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Lowball Puts You Behind The Eight Ball

Behind the eight ballRyan Healy, a talented copywriter whose blog I love reading, recently said that copywriters shouldn’t be cheap, especially when they start out.

It’s a powerful notion, because many beginning copywriters believe that being cheap will get them more business. (There are other ways around this, of course. Knowing how to market yourself is one thing. Focusing on a specialty, a niche, is another. But more on that at another time.)

The bottom line is, if you lowball your rates, you will not get as much business as you think you’ll get. Sure, you will probably get some. But it’s the kind of business you don’t want.


Remember this important rule:

Cheap copywriters attract cheap clients.

If you lowball for clients, you are also “lowballing” yourself. Why? Because you are sending signals out in the marketplace that you’re not in demand, or that you’re perfect for the penny-pinching, attention-sucking vampire who can’t afford your even low fee.

I would even go as far as to say that those clients who do want cheap copy have money issues or money problems. I don’t mean the “I need to pay the bills” variety. We all have that problem at one point, particularly if we run a business.

But what I mean are those with scarcity mindsets, or with poor products that don’t — and won’t — sell, no matter how good (or expensive) the copy is.

If they’re looking for “cheap copy,” that’s a red flag right there. I’m not saying it’s true in all cases. There are some genuinely great clients out there who can’t afford the average fees some copywriters charge, let alone the outrageous ones copywriters like me charge.

But it’s a red flag nonetheless.

If they do have a product that’s well-researched and in demand, and the product is still not selling for whatever reason, then likely it’s because either they have a poorly defined market, or a poorly targeted one.

(If that’s the case, then you’ve just placed yourself at the mercy of a poor marketer who will require extra hand-holding, and their copy will demand critical marketing direction from you — beyond the work for which you were commissioned, and for the same low rate.)

More often than not, the reason is that they have a scarcity mentality, and therefore will be problem clients, demanding clients or abusive clients.

Just the perfect kind of client you DON’T want.

And here’s why:

Beyond the extra work (for no extra pay) you will have on your plate, their own scarcity mindset might even self-sabotage their attempts at making money, and cut their own selves at the knees — such as, among many examples, modifying your copy before even testing it.

(And guess who they’ll blame if the copy is not pulling?)

Second, these vampires will be sucking precious time away from you — time you could have invested in marketing yourself more to attract and work with better clients who are both able and willing to pay your fee.

The greater question is, do cheap copywriters attract cheap clients? Or do cheap clients attract cheap copywriters? Either way, it doesn’t matter. What matters is that if a copywriter wants to be cheap (for fear of not getting any business), three problems occur:

1) They attract cheap clients.

And by poor clients I mean both clients who are poor and can’t afford a copywriter in the first place, as well as poor quality clients who are going to be more demanding and troublesome than the norm.

2) They lessen perceived value.

They cheapen the perceived value in their services — even if the copy is indeed of great value. That means, they will lose clients who don’t want cheap copywriters.

Why? Because if they’re “that” cheap, then their work must be just as cheap. (In their minds, anyway.) Worse still, they must not be in demand and therefore have trouble getting work.

In this case, it’s a red flag for the other party. As a mentor once told me, “Perceived truth is more powerful than truth itself.”

3) They are wasting resources.

Cheap copywriters will waste time, energy and money working on these problem clients, when their time could have been better spent on marketing for, and projects by, other, better, more value-interested clients.

So they lose more in the end by charging less.

Now, after my comment on Ryan’s blog, someone riposted with the following negative albeit insightful comment:

Michael’s concern about the effect on your reputation for accepting a low rate is silly. How are your clients going to know what you are being paid and who your other clients are unless you tell them?

Granted, this person is 100% right in principle. But other than a high-priced copywriter who discounts after the fact, tell me how many “cheap” copywriters keep their fees — and their portfolio of past clients — a secret? Their low fee IS the main selling point in their marketing.

But I digress. Let me clarify the point I made about reputation (more specifically, perceived value).

If I told you I have a brand-new BMW for sale, and it’s only $500, would you think something’s wrong with it? Of course, you would. In fact, you might even think it’s stolen.

