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- Moving from “Free to Fee”
Moving from “Free to Fee”
“Show and tell”
I could spend the next 5 pages telling you the 3 most important elements about moving from free to fee, etc…
…But I’d rather just show you.
Today, the ACTUAL presentation someone used to go from free–> fee. The only thing is…the “fee” was my money. Lots of it.
This is going to be fun…and painful.
You’ve learned the tip of the iceberg on getting inside customers’ heads. Now what?
Getting to your first $1K takes more than just one step. It requires continuous escalation till you get to that goal — your 1st, then 2nd, then 3rd paying customer, then a system to systematize it and continue growing at whatever pace you choose.
Today, my project manager Matt Cheney shows you how he escalated from free to getting a $6,000+ recurring check, from me.
Before you watch the presentation…
Don’t get lost in the details. This is not a video about convincing a personal-finance blogger/author to pay you. It’s about using free–>fee in your arsenal of techniques to understand your client and understand how to systematically escalate your value so you’re always getting paid more. Focus on how this applies to your situation.
The actual presentation Matt used to get a $6,000+ recurring check from me
What is really going on in that presentation, and how do you create one? Matt explains:
http://earn1k.s3.amazonaws.com/FreetoFee.flv
Notes from the video:
- Flattery is always good
- Get in client/customer’s head. What am I, Ramit, really concerned about? If you don’t have a deep understanding, you will almost always fail. Even trickier, “failure” can be represented not only as being rejected, but (potentially even worse), getting meaningless tasks and mediocre rates for months until you finally decide to leave, wasting your time and incurring a huge opportunity cost. Better to fail fast. Better still to not fail by getting in your customers’ heads.
- Refresh their memory – WHAT YOU’VE DONE – people forget to do this and wonder why others get paid more for doing inferior work. That’s because they are better than you at convincing others of value, which is critically important in providing value. Anyone who ignores this does so at his own peril.
- Mistake: He have been more specific. It’s always tough to argue with #s. So work with #s if you’re not already. For example, if you’re helping me “build my brand,” I am going to fire you soon because your work is worthless. If you are helping me drive 50,000 new visitors/month, or $300,000 new revenue, or even saving me 2 hours/day, how could I fire you? How could I not give you a raise? Because you are helping my business needs QUANTIFIABLY. (Same for consumers, by the way…how many songs have you taught your client on the guitar? How many hours have you saved them? Figure out how to quantify your services.)
Don’t make your client think
Offer specific suggestions. Don’t make the client think. They’re busy! DO NOT UNDERESTIMATE THIS. They don’t want to read your email. They don’t want to talk to you on the phone. They want you to HANDLE THE PROBLEM for them. The more of their work you can do — the more of their worrying you can shoulder — the more you can charge. This virtually never fails.
Pick 3 options and let your client choose. They want to feel involved…just not too much.
- Matt pitched me on greater output. He was inside my head — I had been thinking about this a lot as I was approaching my limits of scale
- Read carefully: The point of this proposal is to SIMPLY GET TO THE CONVERSATION ABOUT $ — NOT TO GET A HUGE CHECK RIGHT NOW
- Too many people barge into their client’s office and ask about raising rates. Their clients don’t want to be blindsided. They aren’t in the right frame of mind. Get the hell out of here!
- Instead, a proposal like this sets a gentle stage and context for a fruitful — and very profitable — discussion
- The meta-point: Most people never realize that 80% of the work is done before you step in a room. That’s why they spend their entire lives grasping for magical tactics instead of changing their entire mindset
- Don’t do useless stuff for free!! Matt picked a service to offer that was already valuable to his target customer, me. Then, he figured out what was even more important and increasingly shifted to working on that. For example, if he had continued answering technical-support emails, that would not escalate. If he helped me launch new products…that escalates.
- Don’t do free work for people who will never pay you unless you are doing someone a favor. “Free work” for a cash-strapped 2-person nonprofit is volunteer work, and it’ll always stay that way. Don’t delude yourself.
- Don’t dead-end yourself. Free projects pay off when they give you experience and skills that you can use again somewhere else. Choose carefully — your time is valuable
Focus on THEM
What’s the point of this proposal?
More takeaways
“I just wanted to thank you for the earn1k course. Without even finishing all the modules yet, I’ve made over $900 bucks in about 6 weeks tutoring accounting students. It paid for itself in less than a month. Good stuff bro, keep up the good work.”
–Trevor Jones, Earn1k Alum
Today’s To-Dos
I want you to complete an exercise today. I know it’s long, but I’d rather have you spend an extra 15 minutes than skim yet another page and walk away thinking you understand the concepts without REALLY applying them.
In a Stanford psychology course, I learned about the psychological changes that happen when you go from reading something to teaching something. It’s profoundly important to stop skimming and start writing something on paper.
So in the comments, answer these questions (BE SPECIFIC!):
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1.
2.
3.
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1.
2.
3.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
8. “I don’t think so, that’s too much.” What do you say?
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Leave your comments below.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1.Medium to high income market
2.Organizations with globe presence
3.people easily engaged with technology
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1.DIY – Makers
2.Low income market
3.Non profitable ONGs, local Government.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Step back and see how much can I get out of this potential customer. If the free work means that I will get much more from this customer, surely I will make the free work. The second step is to step into the customer´s office and state that we have grown together and in order to keep growing, I need to be payed.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Detect the demand of my customer
2. Flash out my customer and get my product / service into his head.
3. Make a demonstration of my product / service and let the customer get a grasp of it
4. Support the extra needs of my customer and be receptive to all their questions and comments
5. Impress my customer and let him feel that they need my services.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
I will talk about payment when they are just blown out because of my service. Then I will say that in order to keep supplying such a service, I need to be paid.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
Then I would say: “We have achieved together great things, for example, we raised this X% of production, saved X amount of time and resources, and we can keep improving in such a way the development o X project. The time I have invested is now larger than the time that I can give to small projects, hence we are at the point where I need to make an income out this project or go for other options”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
Thanks for appreciating oury product/service, the rate is X (normally 30% extra)
8. “I don’t think so, that’s too much.” What do you say?
Push again and compare my products with the competence.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Give a rate reduction, give a “10%” reduction
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Let my customer feel that they cannot live without me and my services / products. Then I will get a continuous source of income.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Potential customers.
2. People that are genuinely interested in my services.
3. Someone who is willing to pay for things that they are not
good at.
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1. Anyone that acts like an entitlement whore.
2. People who have a history excessive debt.
3. Low income.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
The first thing I would do is set a time limit that I would only work for a couple of weeks.
The second step would be to explain what I will and will not do for free.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
Step#1 – Develop a mission statement.
Step#2 – Find a niche market.
Step#3 – Find a client with a specific need.
Step#4 – Explain why they would want my service.
Step#5 – Offer to work for free for a limited time on one project.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
I would bring up the subject at the end of my free service.
“This is what I charge for ABC and I would be glad to be of service.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
My response would be “Here is documentation of what I have done for you and how long it took me to do. My skill has value and I want to be paid for my time and effort.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
My exact response is “My services cost $X amount.”
8. “I don’t think so, that’s too much.” What do you say?
“Seeing as I have done X project for you in this amount of time and exceeded your expectations, my rate is quite reasonable.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
I would thank them for the opportunity of working with them and stay in contact with them as I take my business elsewhere.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
My next step is to keep on doing what I was doing.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Family
2. Growing Non Profits
3. the first “new” type of customer (for the experience)
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1. Small Businesses
2. New customers
3. Recurring “new” type of customer
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
– creative a timeline or milestone in which free services will stop. At that point tell the customer how they can move forward – with you or with another service company
- Take the opportunity to share how I can further assist them, and how my services would benefit them
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Determine what service i would like to offer and eventually be paid for
2. Identify a potential customer and their problem
3. Via a presentation, complete with quantifiable and qualitative aspects, explain the solutions. (also show case my understanding of their business)
4. Pitch how my services can help solve their problem (how they will be benefited)
5. Offer specific service options that can choose to have my assistance with
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
After the “free” service is complete.
“I have completed your 2009 tax forms. I noticed that you have not filed taxes from 2007 through 2008. Given my familiarity with your business, would you like me to work on those filings as well? It will be more efficient to hire me than a new person”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“Well, I have agreed to use my spare time to complete XX project for free. I am happy we were able to reach that milestone, however I would cannot continue providing my services for free as I am trying to maintain my living.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“To complete XXX, I charge $XX. This price is reasonable considering my experience, familiarity with the comp nay, and market prices”
8. “I don’t think so, that’s too much.” What do you say?
“I stand by my price because I provide quality work.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
- Thank her for the experience. Mention that I am available for future contract work. (don’t burn bridges)
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step
Thank her, and send her an engagement letter regarding the “new paid” work.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Committed to success
2. High income
3. Athletic
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1. not committed
2. not coachable
3. not motivated
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that?
They have to agree to terms of a later fee or upfront refundable desposit.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
a. Offer them something they want, but haven’t been able to get
b. Demonstrate an example of the benefits of the offer and share the testimonals of others who’ve benefitted
c. Explain what the going rate of they project would be if you charged them
d. Offer them continued support after the first project is completed without compromising my time or money
e. offer them an additional guarantee if they’re not satisfied
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
Upon completion of original the project, confirm satisfaction. Then propose additional work by saying “Understanding that you’re more than satisfied with the results, I can make my time available to do X project that you’ve wanted to do for X amount.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“I understand your perspective. From my end, I wanted to give your no reservations with regards to my work and getting you the end result. In understanding how great you said it was, I can give you the results consistently. Since you see both of our time
as vaulable, I need to be compensated for continuing service on this next project.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“Based on the scale of X project compared to the one I just finished, and how much I said it would have cost, it would be X amount.”
8. “I don’t think so, that’s too much.” What do you say?
“No problem. I’d be more than happy to continue helping you with this massive project, but if this is the case, the amount would be X.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“No problem. I want to help, so I can work on the project at a lesser extent for 30% less than if I did the whole thing. And when you have more funds, I can finish it for you.”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Continue to evaulate the service level I provide and use there feedback as a tool to get better.
Tutoring with hypnosis/EFT to enhance confidence
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Mid to high income level parents who want their kids to succeed
2. Principal of local schools in high achieving neighborhoods
3. Coaches of teams in area with big programs and high achieving kids like baseball, football, tennis, golf and water polo.
2. In your area, list 3 kinds of clients to whom you’d NEVER offer to work for free.
1. low to mid income parents who cannot pay for services
2. schools in underachieving areas.
3. non profits in area that only service low performing students.
4. people without children.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
-clearly define the scope, time frame, and objectives that the free work will encompass.
-Be clear in communication: “It sounds like you want something more intense than what I can commit to do for free. I am willing to do paid work for you, or I can refer you to one of my colleagues who is capable of handling your request.”
Offer one tutoring session combined with one EFT demonstration
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Identify potential clients –
1a. Put fliers at schools.
2. Research potential clients and identify their strongest area
of need
3. Introduce myself either directly or indirectly through contacts with a short two sentence introduction about what I do
5. Direct potential client(s) to website where they can learn more about my services
5. Follow up with an email or phone call to potential client and gauge interest
When will you bring up the subject of payment? What is the exact sentence you’ll use?
As we have demonstrated today, your child is feeling much better about this aspect of math anxiety; however there are other areas we need to tackle to really get him her truly confident. As well, we need to address these holes in their learning. This combination of EFT with tutoring is extremely effective especially when practiced at least once a week. Your child’s grades will go up and their entire life will be better because they are more confident. I am excited to work with your family- my rate is $x per hour.
Client doesn’t want to pay
“Because of my limited time, I can must limit my in-depth commitments to clients who are able to compensate me.”
“I don’t think so, that’s too much.” What do you say?
Actually your child is benefitting not only from tutoring but also from hypnosis pschology as well. My rate is very reasonable and your are getting double for your investment.
You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
– Thank the client for the chance to work with them, and leave the door open for future contact (card, wrap-up email, etc).
We do the work. I get great results with their child. I ask for possible referrals? Or ask them to write a letter of recommendation for use on the website.
