How to Grow Your Freelance Business (What do you really mean?)
That was the tweet. Now let’s dig in deeper to answer those questions.
Grow Your Freelance Business by Raising Your Rates
Freelancers are always asking questions about rates.
Are my rates high enough? Should I raise my rates?
Will clients accept higher rates? What if clients won’t pay higher rates?
Talking about rates is money talk, and most of us aren’t good at it. Money talk is the fastest way to bring on imposter syndrome.
“Maybe I don’t deserve higher rates. Maybe I’m not good enough for higher rates. Maybe I shouldn’t have higher rates. I should be happy with what I get.”
Why Do You Have Rates at All?
If you charge by the hour or by the word, you’re quoting rates. If someone asks you how much something would cost, you’d give them your rate and maybe an estimate of how many hours or words.
But why do that? It leaves you exposed twice over.
You might say that you charge $XX per hour and tell someone you think it will take 10 hours. They’ll say they can get someone who can do the work faster at less per hour. Why get caught in that argument?
Writing by the word is also a dangerous trap. Every writer knows it takes more time to edit and potentially make a piece shorter. So, why would you settle for less for more effort and time? That’s not right.
It’s time to stop that.
Raising Your Rates Vs. Charging More
Rather than saying to yourself that you want to “raise your rates”, why not just say “charge more”? Don’t talk about rates. Get rid of them.
Get right to defining “the thing” you’ll do and give an estimate for doing that.
In other words, switch from billing by rates to billing by project.
For example, to write a blog post of about 1,000 words, you might give an estimate of $800 (or whatever). Someone could say it looks like you’re charging 80 cents per word. But it’s not that simple.
From the client brief, you know that this blog post requires about X amount of research. In your terms and conditions, you would say that it includes a specific amount of research and up to two rounds of revisions, with further rounds to be estimated.
If it needs further work, you provide an estimate for that work before proceeding. That way the client knows what to expect.
You might get another blog post assignment for 500 words, but this time it requires XX amount of research. So, your estimate might be $1,000. Are you charging $2 a word? No, you’re pricing the project based on the requirements.
Look how fintech copywriter André Spiteri deals with how much he’ll charge. Notice it says “from” the price. In other words, that’s the lowest. If you want to pay less than that, André isn’t your writer.
That neatly positions André for any potential client. Also notice that there is no talk of rates. It’s from £ per project.
I wrote more about how to estimate and charge by the project in best pricing models for creative services.
Once you start charging by the project, you have complete freedom to estimate whatever you think is right for that job. Define the project and how you’ll deliver it, and then give an estimate.
I wrote how to increase your billing with detailed estimates here.
Grow Your Business by Finding More Clients Like The Ones You Have
Let’s say you’re happy with your clients and the niches you’re working in. You’re also satisfied with your billing and how you’re getting paid.
Your problem is that you need more clients. You have more hours to fill, and you simply need more work.
Here’s what you could do:
Group your existing clients by sector. Which clients belong together?
Your job is to find more clients in those sectors.
How do you do that? All business sectors have media sites and associations. Do searches to find them. Then dig in and record the names that might be useful to you.
Often, the name you get is not the person you want but someone who can lead you there. For example, if you’re looking for the head of communications, but you’ve only got the name of the VP of another division, fire off an email and ask whether they can give you the name of the person you’re looking for. Often, the answer will come back, “Sure, contact Jill Smith at (email address).”
Also, look at your clients and figure out who they work with. For example, if your client is a manufacturer, who do they buy parts from? Who do they use as distributors? Who do they partner with? Who are their customers?
Could any of those companies be your clients? You already know the sector from your work with the manufacturer.
Find the names of the companies, then find the individuals on LinkedIn. Follow them, and at the appropriate time, contact them.
Also, look for online conferences in your sector. Who are the speakers and participants? They’re generally from within the industry and potential new clients.
I wrote, where do you find new clients (hint they’re close by), with more examples here.
Lastly, and perhaps most obviously, if you’re comfortable enough with your clients, why not just ask them?
Are You Looking For Better-Paying Clients? (Who isn’t?)
Maybe you’re busy enough but with relatively low-paying clients. You’d like to replace some or all of them with better-paying clients.
Here are a few ways to start.
First, look at your online presentation, starting with your website. Check the design and content. Is it up to par?
First impressions are everything, and if you’re in contact with better-paying, more sophisticated clients, they will visit your site.
Make sure you have the best possible portfolio. You may want to take out some of the weaker projects.
Do you have client testimonials? There’s nothing like others singing your praises. Scroll down this page to look at those words of praise. If you don’t have any testimonials, now is an excellent time to follow up with clients to get them.
Before you do anything else, before you contact anyone, look at your public presentation. The same goes for LinkedIn and other social media.
If they need updating or changing, now is the time.
Specialize and Emphasize Your Niche
Clients pay more for specific expertise. If you specialize in a niche, for example, fintech copywriting, you’ll attract better-paying clients.
Make sure that prospective clients know your specialties. If you have clients in the same sector, find a way to communicate that to demonstrate your experience in the industry. Make sure it’s obvious in all of your communication.
Work For Bigger Corporations and Organizations
I know that some people like working for small businesses, say local family-run businesses. That’s fine, but there are limits when it comes to how much they’ll pay for your services.
Usually, it’s their personal money, so the less they have to spend, the better.
Large corporations and organizations run on corporate budgets. For example, they may have a marketing and communications department with an annual budget of $1 million.
They will still be careful how they spend that money, but it’s not personal. It’s corporate money allocated for marketing and communications.
As a freelancer, working with clients with corporate budgets feels completely different from working with clients paying out of their own pockets.
Look at Your Existing Clients And Take a Step Up
Who competes with your existing clients but at a higher level? Who are the leaders in the sector? Are they the ones you want to work with?
You already have sector expertise. Consider how you might approach one of these companies. Again, Google and LinkedIn are your friends when looking for individuals to contact.
Set Goals, Be Proactive
I know some freelancers wish to have better-paying clients, but they don’t do anything about it. They’re hoping to “be discovered”. If that’s you, it’s time for a change.
Decide who you’d like to work for, and go after them. Take charge.
I wrote more about best clients for freelancers and how to find them here.
There’s much more about growing your business in both of my books.
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Want to Grow An Agency? The Agency Book is For You
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The book is packed with useful information to help creatives start and grow their business.
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This chapter covers essential areas such as Clients vs. Projects, Corporate Clients vs. Small Business Clients, How to Create an Opportunity Document, Benefits of Finding a Niche… and much more.
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