How to Negotiate
Negotiation is a skill that can be useful across many areas of life — especially when it comes to your freelance work. To ensure you are getting paid your worth, aren’t rushed for deadlines, or are blindsided by project scope changes, you will need to understand the art of negotiation.
Preparation
The first step in any negotiation is preparation. Understanding the market landscape and your own value gives you confidence. Research industry rates using tools like Glassdoor or freelance rate calculators to set a realistic benchmark. You can also take time to understand your client’s business, budget, and competitors.
Before entering negotiations, it’s crucial to define your non-negotiables. This includes knowing the minimum rate you’re willing to accept, being clear about the scope of work you’re offering, and ensuring that timelines are realistic and manageable. Having these boundaries in mind prevents you from agreeing to unfavorable terms in the heat of the moment.
Examples of non-negotiables:
No time-tracking
Payments are bi-weekly
50% down payment on the first month
Contract in place before any work begins
Minimum of 3 months of work together
Start High, But Reasonable
When discussing rates, start high but remain reasonable. Anchoring the conversation in your favor sets the tone for the negotiation. You must clearly explain how your specific expertise benefits the client and justify your rates with examples of previous successes. While it’s important to be flexible, avoid compromising on essentials that could affect the quality of your work or your professional value! (Trust us, do not go down that path).
You may encounter clients who try ask what your rates are when live on a call. It is 100% normal to tell them that you’d need to have an outline of the project scope and deadlines before quoting them. You can share a general baseline, but specifics will need to be shared post-call. This is a great way to buy yourself some time! You can also ask if they have a specific budget for the project. Remember, you have a lot of power in this conversation too.
Effective Communication
You must listen actively to understand the client’s needs and concerns and frame your responses in a way that positions your offer as a win-win solution. This is the key to a great negotiation and closing a deal. To understand if you fit into their equation, you must know what the outcome of the equation is. Ensure that you ask for the end-game results, what they have tried before, and what worked or didn’t work. This will give you an upper hand when it comes to pitching your services and pricing. If there are disagreements, meet them with professionalism — never succumb to a heated argument, it surely will not be worth it! Focus on justifying your rates by highlighting results you’ve delivered in similar projects. If budget constraints are a concern, consider negotiating the project scope rather than lowering your rate. Proposing phased payments or bundled services can also address client hesitations while preserving your value.
Resist the Discount
It may seem tempting, but do not offer more work at your standard rate, and do not drop your rates unless you are speaking to a dream client. It is super common for a larger company to undercut a freelancer with steep discounts. Instead, we are encouraging you to stay true to your pricing and offer what feels right. The only time you should consider bending your prices is when you are really passionate about the project or company. We would try to approach these situations with fixed fees for each project. Clients typically like going this route as well, since both parties are in alignment with how much will be spent. If more work needs to occur, then a separate project scope and contract will be made.
Parting Thought
Negotiation doesn’t need to be forceful or aggressive. Think about it as the process to get what you deserve! When it comes to business, oftentimes people try to cut around corners and undermine people if they can — especially freelancers. Knowing this, you must focus on positioning yourself to be seen as someone they need to work with. The more trust you have, the better opportunity you have for getting paid + receiving a scope that works for you!
