Freelancing may sound like agreat idea, but the environment can be harsh for newcomers. Knowing all the important details—like making competitive bids, dealing with low-paying jobs, and tracking your own time—can help you avoid getting stuck in an unfulfilling career. So before you hit “send” on that first email to that dream client of yours, here are some things to keep in mind as you pursue your freelancing career. This will be a post talking about what it is like being a freelancer, including things to look out for and tips and tricks for succeeding as one.
What is a Bid?
Bids are your starting pointin all transactions with clients. The client will quote you a certain amount of money that they are willing to pay for your work. Depending on what country you’re working in and your specific rate may be higher or lower. You also might get multiple quotes from different clients.
The key to winning at the bidding
Like all negotiations, bidding is a game of strategy and tactics. The basic premise is to win the bidby outsmarting your competitors by taking the lowest possible price and still maintaining the necessary quality. To keep things simple, let’s say you’re quoting a project for $100. The goal is to end up with a winning bid under $100. Every penny counts, so you have to be smart about how you negotiate this amount down.
The most common mistake that freelancers make is that they start far too high on their bids, so they don’t get any business at all. It’s a waste of your time and theirs.
If you only charge $50 foreach project, you know that the client will only be willing to pay between$45-$55. The surest way to ensure that you’ll win is to quote somewhere between $50-55 (the midpoint of the range).
The basic strategy here is to start by serving the lower bid, around $50. If they don’t respond with acounteroffer, that means they’re heading toward your middle range (around $55), which means they’re already starting to get a little nervous about their budget. If they come back with your lower bid ($45), simply say “No thank you” and let them go on their way.
If they come back with abetter offer ($55), then you can counter back with a hug $52 or $53, but if they push for a lower price, you should accept the higher bid and go forward with the project.
If they come back again with your lower bid ($50), then you only need to counter once more at $52 or $53. That’s the winning bid!
Feel free to reject that one last offer ($50) if it’s really way below your acceptable range. If they don’taccept it and keep coming back with that offer, simply “walk away” and don’t engage. They no longer want your services, so there’s no point in wasting any more of your time on them.
In order to maximize your earnings, you should release a separate bid for each service that you offer. This way, the client can pick and choose whichever services they want from you. They may even surprise you by awarding services or two that are far below your expectations.
Keep this in mind
Often, clients will give thebest rates to freelancers who show them the most consideration in their bids. If you’re serious about getting regular work, then when clients ask questions or offer additional services, it’s important to give them dedicated replies.
