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How to Negotiate Better Copywriting Fees

How to Negotiate Better Copywriting Fees

handshakeAfter read­ing some of my arti­cles on how to find copy­writ­ing clients, one of my stu­dents, Jeff, asked me an inter­est­ing question.

He’s an aspir­ing copy­writer and wants to build his own free­lance copy­writ­ing busi­ness. When he read that I wrote copy for free when I started my career as a copy­writer, he told me he was think­ing about doing the same.

How­ever, he won­dered if he should ask for some­thing, any­thing, in return. In fact, here was his question…

Mike, my friends have a very small busi­ness, and they have asked me to do copy for them. They say they can’t really pay me that much. I have told them I will do it for free as long as I get rights to the copy and can use it for a ref­er­ence and in my port­fo­lio. I think this is a won­der­ful oppor­tu­nity to get more expe­ri­ence, but my wife wants to see some money on the table.

I value your opin­ion. Can you help?”

Here was my answer.

Ask­ing for a con­ces­sion in exchange for offer­ing one is always the way to do it. While I believe your trade-​​off is good in prin­ci­ple, it’s still mea­ger. I would con­sider some money — or some larger con­ces­sion on the part of the client. Here’s why…

Writ­ing sale­s­copy com­pletely for free is never good. I know from per­sonal expe­ri­ence. What you should be look­ing for is a return on your “invest­ment” (because writ­ing copy for free is indeed an invest­ment on your part), for two reasons:

  • To stop poten­tial nib­bling, grind­ing away your time and resources. If get­ting such a valu­able ser­vice for free was that easy, they are left won­der­ing, “What else can get for free?” It’s illog­i­cal, but they feel cheated if they don’t get more.
  • And to add value to your ser­vices (because doing some­thing sup­pos­edly of high value for free paints a low per­ceived value and makes you, or the ser­vices you pro­vide and espe­cially the final prod­uct you cre­ate, look cheap).

In essence, there’s a dis­pro­por­tion­ate bal­ance between the value of your ser­vice and the value of the con­ces­sion you’re mak­ing, which will inevitably harm you.

So the goal is, you want to take the focus away from a trade-​​off based on free copy to one based on a con­ces­sion: apples to apples, or value for value, in other words.

Oth­er­wise, it can lead to a few prob­lems once the ser­vice is ren­dered — prob­lems that will be more dif­fi­cult to resolve if not impos­si­ble than they are to prevent.

For one, the per­son could ask you for more, and more, and then more, slowly nib­bling away at your time, your money, and your resources. They feel they can get more since it was so easy. Again, it seems para­dox­i­cal. But that’s how your clients will react.

(It’s manip­u­la­tion. While some will do this con­spic­u­ously, oth­ers will do this indi­rectly, nudg­ingly, and sub­tly, often even with­out your knowl­edge — espe­cially if they’re friends of yours, since your will­ing­ness to help will also make it eas­ier for them to do so.)

I know this from per­sonal experience.

Early in my career, I’ve writ­ten copy for free for clients who, after deliv­er­ing it, kept ask­ing for small tweaks, here and there, all the time. I never got paid for the extra work.

The worst part was, this hap­pened more often with clients whose copy I wrote for free, or copy offered at a sub­stan­tial dis­count after they hag­gled with me on price.

Even in those cases, when there was a signed con­tract, they still found ways around it, and con­tin­ued to ask me for more con­ces­sions after the copy was delivered.

Trust me. I’ve been in these sit­u­a­tions too many times.

One of my favorite speak­ers is Larry Winget, author of “Shut Up, Stop Whin­ing, and Get a Life!” and “You’re Broke Because You Want to Be.” On his pro­gram, “Suc­cess is Your Own Fault,” Larry quotes the San­born Maxim, which goes:

“The cus­tomers who are will­ing to pay you the least will always demand the most.”

(Re-​​read it. That state­ment is pro­found. It cer­tainly was for me.)

Nev­er­the­less, the prob­lem is that there is a “con­ces­sion mis­match.” Stated dif­fer­ently, the per­ceived value of each con­ces­sion is not equal to each other.

It’s not because the copy is free but because it is free and what you’re ask­ing for in return is mea­ger when com­pared to the larger con­ces­sion you’re mak­ing — the con­ces­sion being a fin­ished, com­pletely writ­ten piece of sales copy.

Look at it this way: offer­ing copy for free is like a mar­ket­ing invest­ment. (That’s how I looked at it.) But if you offer copy for, say, $2,000, would you there­fore spend $2,000 on a sin­gle ad to mar­ket your ser­vices just to get that one client? Of course not.