Area: Professional social media coaching
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Busy professionals, CEOs, executives who want to truly understand social media
2. People with a genuine interest in social media
3. People who are open to new ideas
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1. People who want results without doing any of the work
2. Businesses looking to use social media as a form of customer service
3. People who can’t commit themselves to the cause
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Step 1 – clearly define the terms of the agreement. Find out the scope of what the client wants to achieve and how they expect to achieve it.
Step 2 – Put it on paper and have us both sign the agreement. The agreement then becomes a binding contract that clearly defines each others roles.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Identify potential clients
2. Research potential clients and identify their strongest area of need
3. Introduce myself either directly or indirectly through contacts with a short two sentence introduction about what I do
5. Direct potential client(s) to website where they can learn more about my services
5. Follow up with an email or phone call to potential client and gauge interest
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
When the client feels good about where things are going, when he/she can see some results. The exact sentence: “I’d love to continue helping you realize the rest of your goals you listed on the first day. You’ve already come so far and I’d love for us to continue this relationship.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I would remind the client that the project is not a short term project and that I’ve helped them build a small foundation, but I can show them how to leverage that and get to the next level.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
I would charge $x/hour for personal face to face coaching.
8. “I don’t think so, that’s too much.” What do you say?
I would remind them of the value I’ve provided them in the past month and try and gauge what it is that’s blocking her from going ahead.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
If it truly isn’t something she’s interested in, then I would thank her for the opportunity and keep the door open for future opportunities.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Formulate a personalized lesson plan for the client and agree to either weekly or bi-weekly face to face coaching sessions. Review the contract signed on week 1, revisit the mid term goals and get cracking on making my client a social media superstar. And of course, look for the next client.
Residential Architecture and Natural Building
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Project for non-profit with high visibility
2. Contractor or Realtor with lots of client contacts
3. Person with a project type I want practice with
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1. People who want more than they can afford/are unrealistic
2. People who ask professionals to work for free (don’t value others)
3. People who are indecisive and become a time-suck
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Step 1 – Clearly define free scope of work, “I will help you assess your needs and come up with three options for design solutions. The options will be presented as freehand sketches that could be developed further if we decide to work together (in a paid arrangement.)”
Step 2 – If client asks for revised options, acknowledge revisions in conversation, but decline to produce more sketches w/o a contract for continued work.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Determine pitch target through prof. organization grapevine, contractor whose work I like that I’ve seen around town, or through contacts with specific building material suppliers.
2. Research target: if contractor – past projects, experiences, values, who else they’ve worked with. If client who’s doing a project type I want practice in – make sure I’m as book-knowledgeable as I can be, up to speed on current issues, know who good informational resources would be.
3. Create a simple one page proposal of what I could do for free and how that would benefit them.
4. Introduce myself to the person and make the proposal. Ask them to think about it and contact me.
5. Follow up with an email or phone call.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
“I think we’ve generated a good foundation for your design and our working relationship. I’d like to continue working with you on the next phase under contract.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“Per our original agreement, this is as far as I can take it for free. A cohesive design and accurate permit set that will save you time in the permitting process, money during construction, and will produce a home/remodel that you will enjoy more.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“I charge $xx/hr to finalize a scope of work, and then I prepare a fee estimate based on that scope of work to complete the project documents.”
8. “I don’t think so, that’s too much.” What do you say?
“I work from home and have low overhead, so I think if you shop around, you’ll find my fees are quite reasonable. We can minimize my fee if I just produce permit drawings instead of construction drawings and we bring a contractor on board early and involve them in the design process so we can trust them to build according to our intent. I’m also willing to work for a flat fee if you feel more comfortable with that than the estimate.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“I’m sorry it isn’t working out for you to continue on this project together, but I’ve really enjoyed working with you to this point and wish you well.”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Up the ante on presentation quality (color instead of black and white?), continue to be timely, efficient, provide tangible products.
My business works for wedding couple. How can i do this for free when most of the time people get married only once in their lifetime?
Just guessing but..
How about free engagement party proposal?
How about free Wedding proposal? Just the plan on paper.
Wedding speeches tutorial
Wedding makeup tutorials, whats hot and whats not,
Each of these builds a relationship before the wedding, If you have group tutorials and maybe even just a 20% conversion rate that would help?
I know nothing about weddings but these were just ideas that seemed to jump out at me straight away. How could you build a relationship pre-wedding? What is it that people do? Free Hen Party plan on paper?
Anyone who enjoyed the experience would then be happy to go with you rather than someone they have no relationship with. If e.g a makeup artist was doing the fee to free thing then would she be happy to partner up with you. She would then get wedding makeup business as well as other business and you too.
Just thoughts in the ether
I’m still crunching on this, but at the very least I’ll answer the first two questions. Right now I’m a freelance UX designer, and would also like to do freelance tech writing.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Corporations
2. High-visbility startups
3. Companies that target wealthy consumers
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
1. Low-income people
2. Non-profit organizations
3. Clients notorious for being stingy
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
a. A nonprofit where lots of potential paying clients either also volunteer, or take advantage of and appreciate my work.
b. A high-visibility open source project (street cred for future paying gigs).
c. A startup that has brilliant people and/or eager investors (soon to need paid employees, or brilliant people will bring me along to the next paying gig).
2. List 3 kinds of clients to whom you should NEVER offer to work for free.
a. A startup run by people who are mediocre at their jobs and don’t have a good business plan.
b. A outsourcing sweatshop that doesn’t reward good work.
c. Someone whose business is not aided by what I do.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
a. Set a boundary between “for free” and “must be paid for”, and do it upfront.
b. Prioritize “for free” work behind “for pay” work, unless the networking opportunities make it rate higher.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
a. Research potential clients and find out why my niche has not yet been filled for pay.
b. For a promising client, try to discover a few small-but-high-impact contributions I can make in a limited period of time. Locate some contributions I can make either for them, or on their behalf, but outside their influence (blogging, providing tech. support, documenting code examples, writing a white paper).
c. Determine the correct person or people to talk to.
d. Write up a proposal with samples and prototypes.
e. Offer my services to take care of one of their small-but-high-impact projects.
(f. If the “hiring person” says no, look into doing some of the contributions that help them, but are outside their influence.)
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
Payment will come up when I’m asked to do more than I decided was my “free sample”. Alternatively, if I can determine the positive impact of my current contribution quantitatively, that would also suggest that it’s time to ask for pay.
In the first case: “I’d love to keep doing xxx for you, but I really can’t donate any more time on that project. However, I’d be happy to talk to you about a paying opportunity in the same area.”
In the second case: “It looks like my yyy has enhanced your customer’s success and reduced technical support calls by (# of hits or downloads). I’d be very interested in providing similar services to you as a paid professional.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“You’re right. My contributions have improved your bottom line. However, at this point, I also need to think of my own bottom line.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“I’m used to working for California pay, and I’m not sure what fair Wisconsin pay would be . . . ” If pushed . . . depends on what I think I can get for the particular niche.
8. “I don’t think so, that’s too much.” What do you say?
“What makes you think that it’s too much? How much is it costing you to work around problems I could solve? How many opportunities are you missing, because you’re dealing with situations I could handle for you and your team?”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“Well, I appreciate the opportunity to contribute to your cause/efforts. I hope you’ll keep me in mind if you need services like mine in the future.”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Determine how much time and money this client will expect/require, and review what worked and didn’t quite work with this client. Start looking for the next client.
Seems that if you’ve created value by making yourself indispensable on the front end of the relationship, you should never even have to deal with negotiation and the client possibly turning you down. You should have already sold yourself.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
- First-time clients
- Nonprofit
- Clients that will get me good press
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
- Family
- Friends
- Clients who won’t ever pay for my services
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
I would create a work statement from their requirements and only do the specified work. Just say no.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
- Find out what the client wants
- Draft a plan to help the client achieve his/her goal
- Form a pitch from research
- Get a mentor or experienced freelancer to review my plan
- Practice delivery of pitch
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
I’ll bring it up when the client commends me for all the good work I have done for them. I would say “So my services have been helpful to you and you enjoy my work ethic. You have saved x amount of money by using my service. Now I would like to take your savings to the next level but I am going to have to charge you for my full time services.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I think I would use the briefcase technique and show the client a list of exactly how much more I could improve their business if I was paid.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
I would show them the standard fees in the specific market I am working in.
8. “I don’t think so, that’s too much.” What do you say?
I would say how much value I bring to their business and that they already trust me.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
I would thank them for the opportunity and ask if they knew 3 people that could benefit from my services. Keep hustling even in the face of rejection!
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Do the best work ever so that they can see that I bring alot of value to their business.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. People that give good feedback
2. People that can have good referrals
3. Clients that offer projects where i can learn something new
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Students
2. Non-profits
3. Whiners
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
First, I would overdeliver. Complete overdeliver. Just to show what i can do. Then I would propose myself, saying that in order to continue working with him I have to get something in return.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Get to know my market
2. Reasearch what they want and where they are
3. Try to think of an strategy of free to fee
4. Write something horrible
5. Tune it against friends&family
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
For the next project I ‘m sorry to say I won’t be able to work pro bono. However, maybe we could talk about other ways in which we could help each other and negotiate a fair deal.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
Get out of my briefcase an amazing proposal with everything he needs
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
I keep going on my amazing proposal, till we get to the “save this money” or “earn this money”. Then ask, what do you think you could offer?
8. “I don’t think so, that’s too much.” What do you say?
Well, I could adjust if you wanted a lower quality product but, if you want my services to be of this quality this is my cost.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Fire HIM and try to get referrals
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Getting to know him better to be able to earn more!
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Those who I can specifically benefit based on my own specialization but who also have avenues of learning that I can then compound upon what I already know.
2. Those who are well connected so I could parlay that into new contacts and new gigs.
3. Those who have a large public presence that would give me increased visibility amongst the niche.
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Those who don’t believe in the concept of money for value.
2. Those who won’t entertain the possibility of having to pay for the more in-depth and advanced services.
3. Those who are always trying to get something for nothing from every business relationship they can.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Communication. Be very clear in what goals I wish to achieve and the timeframe in which I wish to achieve them.
Step 2 would be to let them know that they can continue to benefit from my services after the initial timeline is over if they so choose, but it will be as a paying client.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
- Settle on a niche to target
- Research that niche and the demographics that are included
- Go to where the potential customers are and interview/poll them to determine their wants and fears
- Develop a plan to include the benefits that they would be interested in and address their fears and put the kabash on them
- Map out a specific timeframe for the work and the scope that I will accomplish during that time period
- Expand the plan to include advanced long-term benefits that they would eventually want to pay for – this should be done WHILE working with them for free to get into their head even more
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
When the agreed upon timeframe is coming to a close – “You have the potential for real growth and expanding upon what we’ve already accomplished together would be a step in the right direction.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“Your time is valuable, as is mine. In order for you to get the most out of what I can offer, you would need the services to be detailed and tailor-made to suit your business/whatever. In order to do that, I would need to have the means to devote to making your project take off.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“Ok, so you’d be continuing on with X service, and as a paying client, you would also receive Y and Z services. Those alone can keep you on the path to expansion/success. I can also integrate services A and B in with your existing plan and that would be $CCC per month.”
8. “I don’t think so, that’s too much.” What do you say?
“Well, in order to get the most value out of the services and continue to build/succeed, you have to invest in your future and the rate of return would be well worth the investment, but if you don’t feel that those services would be beneficial to you, then I completely understand.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“It’s been great working with you and feel free to contact me in the future if your needs change.”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Find out exactly what she wants and how to tailor make the services suit her so she gets the best return on her investment. That would ensure that she continues to pay for services and also rocks the word of mouth.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. industry heavyweights, for the prestige and networking
2. local society leaders, for the word-of-mouth advertising
3. my very first client, to get experience
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. jerks and unethical people. I have some integrity and can’t afford to waste time and energy with these kinds of people.
2. clients who change their minds constantly, changing the scope of the work. I can’t hit a moving target.
3. clients who would be unable or unwilling to pay for my services after the free work is done. This is a no-brainer.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
-clearly define the scope, timeframe, and objectives that the free work will encompass.
-Be clear in communication: “It sounds like you want something more intense than what I can commit to do for free. I am willing to do paid work for you, or I can refer you to one of my colleagues who is capable of handling your request.”
