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“Why Should We Hire You?” Your Answer Impacts Client Acquisition

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As you’ve figured out by now, an interview with a prospect who you hope will become your next client, is a sales pitch. In this scenario you, Freelancer friend, are both the product and the service. When you are being considered for a Freelance consulting assignment (or if you are an employee searching for a new job), the mission is to sell yourself—your brand—to the decision-maker(s) by demonstrating you are best in class. IQ/hard skills as evidenced by your education, professional expertise and experience and EQ/soft skills demonstrated by your work ethic, communication ability, teamwork skills and values when viewed together can predict with a high degree of confidence that project deliverables will be produced on time and within budget and, as well, contribute to a positive team experience that encourages productivity and camaraderie.

When hiring managers interview candidates to discuss project specs, a common tactic is to ask “Why should we hire you?” The question is quite helpful for decision-makers; they listen as the candidate basically sells him/herself and reveals who s/he really is. The insights that decision-maker(s) receive is known to promote selection of the right candidate. Prominent information that “Why should we hire you?” brings out includes:

  • Does the candidate grasp the importance of the project to the organization?
  • How might the candidate’s understanding of the relevance of his/her work contribute to realization of the project mission?
  • Which competencies and characteristics make the candidate stand out?
  • Might the candidate’s values and work habits be a good cultural fit with the project leader and team members with whom s/he will interact?
  • Does the candidate display enthusiasm and passion for the project and mission?

“Why should we hire you?” is usually one of the last interview questions asked, which means you can use your answer to sum up why you are the ideal candidate. Moreover, you can use what decision-maker(s) have said during the interview to your advantage. To that end, pay attention to competencies and qualities seemed to be especially important to the decision-maker(s) and as you reply to the big question, link your skills and experience to what matters to them. What do you say if “Why should we hire you?” is asked early in the interview? HR specialists recommend that you deflect and ask for more information about the role and include their language and priorities while describing your expertise, experience, work ethic and other factors that the decision-maker prioritizes.

Prepare for the question before the interview

Freelance consultants know that you are much more than a hired gun who operates with a narrow, “just the facts” mindset. It will be wise to obtain a big picture view of the project and gain an understanding of how the company will benefit from and utilize the project deliverables. Also search or inquire while in the interview the company’s history with this or or similar projects? The more you know, the more persuasive your answers and the more impressive you look to decision-maker(s).

Your best source for info that references the importance of the project and its mission to the company is certain to be the project specs. Give the document another read and pay attention to must-have and preferred professional skills and experience, as well as the expected project deliverables and/or outcomes. Item Two of your search could be “About Us” on the company website and Item Three might be the organization’s most recent annual report.

You will be much more authoritative and persuasive when you learn how company leaders visualize and measure achievement of their project mission. Don’t shy away from using their words to describe your own skills and values—chances are, they’ll love to hear it! Read on to learn how to compose a winning answer to a powerful, and common, interview question: “Why should we hire you?”

Elevator Pitch

A good elevator pitch is so useful. You can drop it in here and let it be the opening statement of your response to the Big Question. Remember that you get to sum up your qualifications and overall suitability and explain why you deserve to win this coveted assignment. Presenting your elevator pitch as the intro to your response sets the stage for a succinct and powerful statement that details your qualifications and experience and defends your ability to successfully produce the project deliverables.

Review and rehearse your pitch to ensure that your message will effectively reinforce your candidacy. Your pitch should be a 30-45-second well-articulated story that gives a brief introduction and overview of you and your work that tells decision-makers you can be trusted to deliver results and make them look good.

Competencies and success stories

When answering the question, link the project’s purpose, goals and desired outcomes to your ability to guide the project to a successful conclusion, as a key component of the strategy to distinguish yourself from other candidates. Lead with your most recent and relevant work to showcase your successes with previous projects that echo the aims of this project. Briefly share specific examples that illustrate why you should be hired. Rehearse your answers to ensure that your narrative is clear, concise and compelling. You’ll likely include some combination of the factors stated below.

  • Expertise. Educational degrees, professional certifications and work experience are proof of expertise. Providing examples of successfully working on similar projects will assure decision-makers that you are a competent and trustworthy candidate who can be expected to successfully produce the deliverables and/or desired outcomes (and make them look good).
  • Unique skills. Highlight relevant competencies and professional and/or volunteer experiences that make you uniquely qualified for the assignment and set you apart from other candidates. Some of your special skills do not need to be strictly job-related—maybe you have a pilot’s license, speak a foreign language fairly well, or sing in a choral group? The decision-makers may appreciate nearly any unique advantage that showcases you as an exceptional candidate.
  • Accomplishments. Communicate your appreciation for business imperatives and give the decision-makers yet another vote of confidence for your candidacy. If, for example, you include in your “Why should we hire you?” response that when you worked on a particular project you showed the client that it will be possible to reduce operating costs by 10%, or your work resulted in a 20% improvement in customer satisfaction ratings. If this was the case, share the good news in your reply.

