Pricing yourself can be difficult at the start. You need a baseline to start from. You could ask people working similar roles with a similar level of experience, or look at job sites and see what the going rate tends to be in your area. In time you’ll get a feel for the market and what fees you can charge.
Some may worry that they are charging too much and can’t fathom why a particular client would pay a certain amount for them. This is due to a lack of understanding about ROI. As an example, early on in my career I worked a contract where the client assembled a team of six to work for six months to build a software system that they could sell to their clients. The budget was around £1M. This seemed crazy and the rates we were being paid were amazing at the time. When the work was completed to the required level of quality within the set timeframe the client sold the service for ten times the budget. To them this was a good ROI. They were happy to pay above the going rate in order to ensure that they got the right people for the job that could complete it on time allowing them to sell it at a large profit.
So knowing what you are worth is all about understanding what your clients are getting out of the deal. See things from their perspective. By paying a higher fee for you they are getting more experience, a wider skill-set. and all the extras that you offer.
A good tip is to never discuss your rate with anyone. No one knows your current rate except you and the client paying your invoices. Clients are not allowed to share that information with each other. If you want to increase your fees with the next client it’s best to start with a figure higher than what you are asking so that you can be negotiated down to what you want and so both sides feel like they are getting a deal.
When using agents you most likely won’t know what the end client is paying for your services as the agent will take a cut so your negotiations will be with the agent. In my experience agents can take anywhere from ten to thirty percent. It takes time and practice but you can usually work out what the agent’s cut is. The skill is in being able to squeeze that down as low as possible.
A good tip when negotiating a new contract is to not play clients off against each other. It is considered bad practice and leaves a bad taste in a client’s mouth. They have long memories and they’ll remember how you played them the next time you come looking for work.
When thinking about your fees it’s worth remembering the effort it took to acquire those skills and experience. The education, qualifications, training and on-the-job experience.
A good example I like to use to help explain ROI is the story of the guy with the piece of chalk:
A factory owner experiences a fault on a production line halting all production. He’s losing money each hour of downtime. He calls in an expert who walks around the factory floor and places a chalk X mark against the side of a machine saying replace the main circuit board in here and your problem will be fixed. The circuit board is replaced and production resumes. A week later the business owner receives an invoice for £10,000. He immediately phones the expert demanding a breakdown of his invoice as he was only there ten minutes! He receives the following:
Piece of chalk: 50p
Knowing where to place chalk mark: £9,999.50
Never stop learning
One time I was asked to take a junior tester under my wing and show him the ropes. One day he says to me “It must be hard for you to learn new things at your age”. He wasn’t being funny or anything. He genuinely believed that the older you get the harder it is for you to learn new things. I corrected him on that.
This thinking is supported in our culture. We’ve all heard people say you can’t teach an old dog new tricks, or that it’s better to learn a new language at a young age. I’ve thought about this a lot and my thinking is this: that you can learn something new at any age, but as you get older you become more stubborn and resistant to learning something unless you absolutely need to know it or you find it interesting.
As I write this and look over at my bookshelf I see books on finance and investing that I’ve been reading recently as I’ve been fascinated by how the world of money works. And because I’m interested in this subject I’ve been devouring books and other media on the subject and I now know a lot more on the subject than I did a few months earlier.
You will also find that on occasion a client will ask you to learn or master a new tool or technique in order to be able to complete the work for them. Not learning in this scenario can cost you both money and reputation. I’ve met people who will say things like “I’m a tester I don’t write code”. What they really mean is that they are afraid to try. Don’t be afraid to leave your comfort zone but do manage the risks!
Never stop learning. Whether it’s new tools and techniques being developed for your profession or subjects you are interested in like finance, business, the economy, coaching or consulting. We should all never stop learning.
A good tip I’ve learned is to never be the smartest person in a room or on a team. It might boost your ego but that’s the only thing that will grow. Everyone else will have you to learn from but you won’t have anyone. I like to work with smart people so I learn something from them.
So remember:
You can teach an old dog new tricks!
