Have you ever prepared a proposal for a prospect and, in your heart, you know he or she can’t afford your services?

What do you do then?

Do you put your proposal together haphazardly, knowing it won’t lead to a paying project anyway?

Or do you jump at the first opportunity to give the prospect discounts?

Or do you ignore the prospect and not submit a proposal at all?

Don’t Sell Yourself Short

In the past, I have been guilty of offering discounts even when none was requested. I’d say something like, “My regular fee is $$$, but since you were referred by Awesome Person Z, I will give you a 20% discount.”

Eventually I realized I was doing myself a disservice by discounting my fees so easily!

If you’ve ever found yourself in this situation and you still want to work with the prospect, because:

• you really need the money, or
• you feel it’s a good opportunity that could lead to more freelancing gigs, or
• you really like the prospect and don’t want to turn them away

… there’s a better way to make your services more affordable without undervaluing them.

The Power of Options

Here’s what I would do now: Give the prospect two options to avail of my services.

One is the “Ferrari” option with my full services and full price. The other is the “Volkswagen” option with fewer features but still a good value.

I suppose a third option could be offered as well, if you think it’s necessary. But don’t give the prospect more than three choices, because a confused mind does not buy.

Here’s an example of how I would package my services into two options:

Option 1: Long copy sales page

• full sales page copy
• photos/images/Copydoodles
• fully formatted in HTML or WordPress
• up to two revisions within the original scope of the project
• two alternate headlines
• Fee: $1000

Option 2: Sales page rewrite

• revision of existing sales page
• copy in text format
• no formatting or photos/images/Copydoodles
• up to two revisions within the original scope of the project
• two alternate headlines
• Fee: $500

With this approach, I’m able to offer my services at a more affordable rate — without devaluing them through random discounts. I’m charging less for Option 2, because it requires less work and time from me.

At the same time, I’m giving my prospect the opportunity to take my higher-priced offer.

Because I could be wrong about my prospect’s finances. Maybe they can afford me, after all.

And, believe me, I’ve been wrong before.

Would You Do The Same?

How would you handle a situation like this?

Share your ideas in the comments below, and help other freelancers with your wisdom.

photo credit: Damian Morys Foto

As you may have deduced from my un-resolution post at Freelance Folder and this blog post title, I’m not big on New Year’s resolutions. They’re so… common, and I would hate to be like everybody else (maybe that’s one of the reasons I’m a freelancer?).

Now if making resolutions works for you — if they get you to develop new, positive habits that improve your life — then go for it! Don’t let my personal preferences stop you.

But if you want to do something else, either in addition to or in lieu of, New Year’s resolutions, then I have an idea for you.

Kendall Summerhawk, multimillionaire business coach to other coaches (but that doesn’t mean we freelancers can’t benefit from her wisdom too) proposes the creation of a “Yes” list.

Write Your Yes List

A “Yes” list is a set of 5-6 questions you will use to filter prospective client work. When faced with a new freelancing opportunity, you must answer “yes” to each and every one of these questions for you to accept the project.

Your questions can cover:

• what type of work you want to do
• which clients you’ll work with
• how much you want to get paid
• how you want to work
• where you will work
• and anything else you want to include

My Yes List

To give you an idea, here’s my Yes list (with certain parts omitted, because I don’t want to reveal all in this post):

• Does it involve ___ or ____ type of business?
• Does it allow me to work at home with a flexible schedule?
• Does it make me feel fairly rewarded for my time, energy, experience and skills?
• Is it work I enjoy doing and am confident of accomplishing with a high level of quality and credibility?
• Is the project ethical, moral, and consistent with my religious beliefs?

How a Yes List Serves You

A Yes list helps you be more selective and focused on the types of clients and projects you like. If you’ve identified a niche and target client, your Yes list will keep you from getting off track. It can also help you consider other aspects of a project that are important to you, such as, in my example above, how a particular project sits with my personal beliefs.

Of course, if you’re just starting out or are otherwise desperate to make money, you’ll have a different Yes list. Maybe your list will be made up of just one question: Will I get paid?

The Yes list is very personal and customized. You put whatever you want in it.

Your Thoughts?

Do you like the idea of creating a Yes list? If so, what would you put in yours?