Freelance networks like eLance.com who underbid constantly have their pros and cons.

I know there are some good copywriters there. But all too often, the problem is that they’re NOT the ones doing the underbidding. What I’ve found is that eLance is the home of many “sweatshops” with copywriters of less talent or experience — as well as some unknown copywriters who cannot get work otherwise.

For many beginning copywriters, such networks do offer a potential kickstart. That’s fine. If they lack a track record, have no reputation and want to establish themselves, it’s not a bad option. (But it’s not the only one, though.)

Otherwise, cheap copywriters are like that BMW for $500: either something’s wrong with the copy, or its stolen.

(You wouldn’t believe how many freelance copywriters from such networks I have caught copying my salesletters verbatim for their clients. It’s a frequent occurence, sadly.)


Again, let me be clear:

Does that mean cheap copywriters are all thieves and shoddy? Not at all. Like the $500 BMW, you just might stumble onto a heck of a deal. But that, I’m afraid, is rare.

For beginning and aspiring copywriters, they can start low — if they really have to. But I always teach them to retain or heighten the perceived value in their services anyway.

By asking for something in exchange for the concession, their fee is expressed in forms other than just money, whether it’s a referral, a testimonial letter, a bartering arrangement, a chance to gain feedback they can tout in their promotions, etc.

Doing so does three things:

1) It retains or heightens the perceived value in the copywriter, even if they charge a low fee. Because the client is still paying for it, whether it’s in extras or referrals.

2) It stops the grinding away process in asking for more. When people get concessions for nothing, they tend to expect more because of the very mindset that caused them to look for cheap copywriters in the first place.

3) It increases the perceived value in the service, too — and NOT in the concession the copywriter is making. This works for many reasons, such as retaining the value of a service rendered, which tends to decrease after delivery.

In other words, if the copywriter wants a testimonial or referral after delivering the copy and did not require it as part of the fee arrangement, it will be harder to obtain because, in the mind of the client, the copywriter is asking for a concession without making one.

(And if they agree, the likelihood they will make you work for it in other ways is just as high.)

Ultimately, look at it this way: do you want 100 cheap clients who will demand all of your time? Or do you want 10 good clients, paying you the same income, and demanding only a fraction of your time?

As Ryan said, “Don’t be cheap.”

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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10 Replies to “Lowball Puts You Behind The Eight Ball”

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  1. From Is Copywriting a Masculine Skill? | The Michel Fortin Blog

    [...] a dozen. But good copywriters aren’t. And that’s how it should be. Which reminds me of an important rule I once stated (and it bears [...]

    Source Website May 4th, 2008

Comments

  1. MyAvatars 0.2

    From Michael Morgan

    Ryan is wise.

    He’s a friend of mine and we got our start around the same time.

    Even when he “needed” the business, Ryan never “cheapened” himself. He know’s his value.

    Nowadays, Ryan commands excellent fee’s and his clients get an excellent return on thier investements in his copy.

    But it all started out with the mindset Michels talking about.

    Great article Michel. There’s people who need to know this stuff!

    Cheers,

    Mike

    Author's Website October 4th, 2006

  2. MyAvatars 0.2

    From Dave Ryan

    It reminds me of a quote I once heard somewhere:

    “What’s the difference between a paper-lawyer who charges $100 an hour to fill out paperwork or one that charges $900 to fill it out?

    Confidence!”

    And a copywriters services are worth every penney… no matter how much.

    If a business owner plans on selling a ton of product, they want great copy. Unless they know a copywriter the only way they can judge is price. So they will normally buy the most expensive they can afford.

    And like Michel said, you DON’T want a cheap client… that will result in hassels no profesional should deal with. Except doctors.

    Dave

    Author's Website October 4th, 2006

  3. MyAvatars 0.2

    From Jacquelyn Lynn

    Bravo! I have made this speech to writers I have mentored many, many times, and I’ve even given a modified version of it to clients.