Your vision of success

Recognize that “Why should we hire you?” is a gift that allows you to help decision-maker(s) visualize you in the role. For sure, it’s worth your while to envision yourself successfully performing in the assignment, so that you can create a powerful narrative that describes how you will bring about that success. Include in your vision narrative a description that is more than a recitation of your skills and education. Paint a verbal picture as well by describing examples of you working with their team, contributing to and supporting the purpose, goals, mission and/or bottom line associated with the project.

Your answer is short and sharp

As with all interview questions, deliver organized and concise replies and especially so when responding to this decisive question. Your answer must be easy to follow — not rambling— and presented logically. HR specialists suggest that point out three benefits associated with hiring you and conclude by emphasizing your genuine interest in the role and the company. Furthermore, convey your confidence by modulating your voice and body language in a way that communicates your command of the necessary skills and leadership ability. Speak slowly and clearly and use a friendly, yet professional, tone of voice and mannerisms as you discuss your unique suitability for the project.

Show Enthusiasm

Do not neglect to demonstrate your enthusiasm for working on the assignment. First off, the decision-maker(s) want to see it and second, it’s how you feel. You want this project, whether you’re motivated by the billable hours you’ll receive, the opportunity to work with a prestigious client, or access to an assignment that adds luster to your portfolio.

However you communicate your enthusiasm, make it memorable and personal. If you position this job as your dream job (assuming it is), the decision-maker will recognize and appreciate your enthusiasm (and energy) to take on the role and meet or exceed performance expectations.

Be Humble

A small dose of humility could be music to the ears of decision-maker(s), after listening to candidates tell them about how wonderful they are! When your answers are matter-of-fact and not obviously bragging, you come off as authentic and that’s a quality decision-maker(s) can appreciate.

Happy Holidays and thanks for reading!

Kim

Image: © fizkes/iStock

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Bidding Tactics: Let Prospective Clients See Your Best

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An invitation to submit a proposal for an upcoming project is always a big deal. You’re excited and want so much for your bid to be accepted but even if you don’t make it this time, the opportunity to be a serious contender for a contract is always a vote of confidence. The bidding process itself is your opportunity to shine. At every facet of your proposal package, you have a chance to make a favorable impression. Step by step, you can give your prospect reasons to say yes to you!

You win the prize by telling the story of your company in a way that communicates your expertise and dependability. Your strategy is to first anticipate the questions that project decision-makers can be expected to have about a candidate and second, provide information that is likely to make the decision-makers feel confident that your organization is right for the role. In sum, you want to package and present your company in a way that radiates credibility.

First, you must decide whether or not you will submit a proposal for the assignment. It is important that you understand the company and the project before immersing yourself in developing a proposal. A reading of the project specifications will confirm if the assignment is a fit for your organization. A tour of the company website will familiarize you with the company’s products, services, mission and values and indicate whether you’ll be comfortable working closely with this company.

It’s also advisable to ask your contact at the organization to share with you the primary goals of the project, so you’ll gain a perspective of what the project means to company leaders. Finally, ask your company contact to share with you the metrics that will be used to measure project success. These insights will help you to decide whether or not to submit your proposal.

If you decide that this is a go, you want to give the decision-makers for the project every reason to select your proposal. Below are documents and other information to include in your proposal package that answer nearly every question about your entity, products and/or services and as it communicates your Experience, Expertise, Authoritativeness and Trustworthiness and advances a narrative designed to please the project decision-makers (and also the Google algorithm).

Capability Statement

Capability Statements are used to evaluate and weed out contract applicants, so submitting one that’s eye-catching and presents your company’s strengths can be the difference between winning and losing an assignment. Furthermore, a Capability Statement can help you to identify and describe your core competencies and unique value proposition.

Succinctly introduce yourself and your company’s products and/or services and tell the project decision-makers your story—exactly what your organization can do for them and why your organization is the best option. Your story must clearly demonstrate that you (and your team, if applicable) are capable and prepared to produce the deliverables on time and within budget, happy to provide excellent customer service and a pleasantly memorable customer experience.  Below are attachments that can accompany your Capability Statement and enhance its impact.

  • Bio
    A personal introduction to you, your (usually one page) bio will provide a concise overview of your most relevant educational and professional qualifications and accomplishments.
  • Client List
    If you have prestigious, high-profile clients in particular, list them (unless there is an expectation of client confidentiality). If you have very few clients, add jobs and your employers, projects and volunteer work, focusing on assignments and posts that relate to the project you would be hired for.
  • Portfolio
    Include relevant and persuasive samples of your work, to demonstrate that you are qualified and can be expected to excel in the role. 
  • Testimonials
    Ask those with whom you’ve worked closely, whether clients or those who have supervised you. Three to five recommendations is ideal.
  • Workflow
    This section shows clients you have a process, a system for writing and working on projects. It tells clients you’re a professional and gives them clear expectations. Most important, as they read it, they begin imagining what it will be like to work with you.
  • Schedule of Estimated Investment
    AKA, your pricing. Prospective clients will be interested in the scope of products and/or services that your company offers and the range of your fee schedule.