Don’t be the smartest person in the room, understand your client’s business, and learn from other people’s mistakes (it’s cheaper).
Having confidence in yourself
Having confidence in oneself may seem simple, yet many struggle with it. This is why the self-help industry thrives on selling books and resources aimed at boosting self-esteem.
True confidence stems from being skilled at something and recognizing both your strengths and limitations. Honesty about your capabilities is key.
As a QA professional with over two decades of experience, I’ve tested software, systems, hardware, and security. I’ve often found myself outside my comfort zone, presenting to upper management, but my extensive background means that most client requests are well within my expertise. This familiarity breeds confidence, which is evident in meetings.
However, I also recognize my limits. Occasionally, a client may request something unfamiliar, and while I could potentially handle it, I’ve seen many professionals falsely claim, “I can do that,” while privately worrying about how to manage the task. This disingenuous confidence can lead to anxiety and stress, overshadowing their performance.
I advocate for transparency with clients. I am confident in the services I provide and understand my capabilities. If a client asks for something outside my usual scope, I address it openly, highlighting any risks involved and suggesting ways to mitigate them. I ensure that any potential risks are clearly documented and agreed upon by all parties.
For instance, one client sought my help to test a new system and develop database update scripts based on my findings. I agreed but insisted on a written agreement stating that upgrade script development fell outside my typical offerings. We outlined that the client would assume responsibility for the scripts and provide staff for acceptance testing. This way, they received what they needed without adding undue risk on my part.
In another instance, a client unexpectedly designated me as the project DBA in a team meeting, which took me by surprise since that wasn’t part of our agreement. When I calmly explained that I wasn’t a DBA and refused to take on the extra responsibility, the client became agitated. I maintained my composure and suggested that it might be best for us to part ways amicably. After a brief discussion with their second-in-command, they decided to retain me for the original role, realising their budget constraints.
From these experiences, I’ve learned crucial lessons:
1. Have confidence in yourself.
2. Only accept work you’re confident you can handle.
3. Acknowledge your skills and experience.
4. Understand your limitations.
5. Be honest with clients about your capabilities, especially regarding tasks outside your expertise. If you choose to take on such work, ensure all risks are documented and agreed upon.
Building genuine confidence is about recognizing your value while being truthful about your limits. This approach not only fosters trust with clients but also maintains your peace of mind.
A love letter to Crash magazine
I have many fond memories of my childhood. One such memory was looking forward to receiving Crash magazine each month. I’d save up my pocket money and without fail I’d buy the magazine as soon as it hit the shelves. One time I was on a family holiday in the highlands of Scotland and I persuaded my family to take a trip to the nearest town with a newsagent just so that I could buy a copy!
Once I held my copy in my hands I would devour the contents, reading every article from cover to cover. The artwork and images were amazing and my young mind loved both the feel of the publication as well as the contents. I would take so much care to peel-off the sticky-tape holding the cassette to the front cover so that the precious cover art was not damaged. I’d load the cassette into my 48k+ Spectrum as soon as I could to try out all the free software on it.
As the years wore on I would enjoy other magazines such as Heavy Metal and Omni, but none matched my first love that was Crash magazine. The feeling it brought opening up a new world to me, one that would dominate my life for the next thirty years as I delved deeper and deeper into the world of computing.
Never say no to clients
Clients often react poorly to the word “no”, so I make it a point to avoid using it. This doesn’t mean I always agree; rather, I frame my responses differently. If a client proposes an idea that seems unreasonable, I might say, “Sure, but here’s what it will cost in terms of time, resources, and money.” Often, they haven’t fully considered the implications themselves and are looking to you for guidance. By steering them toward a more viable solution, you not only help them think critically but also build a reputation as someone who offers constructive feedback rather than just shutting them down.
Being a source of positivity can pay off significantly. Admittedly, it can be challenging, especially when projects go awry or when working with difficult individuals in a toxic environment. In such moments, maintaining your composure and staying positive can make a world of difference.
