal with discount-hunting clients, but it definitely comes with the territory. I’ve had to deal with them too.
Thanks for reading. I hope to see you around here for another 1.5 years at least!
Brian says
Hey Eric,
Your number 4, the promise of ongoing work really struck a cord with me. I’m just getting started with freelancing, still struggling to find a client, and I was wondering about compromising on my proposed rate today, if a client promises ongoing work. Thanks to you I know the answer to that. No.
Great article.
Lauren Tharp, BAFB Community Helper says
So glad you got your question answered, Brian. Thanks for reading!
Eric Ogero says
@Daryl Well said. Client selection is very important in avoiding the issues I’ve mentioned above.
You mentioned you can be talked into giving a 10% discount on your rates.
As long as it doesn’t make you work a lot of extra hours to reach your monthly financial target or make you look less professional before the client then I guess it’s okay. Sort of. I wouldn’t encourage it though.
A few months ago I had a client who asked me to slash my rate by 20%. I politely declined and thought I’d lost the job only for the client to approach me again a few days later seeking to hire me at my proposed rate.
I can only deduce the client was testing me.
Ever considered that maybe the client may be testing you by asking for a marginal discount? You might be leaving good money on the table to someone who has no problem paying your proposed rate.
Food for thought perhaps?
Michael Hicks says
Discounting your rates is the copywriting genie your
clients will never let you put back into the bottle.
But your clients’ needs should always come before
your own. So you might consider finding a compromise
solution that works without rubbing them the wrong way.
Provided you have good clients where price is the
only obstacle, you CAN provide an alternate service
that falls within their budget. Then, use this smaller
success as a launching pad into higher paying projects
consistent with your rates. Most clients will be only too
happy to oblige, since they’ll be paying you from newly
minted profits that you helped them generate.
And I’m in total agreement with Eric about saving 25%
of your earnings. If you always have money, you never
need money. Financial desperation is a weakness clients
can smell a mile away. Building and maintaining a money
cushion is your best defense, both professionally and for
your own peace of mind.
Very well done, Eric. Thanks so much for the great tips!!!
Eric Ogero says
You’re welcome Michael.
That’s a very good point. Just because a client can’t foot your rates at the moment doesn’t mean you can’t work with them. You CAN provide alternate services based on their budget and use the success from these small endeavors to catapult yourself to higher paying projects consistent with your rates.
This way you can earn some money and establish a relationship with the client without tarnishing your professional image.
I love it.
Thanks for sharing.
Halona Black says
Yes, there is nothing worse than resenting a client for the rate you willingly accepted. I just started freelancing 6 months ago. I took on my first real client who paid me only $100 for 8 blog posts a month. Then I did some research and figured out that I was doing way too much work for very little return. Needless to say, the relationship didn’t last very long.
Lauren Tharp, BAFB Community Helper says
I actually wrote a little bit about this on my own website, if you’re interested: http://littlezotz.com/2013/08/k-is-for-karma/
It’s so much better to say “no” to crappy prices than to end up resenting a client or–worse!–using it as an excuse to put out sub-par work.
One of those lessons we freelance bloggers have to learn the hard way, unfortunately. 😉
Thanks for reading!
Ian Brophy says
Well said Eric. I learned this in an embarrassing way soon after I bought a photocopy shop. A customer brought a fairly large job in and we talked while I was doing it for him. I realised that he was a business man and knew how things worked.
I gave him a discount and he paid his bill. Just before he left, he turned, wagged his finger at me and said, “Never give a discount. I was happy with your service and happy to pay the price on your poster. Now you have embarrassed me. I will never come in here again.”
He didn’t and I still cringe as I write this, some five years later.
Lauren Tharp, BAFB Community Helper says
Oooh. That made ME cringe reading about it.
But seriously? “No you have embarrassed me.” Ego much? Yeesh.
You didn’t need that guy. It’s been 5 years. You’ve probably had TONS of other customers. It’s time to stop cringing. 😉
Thanks for reading & sharing your story, Ian!