Share you list in the comments below, or let us know what factors you would like to include in it. Don’t worry, you can reveal as much or as little as you want!

photo credit: Xtreme Xhibits

Now that we’re at the homestretch of 2011, I’ve been feeling a lot of pressure.

Emails, blog posts and even entire products are being created to help us “end the year big,” “sprint towards the finish line,” and “make it the best year ever.”

I usually just ignore all this, but lately I couldn’t help but wonder, “What’s the big deal?”

Truth be told, I’m too busy with the actual doing — the ending, achieving and making — to be bothered with this added pressure. Much less to begin a new training or coaching program!

In some ways, all these success messages only serve to distract us. They offer new solutions, strategies or tactics for freelancers and other business owners to make it big. But are they really new? Or is it just a marketing ploy?

Personally, between my computer’s hard drive and my bookshelf, I already have everything I need to achieve all my goals. What I do need is to focus my time and energies to actually do what I set out to do.

How about you? Are you feeling the pressure to make huge strides towards achieving your freelancing goals before 2011 ends?

What are you doing about it? Is the pressure helping or hampering your ability to just get things done?

Share your thoughts and experience below.

PS: It struck me that I chose the picture of a marathon runner for this post. Is it a coincidence that I just started the Couch to 5K running program? If you’re interested, you can read about that adventure here.

photo credit: familymwr

I’ve just had a hectic morning. One where I didn’t even have time to change out of my pajamas.

And it’s all thanks to a couple of clients who suddenly needed things done. Right. Now.

I don’t usually have a problem with deadlines. And because I like to over-deliver, I always try to accommodate clients who need things urgently.

I do, however, ask for a few things:

• Reasonable lead time

Nothing is hardly ever an emergency, if you come to think of it. It only becomes one because we don’t plan ahead. I need my clients to give me fair warning when they get a sudden flash of inspiration… so I can plan my work properly.

However, when a true emergency arises, I am willing to do all I can to meet deadlines.

• All the information I need

I can’t get any work done, unless I have all the background information. If a client is going to take 3 days to send them to me, that’s 3 days I’m just waiting.

• Prompt feedback

Client says he needs a flier today but doesn’t give feedback on the draft until two days later. Obviously the flier will be delayed. I’m not a magician; I can’t turn back time.

I know lots of freelancers charge a rush fee, or an additional fee for projects on a tight deadline. This can be as much as 50% of the original fee.

However, I don’t like to do this with retainer clients, or those who give me assignments pretty regularly. Charging a rush fee makes me feel like I’m looking for any excuse to extract more money from them.

The challenge for me, of course, is communicating these expectations to my clients. I want to be accommodating, but I’d also like to preserve my sanity. I want to be truthful, but without sounding too demanding.

I think, next time, I will say something like:

I understand you need this by [deadline]. If you send me all the background materials today, I can send you the draft by [date]. I need to get your feedback on the draft by [day, time] so I can have the final output by [deadline]. Any delays in getting back to me with your comments and suggestions will mean a delay in the final output.

Sound good?

What do you think is the best way to handle this? How do you manage clients who have demanding deadlines?

photo credit: wwarby

One of the benefits of freelancing is, you get to work at home.

Or in a coffee shop. Or in a boat.

Virtually anywhere, as long as you have a computer and Internet connection, right? For some, an Internet connection may not even be necessary.

But some freelancers choose to work in a real office. You know, a room not-in-your-house with a desk, printer and other accoutrements of “work.”

Benefits of A “Real” Office

We’re having an interesting discussion at the Solo Masterminds forum about this. One member shared the many benefits she has experienced since moving outside the house and into an honest-to-goodness office. These include:

• increased focus and productivity (Imagine how much more you could accomplish without the distractions from the TV, refrigerator, family or your warm, cozy bed)
  
• more credibility to prospects and clients (They’ll take you more seriously when your business address is actually on the business side of town. In some offices, you can even access a board room for quiet and private meetings or presentations with prospects and clients.)
• opportunity to network with other business owners in the same building (Your biggest client just might be renting space beside you)

This Solo Masterminds member is already seeing an increase in the number of clients she’s getting, since moving her office from home to a “real” office.