It’s also wise to distance yourself from negative people. They tend to view everything through a pessimistic lens, and their attitude can be contagious. If possible, avoid these individuals; you’ll be glad you did.
Occasionally, you may encounter opportunities that lie outside your comfort zone but sound intriguing. In these cases, I advocate for saying yes while also mitigating any risks. Be transparent about your skills and experience, and clearly outline any potential challenges. Once everything is documented, agreed upon, and approved, these projects can become both rewarding and profitable. Don’t hesitate to embrace new experiences, but always manage the associated risks.
Cultivating a consistently positive attitude takes practice, but the rewards are worth it. If you find yourself in a situation or workplace that you don’t enjoy, prioritize your mental well-being. Seek a way to exit the contract gracefully, ensuring you leave on good terms.
Thoughts on finding work
Understanding the recruitment process is crucial. Personally, I prefer to avoid the job sites if I can. In my experience, when a job is listed on these platforms, it often means the recruiter has been unable to find suitable candidates in their internal database. As a result, the position is advertised online, attracting a large pool of applicants.
The key is to discover potential opportunities before they hit the market. You can achieve this by leveraging your network or by identifying a select few recruitment agents who specialise in your sector. Maintaining regular communication with these agents is vital. Reach out to them weekly to remind them of your availability.
The goal is for your name to be the first one that comes to mind when their clients express a need for someone with your skill set.
Everything is negotiable
Remember that everything is negotiable. I’ve never signed a standard contract without reviewing it first. Clients often present their “boilerplate” agreements, expecting you to sign without question. I never have. They might claim that their legal team has meticulously vetted it, and that everyone else signs, but I approach it differently.
I read every contract thoroughly to ensure it aligns with what we’ve agreed upon. Does it clearly outline the services I’m providing? Am I protected against unforeseen circumstances? You’d be surprised how many clauses demand that you return to fix issues without specifying the criteria or timeline. Clarity is crucial; everything should be explicitly stated and limited to the contract’s duration, as you likely won’t be available for follow-ups after moving on to another client.
During negotiations, it’s vital to clearly define the services you offer. Ensure that what you provide, along with the fees and timelines, is documented in the contract’s schedule of services. This clarity helps prevent scope creep. If a client attempts to impose additional work not agreed upon upfront, you can reference the signed contract to negotiate any extras.
When dealing with sensitive information, I typically require a Non-Disclosure Agreement (NDA) to protect both parties.
However, despite thorough negotiations and careful wording, some clients still breach contracts. I’ve encountered situations where clients terminate without notice because their client has stopped paying, expecting me to absorb the loss. In such cases, I usually walk away, knowing I can find work elsewhere to mitigate potential losses. If a client insists I perform tasks outside our agreement, I politely refuse and suggest renegotiating for any additional work.
The key is to remain professional and courteous, even if the client does not.
It pays to be flexible
In the world of freelance work, everything is negotiable. It’s surprising to see fellow freelancers who limit themselves to seeking only 9-to-5 roles for fixed durations of 3, 6, 9 months, or even a year. They often dismiss opportunities for short-term consulting, part-time engagements, or simultaneous projects with multiple clients. This rigidity can lead to missed opportunities.
One client once mentioned he couldn’t afford me because he didn’t have enough work to keep me occupied full-time for three months. I asked why he felt that was necessary. He explained that all the contractors he had previously worked with insisted on full-time commitments of that length.
I prefer to remain flexible, and this approach has opened many doors for me, leading to diverse and interesting opportunities. By flexibility, I mean:
Availability: I’m open to a variety of engagement lengths—whether it’s a few hours of consulting, a day here or there, a week, a month, or longer contracts of 3, 6, 9, or even 12 months. I’m also willing to be available on short notice, including weekends and evenings when needed.
Payment Model: I’m comfortable with different payment structures, whether it’s hourly, daily, or on a project basis, often with milestone payments leading to a final payment upon completion.
Services Offered: I provide a broad range of services, adjusting my fees based on what the client needs, deadlines, and the length of the contract.