Psy­cho­log­i­cally, by writ­ing copy for free you are not adding enough value to your con­ces­sion. More impor­tantly, you are lit­er­ally tak­ing value away from your product.

Think about it. By mak­ing your end-​​product the con­ces­sion itself, then the per­cep­tion will be that the end-​​product will be of low value, too. Why? Because the con­ces­sion they are mak­ing, in exchange, is mean­ing­less in com­par­i­son. You get what you pay for, right?

Sure, build­ing your port­fo­lio is impor­tant to you. But giv­ing you the abil­ity to add their copy to your port­fo­lio is worth how much to your client? How big of a con­ces­sion is that to them? What are they really giv­ing up in return? In many cases, not much.

Since you are not ask­ing the client to make a sig­nif­i­cant con­ces­sion in exchange for your con­ces­sion, then you’re not only devalu­ing what you offer but also your­self.

To be clear, ask­ing for trade­offs is good and you’re doing well in ask­ing for one. It adds value to any con­ces­sion you’re mak­ing by always ask­ing for some­thing in return.

Never make a con­ces­sion, even if it’s as sim­ple as a dis­count, with­out ask­ing for one in exchange. Call it a “counter-​​concession.” This is noth­ing new. Most of the top nego­ti­at­ing experts out there, like Roger Daw­son and Herb Cohen for instance, teach this.

This is an impor­tant con­cept to grasp, even if they’re friends of yours: the per­ceived value of the ser­vice depre­ci­ates imme­di­ately after the ser­vice is rendered.

Why is this impor­tant? For one, if the copy doesn’t do as well as expected, who cares if you did it for free? (Your client cer­tainly won’t.) But it goes fur­ther than that.

If all you had were rights to the copy and it did per­form well, and if any­thing should hap­pen between you two, would you ever con­sider stop­ping your friend from using your copy? Even to the point of send­ing them a cease and desist, or tak­ing legal action?

Friend­ships notwith­stand­ing, would you be will­ing to work twice as hard try­ing to sat­isfy an insa­tiable client when you could be work­ing on other, bet­ter, pay­ing clients?

It’s some­thing to think about.

Ask­ing for a larger con­ces­sion before work starts helps to stop the poten­tial grinding-​​away process after the copy is deliv­ered. If they try, then each time they ask for a con­ces­sion you in turn ask for one. Always ask for a counter-​​concession. Always.

Plus, by ask­ing for a sub­stan­tial con­ces­sion in the begin­ning, you also increase the per­cep­tion that each counter-​​concession you will ask with each one they request from you will be just as large, which will force them to think twice before nib­bling for more.

If they are demand­ing (and cheap clients usu­ally are), ask yourself:

Am I pre­pared to do two to three times the work, deal with a high-​​maintenance client, and divert my atten­tion away from other, pay­ing clients (let alone away from mar­ket­ing my ser­vices in order to find bet­ter clients), for a mere addi­tion to my résumé?”

On the other hand, mak­ing a bal­anced con­ces­sion — giv­ing a dis­count instead of doing it for free, for exam­ple — will increase your per­ceived worth. And a good way to do this is to raise your fees. Rais­ing your prices is not just about increas­ing per­ceived value.

By rais­ing your fees and giv­ing a more sub­stan­tial con­ces­sion will allow you to ask for a larger con­ces­sion from them in return. So ask for some­thing upfront, even if it’s little.

Say: “I under­stand this may be out of your bud­get range. In exchange for a spe­cial con­sid­er­a­tion (a dis­count), may I sug­gest (what­ever con­ces­sion you want them to make).”

Even bet­ter, let them make their counter-​​concession for you. They might sur­prise you, as it might be a lot more than you antic­i­pated. Say some­thing like: “In exchange, what can you do for me?” Then let them tell you what they’re pre­pared to offer you in return.

(Inci­den­tally, doing it this way also gives you a pretty good idea of what they think of you, and how much value they place in your ser­vices and your copy.)

Ulti­mately, your copy no longer becomes the object of the trade­off. Your con­sid­er­a­tion — e.g., a dis­count or what­ever con­ces­sion you’re mak­ing — is. Apples to apples.

Also, don’t limit your­self to a dis­count. You can offer a bonus (such as an extra revi­sion, free of charge), an extra con­sul­ta­tion, an extended guar­an­tee, an add-​​on ser­vice (such as writ­ing the opt-​​in page copy, for­mat­ting, or even test­ing the copy), and so on.

That’s why the key is to break­down and denom­i­nate each com­po­nent of your ser­vice — from research to revi­sions. In other words, give each com­po­nent a price tag. Sure, give a flat rate. But break the project down into indi­vid­ual parts, with indi­vid­ual values.

