All of you newbies around here want to start earning your first serious money, by yourself, without a job, by freelancing. But most of you are chasing the quick wins. You get fancy, you know what I mean? You quote your client a budget of $500 for a landing page, straight out the gate. Because who knows, he might pay. And if he doesn't, you can always negotiate and get down to a fair rate. Right? You've got no testimonials, but he's talking to you. No portfolio. I mean, that's what smart businessmen do, they always negotiate. Remember that stuff about never splitting the difference? That's what you need to do. Right?
I want you to watch the video below, and whenever you think like that, remember it:
View: https://www.youtube.com/watch?v=hspNaoxzNbs
That is what short-term tactical entrepreneurs think like, which is why they stay poor. If you do what everyone else is doing, you will get the results that they are getting - poverty.
Long-term strategic entrepreneurs make choices which maximize returns not for today, but for the long run. They do NOT make choices that cripple them in the long-run and allow the competition to get a leg up.
Let me tell you a story.
When I got started as a freelance copywriter, before I had an agency, I got my first job for $5. It was an About page for a Vietnamese kid. I had never worked or held a job in my life. I was like many of you are now, perhaps worse in terms of work experience. Obviously, the kid was happy to find someone to do his page for $5. Never in a million years did he imagine that I would spend the next 2-3 hours researching his industry, and writing a coherent brand story for him of 1000+ words, all for $5. He didn't even ask for so much work. At the end the poor kid thanked me, closed the contract, left me a GLOWING testimonial, and even paid me a $5 bonus, on top of the agreed $5. He said "Thank you so much, what you did here is 100x what I expected and I would pay you even more, but I just don't have more money, I am just getting started, I am not a rich guy but maybe in the future we will work again and I will make up for it!"
So what happened there? I got paid $10, but I also got paid (1) work experience, (2) validation, (3) respect and thanks, (4) a glowing testimonial, (5) a glowing portfolio item that I was proud to share. Right then and there, I made more than one of you who got paid $100, because I was thinking strategically, NOT tactically.
And the same thing that I'm telling you above is even more important when you will open a business. Many people wonder why I would often undercut the competition when reaching out to an important, even famous client with my agency. I would sometimes even lose money to work for the client. Can you imagine that? Effectively paying the client for him to work with you! That's how I got ahead of guys with 10x my history, and 10x my reputation and staff that was 10x as skilled as mine.
But let me tell you, in business there are a few things more important than profit. One immediate worry is being able to pay your staff. You may earn $5000 on a deal, and your costs may actually be $6000, thus losing you $1000. But that's better than not taking the deal, and having to lose $6000 to pay salaries, isn't it?
Be strategic. Be willing to sacrifice MORE than everyone else, and you will beat your competition. Don't ask people to pay you. Provide value FIRST. Prove yourself. Then ask for payment.
I have spent over $35,000+ hiring freelancers. Let me tell you how employers think. Let me tell you how they play money-grabbers and lazy-asses and how they keep them poor. Here's what happens:
I hire lazy a$$ 1 as a developer. I set him a task, I explain the task, and we agree on a fixed price. Lazy a$$ 1 does a horrible job, so I check it, I identify the problems, and ask him to fix it. He still does a terrible job, again I ask him to fix it. Lazy a$$ 1 now asks for more money. He says his time is worth so and so, and this job is already taking so long (NEVER EVER DO THIS, by the way. If you agree on something STICK TO IT - I will show you soon how to punish a client (only when they actually deserve it), but this isn't how you do it). I tell lazy a$$ 1 that I understand his point, and that often it happens to me too to incorrectly estimate the time for a job that one of my clients gives me, but an agreement is an agreement, so the job still has to be done. Lazy a$$ 1 starts being a dick. So here's what I do. Ready? I promote lazy a$$ 1. I say - "how about I find another freelancer to complete this task, but you need to help me direct him, be his superior, and tell him what to do? Obviously I won't be able to pay you as much, but this will be a bit faster for you, what do you think?" "Ahhhh thank you sir, that is a great idea it would be a honor" says lazy a$$ 1. Of course, lazy a$$ 1 will only be under the impression that he directs someone, and I will use the money I take from him, to pay the other freelancer. At the end, I congratulate lazy a$$ 1 for directing the other freelancer so well, and thank him, give him a good testimonial, and send him on his way, him still saying "thank you sir", leaving me a glowing testimonial, and looking to work with me again. Me? I'm glad I got rid of him, I'm never going to work with lazy a$$ 1 again. Never. He will remain poor, because I won't hand him my money. He wanted to get paid before proving himself. He thinks he did a great job, that he got me. But he's wrong. That's why he'll never be rich. He reads what I say, but he fails to read between the lines. He thinks he's got me fooled, but he's only fooling himself about that.
Ok. So what happens if you prove yourself, and the client is abusive? Like really abusive? The sort of abusive that you have a contract with them, and then they ask you for additional work that isn't specified in the contract, and is more like an extension of your job. First you get the client to agree that this is the last thing you have to do to complete the job. Then you complete the job to the best of your ability, and thank the client for offering you the opportunity to work for them. Then, when the client wants to do another project with you, you do this: say the project is worth $500. You ask for $5000. When the client, in shock, wants to get on a call with you, you agree and very calmly you tell them "These are my prices. I mean not every business can afford to work with me, it might be that your business isn't up there yet. I would love to work with you, but we just can't do it at a lower price". That's it. Game over. You've got them. Either they will agree to it - sometimes it DOES happen, believe it or not, in which case you still WIN, or they refuse, in which case you WIN by getting rid of a bad client.
