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How to Negotiate Better Copywriting Fees

Negotiating on concessionsAfter reading my articles on how to find copywriting clients, a student of mine, 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 asked me about doing the same:

“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.


I believe your trade-off is good in principle, but meager. I would consider some money — or some larger concession on the part of the client.

Writing salescopy completely for free is not good. 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;
  • And to add value to your services (doing something 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 short, you want to take the focus away from a trade-off based on free copy to one based on a concession: 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 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.

(While some will do this conspicuously, others will do this nudgingly and subtly, often 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 the copy, kept asking for small tweaks, here and there, all the time. And 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 at a substantial discount after they haggled with me on price.

Even when there was a signed contract, they still found ways around it and asked 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 in return is meager when compared to the concession you’re making — the concession being a finished, completely written piece of sales copy.

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

Think about it.

By making your end-product the concession itself, then the perception will be that the copy will be of low value, too. Why? Because the concession they are making, in exchange, is meaningless in comparison.

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.

Look at it this way: since you are not asking the client to make a significant concession in exchange for your concession, then you’re not only devaluing your product and your services 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 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. This is nothing new. Most of the top negotiating experts out there, like Roger Dawson and Herb Cohen for instance, teach this.

But even if they’re friends of yours, remember this (and this is an important concept to grasp): 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 the copy did perform well, and if anything should happen between the two of you, would you ever consider stopping your friend from using your copy?

Friendships notwithstanding, would you be willing to work twice as hard trying to satisfy an insatiable client when you could be working on other, 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, too.

Moreover, by asking for a larger concession in the beginning, you also increase the perception that each concession you will ask 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 to find better clients), for a mere addition to my resumé?”

On the other hand, making a concession — giving a discount, for example — will increase your perceived worth. By raising your fees and giving a greater 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 that this isn’t in your budget range. In exchange for a special consideration (say, a discount), may I suggest (whatever concession you want them to make).”

Even better, let them name their concession for you. 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 how much value they place in your services and your copy.)

Your copy no longer becomes the object of the tradeoff. The concession — a discount or whatever concession you’re making — is.

Also, don’t limit yourself to a discount.

You can offer a bonus service (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 the copy, 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.

Not only will each element have an attached value to it, which can be used in the negotiation, but also it will help to justify your higher fees.

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.

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, it 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 your concessions.

Here’s another option.

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 (bartering is often the most overlooked negotiation strategy). You can have them write a testimonial about you. You can get them to give you quality referrals. You can ask them to send a broadcast to their lists promoting you, your products, or your services.

Plus, ensure they deliver their end of the deal within a specific period of time.

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

This is preferably specified in a written agreement before work begins.

If they don’t comply within a specified period of time, then you can ask or invoice them for your full fee (and with an agreement in place before work starts, you will have legal recourse to do so).

In fact, having all this written down in an agreement prior to commencing any work is essential. Don’t get burned like I did. Get it in writing.

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

About the Author

Michel Fortin is a direct response copywriter, author, speaker, consultant, and CEO of The Success Doctor, Inc. Visit his blog and signup free to get tested conversion strategies and response-boosting tips by email, along with blog updates, news, and more! Go now to http://www.michelfortin.com.

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8 Replies to “How to Negotiate Better Copywriting Fees”

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  1. From Holding Firm Part 2: Copywriters Ain’t the Only Ones Getting Dissed : The Copywriting Maven

    [...] as serendipity would have it, a few days later (or so) Michel Fortin wrote How to Negotiate Better Fees. What you should know upfront? “The customers who are willing to pay you the least will always [...]

    Source Website April 24th, 2008

Comments

  1. MyAvatars 0.2

    From Andrew Cavanagh

    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

    Author's Website April 16th, 2008

  2. MyAvatars 0.2

    From SEO Copywriting Service

    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?

    Author's Website April 16th, 2008

  3. MyAvatars 0.2

    From Elizabeth Southall

    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

    Author's Website April 17th, 2008

  4. MyAvatars 0.2

    From Michel Fortin

    @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.

    Author's Website April 17th, 2008

  5. MyAvatars 0.2

    From Andy Tsai

    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

    Author's Website April 17th, 2008

  6. MyAvatars 0.2

    From Simon Smith

    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.

    Author's Website April 18th, 2008

  7. MyAvatars 0.2

    From John W. Furst

    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.

    Author's Website April 18th, 2008

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