Especially for freelancers who don’t have a dedicated office space at home, the lure of having a real office is strong. When my teenage daughter took over my home office, I had to move my work area to the upstairs hallway (ok until the roof started leaking), then into the 10-year-old’s bedroom (she kept using the computer to record wacky videos), then into the basement (too depressing), and finally into a corner of the living room beside the munchkin boy’s play area (too crowded with mega blocks). None of these places were ideal for working.

Now I have one end of the family as my home “office.” It’s still not perfect; I can’t close a door and shut out noises from the TV, my kids or my husband’s choir practicing.

Would I Move My Home Office Into A Real Office?

This got me thinking: if I had the chance, would I choose to work in a real office?

Right now, of course, this is not an option for me. I still have two young children, and I need to be at home when they get home. We’re also (still) a one-car family, so if I had to go to and from my office every day, it would complicate the already dizzying “car schedule.” Plus, with planned basement repairs, I need to cut and avoid every expense I possibly can.

But what if… all those situations vanished into thin air. Would I? Could I?

There are other things to consider, of course. The first of which is the fact that I’m lazy. If I could stay in pajamas all day and never shower, I would. It’s only my own vanity that drives me to change into my working uniform (a t-shirt and yoga pants) every morning. So the thought of having to put on going-out clothes, just to go to work, is not attractive to me at all. And this laziness isn’t going to vanish anytime soon.

Another issue for me is making sure I have all the documents I need. Mine isn’t entirely a paperless office, far from it. If I’m writing a sales page for an ebook, you bet I’m going to print that ebook. The point is, I’m constantly pulling documents from folders, referring to books or even digging up old magazines in the course of my work. What if, in the heat of writing, I discover I left a crucial document back home?

For all these reasons, I’m keeping my freelancing at home.

Tell Me

How about you? Where is your working work space located right now? How could you make it more conducive to freelancing?

Do you consider a real office, outside your home, to be the ideal work space for freelancers?

photo credit: Hannah Donovan

We live in an age where communication is fast, easy and inexpensive.

I remember the good old days when we shared our telephone line with a “party line.” These people were total strangers, but if you weren’t careful, they could listen in on your calls! And if you hogged the line, you’d have enemies.

Talking to relatives in another country was a big affair, involving scheduling long-distance calls with an operator and putting up with static and disconnections when the call was finally placed.

Nowadays we can not only hear but also see each other.

And communication technology has exploded opportunities for us freelancers. We’re no longer limited by geography in our choice of prospects and clients. In fact, my very first clients included a young businessman in Malaysia and a life coach in the Carribean.

We now have a handful of choices to reach our clients, and we can use what suits our style best. For example, some of us are auditory people, focusing best when listening.

Others are more visual and like to see a client while discussing a project.

Still others shine in face-to-face encounters.

Which one are you?

As for me, I tend to tune out on the phone, even when the person on the other end of the line is my husband. So I prefer to communicate with my clients through Skype, initially, and then email for the nitty-gritty details of a project.

I’m also starting to warm up to the idea of meeting prospects and clients in person, although I wouldn’t go so far as to say I like it.

How about you? What’s your preferred way of communicating with prospects and clients?

photo credit: globochem3x1minus1

Have you ever been in a situation where you know exactly what you need to do to achieve your freelancing goals — and yet you don’t do it?

In many ways, while I’ve done crazy scary stuff as a freelancer, I’ve also avoided the Even Scarier Stuff.

Probably the very things that will take my freelancing to the next level.

You know, things like actually meeting prospects in person. Cold calling. Direct mailing. Taking phone calls. Having a business card.

Basically stepping out from behind the digital veil of my blogs and Twitter account.

I’m an introvert, so the Internet has been perfect for me.

However, for the longest time, I’ve been wanting to work with local businesses. My excuse used to be that I had a toddler at home and couldn’t get away  for “live” client meetings and such.

Well, guess what? The “toddler” starts Senior Kindergarten in September. I’m not tied to the house anymore. In fact, I’ve had a driver’s license for almost a year now.

And so the time has come for me to do something terrifying and exciting at the same time. Meet people. Talk to them in person. Or on the phone.

It’s the only way I can accomplish what I’ve set out to do.

Hold Me Accountable

In the next few weeks, here’s what I’m going to do:

1. Design and produce business cards.
2. Join a local network of business owners.
3. Attend in-person networking events.

I’ll let you know how it goes in a few months!