Once you’re hired (and you will be hired because you are the best candidate!) you can take a few steps to streamline and enhance your on-the-job performance:

  • Task Prioritization Begin by identifying your most critical tasks and deadlines. To-do list tools, project management apps (e.g., Asana or Trello), or time management techniques like the Eisenhower Matrix can help you prioritize effectively.
  • Project Calendar develop a project calendar to visualize deadlines and milestones for your your project. This helps you allocate time appropriately. For example: A Freelance digital marketer can create a calendar to manage social media campaigns for the client, ensuring posts are scheduled strategically and are uploaded according to plan.
  • Time Management Time management is the engine of successful Freelancing. Learn to allocate your time wisely and pace yourself to ensure that you maintain the energy, concentration and creativity that are the foundation of your professional expertise.
  • Time-Tracking Tools Utilize time-tracking apps (e.g., Clockify or My Hours) to monitor how you spend your work hours. This also helps identify areas where you might be losing productivity.
  • Communication Maintain timely and clear communication with your clients. Keep the project point person informed about your workload, progress, achievement of milestones and any potential delays or obstacles.

Regularly Update Your Portfolio Periodically refresh the content of your online profile with updates that display the most current examples of your best work and simultaneously demonstrate the demand for your products and/or services. Writers will provide links to recently published articles and those who’ve worked on a big project or worked with a prestige client will document the experience to verify your professional expertise and the power of your brand.

When to Say No Avoid taking on too many projects simultaneously and overextending yourself. Politely decline offers that you can’t accommodate without compromising the quality of your work. Effective management of your Freelance assignments is essential for sustaining success and maintaining a healthy work-life balance. By prioritizing tasks, managing time efficiently, staying consistent and handling multiple projects strategically, you can thrive in the Freelance sector.

Thanks for reading,

Kim

Image: © Shutterstock Asianmaninterview.jpg

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Waiting For the Call—Is Time on Your Side?

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First, the email arrives and you’re elated. The conversation you had was on the level and the project you were told about is real. They’ve invited you in (virtually or in-person) to discuss how your services could be utilized to produce the deliverables and achieve must-do objectives. Step two, the interview goes well, from your perspective. You’re not naive, but you feel confident about the possibility of being offered the contract.

But a week slips by and then two-—crickets. Uh, oh, this doesn’t feel good! Why haven’t they gotten back?

Unfortunately, this is a fairly common occurrence. There are any number of perfectly understandable and valid reasons reasons that delay the follow-up after an interview. It’s nerve wracking for Freelancers, though, who are anxiously awaiting a status update. It’s something that can wake you up at night. The wall of silence leaves you to twist in the wind.

Well, take heart—silence doesn’t always signal rejection. Why don’t we talk about a game plan to help you survive post-interview silence when it happens to you? There are proactive questions you can ask that might make the interview team less likely to resort to a news blackout. There are coping strategies that can help you understand why this sometimes happens. Life is about managing expectations and you can train yourself to keep calm and carry on, confident that you’re still in the game and can still win this thing. Here are a few things that you can do:

Questions that encourage follow-up

Communicate to the interview team that you want follow-up and not silence by saying something like this to the interviewer, “In light of the candidates you’ve met with so far, do you see me moving forward in the selection process?” However, bear in mind that you could be the first of two or more Freelancers who’ve been invited to discuss the project. You could be a top candidate today but later get knocked down the list tomorrow by more experienced competitors who come along.

Another question you might ask the interviewer is, “When will you review and compare the candidates and make a recommendation to the the decision-maker?” Below are four common scenarios that might cause you to encounter post-interview silent treatment:

  • Interview recap

When you speak with more than one interviewer, they will need to conduct a candidate recap and debrief. Candidates may or may not be interviewed on the same days, which means that interviewers can’t share their feedback with each other on the same days either. Furthermore, every interviewer is not necessarily on time with providing feedback; it could take a few days to align interviewer calendars and schedule the debrief meeting.

The unexpected sometimes happens—-in the middle of the selection process, the decision-maker or one of the stakeholders might go off on vacation, depart on business travel, or come down with COVID. The selection process would be put on hold and the Freelancers get to wait and wonder what’s going on.

  • Project spec change

The desired outcomes or deliverables, time table or even the purpose might change, perhaps in response to economic fluctuations that impact the prospect’s business. Sometimes, unfortunately, your hoped-for project may be put on hold or even canceled due to the changing economy or business needs. This scenario can happen fairly often, as there are fluctuations and uncertainty in the economy that could impact revenue. Companies may reevaluate what they need and cut budgets.

  • Making an offer

The decision-maker could be discussing how to finalize an offer to someone — but maybe not with you. If you’re not the number one choice, you may be number two and will need to wait, in silence. However, should the top candidate reject the offer, the second round pick usually gets the prize!

  • Ghosting

If you’re getting silence from your interview contact no matter how often you reach out, you are being ghosted and it’s probably for one of the above reasons. Ghosting is selfish and cowardly, unprofessional and unacceptable. It hurts. Remind yourself that it says more about the interviewer than it does about you. They did you a favor, you don’t want to work for such people anyway. Apply elsewhere.

