How to Succeed in Freelancing: Say No to More Work
This is the second post in a special five-part series on using the magic of yes and no to earn more money, better clients and work you really love to do. Click here to read yesterday’s post on how to say no to clients.
Then sit back and enjoy today’s post on how to work less and make more money. You’ll be on your way to enjoying a freelance business that brings you more of what you want in no time.
Many new freelancers fall into the common trap into of believing that taking on more work for less money is just as good as earning more money for less work. They feel it all comes to the same in the end, and that it might even be better. More work means more happy clients means more referrals means more exposure. Win, right?
Wrong.
Taking on more work for less pay does bring in plenty of clients and referrals, but it also ends up bringing in the wrong kind of clients – the ones that expect a cheap workhorse. Your affordability becomes your selling point, instead of being known for the great quality of your work. While being affordable is nice, if all people care about is low rates, then low rates is all you’ll ever get.
Speaking of quality, it’ll end up dropping if you load up your plate. The more-work-less-pay philosophy eventually results in a situation where you’re always working, always tired, getting fed up and needing a vacation. You become a machine just continually churning work out from dawn until dusk.
You’re not a machine. You’re a human being, and you need a break. If you don’t give yourself one, you’ll subconsciously start creating your own breaks – by cutting corners, skimping on quality, rushing projects. You won’t even realize you’re doing it. But your clients will notice. And you may even get cranky with them because you’re burning out, and you might start shooting off short, sharp replies without thinking.
You’re not able to perform at your best anymore. You’ll start losing customers. You’ll have more revisions than usual, and that takes time away from projects that earn you money. Your clients won’t be as satisfied as before, and they won’t speak well of your services to others. You’ll have to apologize for mistakes you made or for something you forgot and that fell through the cracks or for being snappy in that last email.
Time is money. Wasted time adds up to pretty big losses quickly.
The solution is simple: raise your rates. You’re working like a dog anyways, so you might as well be well paid for it. Even if you lose clients, you’re earning more per job than you were before, which means that yes, it does all even out. You’ll probably even wind up doing better financially than you did before when you were slammed with work, because you’re making less mistakes and delivering better work.
Sure, you’ll lose some clients who prefer cheap labor and low rates, but you typically won’t lose as many as you think you will. Also, the ones that you do lose are usually the ones that had the tendency to suck up your time and make you work hard anyways. The clients that stay are the ones that respect you for your value and your quality of work.
And by shedding a few clients, you give yourself more time to do a good job for the customers that really do appreciate you. You’ll be able to consistently give them that quality of work they love, and they’ll praise your name to all sorts of people.
There’s a bonus, too – since you’ll be earning about the same average income as before but you now have more time, you’ll be able to spend some of that time working on your business to improve it. Fewer clients, more pay and more free time to work on projects that help you succeed? Sounds like a win to me.
22 Responses to “How to Succeed in Freelancing: Say No to More Work”
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It’s easy to say, Raise Your Rates…but you also have to really believe in yourself and what you deliver to effectively make this so. This point, however “The clients that stay are the ones that respect you for your value and your quality of work” – very true indeed.
I think there’s a point where everyone has to say, Damn it, I AM worth this and I WILL hold my ground. Getting there…that’s a character-building journey indeed.
Barbara Ling, Virtual Coach´s last blog ..A MUST READ for profitable website designers WITH PRIDE!
Totally agree Barbara, you have to believe in yourself. But you also have to enjoy the quiet. Don’t freak out that you don’t have a project to work on. Take advantage of it. Read, catch up, get ahead. Too many freelancers choke on the down-time, and totally miss out on the opportunity it creates. Then they fall straight back into the trap of being too busy, overworked, and undervalued.
Sally B´s last blog ..Great content takes time to write
James,
I was reminded of a little story when you wrote this part:
My parents own and operate a motel. It’s backbreaking work, and when they first purchased it, the place was also not making much money. They took a couple of years to get a feel for the place before raising their rates. (One fought it all the way, one was in favor.) Their occupancy rate did go down, pretty badly (probably because the rates hadn’t changed in forever), but at the end of the year they’d made a little more money.
Just like you say, working less actually felt bad to both of them. It felt worse than the extra money felt good!
I suggested they raise their rates again, which neither of them wanted to do, but bless ‘em, they closed their eyes and jumped, and they have every year since—until now, even I say “whoo” to their prices in the region they’re in. (Thank goodness I get the daughter rate.)
So what happened: in every year after that first rate hike, their occupancy rate (or workload, for freelancers) went UP. They had to hire on a helper. And they can pay him, and they are still making more money than in those first years.
Even in a recession.
It’s a hard thing to prove absolutely, but there’s one more story to suggest that if you’ve got quality goods and services, you are probably undercharging for them.
Regards,
Kelly
Kelly´s last blog ..Maybe You’re Right. NOT.