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
-I didn’t have a free-work pitch before this lesson! So now I know I need to develop one…
-I need to do market research to determine what a good free-work project would be
-I need to determine what demographic I’m pitching to, and seek out one each of the clients from question #1
-I need to craft a cold e-mail, phone call, or in-person pitch to deliver to these people.
-I need to roleplay some conversations so I feel more comfortable when I get into the live situation.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
-In the original pitch. “To show you what kind of value my services can deliver, I’m offering you (1-4) hours of my time, for free. Here are some projects I noticed you’re working on currently…”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“Because of my limited time, I can must limit my in-depth commitments to clients who are able to compensate me.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“You’ve seen my proposal(s) already; how much is saving X hours of your time is worth to you?”
8. “I don’t think so, that’s too much.” What do you say?
“I’m sorry you don’t feel this service provides the value you’re looking for. Because of the extra effort that my personalized attention provides, I’m not able to do this for less than the stated price.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“I’m sorry you don’t feel this service provides the value you’re looking for. I would be happy to provide you with the names of some colleagues who do work in a similar area. I don’t know their hourly wages, but their work is top quality. I hope you’ll consider me if you ever change your mind.”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
-define the scope and objectives of the first project, and flesh out from the proposal. Do up an official contract.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Rockstar software engineers like Gang of Four, and Apple Distinguished Engineers
2. Reputable bloggers like Ramit Sethi, Tim Ferris, Guy Kawasaki, Steve Pavlina
3. People with skills that I’m seeking – marketing, sales, negotiation, persuasion, specific technical skills.
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. People who won’t pay
2. Freeloaders
3. College students
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Record the work that I’ve done for free. Quantify the work, preferably, presentable in charts and numbers.
When there is significant data and running time, present the data. Prior to present the data, load up skills on presentation, persuasion and negotiation.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
The plan to learn how to make an iPhone app through real life experience through a local company that needs it.
1) Pitch to a local company to bring some of their offering to the iPhone app and how they can profit from it in terms of number of customers, and intangibles like reputation and outreach to customers
2) Quantify my available time outside a full time job. For example, 15 hours, 2 hours per day during weekdays and 5 hours over the weekend.
3) Highlight my achievements in software development with specific examples. Also highlight credentials like a patent award and earning a Masters degree part-time and still get promoted.
4) Highlight how I’m going to gain skills that might lack in the project via tutorials and Lynda.com
5) Time-boxed the free project in a reasonable time frame using specific project management tools like Xplanner or MS Project.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
After a quantifiable milestone is achieved.
Dear sponsor, we have achieve the following objectives after X weeks into this project. We have met every milestone and produce quality output. The output of the following milestones will be a lot better if I can get support and renumeration for the excellent work performed.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
The work performed has improved tremendously. With increased skill sets, the quality of the work will improve and will bring X more customers in the following months of the project.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
The value of X number of new customers will bring about X revenue to the company. The work to produce these numbers is X and I will be charging 50% of X.
8. “I don’t think so, that’s too much.” What do you say?
That is already 50% less than what you would pay for similar results.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
We can make a temporary arrangement for reduced hours. We can check back later if this arrangement will work in the long run or if we need to restore the hours for producing the expected results.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Great, we will stick to these rates for the next X weeks. Let’s have a performance review in X weeks and plan up more projects and go from there.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Musicians or music fans
2. Small business owners
3.
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. teenagers
2. middle aged families
3.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Set limits to time/scope of work you can do as a sample up front.
Create a proposal that shows a lot of added value.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
Research on my target customers: profile, their problems, their key interests, etc.
Identify key points to pay attention to in designing the pitch package
Detailing options or packages that I want to offer: what they include, what are their advantages
Working on the pitch ‘package”, e.g slides, formax impact
Rehearsing the pitch to prepare for max return
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
at the end, one you have shown added value you can bring and detailed the offer.
“The price to make more money/get more free time”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far
seems ok to me.” What is your response?
Great to hear that. However realize this is only part of what I can bring to the table, because:
doing it for free means I have to focus much more energy on sthg that enables me to get my bills paid
Maximising your returns is not on your top list (since you get services for free) and can not by my be all end all because I am not paid.
We could try a period out to see if you really do not feel of my added value as a paid service provider. Fact is, if I am not, I will not be able to coninue for free, so it’s a lose/lose situation
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
I have researched the value of services I provide and have thought of what would be fair for both of us.
I have come to the conclusion that X amount is the sweet spot for me to get the maximum done for you.
8. “I don’t think so, that’s too much.” What do you say?
Ok, I understand. Are you basing this on the service I am offering? If so, here are a few examples I have found of similar service providers that cost more/don’t offer same value. My offer is really of good value. I suggest we have an extended trial period for you to determine the value in action.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
I indicate that I have to stop providing my services.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
I agree with the person on how to communicate the most effectively with my client to ensure progress is shared.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Top Film Producers
2. Close friends/colleagues with whom I know I can trade services later or who have done me favors in the past.
3. Young filmmaker’s with abnormally amazing talents (very rare)
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Student Films/Filmmakers (with exception of #3 above)
2. Agencies
3. Production Companies looking for “interns” (slaves)
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
1. Set a limit to the number of hours I’m willing to work.
2. Track my hours so I know who much I’m accumulating in “free” work.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Research top producers and pick which ones to target based on how close their work matches what I’m interested in working on.
2. Research what projects they are working on and think about what kinds of problems they have.
3. Talk to people who know them/work for them to get insider information about what kinds of challenges their companies have.
4. Prepare a clear, concise proposal with no more than 3 ways I can immediately help them in their business including my availability in terms of time.
5. Show the proposal to family/friends/advisors to get feedback and refine.
6. Ask someone who knows them to give me a referral to pitch myself to them.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use? & 7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
1. I would bring up the subject of payment at the outset saying, “I’m looking forward working for free for you for the next 2 months and then if you feel that I have delivered services that have given you back at least 10 hours of time per week and increased your bottom line by much greater than my hourly costs, I’d like to transition to working at $40 hr freelance. If you’re not satisfied I will complete remaining assignments and we both go our separate ways.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
8. “I don’t think so, that’s too much.” What do you say?
If my work doesn’t net you more than double my hourly rate in terms of your free time and actual increased revenue then we won’t proceed.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Thank them for their time and (quickly) move on.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Use the income from this paid work to re-invest in my own business including outsourcing tasks to a VA, building a better website, etc.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. NJYP – a group for young professionals that hosts events that members (who’ve paid a membership fee) pay an additional charge to attend.
2. NJ Bridal Expos – I could offer to photograph the booths for a few shows for the Expo to use in Marketing and as a way to talk to vendors (like wedding planners) and potential brides and hand out business cards.
3. Local political campaign – with the House and Senate elections next year, I’d gladly volunteer now for a local candidate to cover their every move for a few months for their publicity.
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Non-profits
2. A friend or family member (once they get it for free, they’ll always expect it to be free.)
3. Low-income clients and start ups — I need someone who can pay me and become a regular client asap.
3.
Set out my terms at the beginning — I’ll work for free for X months, at the end of which we can see if this relationship is going to continue and on what terms.
At the end of the trial period, IF I like working for them, and IF they find value in my work, approach them and say “I’ve really enjoyed working with you during my trial period, and I know that this has really been mutually beneficial, so we now need to sit down and talk about a long-term business relationship…”
4.
a. Really research and get into the head of the person I’m going to approach. For example, there’s a local radio station I really like that’s been on the air for about a year. They have a website that has a video archive of concerts and studio sessions with bands, but no high-quality stills, just stills from the video that look like shit. They need my photography help, but first I need to plan an attack and find out who I contact.
b. Draft, re-write, and revise again a pitch email that will grab the attention of the station manager to start a larger conversation about what I’m going to do. Include lots of photos from other events to show them the value of my work.
c. Set up (as described in #3) the terms of my working test period with the station.
d. Send the email; follow up if necessary.
e. Profit?
5.
I’ll bring up the subject of payment at the end of my agreed-upon test period — or nearly before it.
“Hey XXXX, I just wanted to bring to your attention that my test period as station event photographer will be ending in a few weeks, and I am absolutely interested in continuing with the station on a paid basis.”
6.
Working together is a symbiotic relationship, and while getting my work for free has been excellent for you and I’ve gotten a ton of experience from it, I cannot pay the rent with experience and will need to move on from this point if I cannot receive paid work. This is not my first choice as a starting point from here, as I’ve enjoyed my time and really gotten to know the work flow here, and for your station as well, it will be a large time investment to find a new photographer and get him or her comfortable with the other employees, familiar with needs of the studio, or dedicated to the people as I am.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
$75.00/hr to to start, with the amount open to a salary increase negotiation after the first six months.
8. “I don’t think so, that’s too much.” What do you say?
You’re not just paying for a warm body and equiptment. Even if you find someone who’s as talented behind the lens as I am, with as much experience in this specific field who fits as well with the team as I do and has post-production work similar in skill to my own, even if they charge less, you’re going to spend more getting them trained to do things the way you want them to, and there will be no adjustment period. It will be cost-prohibitive to start from scratch with this position instead of keeping me on at my rate.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Well, XXXX, I’m really grateful for the time we’ve spent together and the experiences I’ve gotten here while working with you and your crew. Hopefully, if you ever need me again in the future, you’ll contact me and I may contact you if a future perspective client, such as (competitor radio station) is looking for references.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Using this paid opportunity to promote myself into additional freelance jobs — getting releases to publish the photos on my site (especially blog and Facebook page) so that others can see my work, have a reason to visit again and again, and I’m fresh in the minds of other potential clients.
[edited from BEN SHIVE]
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Clients you want to work for (Black tie event planners)
2. Have something you want to learn from (Successful photographers)
3. Provide a gateway to other clients (Successful business owners)
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Cheap clients (can’t convert those easily)
2. Ones you won’t learn from (no benefit to you if you can’t convert)
3. Who have work you won’t/don’t like (can’t do an awesome job if you dislike it)
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
– Specific project/task
– Have an answer (or proposal) ready for anything asked outside of the initial project
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
– Identify several potential clients
– Talk to them about current projects/needs (survey without selling tip)
– Pick the project/client you most want to work with from responses
– Create a proposal
– Pitch!
– Repeat steps as needed, keeping in mind clients you DON’T want
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
– Near the end of the specific project/task
– I should be done (X)PROJECT around (Y)TIME, let’s get together (Z)WHEN and talk about hiring me for (NEXT)PROJECT.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
– The project is nearly done, hiring me would enable us to continue solve/do (SPECIFIC)THING for you.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
– My rate is $(X).
8. “I don’t think so, that’s too much.” What do you say?
– I did X/Y/Z and can do A/B/C for you, I think it’s fair.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
– Thank the client for the chance to work with them, and leave the door open for future contact (card, wrapup email, etc).
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
– *Kick ass* on the work you got, look for clients in similar situation. Also, be open to take testimonials and referrals.
Area: Water Feature Design (landmark multi-million $$ fountains)
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Famous public artists/memorial designers (Maya Lin, Etc.)
2. High profile pro-bono work (Haiti Reconstruction, LA River restoration, national memorials, etc.)
3. Client who could give me work in Los Angeles (so I could have projects I could enjoy close to me)
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Developers
2. Sheiks
3. People I have never heard of
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Make it clear that I don’t do free design work for clients.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Research who to pitch to 2. narrow it down. 3. get in their head. 4. figure out what i can offer them. 5. put together a pitch presentation
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
I would wait to bring up payment until there was a substantial project that had funding and a need for my services.
“I would be happy to work with you on XXXX project. It going to be a substantial amount of work and I would be happy to put together a proposal for you.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“You are going to get a lot more of my quality time and focus on this project. Buy paying me and I am going to have more resources at my disposal to add value to the project.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“I’ll put together a proposal and send it to you.”
alt-
“How much do you think you are willing to invest in this right now?”
8. “I don’t think so, that’s too much.” What do you say?
“We could alter the scope of work to fit your budget.”
“This may be something we can phase over time.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Get other clients.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Automate it so that it is re-occurring consulting.
Ooo…I’m blaming my typos on medicine head.