Michael Feeley says
Excellent advice and writing Sophie. You’re 100% correct when you ask us to think about our personal value…what we are worth because that is equal to the services we offer. Personal worth and dollar worth should be the same. No sliding scale. Cheap clients already are taking a respect discount on you, encouraging you to lower your standards…to lessen your integrity and personal value which us the same as making less of your honor, good name and talents and gifts. The world is full of people and the perfect client for you is out there and that includes perfect in meeting your price. It’s never worth it to give in even when times are BAD. I’m venting a bit but you’ve got me resonating and I hope to encourage other people to see how right you are. Thanks for your passion and solid advice.
Lauren Tharp, BAFB Community Helper says
Eric Ogero is actually the one who wrote this post, but he definitely had some great advice. 🙂
Thanks for reading!
Muhammad says
Hi Eric; you are very right that you should not lower down your worth and stick to your service rates with confidence to make client understand how much professional you are. Yes in some situations especially when you are going through a financial crunch offer big discount can be a smart move to get something that is obviously better than nothing
Jon Patrick says
Great article Eric,
I’m new to freelancing, but not blogging, and while I’ve been very fortunate thus far grabbing work, I am working in some cases below my minimum acceptable rate because I’m going down the same road you describe. To some extent, if it’s the choice between earning something while I search for other clients or not writing at all, I’ll take the work… but I draw the line at those content farms that pay $1 per 100 words. That just devalues all our efforts!
Lauren Tharp, BAFB Community Helper says
We sometimes have to make *little* adjustments to our “normal” rates–just never go below your “this is what I can live on” rate. (And, if you haven’t figured out what that is yet, get to it!)
Over all though… Keep valuing your work. Keep searching for clients who WILL pay your rates. Good work is well worth the cost and good clients know that.
Hang in there and welcome to the freelancing world! 🙂
Roy says
Eric, the tips are great — your confidence does indeed reflect your worth. Nice piece. Continued luck.
Lauren Tharp, BAFB Community Helper says
It takes a lot of confidence to leave a comment on a public blog post as well. 😉
Thanks for reading, Roy!
festus says
Hi Eric
First, I’m glad to see that sophie picked a kenyan’s post and shared it. it was getting a little lonely in here…
second, a personal story. a former workmate wants to produce a souvenir magazine about kenya’s independence, and he asked me how much i’d charge to revise the articles two weeks ago. i asked him how many articles he expected, he didn’t give me a definitive answer, but i let it slide *mistake number 1*. third, i quoted 100k; he nearly hit the roof in shock and he cried about him being an sme, we go back a long way, etc. so i dropped my rate to 45k *mistake number 2,* but on condition he paid me half in advance which he did, phew! it turned out the articles weren’t edited! so i had to edit and revise them and the client kept calling me that i’m ‘delaying’ his magazine. since i had actively participated in the birth of this tiring situation, i decided to do the articles without asking for a raise. last saturday, he told me he’s sending me 10 ‘final’ articles which turned out to be…35! i told him there’s no way i’m touching 35 articles instead of the originally agreed upon of 10. he went ballistic, accusing me ‘jumping out of the car before it reaches its destination…’ i stood my ground. to stop further bleeding, i told him to take the remaining balance of 22k and finds someone else to finish the stories, and also told him to be grateful i edited and revised 75 articles for 22k.
lesson learned.
Eric Ogero says
Hi Festus.
Thanks for sharing your story with BAFB readers. It’s incidences like these that prompted me to write this post.
I’m still having difficulty coming to terms with the fact that you edited 75 articles for 22k. Damn!
For the record, the figures Festus is talking about are in Kenyan shilings and not American $$$. Kshs100,000 translates to roughly $1, 250. Ksh22,000 translates to roughly $275.
That means he edited one article for roughly $3.67. That’s extremely low! Even with Kenya’s low living standards!
I’m glad you learnt your lesson and ditched that client before he bled you dry. I believe, scratch that, I KNOW, you can get better clients if you work on becoming a better writer, if you market yourself more and don’t allow desperation for money to set in.
Work other jobs on the side as you pursue freelancing. Avoid spending money on things you don’t really need until you can comfortably afford them.
If you’re REALLY desperate for cash and feel you might be prompted to give huge discounts then move in with an established older sibling, a relative or your parents. This will help you save more by cutting down on rent and power costs until you’re well established and can make LIVABLE wages without working like a horse every day. Provided you’re ambitious and focussed you should be back on your feet in no time – bigger and better than before.