On the other hand, If the interviewer stays in touch, it’s guaranteed that you’re in the top two or three. If you’re told something like, “We’ll have some decisions made next week” and the debrief time frame has passed, either the decision-maker has not made the decision, or s/he offered the assignment to another candidate and they’re waiting for a response before rejecting you (because you are the second choice).

Silence can speak louder than words. When interviewing for a project assignment, be bold enough to ask questions to obtain information on where you are in the selection process. If you were invited to interview but ultimately didn’t get the assignment, that means your resume demonstrates your experience and your interview skills are solid, but you weren’t the top candidate. The rejection may have nothing to do with you , it may be more about interviewer preference for a certain educational degree or certification, a specific competency, or a competing candidate’s superior interviewing skill.

Thanks for reading,

Kim

Image: “Like sands through the hour glass, so are the days of our lives.”

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Pricing: Retainer Fee, Flat Fee, or Hourly Rate?

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Congratulations! You’re in serious talks with a prospective client and it appears that the project is yours. As you listen to the soon-to-be-client discussing his/her must-haves and timetable, you’re also thinking about pricing and payment:

How many hours might this take to complete and how much should I charge?

What might the client be able to afford and what might s/he be willing to pay?

What value will I bring to the company—-how will my work enable the client to achieve important goals, enhance the company brand and status, or avoid trouble?

How should I suggest that we structure the billing arrangement—hourly rate, flat project fee, or retainer agreement?

Once you’ve asked the client about a ballpark project budget and more or less know how much you’ll request for an upfront payment (10% – 20% maybe?), which payment structure will best fit the project, guarantee that you’ll make a profit and not put you into the position of basically working for free and also support the client’s trust and confidence in you and your company?

Project fee

Charging a flat, predetermined project fee is common for larger projects and for working with clients with whom you’ve worked before, when you can more accurately estimate the hours needed to successfully complete the job. Often, a flat rate is based on an estimate of hours a project will take to complete, multiplied by your standard hourly rate for the type of work required.

In other cases, the value of the finished project is higher than just your estimated hours. For example, logo designs are often valued highly regardless of actual hours worked, because of their frequent use and visibility. Other factors that can affect the price include the number of pieces printed or sold, and whether the piece will be used once or multiple times.

Depending on the type of project, you might add a percentage to cover client meetings, unforeseen changes, email correspondence, and other activities that an hourly estimate doesn’t reflect.

The upside

  • The client knows what they are paying from the beginning (unless there are changes to the scope of the project).
  • You are guaranteed a certain amount of money, even if the job is finished quickly.

The downside

  • The job might take longer than expected (a possibility your contract should address).
  • Clients sometimes ask for extra revisions, etc. without expecting to pay more (again, cover this in your contract)

Hourly

The hourly rate is the most common payment arrangement for both W-2 and 1099-NEC independent contractors in America, according to data released by the U.S. Department of Labor in 2017.

Consider not just what it costs you to do the work but factor in the value you bring as well.

The upside

  • You have a straightforward way to charge clients

The downside

  • You may get pushback from a client if the work takes longer than expected and they receive a large invoice

Retainer

Working on retainer means that you charge clients a monthly minimum, no matter how much work you do. However, for certain types of work, setting a monthly minimum number of hours or projects makes sense. Working on retainer ensures that you have enough revenue coming in every month to keep your business afloat.

The upside

  • You do ongoing work for your client and build a close relationship to help them achieve success.
  • You invoice clients regularly (usually monthly) without having to keep detailed records of your time.
  • You receive recurring payments, almost like a salary, which gives you more predictable revenue.
  • You can scale your business by hiring contractors or employees to manage multiple clients.
  • You create stability for your business without needing to upsell current clients or continually search for new ones.

The downside

  • You may be asked to do additional work that’s not in your agreement if you haven’t set clear expectations or an additional hourly fee.
  • Your total hours worked may fluctuate significantly from month to month, which may make it difficult to schedule time-sensitive work for other clients or leave you feeling suddenly overworked or underworked.
  • Your clients may request to renegotiate your fee when they do their annual budget.
  • Your income, while steady, may be lower than with other billing options.

Thanks for reading,

Kim

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# Red Light

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So off you go, on a mission to reconnect with clients you haven’t worked with since the four month long COVID-19 shutdown began. You gracefully maneuver to position yourself to grab some billable hours before all of your Paycheck Protection Plan money runs out. You’re also on the hunt for new clients, maybe picking up the thread on leads you were checking out in the first quarter, before the rug was pulled out from under.

If good fortune prevails, you’ll bag a live one and generate some much-needed revenue. But do keep your senses tuned to any “off notes” while you and the prospect discuss the project specs. You are trying to work with this person, or someone on his/her team, and by no means do you want to walk into a toxic environment because you will fall. You will not be able to perform at your best. You will not be able to use that client as a reference.

it is important to notice and acknowledge the behavioral cues displayed and statements made by every prospective client. Do not get carried away by a seductive mix of need and excitement. Yes, making money is the point and you may also crave a project that you find not just lucrative, but also exciting. There may be a special skill that you own but rarely have the opportunity to display and at last you could be able to flaunt it.