Business two: Yoga instructor. Not sure about niche, either athletes or yoga-at-work programs. I’ll use yoga-at-work for this exercise, assuming that the company is paying for the classes, although in many cases it’s the employees who actually pay.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Mid-sized to large companies with other wellness programs
2. Companies on the local paper’s “best places to work” lists
3. Companies who have paid for other team-building programs
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Small non-profits
2. Companies that have been unwilling to support wellness programs for employees (for example, don’t even provide health insurance)
3. Individuals
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
1. I would agree to teach 1-2 classes for free.
2. After each class, I’d ask for feedback from the students (maybe through e-mail plus a small giveaway for filling it out?)
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
-Get a list of my city’s “best places to work”
-Call to find out if these places have a wellness program, and if so, if they offer yoga
-Create a pitch that outlines the benefits to the employer and my proposal to teach 1-2 classes to see if there is interest
-Run proposal by a test group of business owners (I can think of a couple of good test people, but not sure how to find more)
-Revise based on test feedback and send pitch
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
After the second class, I’d say, “I can see why Company X was voted as one of the best places to work. The employees have responded positively to the classes. [Insert quotes from their employees.] Let’s hammer out terms and payment and make yoga a part of Company X’s wellness program.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
Your staff loves the classes, and I’ve enjoyed teaching for you, but to put together a wellness program specifically for your employees requires more work than a couple of trial classes. In order to deliver a customized program for your company, I need to be paid for my time.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
My rate is $100 per class. I typicially sell sessions of one class per week for six weeks, though we can increase the number of classes per week if there’s interest.
8. “I don’t think so, that’s too much.” What do you say?
I understand it’s a real investment in your staff. Your other wellness investments are no doubt what has made Company X well-known as a great place to work, and I’d love to partner with you and grow that repuation even more.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
I’d let it go and use the student testimonials and the fact that I’ve taught at that company for later pitches.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Lay out the terms of payment and the number of sessions so that we both understand the contract.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Best-selling authors
2. Well known editors
3. Well known agents
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Students
2. The obviously inept
3.those outside my range of interests
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Not do too much for free. Set up terms.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Locate client
2. Find out what client needs(get in clients head)
3. Pitch my idea to client
4. Negotiate
5. Make a deal
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
I would like to talk to you about a bigger project that I could earn money for.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I want to do more for you and earn money.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
500/hour
8. “I don’t think so, that’s too much.” What do you say?
Well if you look at my previous successes(examples) and with these numbers(x,y,z) it makes sense for you to pay me for a bigger project.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
New client.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
New client.
I have two freelance businesses, so I’ll do two posts.
First–Freelance writing/editing for high traffic blogs and vertical marketing companies (Example: right now I write copy for QuinStreet websites)
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Mid- to high-traffic blogs (guest posts)
2. Professionals who take their Web presence seriosuly enough to value copywriting
3. Someone who can teach me something (I wrote for Ramit once, and though I don’t think the case study was used, I still leanred from the experience)
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Small hobby blog with no readership and infrequent posts
2. Someone who just wants a static site for a small business (will never need my services again)
3. Anyone who doesn’t seem to value the service (“Sure, you can edit this if it’s free, but it’s not that important that I left out the “l” in public…”)
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
1. I would agree to write two posts or edit 5,000 words for free. I wouldn’t leave the terms open-ended.
2. After completing the writing/editing project, I’d ask for feedback.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
-Figure out the client’s problem
-Brainstorm how my niche business can solve their problem
-Create a proposal with action steps and terms
-Run proposal by a test group (not sure how to find the test group)
-Revise based on test feedback
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
After the project is completed and I ask for feedback, I’d say, “I’m glad your site got XYZ hits from my article. I’d like to continue to help you build your readership. If that sounds good, let’s hammer out terms and payment.”(Problem is that it’s not always easy for me to quantify writing and editing work, depending on the project. How do I show numbers for ROI if the only result is making their site look more professional with good, catchy copy?)
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
You’ve indicated that you have seen results from the work I’ve done so far, but as my client, I’d be able to work much harder at identifying ways to grow your readership.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
Really depends on the project, but roughly:
Writing: $100/post (800-1000 words)
Editing: $40/hr
I’d propose 1 article a week for three months.
8. “I don’t think so, that’s too much.” What do you say?
I understand it’s an investment in your business. You’ve seen good results from my work so far, and I’d love to partner with you.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Let it go? Like someone else said, I still have the testimonial to use later.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Lay out the terms of payment and the contract length and make sure we start off on the same page.
I outfit and sell customized, small group, walking tour packages in Italy. My clients are (generally) baby-boomers, active, household income 100k+, English-speaking, grad. edu., high proportion lawyers, college professors and doctors. Though I’m already doing well, I’m looking to expand my business. One possibility is through work exchange (which, from my side, might mean working for free).
1. In your area, list 3 kind of clients to whom you’d offer to work for free. (Free for me = organizational services, possibly also some relatively minor out-of-my-own-pocket travel expenses.)
• a bona fide travel writer
• a small group of motivated travel agents
• a bona fide charity
• high profile business, political or entertainment figures
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
• paying clients
• customers outside of my clients’ demographic
• pseudo travel agents
• schools
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
• Specify clearly what is included in the package and what is not
• Make sure the client understands the inclusions/exclusions
• Indicate a possible hoped for outcome from the exchange (at the very least a testimonial – something like: “I’ll be very interested to know how you enjoy your tour. If it’s as great as I know it will be, I hope you’ll let me use your testimonial on my website”).
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
• Determine what I want to accomplish – the goal
• Research, calculate and/or guesstimate numbers that help concretize the goal
• Identify possible clients that might help me reach the goal
• Assess each client in terms of the numbers arrived at in step 2
• From that assessment, derive a short list of clients
• Research how best to approach each client (email, cold-call, etc.)
• Prepare a package that would be attractive for the short-listed clients and that preferably has some kind of built-in reference to the goal
• Write out a proposal tuned to each client
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
• That would already be indicated in the inclusions/exclusions of item 3 above. While it would depend on the specific client, generally I would indicate the wish for payment like so: “Please understand that this offer applies through the end of this year only. Other tours I outfit for you would be priced at the normal rate.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
• First off, it depends on whether my goal had been accomplished or not. If it had, I’d send them the original agreement and say something like, “Just so we’re both clear, you can see it’s indicated in the original agreement that further services would be at the normal rate.” If the goal had not been accomplished, I’d have to decide if I wanted to give them another chance. If yes, I’d say, “That’s fine, but I have to say, this isn’t really working out so well on my side” and then I’d spell it out that I see this as a collaboration and specify exactly what I’d like to see happening as an outcome of our collaboration. If I decide I don’t want to give them another chance, I’d blow them off by being too busy elsewhere.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
• “In gratitude for your help, I’m happy to offer a 10% discount off my normal price.”
8. “I don’t think so, that’s too much.” What do you say?
• “That’s fine, I understand.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
• It’s over, but I likely have a good testimonial which I use.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
• Assess if there are any other goals that particular client might be able to help me accomplish, and approach her with another proposal, with my services possibly included for free, depending on how valuable accomplishing the goal could be.
Good exercise, Ramit. Thanks.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Small shop owners, particularly those already in the local ‘business network’ group
2. Freelancers that have established a base level of clients and are looking to improve; musicians, alternative health practitioners, craftspeople
3. People who want a web-site overhaul, to change their existing crappy site into a site that actually generates sales, interest, a professional image.
4. (Also, just thinking, churches – many are trying to jump onto the ‘net and most have a reasonable amount of money to spend in the long-run)
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Charities, non-profit organisations
2. Big businesses, councils, those with big budgets
3. Someone’s bad idea business start-up
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Step one: put a quantifiable time-limit or product limit in place. That is – ‘this is free trial of 10 hours’ or ‘this is exactly what you get as a demonstration of my work’.
Steo two: use that time/product to absolutely demonstrate the value that you provide.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
-1. Put together a short, snappy leaflet to put through the doors of business/freelancers that explains exactly what I provide
-2. Set up the outline of what you expect to get out of this exchange; feedback, word-of-mouth, possible progression to fee, and design my free service accordingly. In my case, progression to fee could be done by building a functional website, but also explaining how that site can be developed towards e-commerce, etc rather than remain as static information.
-3. Research what that business already has in place in terms of marketing, and work out ways the sites I provide can reinforce and complement existing strategies.
-4. Create a feedback form so that if all else fails I can find out where I went wrong (can be a paper form or prepared questions for ‘exit interview’ scenario).
-5. Strip out exactly how what I did provided value, and use it in my portfolio as the ‘numbers’ for the next gig.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
- “This is what I’ve provided so far (bulleted facts!). Let’s discuss where we could take this in the future, and how much that is worth.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“Much as I admire x about your business, I need to pay my bills. What I’ve provided for you so far has generated x-value, and there’s a lot more we can do to generate sales/clients/buzz.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
£25 an hour [or £x amount for x set product, based on assumptions about time)
8. “I don’t think so, that’s too much.” What do you say?
-”I’m sorry to hear that. Why don’t you le the site run for a while, see how much extra business you create, and we’ll talk again in a month?”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
-Bring out the old feedback form, grab some testimonials and scarper.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
-Focus on providing an excellent product/service?
Woops…
#2 in my answer to number 1.) should say ‘more to life than money.’ Seriously though working for non-profits can be a rewarding experience in non-financial ways.
I’m so glad I forced myself to do this:
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Other freelancers in my chosen area in an effort to learn the business from a freelancer’s perspective
2. Non-profits, I hope the people that said they would never work for non-profits see this and realize sometimes there actually is more to life than me. If you can help someone in an area you’re passionate about or need experience in, why not do the free work for an organization that could use the help.
3. Tastemakers or leaders in a given field. I would assume just working for them would be worth the experience and a good thing to put on your resume
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. People who are obsessed with beating up vendors over price.
2. People who freelance because they’re incapable of working a long-term full time job.
3. People who may have difficulty paying their bills.
(I feel like I was more specific in #1, I wonder why)
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Be the best in my chosen field. Make it easy to leave and go elsewhere.
Set pre-established criteria for when you are being taken advantage of and leave when those criteria are met.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1.) Find and research an appropriate target.
2.) See if I can engage the person in some non-invasive way that in no way relates to work. If it’s a blogger, comment on their post. If it’s a business reference a recent media story about the company or some aspect of the business you are knowledgeable in.
3.) Try and engage people that know this person in some non-invasive way. Requires online stalking
4.) If an interaction occurs continue the conversation with the target and the targets peers. Steer these conversations toward your desired product.
5.) Pitch the individual or company for your service with no mention of free or fee (being prepared to work for free).
6.) Be patient.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
If I’ve been working for free, I will start by quantifying value. “I really enjoyed working on project x for you and was glad I was able to save you $400 per week. I think that if I implemented strategy y you could see savings of over $1,000. I’d have to charge you for this, but it will be worth it.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I can’t continue to work for free. It’s clear that based on the work I’ve done there is a clear and definable value. I’m only asking to be paid what my services are worth.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
I think the fair market value for what I have been doing makes the most sense.
8. “I don’t think so, that’s too much.” What do you say?
The value to you clearly exists. Through paid work I’ll be able to seamlessly transition to a more dedicated role that will have an even greater impact than the work I’ve been doing.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Say thanks for the experience and ask if they know of anyone who might be willing to pay for a service like mine.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Take my work to an even higher level. Make sure they absolutely do not regret hiring me.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
I am a freelance writer, but I don’t have a consistent influx of assignments. My goal is to get more clients and develop a niche in health/fitness, especially targeted to adults and older athletes. I’ve answered the questions generally but included examples specific to my desired niche.
1. SOMEONE IN THE POSITION TO SHARE LOTS OF IMPORTANT INDUSTRY KNOWLEDGE & PAY – A magazine editor on a national level – to get inside the head of someone who develops and assigns stories
2. ESTABLISHED PROFESSIONALS WHO TAKE THEIR BUSINESS SERIOUSLY – Established personal trainers; to help them write content for websites, articles, etc.
3. HUGE PLAYERS IN THE DESIRED INDUSTRY – A sports merchandising company such as Nike or Adidas
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Non profits
2. Students
3.Organizations accustomed to finding student interns, etc, for free work. They will usually never want to change their method of approach.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
- Agree on number of hours per week, types of assignments, and the specific timeframe.