Not only will each ele­ment have a price tag, which can be used in the nego­ti­a­tion, but also it will help to jus­tify your higher fees. It will seem less “pulled out of thin air.”

When a prospect sees the value behind every indi­vid­ual com­po­nent, they also get a bet­ter appre­ci­a­tion of what you do, how you price your work, and how much they are truly get­ting if you were to con­cede on any one of those elements.

For exam­ple, if a client asks for a dis­count, you can say: “As you can see Mrs. Prospect, your project includes one post-​​delivery revi­sion, which is worth $1,000, absolutely free of charge. Here’s what I can do. I can throw in an extra one. Fair enough?”

In the end, you add weight to your trade­off, and your copy thus retains its value.

On the flip side, your client’s con­ces­sion doesn’t have to be just a mere addi­tion to your port­fo­lio, which is min­i­mal at best. (In fact, adding your copy to your port­fo­lio should be auto­mat­i­cally included in your agree­ment with any copy you write, anyway.)

Remem­ber, you want to match their con­ces­sion with yours. Bet­ter said, you want to match the per­ceived value of both your con­ces­sions. Per­ceived value is key.

So here’s another option. Ask for roy­al­ties or com­mis­sions. You can offer your friends a sig­nif­i­cant con­ces­sion in exchange for a per­cent­age of gross sales your copy pro­duces, for as long as they use your copy if not for a pre­de­ter­mined period of time.

If roy­al­ties are not an option (par­tic­u­larly if you’re new, or if you don’t know the client or their busi­ness well enough), you can ask for other things. For exam­ple, you can barter — in fact, bar­ter­ing is often the most over­looked nego­ti­a­tion strategy.

Or have them write a tes­ti­mo­nial about you, get them to give you qual­ity refer­rals, or ask them to send a broad­cast to their lists pro­mot­ing you. The trick is to get this in writ­ing, and to ensure they deliver their end of the deal within a spe­cific period of time.

Remem­ber, the per­ceived value of your ser­vice — includ­ing the per­ceived value of the con­ces­sion you’re mak­ing — depre­ci­ates imme­di­ately after the ser­vice has been ren­dered. The longer they wait to com­ply, the less mean­ing­ful your con­ces­sion becomes.

That’s why this is prefer­ably spec­i­fied in a writ­ten agree­ment before work begins.

If they they fail com­ply within a spec­i­fied period of time, then you can charge them your full fee — or for the amount of the con­ces­sion, if they already paid you (have an agree­ment in place before work starts, so you will have legal recourse to do so).

In fact, hav­ing a writ­ten agree­ment prior to com­menc­ing any work is essen­tial. Get it in writ­ing, even if it’s a sim­ple let­ter of under­stand­ing or intent. When it’s writ­ten down, it’s more than just for legal rea­sons. It’s also a psy­cho­log­i­cal commitment.

Finally, remem­ber that it’s bet­ter to nego­ti­ate on a con­ces­sion (whether it’s a dis­count or not) than it is on the entire copy itself — such as by offer­ing it for free.

If they want apples, stick with apples. Not oranges. And cer­tainly not the orchard.

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Last 5 Posts By Michel Fortin

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This post was written on Thursday, November 26th, 2009. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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  • Great post.

    A lot of my early work building a portfolio was done in exchange for products.

    Many of the clients where I did copy in exchange for products ended up hiring me for other projects later and paid good fees.

    The way you set up those deals is vital and Michel's guidelines in this post are spot on.

    In any negotiation you have to maintain a very high perceived value for your service.

    Kindest regards,
    Andrew Cavanagh
  • This post is just on time. I am actually dealing with a client who will pay but on a lesser price. The thing is that the service that i offer is more than the double of the price he wants to pay. I guess an agreement between us will be a good thing so i will just give him the service equal to the price he will pay. Is that right?
  • So true that the clients who pay the least will demand the most...

    When I was just starting out, many times I was asked by low-paying clients to tweak this or that, until I'd given over several hours of my time rewriting their copy for no extra compensation at all.

    Not only that, but you feel kind of rotten at the end of the day as well, like you've compromised something.

    Great post Michel, thanks!

    Elizabeth Southall
  • @SEO:

    Yes and no. Yes, you offer him the lesser service for the price he wants to pay. This is just standard "downselling." But indicate that to them. Make sure you denominate every aspect of your service and show them what they're turning down. Don't just offer a lesser product at a lesser price. Say "We can offer just this for [less money], which doesn't include this [value of X] and this [value of Y]."