I want you to watch the video below, and whenever you think like that, remember it:
That is what short-term tactical entrepreneurs think like, which is why they stay poor. If you do what everyone else is doing, you will get the results that they are getting - poverty.
Long-term strategic entrepreneurs make choices which maximize returns not for today, but for the long run. They do NOT make choices that cripple them in the long-run and allow the competition to get a leg up.
Let me tell you a story.
When I got started as a freelance copywriter, before I had an agency, I got my first job for $5. It was an About page for a Vietnamese kid. I had never worked or held a job in my life. I was like many of you are now, perhaps worse in terms of work experience. Obviously, the kid was happy to find someone to do his page for $5. Never in a million years did he imagine that I would spend the next 2-3 hours researching his industry, and writing a coherent brand story for him of 1000+ words, all for $5. He didn't even ask for so much work. At the end the poor kid thanked me, closed the contract, left me a GLOWING testimonial, and even paid me a $5 bonus, on top of the agreed $5. He said "Thank you so much, what you did here is 100x what I expected and I would pay you even more, but I just don't have more money, I am just getting started, I am not a rich guy but maybe in the future we will work again and I will make up for it!"
So what happened there? I got paid $10, but I also got paid (1) work experience, (2) validation, (3) respect and thanks, (4) a glowing testimonial, (5) a glowing portfolio item that I was proud to share. Right then and there, I made more than one of you who got paid $100, because I was thinking strategically, NOT tactically.
And the same thing that I'm telling you above is even more important when you will open a business. Many people wonder why I would often undercut the competition when reaching out to an important, even famous client with my agency. I would sometimes even lose money to work for the client. Can you imagine that? Effectively paying the client for him to work with you! That's how I got ahead of guys with 10x my history, and 10x my reputation and staff that was 10x as skilled as mine.
But let me tell you, in business there are a few things more important than profit. One immediate worry is being able to pay your staff. You may earn $5000 on a deal, and your costs may actually be $6000, thus losing you $1000. But that's better than not taking the deal, and having to lose $6000 to pay salaries, isn't it?
Be strategic. Be willing to sacrifice MORE than everyone else, and you will beat your competition. Don't ask people to pay you. Provide value FIRST. Prove yourself. Then ask for payment.
I have spent over $35,000+ hiring freelancers. Let me tell you how employers think. Let me tell you how they play money-grabbers and lazy-asses and how they keep them poor. Here's what happens:
I hire lazy a$$ 1 as a developer. I set him a task, I explain the task, and we agree on a fixed price. Lazy a$$ 1 does a horrible job, so I check it, I identify the problems, and ask him to fix it. He still does a terrible job, again I ask him to fix it. Lazy a$$ 1 now asks for more money. He says his time is worth so and so, and this job is already taking so long (NEVER EVER DO THIS, by the way. If you agree on something STICK TO IT - I will show you soon how to punish a client (only when they actually deserve it), but this isn't how you do it). I tell lazy a$$ 1 that I understand his point, and that often it happens to me too to incorrectly estimate the time for a job that one of my clients gives me, but an agreement is an agreement, so the job still has to be done. Lazy a$$ 1 starts being a dick. So here's what I do. Ready? I promote lazy a$$ 1. I say - "how about I find another freelancer to complete this task, but you need to help me direct him, be his superior, and tell him what to do? Obviously I won't be able to pay you as much, but this will be a bit faster for you, what do you think?" "Ahhhh thank you sir, that is a great idea it would be a honor" says lazy a$$ 1. Of course, lazy a$$ 1 will only be under the impression that he directs someone, and I will use the money I take from him, to pay the other freelancer. At the end, I congratulate lazy a$$ 1 for directing the other freelancer so well, and thank him, give him a good testimonial, and send him on his way, him still saying "thank you sir", leaving me a glowing testimonial, and looking to work with me again. Me? I'm glad I got rid of him, I'm never going to work with lazy a$$ 1 again. Never. He will remain poor, because I won't hand him my money. He wanted to get paid before proving himself. He thinks he did a great job, that he got me. But he's wrong. That's why he'll never be rich. He reads what I say, but he fails to read between the lines. He thinks he's got me fooled, but he's only fooling himself about that.
Ok. So what happens if you prove yourself, and the client is abusive? Like really abusive? The sort of abusive that you have a contract with them, and then they ask you for additional work that isn't specified in the contract, and is more like an extension of your job. First you get the client to agree that this is the last thing you have to do to complete the job. Then you complete the job to the best of your ability, and thank the client for offering you the opportunity to work for them. Then, when the client wants to do another project with you, you do this: say the project is worth $500. You ask for $5000. When the client, in shock, wants to get on a call with you, you agree and very calmly you tell them "These are my prices. I mean not every business can afford to work with me, it might be that your business isn't up there yet. I would love to work with you, but we just can't do it at a lower price". That's it. Game over. You've got them. Either they will agree to it - sometimes it DOES happen, believe it or not, in which case you still WIN, or they refuse, in which case you WIN by getting rid of a bad client.
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