- Follow through on my end.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
- Research the client and their biggest needs…get in their heads
- Figure out how my niched-down service can meet their needs and offer them the greatest value
- Draft my pitch
- Send test pitches to less-desired clients
- Revise pitches/send
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
In the pitch itself I’ll set a timeframe for free work and make it known then that I’d love to discuss continuing further if my work meets their needs. Need help with exact sentence??
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
Show them the numbers and how the projects have added value. This is tough. If they’re stubborn right away, they may not be the types of clients I want to work with…not sure on this one.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
Start off 1.5x flat fee or hourly rate I’m willing to accept.
8. “I don’t think so, that’s too much.” What do you say?
I negotiate down to the rate I’m willing to accept, but no more.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Walk away, but make sure to complete all the tasks and assignments I agreed to do for free.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Get specific details on the timelines of my assignments. Do I ask for an official letter???
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
I would consider offering free work for clients or projects that would significantly advance my network/contacts, position me as niche specialist, or result in high-visibility for me & my work.
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
“Clients” that are by nature unlikely to go from free to fee would be out of the question, as are those who do not believe in or value the type of services offered.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Communication: it would help to clearly communicate what you are going to do, how you will keep in contact throughout the project, how you operate and what you are not willing to do.
Step 2 might be: “Keep free services somewhat basic,” every profession has it’s advanced maneuvers & dark arts – save them for those willing to pay for expert help, be prepared to say “No, that feature would require a greater commitment of time & energy than we’re at right now,” or “I’m sorry – I’ve already set you up with a database-driven website ‘no problem’, but if you want we can sit down and talk about what I would need for me to synchronize your data at your remote offices.”
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
First, decide who it is I would like to work for. In my case, I’ve had the most success as a subcontractor who increases productivity, offers
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
A free-play client should be aware up-front that you are a paid professional but are willing to demonstrate your ability to improve their business.
I don’t think this would be a bad ice-breaker: “You know Ramit, it’s been great helping you with [specific project], how would you like to talk about adding me to your team going forward?”
I was thinking of doing fundraising consulting for nonprofits, but NOW I’m thinking of doing events for major corporations, or corporate social responsibility strategy for major corporations in the Austin area (Dell, BazaarVoice, and others).
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. A major corporation that needs an event planned
2. A major corporation that needs online marketing
3. A major corporation that needs a corporate responsibility strategist/manager
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. A church
2. A disorganized nonprofit
3. ANY kind of nonprofit
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
I would say I will work for free for X amount of time. 3 months, 6 months, etc. Then step 2 would be to keep track of hours worked, what I did, how it helped them (metrics) and submit that as an invoice, with the words FREE written across the bottom.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1.Research which major corporations do not have a corporate social responsibility officer/dept.
2.Research which major corporations do have an image problem right now
3.See where those two circles overlap, go after those companies by
4.Crafting a written or slideshow pitch that will speak to their need for good PR, and how they can get there with my help of showing how they are generous to causes that fit their field
5.Emailing the pitch to their marketing dept or CEO, following up with a phonecall, suggesting a meeting.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
“I’ve helped you gain leverage with your brand in the last six months. I’ve helped you get 10 newspaper articles about your corporate social conscience. I’ve helped you run a TV ad, watched by 400,000 viewers. I’ve designed and rolled out 50 instore displays for your products and how responsible they are. Your sales have increased 10% in the last 6 months, which has translated into $3 Million, and 80% of people we’ve surveyed said they bought your brand because they knew you cared. Now have I showed my value to your company? Would you like me to keep working for you? Will you bring me onboard? What’s your decision?”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I just helped you overcome a massive PR disaster, and made you $3 Million. But I understand if you don’t think that has much value to you. However, my proving time is over, and I need to get paid. I can always go work at (Competitor X) where I am sure they will be happy to pay me.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
The going rate for Corporate Social Responsibility Officers is $70,000 per year. However, I have just made you $3 MILLION. So you can have my services, on a consulting, or project basis, for $300 an hour.
8. “I don’t think so, that’s too much.” What do you say?
Why is it too much? Wouldn’t you want to make more than $3 Million? What if I could roll out your social responsibility to a national audience? We would make $30 Million with socially conscious customers, who, incidentally, have more discretionary money, even now, than the majority of uninformed consumers. I think that’s worth $300 an hour.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Thank you for your time. May I use the results I have made here and you as a reference when I go work for (Competitor X)?
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
I say Thank you, and we talk about a broader vision for corporate social responsibility, which we then boil down to proposals, contracts, and bottom line results (such as people trained, sales numbers, etc) for hours put in on projects.
Would be interesting to see the example like Matt’s but cold, i.e. when you starting from scratch, approaching the client that you do not know and have not had opportunity to get into their head.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Clients with interesting work that I think benefits the world.
2. Clients who are well connected with other potential clients
3. Clients who could provide experience working on a unique project
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Clients with no money
2. Clients who expect the service to be free
3. Clients with nothing more than a one off project
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
I first would make it clear that this work is not usually free, they are getting a special deal because I like their cause.
Next, I would establish a time frame (or some other quantifiable limit) during which I am willing to do some free work for them. Towards the end of this I would begin speaking to them about cash. “So you know how I worked for you for free? Ya want some more of this?”
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
(Your first sentence here has two different possible readings, so I’m not sure if I read this right)
Offer limited (but valuable) free work to the client.
Find the client’s most important problems that I can solve.
Develop at least three possible solutions.
Analyze pros – cons of each situation.
Summarize my best work.
Lay out benefits for both myself and the client
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
75% of the way through my “time-frame.” “I’ve really enjoyed working for you and the work that is done here. I’ve solved [x and y and z and a] which have resulted in a net profit of $d. I’d like to discuss furthering our work together soon. I’ve got some great ideas and I think that we can work out a more permanent professional relationship that will greatly benefit us both.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“Like I said, I really am passionate about what you do here and I want to continue contributing. By paying me, I can afford to dedicate more time, energy and thought into my work here. Otherwise I need another stream of income to maintain my life and that means less of my time for you. On top of this, I increase your profitability far more than what I asked to be paid. This means a net gain for you if I stick around.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“In order to truly dedicate myself to the efforts here I need $35 for every hour of my time.”
8. “I don’t think so, that’s too much.” What do you say?
“I can work for $30, but my availability will be more unpredictable because I’ll have to be finding other work to support myself.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“Well, thanks for taking the time to speak with me about this. I’ve got a few solutions I’m working on which I plan to implement, but after them I’m going to have to find some work that can support me.”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
I would propose that I take on a few of the big picture solutions I have come up with for the client. I would offer to explain the details, how I plan to tackle the issue, estimated total cost and what the outcome will be in terms of profit and efficiency.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
A top notch creative/PR agency
The PR, Marketing and Communications Organizations
A company that could benefit from a good marketing plan
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
Little non-profits with super tight funds
Company’s with little need for a marketing plan
Company’s that are stingy
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Establish that you’re really busy and explain what you normally charge up front.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
Research the company/person to find out what they’re thinking; needing
Brainstorms solutions
Identify which of those solutions could turn into escalated work
Draft a few pitch scripts
Figure out where and when to present the pitch.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
After I pitch the plan, then I would bring up how much it would cost for me to execute. I’d love to implement this marketing plan for you to drive traffic your business so you can just focus on dealing with your customers.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I can’t afford to keep working for free. I estimate that I’ve saved you X hours and delivered X customers over the last couple of weeks, and would really like to help you continue to grow your business.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
For X service, my going rate is $X/hour.
8. “I don’t think so, that’s too much.” What do you say?
Hmm, what sounds reasonable to you?
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
It’s been a pleasure working with you. I wish you the best of luck. I’ll happily finish X project for you and then be on my way. Would you be willing to write me a recommendation on LinkedIn?
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Great! I’ll send you a quote summarizing what we’ve talked about and then as we work together I can invoice you via PayPal.
This has been a very helpful exercise – and really great to be able to read others’ responses. It has helped me realize what I feel very confident about in this process, and where I really need to spend more time working on my own psychology, attitude, and knowledge. Thank you Ramit (and everyone for sharing)!
* * * * * * * *
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Clients that can pay
2. Clients that need my services
3. Clients who are doing really amazing things that I want to be part of, or that I can learn from.
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Friends, family, co-workers unless personal favor will be worth my time.
2. Starving artists
3. Students
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
* Know your limits and communicate them clearly.
* Regularly communicate.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
* Find potential client
* Research client and competitors
* Brainstorm what solutions you can offer and draft some initial plans and ideas
* Decide what of those ideas would be candidates for free work (and what ones you should save for paid)
* Draft a proposal (written and oral)
* Pitch!
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
* when talking about scope of project – discussing your limits as a free worker: “although I’m excited to do XXX amount of work for you pro bono, we’ll need to evaluate down the road to see if this can be a continuing arrangement, and whether I can continue to work for free.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
* Make a case for all the work you have done and precisely how its benefited them, remind them of the potential work you can do and how much value that will give them, and communicate that there will be a point in time to make a decision about continuing services paid.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
* For doing XX on a continuing/hourly basis, I typically charge XXX
8. “I don’t think so, that’s too much.” What do you say?
* What amount seems reasonable to you?
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
* Come to an agreement about the scope of the work to be finished and where it ends. Recommend others you know who may be more affordable or another option. Ask if you can use the work you did in your portfolio or get a recommendation.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
* Draft up a simple written agreement/contract and outline short-term goals, next steps, deliverables, and schedule another meeting.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Large non-profits or social service agencies
2. Pharma companies
3. People with disposable income and little time
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Doing work that I hate i.e. admin work
2. Doing work that I cant learn from
3. Doing work for people that while they will like my work wont be able to pay ie small non profits, social service agencies, churches
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Step 1- Let the person know that you are doing work for free on a time limited basis so that they can see for themselves how much you add value and can help solve their problems.
Step 2-Make sure they know near the end of trial period what you produced of value for them and that the trial period is coming to a close.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
Step 1 Let them know how much you enjoyed working with them and contributing to their team
Step 2 While this time has been productive for both parties the trial time is coming to a close
Step 3 Enumerate what things of value you have produced or created with the concrete outcomes
Step 4 Note that you feel you can contribute in the future. Give at least 2 problems that you want to tackle for them and suggest projected outcomes.
Step 5 Suggest that you hope they see the value you have brought to the team and want to continue the fruitful relationship and make it a win-win for both parties. Continuing value for the client enterprise and fair remuneration for me.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
For you to continue to rely on the contributions I bring to your team requires a formalization of our business relationship. What do you think about hiring me?
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I have demonstrated that I can solve X problems by doing Y for you. As I told you I can solve B and C problems for you as well. But you wont be able to rely on my solving B and C problems for you unless we can come to a mutual agreement on fair compensation.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
Aim 20-25% higher than industry standard for wiggle room.
8. “I don’t think so, that’s too much.” What do you say?
Reiterate how you bring value and that your work has resulted in savings/less time or less headaches for your client. ( Emphasize the crux of the problems you solved for them).
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Tell them its been a pleasure working with them and contributing to their team. Let them know they can always call on you if they need to hire someone to provide a business solution.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Thank them and let them know you are ready to hit the ground running. Suggest 2 or 3 solutions you think you can help on and find out if thast where they want you to start.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. A venture capitalist
2. A professor at the nearby university
3. A wealth management professional
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. The nearby student population
2. A bank or large corporation (right?)
3. Bloggers who aren’t making money
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
First, I would frame my pitch and set the expectation that I will be working on valuable tasks. Second, I would set a time limit (and keep it to myself) and have an exit strategy.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
-Niche down exactly what I want to focus on.
-Ask about the best places to utilize/learn that niche.
-Set a time frame, based on availability and financial situation.
-Identify targets in my area.
-Formulate a power point pitch for each one.
-Include numbers, charts, and graphs.
-Formulate an elevator pitch.
-Visit each one possible. Call the rest.
-Ask to e-mail them a proposal.
-Send e-mail.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
At the end of my predetermined time frame, or when I know that I have become indispensable. “I have really enjoyed these past X months, but it is time for you to make a decision.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“The way you used to do it was ok, but this industry is too competitive for ok. I can increase your productivity by doing x, y, and z. Remember projects A, B, and C? Those were just the tip of the iceberg.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“The average rate for someone doing this type of work is $X-$XX. I think I have performed well above average. And if you think about the value I am providing, you are gaining $XXXX from our relationship.”
