What are some common mistakes freelancers make when negotiating their rates?

1 Underselling yourself

One of the most common mistakes freelancers make is charging too low for their services. This can happen for various reasons, such as lack of confidence, fear of rejection, or ignorance of the market rates. However, underselling yourself can have negative consequences, such as attracting low-quality clients, devaluing your work, or limiting your income potential. To avoid this mistake, you need to research the average rates for your niche and skill level, consider your expenses and overheads, and factor in your experience and value proposition. You also need to be confident in your skills and communicate your value to your clients.

2 Not negotiating at all

Another common mistake freelancers make is accepting the first offer they receive without trying to negotiate. This can happen for various reasons, such as being too eager, too polite, or too afraid to lose the opportunity. However, not negotiating at all can mean leaving money on the table, missing out on better terms, or settling for less than you deserve. To avoid this mistake, you need to be prepared to negotiate and have a clear idea of your minimum acceptable rate and your ideal rate. You also need to be assertive and respectful, and use tactics such as anchoring, framing, and bargaining to get the best deal possible.

3 Focusing only on the hourly rate

Another common mistake freelancers make is basing their rates solely on the number of hours they work. This can happen for various reasons, such as being used to an employee mindset, being unsure of the project scope, or being afraid of overcharging. However, focusing only on the hourly rate can limit your earning potential, create scope creep, or cause disputes with your clients. To avoid this mistake, you need to consider other factors that affect your rates, such as the value you deliver, the complexity of the project, the urgency of the deadline, and the quality of the deliverables. You also need to explore other pricing models, such as project-based, value-based, or retainer-based, and choose the one that suits your goals and your clients' needs.

4 Not having a contract

Another common mistake freelancers make is working without a contract or a written agreement. This can happen for various reasons, such as trusting the client, being in a hurry, or being unaware of the legal implications. However, not having a contract can expose you to risks, such as non-payment, scope creep, copyright infringement, or liability issues. To avoid this mistake, you need to have a contract that outlines the terms and conditions of your work, such as the scope, deliverables, timeline, payment, revisions, ownership, and termination. You also need to review the contract carefully and negotiate any clauses that you are not comfortable with.

5 Not following up

Another common mistake freelancers make is not following up with their clients after sending a proposal or an invoice. This can happen for various reasons, such as being busy, being shy, or being afraid of being pushy. However, not following up can result in losing the opportunity, delaying the payment, or damaging the relationship. To avoid this mistake, you need to follow up with your clients regularly and professionally, using email, phone, or other communication tools. You also need to have a clear call to action, such as asking for feedback, confirmation, or payment, and provide value, such as offering a discount, a bonus, or a referral.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?