Now You

How about you? What scary but necessary stuff have you been putting off?

Come on, tell us all about it!

And if you have the courage, why not make the decision RIGHT NOW to go ahead and do it?

Post a comment about it below. That makes you publicly accountable, and that will motivate you to really do it.

Or if you’re not quite ready, just getting it off your chest will make you feel better. Who knows? Maybe you’ll find consolation from other freelancers. Or an assurance that what you’re most scared to do won’t kill you.

photo credit: fazen

When freelancers think of rejection, we’re usually on the receiving end of the stick. That is, we — our proposals and bids — are often the ones being rejected by prospective clients. It’s a common experience among freelancers, even the most talented ones, and something we should get used to.

What freelancers have much less experience with is rejecting possible clients.

Are you out of your mind, Lexi? Why would a freelancer reject a prospect?

Well, for plenty of reasons. The main one being that not every prospect is right for every freelancer.

If you’ve been freelancing for some time, you would have experienced clients who just didn’t work out. If you look back, you’ll realize there were plenty of red flags that should have warned you about “those clients.”

If you could see those red flags early on, you could turn away those clients and avoid plenty of grief down the road.

That said, rejecting prospective clients can be a scary experience. Especially when you’re just starting out with freelancing, or when you need to make money desperately, saying “no” to someone who wants to hire you is the last thing you want to do.

However, if you don’t listen to your gut or at least use your head in choosing clients, you may find yourself shortchanged in the end. Read on.

Red, Hot Warning Signs You Should Reject a Prospective Client

1. They’re overly concerned with their budget.

Don’t get me wrong. I understand everyone has a budget and any smart entrepreneur sticks to their budget pretty much. However, if the first thing a prospect says is, “I’ve come to you, because I have a very limited budget and I hear you’re reasonable.” It may be a warning sign that they wouldn’t be willing to pay what you think you’re worth.

Before spending your precious time preparing a proposal for this prospect, may sure he or she has seen your rate sheet (you do have one, don’t you?) and have an idea of your fees. Otherwise, you may find yourself getting rejected — after you’ve spent two hours putting together that proposal.

Also beware of the prospect who negotiates your fees, promising to give you more projects in the future. The best way to respond to this, according to Jeanna Pool, author of “Marketing for Solos,” is to say something like, “That’s fine. Let’s give it a try with one project first and see how that goes.” Never discount your fees because you anticipate a high volume of projects with a client.

2. They’re on a tight deadline.

The deadline isn’t the problem. The problem is this prospect expects you to be at their beck and call, without respect for your personal life. If you’re inclined to accept this prospect, make sure you add a “rush fee” to your total fee. The prospect should know you won’t give up sleep and weekends without getting something for it in return.

3. They refuse to pay a deposit.

Always require a deposit. Always require a deposit. Always require a deposit.

Especially if you’re working with somebody for the first time, never start work until you’ve got a deposit in your PayPal account. I require at least 50% deposit for projects. For smaller-value projects (under $500) I may require payment upfront.

Even if you’re dealing with government office, non-profit groups and other red tape-clogged organizations, you can get a deposit. However, there is maximum deposit they’re allowed to make. Find out how much that is (30%? 25%?) and ask for it. Then make sure you’re paid in increments for specific milestones, until the project is completed.

This helps reduce your risk of not getting paid for completed work.

4. They don’t know what they want.

This is the most difficult client to work with. If the client isn’t clear on where he wants to go, what they need you for, and what their goals are, then they’ll drag you into hell with them.

In my case, I refuse to work with anybody who

• is unclear about their target market
• has no marketing strategy
• doesn’t have a product yet

These elements are crucial for me to develop strong copy. No matter how willing a client is to pay my fees, I have to turn them away if these essential pieces are missing. I say, “Get clear on your marketing strategy then give me a call.”

5. It just doesn’t feel right.

Trust your instinct. Often, our gut picks up on things that our conscious mind misses… things that make for a sucky freelancer-client relationship. If your gut says no, then say no.

On the other hand, make sure it’s a genuine message from your instinct and not something else. Watch out for things that may muddy up your judgement. Things like fear (“That’s a really big project/client and I’m afraid of messing up big time!”), prejudice (“I’m not comfortable working with males/Asians/senior citizens/etc.), or laziness (“That’s too much work; give me a no-brainer.”).