But if the prospect makes you feel uncomfortable before the project work has begun, the smart Freelancer must find the strength to stop and walk away from someone who is already telling you that they’re a jerk who is out to hurt you. Assuming that this individual even pays the full amount of your invoice, in the end you will have to admit that the money earned from working with this guy or gal was not work the aggravation.

The best damage control that a Freelancer can take is to stop the process and walk away. Let’s examine a few examples of bad guy/ gal behavior:

“I’ve tried working with Freelancers before. I never get what I want.”

This prospect either doesn’t understand how to write and explain the project specs; doesn’t know what actions will achieve company goals; doesn’t understand and refuses to provide the support or authority a Freelancer needs to successfully complete the task; is a rabid micro-manager who is never satisfied by any work other than his/ her own; or cannot/ will not allocate the budget to hire a Freelancer who is able to do the work.

Do you see yourself swallowed by a giant whirlpool? You should. Stop. Turn around. Walk away.

Prospect don’t trust your references

You’ve supplied two or three solid references, clients for whom you’ve done work similar to what the prospect is looking to get done and the clients were very pleased. You exceeded expectations and created a positive experience. But the prospect is not convinced. Your references are not good enough, as far as s/he is concerned.

A dear friend of mine has often said that there are some people who will not take Yes for an answer. This prospect is not ready to become your client, for whatever reason. Maybe the prospect now feels uncomfortable with outsourcing this project to any outside expert?

Whatever. You cannot satisfy this individual. Shake hands and say goodbye, while you can still pretend to smile.

Prospect questions your fee and the value you’ll bring

The shutdown caused most businesses to take a significant financial hit and the impulse to keep all costs low is in the air. Freelancers are wise to be flexible about balancing their project fee against the work that clients need to do to get their ventures moving forward and the lower budgets that clients now live with. However, exploitation is never acceptable and must never be tolerated by a Freelancer.

Before your proposal is in writing, project specs should be discussed, including a ball park budget figure. Using that information, Freelancers can with confidence draw up a proposal with budget and submit it to the prospect. In this way, there will be no surprises. When the prospect shares some indication of the earmarked project budget along with the project specs, the Freelancer will quickly know whether or not s/he can do the job for that price.

But when the prospect wants to be secretive, it’s a bad sign. People need to be transparent and if they don’t want to do that, it will be unpleasant to work with them. Moreover, if the prospect alludes to the fact that his/ her team has the ability to do the job themselves, you may need to diplomatically hint that they might need to do just that because the work to be done demands a certain amount of time and skill.

You are willing to be flexible, you are willing to do a smaller piece of the job for the money that the client has suggested for the entire project, but you cannot give your work away. Then shut up and hear what s/he says in response. The specs will either shrink or you’ll walk.

Project timetable and other guarantees are unrealistic

Timetables and deadlines may require some help from the client if they are to be met and the smart Freelancer will put into writing the kind of resources that the client will provide and by what date. Furthermore, in certain cases the full scope of the project cannot be known until the work has been started. Obtain as much information as possible about the project specs to minimize risks and promote client satisfaction.

If you’re having trouble either reconnecting with current clients or signing new ones, you may need to tweak your pre-COVID-19 business model. Things have changed. No one has a written-in-stone game plan. Pivot has become the word of the month, if not the word of the year. Your first assignment may be to get a fix on what services are in demand now and how you can package and promote your entity to be considered a trustworthy and reliable purveyor of those services.

When speaking with current clients, even if you send out an email to say hello and get the ball rolling, ask how doing business has changed and make it known that your goal is to help them cross the river without taking any more of a bath than they may have already done.

When approaching a prospect, a version of the previous question can be asked, perhaps as a statement, “As you and your team work to help the organization regain its bearings and serve your customers in the way they now want, or legally must be, served, I’d love to talk to you about how I can help you do that efficiently and cost- effectively.”

Thanks for reading,

Kim

Photograph: Kim Clark. Massachusetts Avenue leaves the Back Bay and enters the South End.

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6 Questions to Ask a Prospect

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Woo-hoo, you’ve got a live one here! You’ve stumbled upon a prospect and you do not want to screw up and lose what might be an opportunity to get paid. You want to keep this fish on the line and figure out 1.) if s/he is serious about hiring a Freelance consultant to work with and 2.) if the project is something you can handle. A series of easy-to-remember questions that help you to encourage the prospect to open up and tell you what s/he needs and also move the process toward a commitment for further discussion are essential. Your goal, of course, is to obtain a project that will both enhance your revenue and if possible, enhance your CV as well.

Picture this—you and the prospect have each given the meet’n’greet (short) versions of your elevator pitch and the prospect is showing an interest in your offerings and would like some details. You’re asked if you’ve ever worked on a particular sort of project, or provided a solution for a certain kind of challenge or problem. Presented below are questions designed to make it easy for your prospect to share information and allow you to position yourself as a good candidate for hire if a project actually becomes available.

  1. How can I help you?

“A customer’s time is valuable, so that first question must be impactful while still respecting their time,” advises Eng Tan, Founder and CEO of Simplr, a customer service and customer experience start-up. ‘How can I help?’ is open-ended enough to invite feedback, but also show that the customer comes first.”