8. “I don’t think so, that’s too much.” What do you say?
“The benefits of my services are greater than what you would pay me, don’t you think it is win-win?”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“What services do you need that you are willing to pay for, even if you wouldn’t pay much?”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Get referrals to work for others on a freelance basis, use that as leverage to increase rates later.
Your Wednesday to-do
I want you to complete an exercise today. I know it’s long, but I’d rather have you spend an extra 15 minutes than skim yet another page and walk away thinking you understand the concepts without REALLY applying them.
In a Stanford psychology course, I learned about the psychological changes that happen when you go from reading something to teaching something. It’s profoundly important to stop skimming and start writing something on paper.
So in the comments, answer these questions (BE SPECIFIC!):
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Clients who are mavens, who could potentially put me in contact with other people.
2. Clients who inspire me in some shape or form.
3. Clients who I think will get my idea.
People who have the potential to help me scale up my service
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Clients who have a low chance of being able to pay for my service at a later date.
2. Clients whose work I don’t feel any sort of connection with.
3. Clients that could use up a lot of my time.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Step #1. Make sure that I explain clearly exactly what I am willing to do and not do.
Step#2 Inform the client immediately if I feel we are not a good match for each other.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Identify three clients that I would like to work for. Set deadline for pitch and draw up chart to keep track of progress, notes about client etc.
2. Get into the client’s head by looking at their work/service. Become very familiar with it – get to know their style, how they work, what they like/don’t like etc. Add notes to chart.
3. Create three free examples of what I can provide for them. Add notes to chart.
4. Send the sample to them with a sort explanatory e-mail. Log in chart.
5. Respond to any response within 24 hours.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
Payment will be mentioned in the pitch and then when the client is half way through using my service. “I would be happy to continue to provide this service for you, if you are let’s discus my rates.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“I have appreciated you letting me gain some valuable experience to develop my service, hiring me would allow me to continue to provide this for you.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
My rate is:$XX
8. “I don’t think so, that’s too much.” What do you say?
I think that’s a fair rate for what I can provide.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Thank her for allowing me to gain some experience, leave open the possibility of future work and ask if she could recommend anyone.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Thank client. Make sure that I continue to deliver what they want. Aim to exceed their expectations.
Illustration/fine art is based on the model of working for free first (generating a portfolio of personal projects or previous work) & using that work to secure potential clients (art directors/galleries). Thus, professional art directors don’t want you to offer ongoing free work for them–it’s seen as an amateur move & can damage your credibility. For galleries, you & the gallery aren’t paid unless your work is sold.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
- Submissions to contests, illustration magazines, galleries, art directors, etc
- A mentor/publishing house/gallery to work with as an assistant to familiarize with the industry
- High profile charity/non-profit posters or events
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
- Your friends – unless just as a favor
- Bargaining/amateur clients
- People who want to pay you only in future royalties (typically unrealistic about their prospects)
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
- Set a clear goal of what to learn/accomplish from this job & adhere to it
- Contract – specific rights transferred & specific job parameters
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
- Determine which art directors/galleries seek new work or need & use art in their products on a regular basis
- Determine which of those potential clients would find my style appealing
- Send targeted submissions that best represent my portfolio to suit their needs/interest.
- With submissions, in case of rejection, send an e-survey/stamped postcard asking:
1) are you not interested at all
2) interested, but needs improvement
3) interested, but no work needed right now
- For those interested, continue to send updated work & resubmit. Perhaps send postcards of work quarterly as a refresher.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
(In illustration/fine art you work for free until someone values your work enough to purchase the work, the rights to use it, or commissions you. With illustration, if they need to reprint your work, they have to renegotiate for 2nd printing rights and that’s where a rate increase can happen.)
You would bring up the conversation some time after your work has positively influenced their business.
“Since I have worked with you, my art has increased traffic to your product/company & has helped launch it into higher levels of visibility (insert examples here). I would love to continue our exciting collaboration on future projects. However, in order for me to focus on working with you instead of focusing on making ends meet, we need to discuss compensation.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“My work with you has already increased your market base/profitability/visibility/etc in a way that has profited your product/company/image by (insert examples here). Compensation will allow me to (insert projects the client already wants to add) to make your company/product/business even more eye-catching/valuable to others.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“Each project is priced depending on the scale of the publication/distribution & the value of the purpose that the artwork is fulfilling. An illustration could range from a few hundred dollars to a few thousand dollars depending on the scale of the run & whether it’s a spot illustration or a full page spread. A small quarter-page or spot illustration is minimally $500 dollars for first printing rights.”
8. “I don’t think so, that’s too much.” What do you say?
“These are industry standard prices for professional working artists. The rate is determined by the value that my work adds to your product & the quality of the work. I have 6+ years of rigorous art training combined with a unique visual voice. My work already demonstrated that I can draw potential clients to your product. I look forward to working on future creative projects with you that can be beneficial to both of us.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Exit the negotiation graciously. Leave the conversation open for future work in case they change their mind.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Contracts — determine a payment schedule for all phases of work, what rights are transferred, any royalties. Set up a system of communication that is easy, low stress & clear. Determine where the relationship can be escalated to next.
1. My area is translation from Japanese -> English. I would target Japanese companies who have no English on their websites, or have bad English on their websites:
1.1. Businesses in touristy area in Japan
1.2. Online businesses that export or sell something foreigners would pay for.
1.3. Websites with regular content updates (news sites, businesses that release new products)
2. I would avoid targeting these types of clients:
2.1. Low-key bloggers
2.2. Local businesses in non-tourist areas (no potential for English-speaking customers)
2.3. Anyone else who can’t pay me.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
3.1 State up front that I will do some translation work free of charge, with the option of more paid translation work.
3.2 State exactly how much I will do for free before asking for payment.
4. Plan of action:
4.1 Research businesses to pitch to. Find 10-20 websites that fit my answers to question 1.
4.2 Look at their websites. Find examples of poor English and prepare samples of better English. If no English on the site, prepare some sample translations of Japanese portions of the website.
4.3 Write a generic pitch email template that I can customize and send to potential clients. Also prepare email templates for questions 5-10.
4.4 Have my email templates checked by a native Japanese speaker to make sure they are professional and mistake-free.
4.5 For each potential client I am pitching to, select a specific section of their website that I will translate for free.
4.6 Customize template email to each site, stating what I am offering to do for them for free, and why having that section of their website will benefit their business.
4.7 Create a small website for my side-business where I can post contact information, testimonials and examples of past work. I already have hosting, so this only costs me a domain registration fee.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
I will bring up the subject of payment after I complete the free work. I will say (in Japanese) “I see other areas of your website that need translation. I can do these for you as well for a fee.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
Explain how their business will benefit by having English webpages/info. This will vary by business. If a restaurant in Tokyo for example, say “Most tourists don’t speak Japanese and often choose where to eat based on whether English menus are available or not. Simply having English menus available will make your business look tourist-friendly and bring in more paying customers. I can have translations in your hands as early as next week.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
My rate is X yen/character. I have identified that A, B and C sections of your website need to be translated (N characters). The cost to translate these sections is Y yen.
8. “I don’t think so, that’s too much.” What do you say?
Out of A, B and C, A and B need translation the most. The cost to translate these sections only is Z yen. Reiterate some of the stuff in question 6.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Send an email: Sorry we couldn’t come to an agreement. If you decide you need translation services in the future, please contact me here: (email address)
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Do the work. Tell them to contact me if they need any more translation work. Check their page periodically to see if anything new comes up that I can offer to translate, citing the work I did for them in the past.
A couple people above said, “I’ll tell them, I have bills to pay.”
As a client, I don’t really care about your bills.
Clients really only care about your bills inasmuch they won’t be able to have access to you.
So DO NOT TALK ABOUT YOUR BILLS, CAR PAYMENT, ETC. Nobody cares. Talk about the CLIENT and how you can help them make more money, cut costs, save time, look sexier, whatever.
It’s about them, not you. Say that again and again.
In the full Earn1k course, we will go into extreme detail on this and I’ll show you some subtle ways to think about this and apply it on an even daily basis.
@ David – I was nervous as hell when I sent it. It’s never perfect, but I figured any more/less, I’d just be doing useless tweaks.
As far as the timing, I was starting to put more hours in, and base don what Ramit had going on, I knew that I’d provide visible ROI.
Also, having two children under two years old and needing to either pay for daycare or stay home and not work helped push the decision.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Clients who have money to spend on a problem you can solve
2. Clients who have potential for more work down the line
3. Clients who are in a network of people who potentially have similar problems
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Clients who seem to be unable to pay for their basic needs much less anything else
2. Clients who only have a one time problem without any potential for more work
3. Clients who are constantly worried about cost
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2? Step 1: Set your own internal limit of work you’re willing to do for free. Step 2: Be clear with the client about how much work you’re willing to do for free.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
• Determine your niche clientele (must have potential to pay down the line)
• Get inside your client’s head (ask them what their problems, fears, worries are)
• Find specific ways that you can solve their problems / calm their fears
• Run testing on your ideas
• Contact the clients with the proposal
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
I would bring it up if I enjoy doing the work. If I feel that we have a good working relationship and that the client is someone I’d like to continue working with in the future.
“I’d like to discuss your future projects and my availability and costs for helping to support those projects.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
In order for me to keep working with you, I need to be able to pay my bills. I would like to continue working with you since we’ve had some great successes so far (cite successes) but you will need to make the choice about whether you want to invest in growing your business even more or not. (Question for Ramit: Does that sound manipulative?)
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
My going rate is $120 an hour for the work I’ve done for you thus far. Larger projects start at $4,000 per project, but that’s negotiable based on your needs.
8. “I don’t think so, that’s too much.” What do you say?
Well, that’s my going rate and I feel like it’s a fair price for the quality of work I do.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Exit the working relationship carefully. I would leave it open for her to hire me in the future. I would also be very complimentary and gracious of her and the work you’ve done together so that if she decides to hire you down the line you haven’t burned any bridges.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
I would set up specific projects, timelines, and a payment schedule.
Hey matt, how did you feel out the right time to send this to Ramit?
Were you out of time/cash reserves? Did something really big just happened? Had you promised yourself you wouldn’t work for longer than six months without a paycheck?
In your area, list 3 kind of clients to whom you’d offer to work for free.
——————————————————————1. Prestige – I would sweep floors for a me@nasa.gov email address. It would give me prestige within my personal and professional community beyond price.
2. Pleasure – Lucas Arts, Disney, Pixar and Dreamworks are all prestige jobs, but I would work for Spumco for free. I’ve enjoyed John K’s work since the first episode of Ren and Stimpy aired and it would rock to be even a tiny part of that.
3. Ownership – being laid off has given me the opportunity to reflect and to plant a garden. The food that came out of that garden was the freshest and the best I have ever eaten. If I work for free then I want to own the problem as well as the solution. (with your permission) I will take over the problem and solve it, but if you want to drive then you need to pay.
List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
——————————————————————1. Micromanagers – people don’t quit jobs they quit managers, and a change of managers drove me out of a job that I really liked. the bad taste has never left my mouth.
2. Sales Jerks – people who expect you to keep the promises they made while showing a casual disregard for your time, talent and well being. I’m sure that other professions have these jerks too, but all of them I’ve intereacted with have been in sales.
3. Second guessers – technically a subset of micromanagers, these are the people who expect you to justify and explain every decision you make in an area where you are expert and they are not. the implication is that I don’t know what I’m doing and while I’ll take a lot of crap for a job I love I won’t do it for free.
It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
——————————————————————1. define that I am available for a limited period of time/goal, eg: I have x hours/days/weeks/months available and would like to work with you to help you accomplish y goal.
2. define what I want, eg: we haven’t worked together before and I would like to take this opportunity to introduce myself and contribue to your goal/organization/enterprise by helping you on project y. If you find my contribution valuable then we can discuss working for pay, but let me spend x hours working with you first to convince you that I can be invaluable.
List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
——————————————————————1. Identify your audience, make sure you know the person and their business. Nothing grinds my gears like having a telemarketer talk as if they know me when it’s obvious that they do not. Show your target the same courtesy… and don’t try to sell floor wax to a shag carpet manufacturer.
