In the past, many people would leave education and commit to a single company for their entire career, retiring after decades of service. Those days are behind us. Today, both freelancers and employees can expect to work for more than five companies over their careers.
Gaining experience across different companies provides valuable insights into what works and what doesn’t. Each role offers lessons, whether positive or negative. You’ll observe various approaches to solving common problems and may even bring your past experiences to the table, helping to address challenges in new ways.
Diversity in your career can be both enriching and enjoyable. Working across different sectors can broaden your skill set and expose you to unique experiences. For instance, I once found myself back in an office where I had previously worked, but with a different client, project manager, and team—only I was the constant. In another instance, I jokingly noted in a meeting that, if awarded the contract, I would have worked on every floor of the building, having already tackled projects on four out of five floors for various clients. I got the contract and completed the set!
Embrace new opportunities and don’t shy away from stepping outside your comfort zone—but always manage the associated risks.
Whenever I join a new company, I often encounter employees who express admiration for freelancing but deem it too risky. Even after discussing risk mitigation strategies, they often cling to the notion of job security. I once had a conversation with two managers in the company canteen. When I asked them what they meant by “job security,” they replied, “We are both managers here, so the company must give us three months’ notice.”
I then pointed out, “So you’re saying you have three months of job security?” To which they said yes. I responded, “I’ve just signed a one-year contract with your employer that neither side can terminate. By your definition, I actually have more job security than you do.” That made them reconsider their perspective.
To me, the concept of job security is a myth—largely a construct employers use to retain key talent. In my experience, companies prioritise their shareholders and profit margins. If you lack a vested interest, you may find yourself expendable. Look around: businesses are sold, and loyal employees are let go to boost profits. Ultimately, your primary loyalty should be to yourself and your family’s financial well-being.
Tag: clients
ROI
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 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.
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.