I wish you success.
Teresa Rothaar says
My response is that I give discounts *only* to charities/non-profits, and then only on a case-by-case basis; I’m not going to discount my rates for a charity I think may be shady, or that represents a cause I do not personally support.
I agree that the penny pinchers often end up being the most demanding customers, paying rock-bottom rates and then expecting the moon in return. It reminds me of the time I attempted to give away an old swing set skeleton for free. People came over to see it, hemmed and hawed, and were upset that what I was offering for free wasn’t as good as what they would have to pay a few hundred bucks for brand-new at the store. One lady actually said she had to “go home, think about it, and discuss it with [her] husband.” Mind you, this was something I was giving away for FREE. What was there to think about or discuss? You either wanted it or you didn’t. I ended up having the garbage man haul it away, and vowed to never offer anything to anyone for free again. If I need to get rid of something, I just take it to Goodwill or the dump; at least they don’t complain.
Lauren Tharp, BAFB Community Helper says
Your swing set story made me laugh. lol.
I hear ya!
And giving discounts to passion projects on a case-by-case basis sounds like it’s working out for you. 🙂
Thanks for reading!
Jackson Anderson says
Hey Eric,
This is a great guest post. Being new to freelance writing (zero clients even pitched, just started my blog etc), well I guess I’m more of an aspiring one this is some awesome advice to keep in mind when looking for those first paying jobs to get my feet wet and not settle for the low cost content mills.
Thanks very much!
Cheers
Lauren Tharp, BAFB Community Helper says
First up: Stop calling yourself an “aspiring” writer. It’s going to affect your confidence. Do you write? Then you’re a writer! 😉 http://beafreelanceblogger.com/impostor-syndrome
You’re going to be fine. Hang in there. And thanks for reading!
Jennwith2ns says
This is a really helpful article. As someone newly returning to the world of freelance, your advice is helpful to hear. I definitely have undersold in the past and regretted it. I don’t have any gigs lined up at the moment, but I’m glad to have read this before getting back into any. Since I’m still essentially a novice, however, I’d be grateful for some advice regarding how to set rates in the first place. (I’m sure there’s a post on here about that somewhere, but I’m new to this site as well, and therefore still exploring.)
Jennwith2ns says
Ha–never mind. I found the post. Thanks for this helpful site!
Sophie Lizard says
Did you grab a copy of The Be a Freelance Blogger Rate Guide, too? Lots more info in there to help you set your rates. 🙂
Heiddi says
Hi Eric,
Very informative post. However, I think that discounts can work when applied correctly. Such as only for returning clients. Those are the ones who have seen and compensated your good work. If anything, return clients are the ones who should get discounts (up to a certain percentage that isn’t outrageous). Why? These are the ones who will share their positive experience with others and bring in referral clients.
But, as a starting point, no, discounts should not be given. Why give a discount to a client you don’t know?
Heiddi
Eric Ogero says
Hey Heiddi,
Thanks for contributing.
Why give a discount to a client you don’t know indeed.
I love your blog. Some parts made me laugh out loud.
Good stuff.
Glad you found the post informative.
Tom says
Hi Eric, I have given occasional discounts to clients, however only to those who i’ve already established a working relationship with.
Lauren Tharp, BAFB Community Helper says
Hey, Tom!
As a general rule, discounts aren’t recommended for any client. It shows them that you’re willing to work for less and that they can take advantage of your kindness. Often, your “discount” rate ends up becoming your “normal” rate for these clients–and it can be nearly impossible to raise it back up to what it once was.
Use your best judgement. It’s your business. But be careful out there.
Thanks for commenting!
Jaylia says
Lauren,
I agree with you on not giving discounts. I’ve never had a good experience with this one, not even once. It didn’t matter if the client were non-profit, non-for-profit or profit. So I just say no just as any retailer would.
I respect the rights of others to price how they wish, but I don’t understand why writers, who work very hard, would do this.
J
ali hk says
A nice article. Thanks.
My take on the ‘future work’ tactic is to offer a discount on the following project or bulk of projects. But the first is the one you shouldn’t discount. It’s the one where you go through the extra admin and time getting to understand each other’s processes.