2. Introduce yourself – start a dialog about a mutual interest. no matter how much you have to offer it won’t matter if they won’t read your email or answer your phone calls, this also gives you enough time to determine if the opportunity in your head bears any resemblance to reality
3. Identify a need that your audience has, research it and see if you can learn how they have tried to fill that need previously. Pick something large enough to highlight what you have to offer, and small enough that the target would be willing to give someone a try
4. make the pitch: write it down, think it over, edit it for brevity and punch and test drive it on a couple of friends before making the pitch. Make the pitch, be sincere and ernest and knock their socks off.
5. Followthrough – do what you promised and more. Celebrate your target’s success. Make your second pitch
When will you bring up the subject of payment? What is the exact sentence you’ll use?
——————————————————————Project Y was a big success, it’s time for me to find something to do that will also make money. I notice you have projects A, B, and C, do you think I could be of assistance in any of those areas?
Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.”
What is your response?
——————————————————————you have been doing ok so far. But you have to admit that the work we’ve done together has been better than ok. In fact it’s kicked ass. If projects A, B and C being just ok is good enough then I guess you’re right I’m probably not needed here, but I thought we could do better than just ok and I’d hoped you thought so too.
“Ok, I see your point. How much are you thinking then?” What is your exact response?
—————————————————————-
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1.Law Offices
2.Accounting Offices
3.For-profit businesses that interest me
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1.Not-for-Profits
2.Governments
3.Rude People (no matter how much they can pay)
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Step one – specify that this is a sample – one-time only.
Step two – say ‘no’ – gently but firmly – to future free work
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
• Say to client ‘you’ve now see me do X’, which has brought you/enabled you to do ‘Y’. I think we can have a successful working relationship going forward.”
• Present client with three or for examples of things you can do for him/her in future.
• Pause for client feedback
• Respond to feedback “yes, and working with me will provide you with…X”, while mentioning your successes for other clients.
• Ask whether the client is interested in continuing the relationship on a professional level. (The answer should be ‘yes’)
• Tell the client you’re pleased he/she wants to continue, and state my fees.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
• Payment discussion occurs when the client says he/she wants to continue working together.
• I’ll say. “I’m very glad we’ll be working togther. My fee is $2000/month for up to 10 hours’ time; minimum three months.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
• I’d say, “I wish I could! I emjoy working with you and I need to get paid or move on. You’ve seen how successful you’ve been with my services. You’ll save X time and $X work of headaches by engaging me. I believe you’ll find it very cost effective.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
• I’ve already stated my rates plainly and without apology. I’ll repeat them again the same way if necessary.
8. “I don’t think so, that’s too much.” What do you say?
• “Actually, it’s very reasonable, considering the quality of my work and the time you will save.” Then pause. Let the client fill the silence.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
• Thank the client for his/her time and interest, say ‘it’s been a pleasure. Please don’t hesitate to contact me if the situation changes. “ Then call client in one month to touch base – things may have changed in my favor.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
• Say ‘Thank you. I’m glad to be working with you. The next step is to agree on general terms and arrangements.
• Draft a contract/agreement.
• Thank client again.
• Do great work
• Ask client for referrals
• Rinse and repeat.
@ Sammy – I emailed it. I live in Charlotte NC and Ramit is in SF, so it wasn’t feasible to deliver it myself.
Plus, the Keynote did a better job than I could have in person.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1.those who could benefit from my service
2.those who could get me experience or connections
3.someone interested in my service
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1.people who can’t benefit from my service
2.those who can not afford my service
3.people that don’t understand my service’s benefit’s
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
1. be honest up front that this is a limited time of free service
2.know your worth and stand firm by your service/product
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
a.find those who would be interested
b.research their needs and issue’s
c.create a presentation showing how you could help
d.schedule a meeting with the decision makers
e. explain you are interested in working pro bono for a limited time to see if your service and skills are a good match
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
at the end of the prearranged free time “I have really enjoyed working with/for you these last weeks/months.We have accomplished so much. Example 1,2,&3.I would like to continue to work together .Lets talk about xyz and how i can help you achieve them.As we have reached the end of our pre-agreed upon free work my fee is W to continue.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“when we started our project we discussed the pro bono work would be limited in time.together we have achieved alot. detailed examples A,B&C. I know we can accomplish a lot more.My work has proven itself with results. My fee is W. If you would like to continue to work together that would be amazing.If you feel it is not what you are interested in at this time that is fine. You have my contact information let me know if you decide you could use my skills again.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
my rate is W
8. “I don’t think so, that’s too much.” What do you say?
“I am sorry you feel that way but that is my rate. My work has helped you with detailed example 12&3.”
9. You and your client negotiate,& but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
I have enjoyed our time and work together.you have my contact information if you decide you can use my skills again.thank you.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step
celebrate that night and tomorrow work hard to exceed their expectations.further endearing myself to them.
I’d just like to point out a few things I notice. In negotiation, it’s always best to let your clients name the price first, rather you telling them first or even upfront. This way, you could have a better bargaining power. For instance, if the client says $50/hour is fair, and I’m thinking about $100/hour, I’d say $150/hour. In the States, we generally think it’s fair to split the difference.
As what Ramit has done so far, he’s been keeping the price a secret until he thinks he’s convinced enough of us that he will provide massive value in the course. He also builds a long-term honest and sincere relationship with us, by letting us get access to his free awesome stuffs. And he’s doing a great job at moving from free to fee. I probably learn as much from how he launches this course as the course itself!
I’m in the middle of something so I can only answer the questions later tonight or tomorrow. Looking forward to the Webcast on Sunday guys!
Yes. The part about managing is exactly right. Even if they’re doing something I “kinda” want, I DO NOT WANT to have to manage someone else. My life is busy enough.
Sometimes the solution is to get deeper in the client’s head.
Other times, the solution is to simply DO IT FOR THEM, then point them to a web page (or folder, or whatever) to show them what you already did. (Remember, busy people don’t want to have to think.)
Finally, other times they’re just too busy for you or you’re not good enough to get their attention yet. Move on.
Ramit:
My guess is they’re not offering a solution to a problem that you have. They haven’t done the research to figure out what you need. In that case, having someone work for you for “free” becomes a liability because you have to manage them. You want people who will step up and manage themselves and solve a problem.
I’ll have to get to the homework later, but for now I just wanted to ask:
Did he give the presentation in person or just send the deck?
BTW, I could not enter my url, it said it was invald. johnfly.net
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
-Mid to high income parents who care about preserving the memory of their children in dvd video and online video format
-Pet owners who care about preserving the memory of their pets in dvd video and online video format
-Mid to high income couples who have memories to share with families thorough online video
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
-Low income clients who don’t have the means to pay
-Know it all people who would tweak the product to the end because they think they could do it themselves
-Clients who don’t know a thing about video
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
Offer ONE set objective, such as to edit together their kids first birthday home video into a nice montage video to music and upload it to a video site for them. Making sure they understand that is all i can do for free. If they would like a dvd, they can pay for that.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
-Try to focus and niche what i am offering
-Figure out how i can make 1 client turn into a repeat client or to have them recommend other potential clients
-Find where those potential clients would most likely see my service offered
-Create a survey to see if my idea is profitable
-Create a first time offer that will be used after the survey to start the free work process
5.When will you bring up the subject of payment? What is the exact sentence you’ll use?
I would bring it up after the work is done and posted. I would ask how they liked it, and if they did, I would go in to how this is a great method of preserving timeless memories and with life passing us by so quickly these days, how nice it would be to preserve as many of those memories as possible.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I would remind them of how precious their memories are and how my service has helped archive their life so that they can share their memories with many future generations.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
For a 5 to 10 min vid uploaded online as well as a custom DVD, $500.
8. “I don’t think so, that’s too much.” What do you say?
How much are your precious memories worth to you? Are you willing to let go of the chance to show your life to later generations. Did you ever wonder what your grandparents life was like?
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Thank her for her time, let her know my services would be available if she changes her mind, and see if anyone she knows might be interested in my services.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Suggest some ideas of important times that would be great to remember. Birthdays, first pet, holidays etc.
@Ramit
I agree with Laurence that you need to demonstrate 2 things impeccably when you pitch with free: preparedness & commitment.
The value you provide could go to waste if you aren’t prepared to approach the client (or the work), which translates to being in their head, knowing how to take stress off their shoulders, and making life easier rather than harder for them… NONE of which necessarily involves the tasks you’ll be doing, but all of which add up to acceptance/rejection.
An employee you’re not paying is an employee without a lot of reasons to stick around. If there are any indicators in the pitch that the free-ployee might flake, I would think they’d be dumped post-haste.
People who are willing to work for free should also deliver convincing value to the customer by getting into customers head and drafting an attractive value proposition. If a $1000 per hour guy gets free services of somebody willing to work for free having $50 rate in the market for a couple of months worth of jobs (50*8*8=$3200), but spends 5 hrs extra with him than a paid professional it’s not attractive to $1000 ph person.
Ramit,
Anyone who works for you will cost you time regardless of their rate. The more valuable your time, the less likely you will be to jump on the next “free” opportunity since all it represents to you is a break in focus (costing $$$) unless they offer enough value to offset that cost.
The key is to take as much thinking and oversight out of the transaction as possible. I’ve worked with someone who makes over a million dollars a year (and yes, this is getting paid hourly) and she wouldn’t hesitate to pay someone a great deal to take care of menial tasks. Picking up groceries/waiting for the plumber/etc all cost her a lot of money since her time is that valuable.
If you don’t show value in the first few seconds, good bye. If you don’t understand the client’s problem in the first few seconds, good bye. If you don’t have some way to show credibility and trustworthiness in the first few seconds, good bye. That is the reality for most people with money.
These are my answer to your questions. The plan is to offer my services as a math and writing tutor to middle, junior high, and high school students. (I’m in college myself.)
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
a. People who have access to lots of people who would pay for my services
b. People with influence who can give me amazing testimonials
c. People who I can learn something valuable from to use in the future
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
a. People who couldn’t pay me if I weren’t doing it for free
b. People who do nothing but bitch and moan about what they’re getting free
c. People who won’t really benefit from my services
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
a. Specify exactly what I will do for free.
b. Specify exactly how long I will do it for free.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
a. Why they need someone like me.
b. Why they need me specifically.
c. How they benefit
d. Explain why I’m doing it for free
e. Be sure I can answer any questions they may have about my offer.
f. Find out what other people doing similar things are charging.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
Bring it up as soon as possible after the trial period produces positive results. (for math tutoring) “Now that I’ve proven to you that I can take your kid from being a C student to an A student, I think we should talk about compensation for future tutoring.”
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“When we started your kid was an average student, and now he’s approaching the top of his class. I can help him improve even more, which will benefit him for the rest of his academic career. He’s got potential. I think it’s worth investing in his future.”
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“Thirty five dollars an hour.”
8. “I don’t think so, that’s too much.” What do you say?
“What would you say is a fair price? Keep in mind just how much he has improved.”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“Well, if you would be willing to recommend me to five of your friends, and at least two of them lead to paying work, I would be willing to offer another period of free tutoring to your kid.”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Expand to other clients. As I become more and more in demand I will begin to raise my rates.
Hold on, guys. Free doesn’t solve all problems. A lot of people offer to work for me for free every week. I turn most of them down.
Any ideas why?
My answers won’t fit in this text area (500 character limit?) so here are two key ideas:
1. Time limits (and less so, project limits) are key to limiting your responsibility as a “free worker”. I have been stuck working for free out of responsibility to a project that would never end. You need a good way to escape that purgatory.
2. Keeping a record of your accomplishments and how you helped the client meet their goal is key. “What have you done for me lately?”
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Clients who are successful and could actually pay.
2. Clients who I could learn from.
3. Clients who have a network of other potential clients.
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Clients who are cheap or won’t ever be able to pay.