Gave me lots of inspiration to appreciate my own work to! Thank’s.
Nils Pettersson´s last blog ..Strategi för att prata om skakade barn
I LOVE how Barbara put it, “Damn it, I AM worth this and I WILL hold my ground.”
You must have a sense of the true value of time to raise rates. Whenever I feel under pressure from too much work I start letting myself spend a couple of minutes during each of the major jobs to consider my options. Is there anything I could be doing in this moment which would create greater value in my life? It’s in these moments I realize, my time is supremely valuable. I sacrifice a snuggle with my youngest. I sacrifice the joy of a new book. I sacrifice a walk in my garden. I sacrifice a fresh batch of banana muffins. I sacrifice…
Every job you take on is weighted against the time you could have spent doing something else. How much worth do you put on that? If I didn’t love my job then ANY time doing it would be costing me more than it’s worth. But I do love my work, so I make a point to earn a fair price for the time I’m giving others. And, because I don’t want to end up having to go out and get a job that I’ll hate doing I make sure I set prices that keep me in business.
Rebecca Laffar-Smith´s last blog ..5 Strategies for Reviewing Success
I am a freelance as well. And I know some (like my friends) who also have the same job as mine. Some of them are thinking to get more clients to earn more. Yes that is correct, but everyday is not the same. There are days when you are piled up with work, and there are days which a day is not enough. So what if that full-of-tasks day has been bugging you all week? That means a poor quality of work for your other clients. Multitasking? I don’t know if that always works, because a lot of times, multitasking could be half baked.
Best Small Business´s last blog ..No Small Ambitions (Forbes)
It’s good to talk about this. Each comment builds on the other. But having the self-esteem, confidence, and finding the balance is hard. Especially liked Kelly’s analogy to her parent’s motel. “Just like you say, working less actually felt bad to both of them. It felt worse than the extra money felt good!”
And Rebecca, you’re right about the sacrifice, but right now I’m starved and thinking of a sign, “Will write for banana muffins”.
Aww, Mary.
I hunted you down on LinkedIn and dropped you a message. Maybe we can work together to find you some banana muffins.
Over the years, I’ve developed a belief that the universe gives you what you stand up and ask for. You’ve got to be careful that you’re not sending out negative messages. Sometimes, the simplest way to turn fortunes is to believe you live an abundant life. We all do, even on the darkest day when it feels like we’re at the bottom of the scrap heap trying to claw to the surface. On those days, if you can’t dredge up enough moxie to believe you live an abundant life, at least accept that you have “enough”. You do not “need” anything (understand exactly what you “need” to live, you have those things and so much more).
I’ve found, when I believe I have “enough” and I believe I live in abundance the universe returns that in kind. James’ post yesterday talked about turning down clients; when I told people I was “fully booked” MORE kept coming. When I’ve just been paid for a gig and I’m feeling “rich” in that moment I’m more likely to land new jobs than when I feel like I’m pinching pennies. In fact, I’ve sometimes splurged when money started to feel tight because the act of blowing money gives me a sense of abundance which seems to invite new money into my life.
Ok, so it all sounds a bit wishy washy and airy fairy. But it seems to work for me. If it works for me it might work for you.
It’s also the same for raising your rates. If you believe you’re worth more, and demand it, the universe tends to provide.
Rebecca Laffar-Smith´s last blog ..Melissa Hart On Family, Love, and Food
Rebecca,
On a professional level, it’s a good motivational idea (and perhaps that’s how you mean it), but as a blanket statement, oooh no.
This is definitely not the place to get much into it—way off topic—but lordy, either the universe gets a lot of messages garbled or that just ain’t so. Stuff happens for a reason, I think (though some don’t agree with that either), but the reason is not always that you asked for it.
Regards,
Kelly
Kelly´s last blog ..Maybe You’re Right. NOT.
Hi James,
I agree with raising your rates. That freaks folks out because it’s counter intuitive to what we’ve been taught in marketing 101 and what we see all around us – discount mania or it’s a “recession” only go for the deal.
To stop our economic slide into oblivion, we all need to immediately reverse engines and stop doing things for peanuts. We need to bring quality back. Instead of buying lots of cheaply made crap made without care, we need to buy good quality products and services where we paid the person that made it a livable wage.
I raised my graphic design rates several years ago and it made a huge difference in the clients I attracted, my income and my business self-esteem.
If what you’re doing doesn’t work, change directions.
Giulietta, Inspirational Rebel
Giulietta Nardone´s last blog ..How do you define rich?
Giulietta,
“… it made a huge difference in the clients I attracted…”
Great point. Every time I’ve raised my rates the quality of the clients who work with me—still small businesspeople, still often struggling— goes up. I have clients who are more motivated, more involved, and more likely to make the plans we put together work now than I ever did before. They get more ROI (though they pay more) because they see the project differently than clients did a just few years ago.
