I agree. The original advice is very solid, but it applies after you're established yourself. Freelancers live and die on reputation, and when you're new, you have no reputation one way or another.
So the first thing a new freelancer has to do is to establish a good reputation. This means having a client history. Never forget that the world is smaller than you think, and people talk to each other about these things -- even if they're competitors.
This means that it can be a good idea to accept jobs that don't pay what they should. But the new freelancer still needs to get value that offsets the lower financial return, and that value is, basically, word-of-mouth and references.
That said, new freelancers (of any sort) have a very strong tendency to think that the "going rate" is much lower than it actually is. Talk to other freelancers in your area to learn what clients are used to paying before even thinking about setting a price.
One thing I had success with, and I've seen others have success with, is to make a proposal at the going rate, but add in an offer to take a substantial discount in exchange for permission to use the client's name as a reference, in marketing materials, etc. Especially if the client is well-known and respected.
The hardest part of being a freelancer is starting out, when nobody knows who you are. Once you have a couple of good clients under your belt, it gets much easier to find new ones.
The basic idea is that you don't want the client to think that you're a discount freelancer, but that you're offering to get some of your compensation in a different form than cash.
Because all of this has to balance out with another fundamental truth: people will tend to judge the worth or quality of a thing by its price tag. If it just looks like you're cheap, you will be perceived as being lower quality. And what most clients want is quality work, delivered as promised. Your compensation should encourage them to expect that, or at least not actively signal the opposite.
Do whatever you need to do to get on your feet. But you're probably not going to win much business by outcompeting incumbent vendors on price. There's a going rate for things; it's a band of rates. Price somewhere in that band, until you're on your feet, at which point you should start a process of raising your rates that ends when you retire.
I agree entirely. The problem for newcomers is getting the first couple of clients. Discount pricing can help with that. But it needs to be clear to even those clients what your real rate is and that they're getting a discount.
Just so we're clear: I'm saying discount pricing isn't likely to help you get your first clients, because most serious buyers of consulting services aren't making their selection primarily based on price, but rather on how certain they are that the project will complete successfully. Cut-rate pricing is a good way to lock in subcontracting arrangements, though.
I agree. The original advice is very solid, but it applies after you're established yourself. Freelancers live and die on reputation, and when you're new, you have no reputation one way or another.
So the first thing a new freelancer has to do is to establish a good reputation. This means having a client history. Never forget that the world is smaller than you think, and people talk to each other about these things -- even if they're competitors.
This means that it can be a good idea to accept jobs that don't pay what they should. But the new freelancer still needs to get value that offsets the lower financial return, and that value is, basically, word-of-mouth and references.
That said, new freelancers (of any sort) have a very strong tendency to think that the "going rate" is much lower than it actually is. Talk to other freelancers in your area to learn what clients are used to paying before even thinking about setting a price.
One thing I had success with, and I've seen others have success with, is to make a proposal at the going rate, but add in an offer to take a substantial discount in exchange for permission to use the client's name as a reference, in marketing materials, etc. Especially if the client is well-known and respected.
The hardest part of being a freelancer is starting out, when nobody knows who you are. Once you have a couple of good clients under your belt, it gets much easier to find new ones.
The basic idea is that you don't want the client to think that you're a discount freelancer, but that you're offering to get some of your compensation in a different form than cash.
Because all of this has to balance out with another fundamental truth: people will tend to judge the worth or quality of a thing by its price tag. If it just looks like you're cheap, you will be perceived as being lower quality. And what most clients want is quality work, delivered as promised. Your compensation should encourage them to expect that, or at least not actively signal the opposite.