2. Clients who I can’t learn from. They aren’t knowledgeable about my industry, so I wouldn’t gain anything from them.
3. Clients who are jerks. If the client and I can’t get along, working together would not be enjoyable.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
I’d work for free for only 2-4 weeks. After 2-4 weeks, I’d try to transition to fee.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
a. Do research to find potential clients.
b. After prospects are found, do more research to get into the client’s head.
c. Develop supply that’ll meet my client’s demand.
d. Write a proposal, which would include:
i. Flattery
ii. State “I will work for you, completely gratis, for 2-4 weeks. This way, if we decide to not work with each other, we could part ways, with no hurt feelings. ”
iii. State 2-3 projects I could start on right away.
e. Send the pitch.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
[Client], we’ve been working together for 4 weeks. I’d like to talk about how my work could continue to benefit you.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I’d show him quantifiable numbers. Show how my work has saved him x amount of hours and how my work helped him launch his product faster, which earned him more money.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
“My rate is x/hour.”
8. “I don’t think so, that’s too much.” What do you say?
“That’s understandable. What about y/month, or even z/project?”
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
“Well, as stated in my first e-mail to you, this was supposed to be a 4 week relationship. I’m sorry we couldn’t come to an agreement. No hard feelings. I hope we could work together again in the future. Could you do me a favor though, and leave a recommendation for me on LinkedIn?”
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Celebrate that night. The next day, e-mail the client to let him know I’m starting to work on his project(s).
I’ll hope on the Google Docs bandwagon as well.
https://docs.google.com/Doc?docid=0ATu3va6fYfeeZGhkZmJuZ2tfMzBmbjJma3Rocw&hl=en
The ‘let’s talk about payment’ part I keep reading people suggesting they talk about it. Why not come already prepared with your proposal, that includes the amounts you expect to be paid? If you want to talk about it, sure they’ll talk – but if you come to them with your ‘this is what we’ve accomplished’ and present them with ‘this is my contract for our future work together’ would you not have a greater chance of getting them to yes faster?
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. I have good relationship with
2. Have a longterm contract with
3. Like the way they do their work
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Time wasters
2. Don’t know what they want
3. Uncomfortable to negotiate with
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
1. Be specific and clear
2. Explain my reasons and intentions
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Set specific goal – what i’m offering to whom and why.
2. Figure out if the client needs my services at all. Find out clear answer what would i solve in their business/life.
3. Create a presentation or proposal
4. Consult with trusted people i’m working with (maybe)
5. Have all the points of the pitch in my head
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
Upfront, exactly after the presentation. Sentence: “This is the part i’m willing to do for free, than if you like the results i’ll charge XXXX fee for my service.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
The response would be based on p. 4 preparation.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
If i got this question right, than my response is already given in p. 5
8. “I don’t think so, that’s too much.” What do you say?
I think it’s incredible value, since it solves ‘this and that’ for you and helps you to achieve this and that goal. You to decide.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
If it’s no-go absolutely, it depends on the client type. If this is my long term client and i like to work with them, than i’ll offer the service anyway, which i in fact do sometimes.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
I’ll do the work the best way i can.
Nice presentation!
Here are my answers – http://docs.google.com/View?id=ddfvrbdx_0fjx899dv
Never tried this with new clients though.
Ah – refreshing the browser did it. Thanks for the fix.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Potential word of mouth clients (existing BDI who are already interested)
2. Lori – can word of mouth to her clients, and carry product at her place.
3. Barter clients (web designer, branding graphics designer, newspaper ad agent)
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Everyone else not listed above. I sell a hard good, not a service.
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
• I would offer up the sample item to the people listed above and specifically call them/ask them next time they are here about the success they had with the food.
• Step 2 – ask them for a testimonial. Ask them to share their success story with their friends and co-workers.
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
• Using Matt’s video gave me an excellent idea of how to present my product specifically to address certain issues that my product solves. I currently have 5 health issues (more to come soon) that can be put into a nice PP presentation that is fast, easy to grasp and of particular interested to each person needing a solution.
• First step: write up the text of the document for each solution. Make it specific and simple to understand.
• Second step: Gather photos to make the presentation more powerful. Again, get photos relating to each of the problems I am solving.
• Third step: Learn how to put it all together in PP.
• Fourth step: Get it uploaded to the website.
• Fifth step: send it out to clients I know have the issues, send links to the vets, then follow up with phone calls to the vets to ensure they got the point/looked at, etc.
• Six step: Steal husband’s work laptop on weekends.
• Seventh step: Using stolen laptop, get into the food stores and vet clinics to show them the (45 seconds? however long) PP presentation. Showing them is powerful. Leave contact information with them after answering any questions.
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
Hard to answer this as my product is assumed to cost money by everyone I encounter. Exception to this is the free people above. One free person who I would convert to paid client, I would say ‘We’ve had such great success in finally getting (Dog name) to eat and he LOVES each meal. He’ll be so happy to keep getting meals he enjoys. Our food trial is nearly over; do you want to continue on the food for (Dog name)?
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
I really appreciate your help in testing out my product. It’s been great to see how well your dog is doing on the food and how much he enjoys it. The testing is complete and we are ready to go to market; we won’t be doing food tests any longer.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
Thanks for seeing the value of our food. A tray costs $ xx.
8. “I don’t think so, that’s too much.” What do you say?
As you know, the benefit of a fresh food product is greater overall health. The savings in vet bills alone will be worth it. I understand cost concerns however. If it is too much for you to spend on your dog, consider doing a mix of the old food and our food, so at least he retains some of the health benefits of the fresh food.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
Thank them very much for the time we’ve had together. Every relationship and encounter is a learning experience. Stay in touch with them, but move on and focus on the next client.
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Get them to become a champion for my product. Work on referrals and testimonials.
500 character limit on reply. My reply was too long!
1) In your area, list 3 kind of clients to whom you’d offer to work for free.
This is easily the toughest question for me given an uncertainty about what service I want to offer, but I know I’d probably want to niche it down a level below this… online advertising firms or property law firms.
1. Local advertising agencies
2. Local magazine/newspapers
3. Local law firms
2) List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Students – students get addicted to the taste of free the way adults gets addicted to the taste of value
2. Large retail chains – most services you could offer here would be handled at the company level, plus they aren’t niche enough
3. Low-income earners – if your goal is to make money rather than put forth a product you believe in, stick to people who can pay you for what you do
3) It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
1. Track all your hours and productivity quantifiably, the more automated the better
2. Never lose sight of what the customer wants, rather than what you do. Gradually shift your work in their direction rather than yours.
4) List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
1. Figure out what service I’m going to offer
2. Get off out of this chair and TALK to people about it… demand survey time
3. Analyze the needs of the field, noting the discrepancies between different potential clients, as well as my expectations compared to reality
4. List out 3 places that I both want to work for, and can pay me
5. Draft an email that will double as a call script
6. Call in and try to reach key decision makers (avoiding secretaries) and promise them free work they need with a no disappointment guarantee
5) When will you bring up the subject of payment? What is the exact sentence you’ll use?
I think payment needs to be alluded to in the pitch, or rather, a promise to loop back and discuss payment in a month. Then, the first sentence would be “[Client], it’s been a month and I’d like to talk about staying on with you for a while longer.”
6) Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
“I would agree that the work has been going well. Really well actually. Since I started we’ve [Awesome Stat 1] and [Awesome Stat 2], [saving/generating] [Blow away stat 1]. I want to help you reach [future goal], but I want to be fairly compensated as well. If you’re not willing to take to pay for work you know to be valuable, I can understand, but I’d rather continue working with you on a freelance basis. What do you think?”
7) “Ok, I see your point. How much are you thinking then?” What is your exact response?
Ugh… this one’s hard without an idea of the specific service I want to provide. I’d need an idea of an average hourly wage for a generic worker in the field (using indeed.com as a proxy) and bump it up 40% for niche-level work, plus another 10% for negotiating wiggle room.
[First, clearly I didn’t do enough homework on you if you’re complaining about my rates at the first blush… who needs who again?] “I understand your concern, but this is the price that I charge for my work. You’ve seen what I can do, and I’d like to keep working with you, but this is simply what my rate is.”
9) You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
In general terms, I would begin by expressing disappointment about the decision, but thanking them for the opportunity to work with them. Make sure all contact information is up to date, and emphasize that I’d gladly consider working there again if they change their mind.
10) You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
Ummm… PROFIT!!!! … Rinse and repeat? I would want to set up a regular cycle to talk about rates, perhaps in two months, or maybe on a milestone basis (depending on what type of business it is) when a product ships or other big event occurs.
1. In your area, list 3 kind of clients to whom you’d offer to work for free.
1. Clients you want to work for
2. Have something you want to learn from
3. Provide a gateway to other clients
2. List 3 kinds of clients to whom you should NEVER EVER offer to work for free.
1. Cheap clients (can’t convert those easily)
2. Ones you won’t learn from (no benefit to you if you can’t convert)
3. Who have work you won’t/don’t like (can’t do an awesome job if you dislike it)
3. It’s easy to get taken advantage of when you offer to do work for free. What’s the first step you’d take to prevent that? What’s step 2?
– Specific project/task
– Have an answer (or proposal) ready for anything asked outside of the initial project
4. List out your plan of action to prepare for your first free-work pitch. Your list should have at least 5 steps, otherwise it’s missing something.
– Identify several potential clients
– Talk to them about current projects/needs (survey without selling tip)
– Pick the project/client you most want to work with from responses
– Create a proposal
– Pitch!
– Repeat steps as needed, keeping in mind clients you DON’T want
5. When will you bring up the subject of payment? What is the exact sentence you’ll use?
– Near the end of the specific project/task
– I should be done XPROJECT around YTIME, let’s get together ZWHEN and talk about hiring me for NEXTPROJECT.
6. Ok, you’ve communicated that you want to start getting paid. Your client says, “Ok, why should I? Why should I pay you? The way we’ve been doing it so far seems ok to me.” What is your response?
– The project is nearly done, hiring me would enable us to continue solve/do SPECIFICTHING for you.
7. “Ok, I see your point. How much are you thinking then?” What is your exact response?
– My rate is $X.
8. “I don’t think so, that’s too much.” What do you say?
– I did X/Y/Z and can do A/B/C for you, I think it’s fair.
9. You and your client negotiate, but she just doesn’t want to pay you, so it’s a no-go. What’s your next step?
– Thank the client for the chance to work with them, and leave the door open for future contact (card, wrapup email, etc).
10. You and your client negotiate, and you end up escalating up to paid work. Great. What’s your next step?
– Kick ass on the work you got, look for clients in similar situation.
Hey all,
I increased the max size of comments to 5000 characters, so go crazy.
Just make sure you copy and paste your comment before you submit JUST INCASE you went over the limit.
Thanks for the heads up!
My answers so far. Heather, I don’t think there’s “right” answers, but certainly wrong ones!
http://docs.google.com/Doc?docid=0AVO4vg7YAFHUZGZjc3J4bWpfMWZkNnY3cWZz&hl=en
Excellent idea with using Google Docs, here’s my link:
http://docs.google.com/Doc?docid=0AWOZDxKf6t-NZGNkcnRuZm1fMXpzamY5Yzc&hl=en
I had a go, not sure that my answers are quite right yet though.
I was a part of the I Will Teach You to Be Rich bootcamp and although I like it, this Earn $1K is exponentially better and way more useful to me than that was. Can’t wait to learn more.
Can’t see the video until I get to the home computer, but I took a stab at the questions. Like the others, I ran into length issues, so I put up a read only Google Doc.
http://docs.google.com/View?id=dchg4b78_230gng3vsgr
I recommend that others do the same.
Filled out your todo (in textedit) and tried pasting it in. Apparently your comments are limited to 500 chars! I could break it up into chunks, but don’t want to be all spammy.
http://earn1k.s3.amazonaws.com/FreetoFee.mov
There’s a direct link to the .mov file.
I couldn’t see it either. So I found the file itself, and it works unembedded. (I suspect it’s a WP problem)
I can’t see any video.
It doesn’t look like your comment form will take my comment. Is there a limit on the length of text?
Ramit;
Thanks for posting this–it’s interesting to see the differences in style you both have working together. I’ve picked up a lot from your emails over the past few days, and I hope to get more out of it.
I’m in the middle of pitching clients for social networking and branding, and I LOVE what you said about using numbers. It’s adamant that I tell them EXACTLY how I’ll help their business, not just “build their brand.”
Thanks again!
Nick
Awesome proposal. Two of my friends are in the “fucking awesome” slide! I hope that doesn’t diminish your perception of the quality of your audience.