2. What is the problem or pain point?

You cannot jump into a sales pitch until and unless you hear the prospect describe the matter that must be resolved or challenge that must be overcome. Only then can you determine if you have the expertise and resources to provide the desired solution. Allow your prospect to tell you what s/he would like you to do.

3. What is your goal?

Get the prospect to articulate the purpose of the proposed project and what the resulting deliverable means to the organization. Determine if this is a mission-critical goal and the date that the deliverable must be received. It is to your benefit to understand why the prospect feels it’s worth paying outside help to get the project done. The proposal you write and your pricing structure, if negotiations get that far, will be impacted by this information.

You must also understand what will happen if the client does nothing (and nothing is precisely what most of them do anyway, am I right?). So do your best to find out what it all means to the prospect and the company and how the proposed project fits into important goals.

BTW, not every project that gets funded is tied to a meaningful goal. I know someone who probably makes 3x what I make in a year by producing an ultimately ridiculous vanity-driven deliverable for well-known for-profit and not-for-profit organizations. Enhancing reputations can be big money, it seems.

4. Have you done anything about it so far?

With this question, you’ll learn if the prospect has worked with a competitor. You can follow-up and ask if there was dissatisfaction with the competitor’s deliverable, price, or customer service. If the matter has so far been handled in-house, you can follow-up and ask why outsourcing looks like a good option now. In short, you’ll learn why your decision-maker or stakeholder/ decision-influencer prospect is motivated to talk to you about the problem and inquire about how you might resolve the problem or produce the deliverable.

5. Is it you who decides how this matter gets resolved?

At this point in the conversation, it is both prudent and politic to ask who makes the decision to bring in someone from the outside, i.e., a Freelancer. You will have earned the right to know if the individual with whom you are speaking has the authority to green-light a project on his/her own, or in concert with a select group of stakeholders. You need to get a sense of how superiors, colleagues, or stakeholders feel about bringing in a Freelancer and I recommend that you get an answer before proceeding with the conversation.

It is possible that your prospect is alone in thinking that an outsider should be brought in to manage the project and his/her opinion may or may not prevail. Now is the time to get a sense of whether outsourcing this project is wishful thinking or a possibility.

6. What would you like to see happen next?

With this question, you invite the prospect to commit to follow-up, be it a face-to-face meeting, an email, or a telephone call. The prospect will be able to reconfirm his/her confidence in your capabilities as s/he shares more information about the proposed project and digs deeper into the how and why your product or service can address pain points and facilitate realization of the company’s goal.

This conversation will determine whether you are considered a serious candidate for managing the project and if the company is serious about hiring a Freelancer. You could very well be invited to submit a proposal and if that is the case, it is a big vote of confidence (but alas, still no guarantee).

If asked upfront about pricing, you might like to respond “What’s your budget?” If it’s smaller than you hoped, work with the prospect to provide the project must-haves, minus the too-expensive extras, at a price the organization can afford. Then again, they could surprise you and appropriate more money. You just never know!

Thanks for reading,

Kim

Photograph: The Fuller Brush man visits a prospective customer (circa 1950)

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Pricing B2B Services

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According to Dorie Clark (no relation), Adjunct Professor of Business Administration at Duke University’s Fuqua School of Business and author of Entrepreneurial You (2017), there are four pricing strategies that Freelance consultants might use, depending on the project at hand and the relationship you have, or would like to have, with the client. It is crucial to follow a pricing strategy that will support your objective to persuade the client that your prices are fair, your solution will be effective and you are the right person to hire.

Hourly billing. The most straightforward pricing strategy is to bill clients by the hour. When you are unsure of the number of hours it will take to complete a project, perhaps because your responsibilities will vary from week to week or month to month, then an hourly rate pricing strategy is reasonable. On the other hand, if you do have a good idea of the number of hours that should be necessary to complete the job, an hourly billing strategy is also reasonable, particularly for one-off assignments or sporadic work with the client.

You can then provide a reliable project estimate, based on your hourly rate for the work proposed and the anticipated number of hours, and that information will be reassuring to the client. But if you underestimate the time needed to complete the assignment the downside of this strategy will emerge, because your final price will overshoot your estimate and your client may not be thrilled.

Another potential downside to hourly billing is the level of scrutiny that it invites. Some clients may challenge the number of hours you record for the tasks involved and that is uncomfortable.

Set fee for services. This pricing strategy requires the Freelance consultant to develop a standard suite of services, where all related tasks are included and there is one price for the whole package. “Productized services” is the term pricing experts use for this strategy. If certain of your services are frequently requested, make life easier for yourself and your clients and create a standard rate sheet for services you perform most often.

For example, if you often conduct half or full-day workshops, billing a flat fee for all tasks involved is a more favorable strategy than billing separately and hourly for the associated tasks. Clients are comfortable accepting a flat fee because the project price is all-inclusive, predictable and transparent. Furthermore, the project specs describe your duties and discourage “scope creep,” those extra unpaid tasks that some clients like to sneak in. If the client would like an extra service or two, then you’ll price those separately and not be tricked or coerced into giving away free labor.