Recognize the root cause of your resistance so it won’t fool you into rejecting prospects unnecessarily.

Share!

Have you ever rejected a prospective client before? Why did you do it? And how?

Share your experience and thoughts with us, your fellow freelancers. I’m sure they’ll be helpful to another freelancer reading this.

photo credit: Todd Huffman

The issue of discounting can be contentious among freelancers.

Some successful freelancers advise offering special discounts to jumpstart our client base. I have to confess, this is how I got started freelancing. I looked at what other comparable copywriters charged, and I made my fees slightly less than theirs.

Other, equally successful freelancers, however, say you should never discount your fees. They say this would be the kiss of death to a successful freelancing career.

Who’s right? Who’s wrong? What’s a freelancer to do?

Pros of Discounting Your Fees

You gotta admit. Discounting our fees does have its advantages. For one thing, creating a special discounted offer on our freelance services can bring about an infusion of clients. When we have very few clients, or none to begin with, this is a very attractive option.

Need instant cash? Offer a time-limited discount. It works!

Sometimes doing work at a discount is the fastest way freelancers can build our portfolio, get testimonials and referrals, and gain experience.

Discounting can also attract clients you really want to work with. Let’s say there’s a company whose door you’d really like to get your foot in, but they have a tight budget. Then making an irresistible offer could be just the thing you need.

From this perspective, discounting our freelancing fees doesn’t seem so bad. But beware the…

Cons of Discounting Your Fees

First of all, it makes you look desperate. And we all know, desperate people don’t get respect. They get taken advantage of. You don’t want to get taken advantage of.

Also, discounting attracts low ballers. You know, those clients who would never pay you what you truly deserve. Who wants them?

And here’s another one. It undermines your credibility and value. When you say something like, “I’ll give you a 50% discount on my fees,” you look like you’re not actually worth the 100% to begin with. Do this often enough and you’ll lose your self-respect as well.

Granted, sometimes we ARE desperate. So desperate we’d work with anybody, even for peanuts. So…

If You Must Give A Discount

Is it possible to offer a discount on your fees, without suffering its negative consequences? I think so. Here are some ways to do that:

• Change the parameters of the work

Let’s say you quoted a project for $1,000, but the prospects’ budget is only $800. Don’t say, “Well, ok, I’ll do it for that much. But only because I really like you.”

Instead, go back to the drawing board and come up with a proposal for $800 — but with different parameters, so that you’re promising to deliver $800 worth of work.

For example, one way I can do this is, instead of delivering a full-blown sales page, complete with graphics and lay-out in HTML, I could do only the copy. I deliver pure text.

Or I could write a mini-sales page, with only 600-850 words.

Or I could write just the headline, bullet points of the product’s benefits, and three PS’s.

Or I could offer to tweak the prospects’ existing copy, instead of writing one from scratch.

Take away elements of your task until you feel you can meet your prospects’ budget and still get paid what you deserve. If you think this way, you can accommodate pretty much any budget.

• Ask for something in return

Another option is to ask for something in return for the discount. In my case, I recently gave a discount in return for full payment, upfront, for my services.

You could also ask for referrals in exchange for the discount. Be very specific. For instance, ask for the prospect to arrange face-to-face meetings with three of their contacts who meet specific criteria (such as owners of businesses with an annual income of at least X amount, located in your city).

Another thing you could ask for is for your client to be the subject of a case study you will write, which shows how your work has helped them achieve goals X, Y and Z. This case study is a powerful marketing tool!

Some freelancers ask for a testimonial in return for their discount. This could be considered unethical, because your client will be compelled to give positive feedback on your work. Of course, you could ask for the testimonial, but only if they’re genuinely happy with you.

• Create a bundle of services.

Another way to give a discount on your work, is to bundle some services and make the bundle cost less than if a client were to hire you for those services separately.

Let’s say you offer logo design for $1000 and website header design for $850. Why not bundle both for $1500? That’s a 19% discount on your services! But it’s sounds much better psychologically than bringing down your logo design fee to $810 and your website header design fee to $689. It brings higher-value projects compared to smaller projects.

Or offer a “bonus” service: Do logo design, website header design and bonus social networking buttons for $1850. This is even better if you would otherwise never make social networking buttons. It’s a service that’s available exclusively to those who hire you for a specific bundle of services.

