6 tips to negotiate your daily freelance rate

Remember rates only go down

However the negotiation turns out, one thing will always be true: you will never hear a client tell you your rate is too low and that they want you to raise it. But they will probably try to get you to lower it – which means you have to start higher than what you expect to get in the end.

Get out of your comfort zone

But how high should your rate be? Beginner freelancers typically start well below what they are worth. And even seasoned freelancers hear that little inner voice that tells them they are too expensive. A good way to counter that is to think first about your minimum rate. From there, try to find the rate that would make you feel uneasy in a negotiation. Are you there? Now add 15%. That’s where you should start the negotiation.

Think of rate as an indicator of value

Another thing you need to remember is that price is seen as an indicator of value. Setting the bar too low sends a message: you are not worth what you claim to be. If your rates are well below market rates, your potential client is going to question your competencies. And this is not what you want.

Don’t take “too expensive” as an answer

If your client tells you that you are too expensive, don’t take that for an answer. You need to know why you are too expensive. Is it because they are on a tight budget? Or because you are too qualified for the actual job? Is the client a startup in bootstrap mode waiting for their next investment round? Understanding why your client finds your rate too expensive will allow you to decide whether it is worth trying to find a solution.

Never lower the rate without a good reason

Of course, there is the normal negotiation process. But if the client wants to negotiate below your acceptability threshold, there is seldom a good reason for you to do so. If your future client wants to hire you for a lower price than you think you are worth, it is not a good omen for your relationship with them.

Bargain with your intermediary

If you are working for an intermediary, don’t be obsessed by their margin. But also make it clear: if you accept to lower your rate, will they also accept to lower their margin? Remember: there is a threshold you don’t want to cross. You have to be clear about that, and also about the fact that you will not agree to being the only one making concessions.