Value-based pricing. Evangelized by Alan Weiss, elite management consultant to multinational companies such as Merck Pharmaceuticals and author of dozens of books, including (Million Dollar Consulting [1992]), this strategy hinges on what Weiss calls “a value-based project fee structure.”

You begin by having a detailed conversation with the prospect so that you will understand the project requirements and the project’s relevance, urgency and impact on the organization. In other words, you and your prospect will achieve mutual agreement on the value of the project to the business. Weiss says that it’s useful to ask questions such as, “What would be the value to the company if this weren’t a problem?” or “What impact would it have if you could do XYZ better?”

Dorie Clark recommends the value-based pricing strategy for Freelancers who work with Fortune 500 companies, because value-based pricing is a way to help the prospect envision and appreciate the value of the right outcomes delivered at the right time. Clark feels it is appropriate to charge a higher project fee when working with big-budget clients because the stakes are so much higher.

Your work for a Fortune 500 company might, for example, create $10 million in new value, whereas even a dramatic improvement for a small not-for-profit organization may only enhance the bottom line by $10,000. Once the prospective client understands the full value that your work will bring to the organization, your fee — a tiny percentage of the overall gain — will in theory seem trivial in comparison.

Retainer agreements. These are an excellent arrangement because predictability is a wonderful thing for both you and the client. Once it is established that you’ll work a more-or-less fixed number of hours per week or month on a certain assignment or category of assignments and a comfortable relationship develops, by all means suggest that you create a monthly retainer agreement. Bring evidence of 6 – 12 invoices to bolster your case.

In the retainer pricing strategy, the client pays the Freelancer a flat fee every month for on-demand access to your services (and that could be anywhere from $500/month to a four or even five figure sum). This allows you to depend on a certain amount of money each month, no matter what. The downside is that unless you’re careful, your client may take advantage of the “all you can eat” pricing by monopolizing your time.

To prevent abuse, be very clear upfront about who can contact you and for which types of services. It is also advisable to specify the hours that you’ll be available ( 8:00 AM – 6:00 PM or longer?), the protocol for weekends and holidays and the methods of contact—email, phone and/or text. You’ll also want to specify whether they only have access to your advice, or if there are specific deliverables you may be asked to produce (for example, you might also agree to generate content for social media or the company newsletter). As you gain more experience and develop long-term relationships with clients, you will be able to propose retainer agreements and institute more control over your monthly income.

Freelancers who succeed are those who are appreciated for the value they bring to their clients’ organizations. An important building block that supports how you communicate your value to the client is your pricing strategy. Study the pricing options discussed above and choose the most advantageous for you and your client.

Thanks for reading,

Kim

Photograph: Courtesy of the Everett Collection. Dink (Margaret Nolan) gives James Bond (Sean Connery) a massage in Goldfinger (1964).

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Overcoming Income Inequality

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Happy Halloween! Today, we’ll take a look at one of the ultimate Trick or Treat scenarios, the business model known as the Global Economy (the most recent version, that is—trade has been global at least since the glory days of Timbuktu) as well as other factors that will impact your income.  The Global Economy as we know it began about 20 years ago, midwifed by the internet.  There is plenty of evidence to show that the vast majority of the world’s 7.6  billion souls have received only a global Trick, while a fortunate “1% of the 1%” has received a nearly endless supply of economic Treats.  Most of the candy is in the goody bags of the 2,043 billionaires in the world, 233 more than there were in 2016.  In aggregate, they are worth $7.7 trillion USD. (Forbes Magazine, October 2017)

Earning a living isn’t getting any easier for the 99.99%.  In the October 8 and 15, 2017 issues of The New York Times, lengthy articles appeared and told sad tales about blue-collar workers.

From Indiana came the story of skilled factory workers who until recently earned $25/hour.  Those workers have now joined the growing ranks of low-wage and  underemployed workers, in the aftermath of the ball bearing factory’s move to Monterrey, Mexico.

Factory leaders appealed to the Indiana workers to train their Mexican replacements.  Despite significant peer pressure from most of their colleagues a few agreed to do so, primarily to receive the $5000 bonus that was promised to those who cooperated with the transition.  But once the replacements were trained,  factory leaders reneged on the $5000 bonuses.

Workers south of the border are paid less than $6/hour for their skilled labor.  Most of the former ball bearing factory workers in Indiana have secured other employment, but nearly all have seen their wages cut in half.  Financing their housing costs is an issue for many.

From Oslo, Norway, came the story of construction workers whose labor has remade the skyline of that city, capital of a nation that has become wealthy on profits from North Sea oil that was discovered in the 1960s.  Pay for construction workers remains generous, thanks to a strong union, but workers haven’t seen a pay raise in five years or more.  Further, workers from eastern and southern Europe are now being hired by local construction companies and factories at considerably lower wages than Norwegian citizens receive, so that the companies can compete successfully for projects that are put out to bid by national or global firms.

