5 tips to negotiate work rates as top-rated freelancers

top-rated freelancers

How to negotiate work rates as top-rated freelancers 

The world of freelancing is very attractive to millions of people these days. Many new businesses and other enterprises make use of top-rated freelancers to achieve their goals in a timely and effective fashion. The industry’s barriers are low, and people with minimum qualifications can learn skills and start working to earn money. In the last 5 years, the continent of Africa has seen the largest population growth. This has resulted in turning the continent into a marketplace for skilled workers who can work in industries such as freelancing.

However, just because the industry is still growing doesn’t mean it doesn’t come with its challenges. Some researchers have estimated that within the next decade, almost 50% of the workforce will be in the freelancing business.

With the industry about to grow even bigger, freelancers need to know their worth and learn how to negotiate efficiently.

 

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Here are some negotiating tips:
  • Charging per project

If you have been freelancing for a long time, you would know that most companies hire staffs that are willing to work by the hour. This method puts a ceiling on top of your charging rate potential without you even knowing it. Charging money on an hourly basis only to work for a couple of hours every day isn’t viable as the client wouldn’t be willing to invest such an amount. No client would be willing to pay such an extensive amount even to top-rated freelancers.

For example, if you charge 100$ as your hourly working rate and you are willing to work 8 hours each day. It is near impossible for you to get the job or make the client pay you that amount. You must charge per project instead, which removes the ceiling from your earning potential. The perceptions of hourly rates are easier to perceive and question. On the other hand, the perception of project rates, and hence the latter, should be opted for always.

  • Allowing them to name a price
When you are providing a service to an individual or a company, it’s imperative to know how much they are willing to spend on the service being completed. You should lead the client by asking questions such as ‘what would your budget look like for the whole project?’
 
Good companies and experienced clients don’t reveal a number straight away. But they could give out some information that could indicate the number that they have in their mind. It’s important to hold your horses and play the long game. All the extra information that you collect will enable you to fetch a better and higher price for yourself as a freelancer. The Fintech sector accounts for over 28% share in the continent of Africa and has been posting jobs related to fields such as freelancing.
 
  • Figuring out a bottom line
All top-rated freelancers should have a minimum acceptable rate of work. The amount can be figured out by considering all the factors which they would use while working on a project. You should consider factors such as personal outgoings, tax rates in the country you’re working from, and finally, the business outgoing of your service.

After considering all these factors, you should come up with a figure which is just enough for you to sustain yourself and your business. What you need to remember is that this minimum rate that you have calculated isn’t your standard rate. You should never quote this figure to companies that you are applying to work for. This rate is calculated for your benefit as you should know the minimum amount that you need to charge to sustain yourself completely.
 
  • Remembering the business agreement
At times many freelancers start looking at their employers as their friends. But before being friends, you both are into a relationship that is purely based on business. It’s critical to remember that you have formed a business agreement, and there are clear rules about what you can or cannot do. This holds true for the company or the individual you are in contact with.

Furthermore, the contract has bound you to perform your respective duty and service for the company in a timely manner. You shouldn’t compromise on it at any cost. Having a good understanding of your relationship would cause fewer problems while you are working for a company or an individual. This will also allow you to fetch a better price.
 
  • Starting high

When negotiations occur, it’s imperative to quote a high figure at the beginning. After that, you can work your way downwards while the negotiations are being done by the client. It’s nothing new to find clients who would haggle with your prices or would complain about the prices that you have quoted.

It’s important to compromise at times but hold your ground while doing that. Starting at a higher range will allow you to wiggle down more comfortably. Giving yourself that extra wiggle room can help you land the project at a price that you are more comfortable with. The only thing you should be wary of is not to quote a price which is exceptionally high, as then the client might outrightly reject your proposal. The price that you quote initially should be well calculated.

Conclusion
Freelancing as an industry has seen a lot of success and popularity in the last couple of years, and experts say that it will continue to rise to new levels. In growing and developing countries in Africa, freelancing is looked at very positively. The average pay that freelancing pays is more than what local jobs pay in the country.

This has led to the popularization of the industry in the continent. It’s important to set some ground rules and start the negotiation process. Follow the aforementioned tips to negotiate more comfortably and successfully get placed as top-rated freelancers.

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