    Just be clear with them on what exactly they are turning down. For one, you want to increase perceived value. And for another, you don't them to come back and bite you thinking that your service included this or that.
  • Great Post Michhel!

    Talk about being burnt.

    I once gave an advice to a friend of mine, where and how to put his contact number on his site, and made him an extra 120K per month.
    He later said on TV he did this all based on what he learnt from Brian Tracy...?

    Your post really struck a cord with me. I will assimilate the mindset and practice it from now on.

    Warm regards,
    Andy Tsai
  • I think the solution is, in part, to realize that CLIENTS DON'T VALUE WORDS.

    Everyone thinks that they can write. (Friends who are freelance designers or developers don't face this problem. Few people think they can design or develop without the requisite experience and skills.) So words alone have little value.

    I've seen much more success when I SELL RESULTS. For example, selling increased click-through rates and conversions. It's easier to ask for money when you demonstrate to clients that they'll see a specific return on investment.

    Jeff should REVERSE THE RISK. If he first got key performance indicators for his friends' business, he could run a calculation to show how much increased conversions could improve their revenue. Then, asking for a portion of this would seem more than fair.

    Of course, Jeff would have to deliver. But if he's held to measurable results, the added incentive should only drive even greater success--for everyone.
  • Simon,
    As a designer I have to disagree with you that designers don't have this issue. Maybe 13 years ago when we started our design company this was true but not as much now. Today there are literally hundreds of "free" services where you can "build a site yourself" and a lot of business people are under the impression that they can build their own website so why should they pay a designer. So it has become harder and harder each year to convey the value of hiring a professional. Because of this many designers have the same problem you mentioned where people don't value words they are also not valuing the skill it takes to design a true corporate site.

    We all have to learn to convey the value we are providing instead of relying on the product to "sell" itself.

    In our design business we focus on the time saved and the years of expertise that we bring to the table. We ask our clients if it is an effective use of their time to learn how to design it themselves. Or if they should be using that time to market their business and let a professional do the design (or in the case of this post, the writing). Usually they agree that it is a better use of their time to hire someone else and then they can focus on other aspects of their business.
  • You said...

    "We all have to learn to convey the value we are providing instead of
    relying on the product to "sell" itself."

    That's precisely the point.

    Designers who are asked a concession should still apply the same concepts,
    nevertheless. This is about stopping the grinding away process when they are
    hiring you -- not marketing to get hired or pricing in the first place,
    which is what you're inferring.
  • Great post Michel.

    The harder you negotiate to maintain the perceived value of your service, the more respect your clients will have for you, and the more likely you will get profitable orders from them in the future. The penny counters are not worth it anyway. I think you are right Michel, when stating it might be more worthwhile to spend your time marketing your service rather than adding a low profile project to your portefeuille.

    Wasn't it Gary Halbert, who coined the term "Players With Money", and who taught you should aim for those? They are ultimately easier to sell to, they recognize value, they can make decisions, and they have the money to spend.

    Have a nice weekend.
  • Thomas
    This reminds me of some of the sayings of yesteryear.

    A wise person learns from experience and a smart person learns from the experience of others.
  • Hoover
    I'm a copywriter and the more I charge, the better my work.

    I have a range of clients. Some I took on in the early days at a low price. Others I took on later when I was more confident and charged a lot more.

    The later ones get more attention, more extras and little freebies, more time and quality. That works out pretty well, because the relationship with them is also better - they respect me more than my cheaper clients.
  • Ha! Was that great line in Wizard-of-Oz take-off Wicked? -- "No good deed goes unpunished." Michel, you give sage advice once again.

    One possible caveat. Your novice copywriter portrays a verbal agreement to work for free before seeking your advice. He may not have stated to you any condition he placed on his commitment to the small company, but with no condition (I'll do it if ...), in my view he has a moral obligation to do as he said he would. If so,it's live and learn for him.
  • As a photographer this article hits very very close to home. With digital cameras being sold for next to nothing, the perception is that anyone can take a great picture.

    Hmm... something about a picture and a thousand words comes to mind.

    This article should be required reading for all people in any service industry.
  • Alan
    OK Michael,
    I loved the article and wished I read it a year ago, but the email title "How to Stop Insatiable Clients From Sucking You Dry‏" My spam filter didn't have as innocent a mind as you did when you wrote the line.
    Hope that gave you a laugh.
  • Paul
    Hello Michael
    Understandably Jeff wants to hel/p his friends and also build his experience but Jeff should point out to his friends that they would not give their product away (unless it was part of a larger strategy} and that his copywriting is HIS product and that they should not expect him to give his product away for free either.
    ,

    ,
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