    It’s interesting that the clients who want the low-ball rates are almost always the high-maintenance ones — the ones who don’t know what they want, who take up a lot of your time trying to get you to help them figure out what they need, and then they’re not happy with what you did because they don’t know what they want. It’s a cycle …

    I have found that the clients who were willing to pay me fairly are almost always the ones who treat me fairly in every other way — they’re courteous, they respect my time and talent, they give clear directions, they don’t scream “emergency” unless it really is one.

    Jacquelyn Lynn
    author, Online Shopper’s Survival Guide

    Author's Website October 4th, 2006

  4. MyAvatars 0.2

    From Ryan Healy

    Michel - Thank you for expanding on my original post. Excellent stuff!

    I especially appreciate your observations about asking for concessions. Even if I ask a high fee, I often will set the expectation that my client must provide a testimonial when they get results.

    This makes it much easier to get testimonials, a critical piece of the marketing puzzle.

    Ryan

    P.S. Thank you for the comments you’ve left on my blog. I appreciate you.

    Author's Website October 4th, 2006

  5. MyAvatars 0.2

    From Kim

    As always, you are right on the money. I made the mistake of lowballing in the beginning and it was an uphill battle ever since. I make it a habit of reviewing my clientbase every 6 months and dropping my D clients, which has helped tremendously. The “cheap” ones were the first ones to go.

    -Kim

    Author's Website October 5th, 2006

  6. MyAvatars 0.2

    From Dave Zan

    This post is a more detailed explanation of a saying I learned recently: “cheap ain’t good, good ain’t cheap.” :)

    More quality posts, Michel!

    Author's Website October 8th, 2006

  7. MyAvatars 0.2

    From Abdul Rahman

    Wow, another great post by Michel… (wondering when I would be that good).

    Anyway, starting with an agreeable fee (not to cheap nor too expensive) with the clients is better than putting an extra high price tag (and tell them that you are ultra-copywriters that can write better than any copywriters in this world-at least) or putting a cheap $10 per copy.

    I think this don’t run from “don’t be cheap” philosophy. Am I correct everyone? :)

    Author's Website October 9th, 2006

  8. MyAvatars 0.2

    From Alan Allard

    Michael,

    The marketplace is not the primary factor determining what a copywriter can charge for his or her services…the value they place on themselves will always be the determining factor.

    As a Life Coach and Clinical Hypnotherapist I charge far more than double what my colleagues do…and I work primarily with clients who agree to work with me for 12 months, and pay the fee upfront.

    My last corporate client paid $16,000 up front for three months of leadership coaching, consisting of one session per week.

    While most copywriters will continue to argue (at least behaviorally) with what you’ve said, a small percentage will integrate the beliefs and overall mindset you’ve offered. And they will be the ones who, as Earl Nightingale put it, will “Lead The Field.”

    Regards,

    Alan Allard, M.A.
    http:/www.geniusdynamics.com

    Author's Website October 10th, 2006

  9. MyAvatars 0.2

    From Joseph Ratliff

    Michel

    The value of what we do as copywriters…priceless to businesses everywhere! You and Ryan are both right on…

    My opinion as to why copywriters may lowball their fees…

    They need to be shown how to sell. When you are selling, you are demonstrating the value of what you are selling to a prospective buyer. If the buyer does not see enough value to justify a fee, price, invoice etc…they will not buy.

    As copywriters… we sell on paper, in an email, or on a website. Sales is the lifeblood of our business…period.

    And the copywriter who is lowballing their fees…

    They may not be able to demonstrate the value of their service to a client. They cut their fee “just to get the work.” Then everything you mentioned in this post, happens.

    Thanks for the blog Michel. It should be required that any aspiring copywriter subscribes to it’s posts and absorbs the knowledge within.

    Joseph Ratliff
    Author of The Profitable Business Edge at
    http://profitablebusinessedge.blogspot.com
    and…
    Professional Copywriter

    Author's Website October 10th, 2006

Confessions Of A Website Copywriter  

Confessions Of A Website Copywriter

New! Possibly the Internet's best copywriting ebook on how to write proven sales copy for the Internet, from writing and web design, to testing. Highly recommended! Click for more »

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