Until later,
Kelly
Kelly´s last blog ..Maybe You’re Right. NOT.
I think a little bit of reality needs to be interjected here. Sure it’s easy to say “My work is worth more… I’ll raise my rates” but far harder to deny your family some basic needs because the money isn’t there. Rebecca couldn’t have said it any better about sacrificing. Freelancing is NOT the gravy train, if you think it is, then you’ve got problems. It’s a sacrifice everyday. But I would much rather work for myself and my family than anyone else. So raise your rates… absolutely. We’re worth it. But remember, don’t believe everything you read. Someone has to pay the mortgage and as of yet, I haven’t seen a check from James to cover mine. So maybe I don’t charge as much as I should all the time, but thankfully I’m very busy, my plate is full and I have very happy clients. It’s all in how you handle your workload and your time. Take on all the work you can, just don’t over promise, that’s when problems arise. Also remember this, don’t cry to anyone when you’re sitting on your hands with no work because it’s your own fault.
Great, great comments today! I’m glad everyone’s enjoying this post and the series (with more good stuff to come), and it’s always fantastic to see you talking and sharing experiences. Love it.
@Joe – I’d be remiss if I ever said in my whole freelancing career that it’s a gravy train. In fact, the Unlimited Freelancer book came about because freelancing is hard – damned hard – and we wanted to show people a better way to create an easier path to success.
@Kelly – Same here. Rates influence not only the type of work you do (usually more pleasant and challenging in a good way) but the people you work with (also more pleasant!)
@Guiliette – When everyone was freaking out over the recession last year, I wondered why so many people were missing the huge opportunity that lay right in their lap.
http://menwithpens.ca/recessions-are-the-best-times-for-business
(Disclaimer: Yes, I get that some people really had absolutely good reason to freak out. I hope those people are doing better today.)
@Rebecca – It’s true that when we seek the positive with an optimist view, we tend to always see good things happening to us. It’s nice to be able to have that perspective, because it lets us deal calmly and with a positive outlook when the negative happens.
@Mary –
Want to know a secret? People can find, build and grow all these three things, all on their own, all for free. It’s not something lost that you have to find, or something you don’t have already. You do. Little steps, little steps.
@Rebecca/Barbara – I’m always wary about “charge what you’re worth” statements, because yes, they are correct – however people tend to confuse skill-worth and self-worth, and that’s where things get dangerous.
So they say, “I’m someone important, dammit!” And they are. And they raise their rates a whole bunch, putting a price tag on their personal self-worth value.
Uhh… no, I’m afraid not. Everyone has invaluable self-worth and we’re all important, but our rates should be set according to our skills, talents, and the results we provide. Not what WE feel WE’RE worth.
Because if that were the case, I’d just be absolutely unaffordable
@Kelly – My mom: “I think I’m not charging enough for my rooms.”
“No, mom, you’re not. And you know it.”
… four years later, I think she’s raised prices $10.
@Rebecca again – banana muffins?
@Sally –
YES. For the love of Pete, YES.
Can’t remember where I read it, but the owner of a souvenir shop in the midwest told an employee to mark everything down, but due to math confusion the employee ended up marking the souvenirs up by 150%. The store actually sold more items because if it; the perceived value increased the desire for the product.
I’m glad you are fighting the good fight James, because everyone else is on the free wagon these days. I’ve dropped my price for proofreading in the past just to experiment and noticed people’s desire for the service seemed to decrease equally with the price. When I priced at a premium above market rates, people balked at first, then came back later and said okay. Funny how things work.
This article reminds be about a business I used to work in. We decided to sell a product for much less so we would get more market share. What happened is we got the wrong kinds of customers (the kind that demand a lot for little in return). After we changed this strategy and offered more value (at a higher price), we were satisfied with our business plan and stayed at that price level for a long time.
I cannot tell you how much I needed to read this (and your entire series this week. I’m new to the freelance/entrepreneur game and I’m quickly learning all of these lessons. Cheers guys – very well done!
Amen, brother! I am just finally coming around to the ‘work smarter, not harder’ approach to things. And understanding the value of your services (and pricing accordingly) is such a huge part of that. Thanks much for the fantastic post!
Mark´s last blog ..Fly for free! Travel Hacking tip #1
Thanks James. Recently my friend did a project for a client. They agreed on specific number of drawings to do. She’s a visual artist. They agreed on a dollar amount. She was unhappy that she ended up doing more than what was required of her. She didn’t get additional money. What’s your advice? BTW there was a contractual agreement but it didn’t include extra work.
Thanks
Omar´s last blog ..Say Something
How true it is to say, “You get what you pay for!” When a service provider sells at a low price, more work is needed to make ends meet at your life. So, you get tired and make mistakes and the quality of your work decreases. So, lower price= lower quality.
Now, who wants great service at low prices?!!