Whatever you do, make sure you’re not unduly creating more work for yourself and getting paid less for it. Bundle related services, such that you need only do the research or prep work once yet complete two or more tasks.

Your Turn

What are your thoughts on discounting your freelancing fees? Have you ever done it before? What did you get out of it? Do you regret doing it?

Share your opinions and experiences with us below. It’s always helpful to learn how fellow freelancers handle the challenges of freelancing.

photo credit: timparkinson

One of the most challenging aspects of freelancing is the lack of financial predictability and stability.

Unlike our employed peers, we don’t know exactly how much money will go into our bank accounts every two weeks, or at the end of every month.

This is why to write a book on finances for freelancers is a courageous endeavor, indeed. But that’s exactly what freelance writer Sabah Karimi has done in Financial Fitness for Freelancers: How to Survive and Thrive on an Irregular Income.

What’s Inside

This 61-page ebook is “a non-nonsense, straight forward guide for any freelancer who’s ready to take control of their finances and maintain their lifestyle and career — regardless of the economy.”

It goes way beyond the usual advice (the one I usually give, anyway) to live within one’s means. Here’s the breakdown of the chapters:

Chapter 1. Why Normal Budgeting Strategies Won’t Work for Freelancers
Chapter 2. Basic Budgeting Rules for Freelancers
Chapter 3. Budgeting Strategies for Freelancers: Do’s and Don’ts
Chapter 4. Managing Cash Flow
Chapter 5. Preparing Quarterly Taxes
Chapter 6. Managing Clients Effectively
Chapter 7. Managing Expenses
Chapter 8. Building Spending Self-Discipline
Chapter 9. Managing Credit Cards and Debt
Chapter 10. Rent and Mortgage Payments with an Irregular Income
Chapter 11. Savings Accounts: Your Best Bets
Chapter 12. Health and Dental Insurance for Freelancers
Chapter 13. Handling Financial Difficulties as a Freelancer
Chapter 14. When Money Gets Tight — Increasing Your Income
Chapter 15. Resources for Brushing Up on Your Financial IQ

As you can see, Sabah confronts head-on the main challenge for freelancers: the fact that we don’t have a steady paycheck.

When you don’t have a steady income, the most difficult thing is coming up with a budget or plan for spending that money. Sabah’s solution is to compute your baseline income, which you’ll use as your paycheck or income amount when budgeting. I won’t spoil it by telling you how to do this in this post. You’ll have to get the ebook to find out!

The whole of budgeting, of course, is to be able to:

• pay for your expenses
• be ready for taxes
• save for a rainy day

The chapter, “Managing Clients Effectively,” is all about getting paid. Sabah goes into detail about how to invoice clients, how much to charge for your services, and what to do when a client is late in paying.

Another chapter that stood out for me was “Savings Accounts: Your Best Bets.” Sabah recommends using an online savings account and lists the most popular and reputable ones. I’m definitely going to check those out. I just hope they’re available to freelancers living in other countries, and not just those living in the United States.

Freelancers will also find the chapter, “Health and Dental Insurance for Freelancers” extremely interesting. Here you’ll find specific recommendations for health and dental insurance programs, as well as tips for getting discounts on your health costs.

Sabah even includes a chapter on increasing your income — fast — when you’re in financial distress. Her advice goes beyond “get all the projects you can get your hands on.” Instead, she provides a three-step approach which will both reduce expenses and increase income. It’s pretty common sense, but unfortunately, these things often elude us when we’re in the middle of financial turmoil.

Whom It’s For

As the title suggests, Financial Fitness for Freelancers is for freelancers. You and me and everyone else who’s self-employed and earns their keep by completing services for clients, in exchange for money.

Other solo professionals could benefit from the same principles and strategies discussed in the book, such as consultants, coaches, and alternative health practitioners.

The Review At A Glance

Pros: Comprehensive, useful and practical, provides specific resources, written specifically for freelancers, addresses spending, taxes and income

Cons: Advice on taxes etc are specific to the United States, a few typos here and there

Bottom Line: Essential reading for freelancers

Have you read Financial Fitness for Freelancers? If so, what are your thoughts on it?

Or do you recommend other books on finance for freelancers?

Let us know in the comments!