It’s crucial not to take offence or get upset when negotiating. Some clients might try to negotiate hard, suggesting they don’t pay much for your level of service. In those situations, it’s best to thank them for their time and move on. If they can’t afford your rate, there are plenty of other clients out there that can.
Another important tip is to prepare for the unexpected. As the saying goes, plans often become obsolete the moment they’re created. Priorities shift, budgets fluctuate, and clients change their minds. Contracts might end sooner than expected, or you may find yourself taking on additional work.
Staying adaptable is key to thriving in freelance work. Embrace flexibility, and you’ll find many rewarding opportunities.
Don’t just work for money
Early on in my career I found myself at a large corporation where, after a project ended, they were reluctant to let me go. To keep me on they loaned me to another team, with my original team covering my invoices. The catch was that the new team didn’t have much work for me, so they assigned me the task of developing a Test Strategy document for an upcoming project.
By the end of the first week I had a draft ready for the project manager’s review. He suggested some revisions, and we agreed to meet again the following week for further discussion. Making those changes took only an hour, but this pattern continued for months. The new team had little for me to do, opting to leave me to my own devices while checking in weekly to review that one document.
It became increasingly absurd, especially when the project manager began critiquing the font choices and justification in the document. This “work” stretched on for six long months. I stayed primarily because I was awaiting an upcoming project with my original team, which promised to be much more engaging—and, of course, for the paycheck.
Those six months taught me a valuable lesson: I never wanted to work solely for money again. It was painfully boring, and life is too short to spend it counting down the hours at a job that doesn’t inspire you.
Realising that the company had no intention of releasing me, I began taking walks around the campus instead of sitting idle at my desk. I explored the on-site cafe, library, and communal areas, meeting and chatting with others while adhering to security protocols. This experience highlighted the importance of networking.
Now, when I wake for work and suddenly realise it’s the weekend, if my first thought is one of disappointment because I can’t work that day, I know I’ve found a job I enjoy. That’s the criteria I apply to every new contract I consider: it should be fun and interesting. Working with great people is a bonus.
Reflecting back to my school and university days, I fondly remember being part of the Amiga demo scene. I loved when my parents occasionally would leave for the weekend, allowing my friends and me to set up our computers in the living room. Over those weekends, we coded, created graphics, composed music, and assembled software to release. It was a blast—we enjoyed beer, pizza, and anime while working late into the night! For us, it never felt like work; it was pure fun. That’s what I seek in every job opportunity: a project that excites and entertains me.
Don’t just work for money.
The Safety Net
One of the most powerful things that I learned early on in my career is that of having a safety net. Also known as a war chest, rainy day savings, or emergency fund. Essentially a pot of liquid assets or money safely stored somewhere that will enable you to survive hard times such as unemployment or a health problem.
Ideally this fund should last you at least 6 months. A year is better, two or more years even better.
This safety net doesn’t just allow you to weather the unforeseen, it also has the added bonus of giving you a better work-life balance and even boosts your confidence. You see, if you lose your job you know that you are able to survive for a period of time without it. The larger the safety net the longer you can be without income. This has the knock-on effect of not making you desperate for work in-between jobs. You are not so desperate for work that you have to take whatever is being offered. You don’t have to work for awful bosses, you can pick and choose who you work for and when. If you don’t get a job, so what? The worse case scenario is you return to your couch and binge watch Netflix for a while or catch up on your reading. It’s not the end of the world because you have your safety net.
They say that retirement is wasted on the old. Plus we are never guaranteed to make retirement. You might get hit by a bus tomorrow so why put everything off until the end of your lifespan? Why not have mini-retirements throughout your life? That’s the beauty of the safety net as it allows you to do this. As it grows it allows you to be out of work for several years and still maintain your lifestyle. Why not take a long holiday? Three months, six? How about a year off? Gaps in your resume don’t matter these days as they can easily be explained away. I took time off to travel and explore the world as a reward to myself for all the hard work I put in this past year or so. That’s the beauty of the safety net.