Note from Jennifer: For years I had a rule that when a client threw out a number first that I always asked for a more – not a lot, but enough that it added up over time. But when the pandemic hit in March, I stopped doing that because I felt grateful to have any well paying work. But last week, I realized that because the pandemic seems to be a way of life, at least for now, I needed to stop practicing in crisis freelancing, but go  back to as many of my regular business practices as possible.

I still think that most companies that are hiring freelancers right now still expect us to negotiate and build that into the first price that they mention. So last week I tried this strategy again, and it worked. And honestly, the worst they could have said was no. I thought now was a great time to share this post from two years ago. I’m still working for the client who I asked for $150 more several years ago and that one ask keeps adding up. 

Many years ago, a writer shared with me that no matter what rate the client offered, she always countered with a slightly higher rate, even if the gig was already high paying. She told me that most clients build some wiggle room into the rate they offer so that they can negotiate and that, by not negotiating, I was actually leaving money on the table that the client was willing to pay.

I used to think that clients would think badly of me for negotiating. But I realized that if anything, it’s the opposite. Negotiating is an accepted and expected part of business. Clients are not going to think negatively about a professional negotiation. Actually, some people may very well think less of my business skills because I did not negotiate.

$50 is Not Just $50

I sucked it up and started asking for a higher rate for every project. And it worked—really well. Most of the time, the answer was yes. And the few times it was no, they still hired me. The worst that happened was the client said no. But it was simply that—no to the higher rate. They still were willing to work with me at the initial rate, if I wanted. They didn’t trash me on social media. They didn’t think I was a money grubber. They just made a business decision to not accept my higher price during negotiations.

I realized quickly that this one move had a dramatic and compound effect for long-term clients. A new client offered me $350 for a 700-word blog post and I countered that I usually earned $500 for the same amount of work. The answer was a yes. The client turned into an anchor client that was worth over $30,000 to me in 2017. I calculated that I increased my income by $9,000 by simply sending a single email. So it wasn’t simply that I losing out on a $50 or $100 bucks here or there. When I didn’t negotiate at all, I was earning thousands and even ten thousands less over the course of a year for the exact same amount of work.

3 Steps to Negotiating a Higher Rate with a New Client

Here are three steps for asking a new client for a higher rate. Note that this is for the times when a client offers you a rate, not when someone asks the dreaded “What are Your Rates?” question.

1. Evaluate the current rate. Use this post to determine your rate for the project. Note that if you are in a specialized field, then you should use a higher hourly rate than $100, such as $150. If you are just starting out and still working up to $100, then you should shoot for no lower than $50 or $75 an hour in the project rate.
2. Determine what rate to ask for. If the proposed rate is lower than your calculations in the previous step, then ask for at least the amount from Step 1. If the rate is a good rate, you still should ask for more. A good rule of thumb is asking for 20 percent more than offered then negotiating down if necessary. So if a client offers you $250 for a 300- to 400-word blog post, counter with $300, which is 20 percent more. And if the project is a whitepaper and the client throws out $3000 for the fee, then counter with $3600.
3. Ask for the rate. As writers, we tend to over explain. I am very guilty of this myself. If possible, simply ask for your rate. But if you feel it needs an explanation, then keep it to one sentence. If possible, don’t try to justify your rate.

   Here is a sample email for asking for a little bit more:

Hi Ted,

Would $750 work? Finding and interviewing two expert sources on this topic will be a bit challenging.

Let me know what you think. I’m looking forward to getting started on the project.

Jennifer

4. Decide what to do. If they turn down my Ask for It rate then I usually just respond with “Sounds good. No problem. Looking forward to working with you.” No harm done.

But if the client’s rate is way below yours then walk away. Honestly, it’s not worth haggling. Because even if they do agree, they are very likely going to be pretty demanding because they feel they are paying a high premium.

Here is a sample email to turn down a low paying client:

Hi Ted,

Thanks for getting back with. Unfortunately $200 a post does not work for my business goals. If you would like, I may be able to refer you to a junior writer that might be a fit for your budget.

Jennifer

So make a pact with yourself. Next time a client proposes a rate, ask for a little bit more. Ed Gandia has a fabulous podcast episode on setting business standards, which I highly recommend. Make one of your standards that you will always ask for a little bit more. And then watch your earnings increase for the exact same amount of hours and work.

Do you always ask for a higher rate? What has your experience from clients been when you ask for a higher rate?