The global economy has caused workers everywhere to get low-balled on wages and benefits, whether we are blue-collar skilled labor or white-collar professionals.  Most companies fear losing a contract to a competitor; their strategy has become to keep internal expenses low, so that project proposals can include not only lower prices for the prospective customer, but also more in-house profit.  To minimize the heft of payroll, which is usually the biggest expense on the P & L statement, companies send jobs off-shore, recruit and hire foreign-born workers who desire a residency visa and are willing to accept a lower salary to obtain one , or clandestinely hire illegal aliens at bargain-basement pay.

Meanwhile, citizens who are employed at well-paying, full-time, benefits paying jobs are loath to complain or quit, because what are the chances of doing better financially at another company? For most, it’s smarter to grin and bear it.  Maybe you can rent out a spare bedroom on Airbnb or drive for Lyft or Uber to make extra money?

Another factor that depresses wages and impedes hiring is what appears to be lingering discrimination against 50% of the population.  Honeybook, a company that provides administrative support to the various specialties that service the special events and conference planning industry, in a 2017 report on the gender pay gap reported that on average, women earn 24% less than men and in the finance and insurance industries, women earn 29% less than their male counterparts.

Female Freelancers in the events and conference planning industry fare even worse. Honeybook analyzed 200,000 of the client invoices they prepare for affiliates from October 2016 – October 2017 and found that women who Freelance earn 32% less than men in the industry.  Female photographers make 40% less than their male counterparts and female event planners make 24% less than their male peers earn.  Regarding annual earnings, 42% of men earn more than $50,000 per year, while only 20% of women are paid at that rate; 20% of men earn at least $80,000 annually, while only 8% of women are able to do so.

Things are even more dismal for women at the top of the self-employment food chain, the venture capital funded start-ups.  The start-up database Crunchbase confirmed that globally, 43,008 venture capital-backed start-up enterprises were founded from 2009 – 1Q2017 and 6,791 (15.8%) of those companies had one or more female founders.

Crunchbase reports that in 2016, start-ups founded by men received a total of $94 billion in seed (angel) investment fundraising, while start-ups that had even one female founder received a total of only $10 billion.  Start-ups with one or more female founders raised 19% of all seed investment rounds, 14% of early-stage venture rounds, 8% of late-stage venture rounds.

Yeah, OK, so do we continue to cry into the champagne, or maybe do something substantive? The Honeybook crew strongly suggests that women (and men) who are Freelancing to negotiate rates and in fact, to come in with a project fee or hourly rate that reflects the quality and value of your work in the marketplace.  This is not exactly easy, however, and requires some courage. No one wants to lose a contract to a competitor, or to be challenged by a prospect.

Regarding negotiation, Freelancers have an advantage over the traditionally employed because fee negotiation is not unusual.  To succeed in a negotiation, it’s necessary to do a bit of research in advance to learn more about the project.  The process is quite simple—talk to your prospect and ask a few basic questions.  If you learn that your work will bring the client a significant ROI, or if a deadline looms, let that be reflected in your project fee or hourly rate.

If the client balks at your pricing, do not lower your fee.  Instead, adjust the scope of the work you’ll do.  If at all possible, avoid allowing a prospect to dictate your pricing terms.  Ask how much has been budgeted for the project and then decide how much work you can afford to perform for the money available.  Address the client’s most urgent needs and make him/her feel good about the value s/he will receive when your superior expertise and work ethic are applied.

Regarding female entrepreneurs, Crunchbase notes that there are now several angel investor networks funded by female investors who welcome women who lead venture capital backed enterprises.  Access to capital when it’s needed is crucial to a start-up venture’s success.  Women helping women is how we can climb the mountain.

Thanks for reading,

Kim

The Fendi sisters (l-r) Alda, Paola, Anna, Carla (who passed in June 2017) and Franca took over the business founded in Rome by their parents Adele and Edoardo in 1925.  Led by Carla, they transformed Fendi into an international brand that is now owned by LVMH.   Photograph: REX (1988)

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Freelancers Hiring Freelancers

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Are you preparing to submit a proposal for a big assignment you hope to win and know that the project specifications will cause you to subcontract some of the work? Congratulations! You will have the pleasure of hiring one or more of your Freelancer peers. Together, you will become a team whose mission will be to produce the client’s deliverables by achieving outcomes of the highest quality, on or in advance of the project deadline and on budget.

You, the external team leader, must understand the skills that the project requires, know how much it will cost to secure the services of your Freelancer team and write a winning proposal.  Project management is an everyday reality for Freelance consultants and the bigger the project, the more planning is involved. Your reputation is forever on the line and when subcontracted work is involved, you must be diligent in your search to identify the best talent to bring on board.  Read on and get some helpful advice on how to assemble a winning team that will enhance your brand and your billable hours, current and future.

Get budget estimate

Get a reliable project budget estimate from your client, if possible.  If the client prefers playing possum with that amount, then make sure you are able to accurately estimate both the quantity and quality of work the project requires so that you can first, calculate your own labor cost and target profit margin and next, understand what you must budget to pay your subcontractors.

Hire specialists

Directly ask candidates you interview and confirm that the skill you need is a competency in which that candidate excels and that s/he has performed often enough to claim deep experience.  You are in no position to train someone on the job.  You must guarantee superior results.

Pay well

Why not ask candidates what they want to make as a subcontractor on the project? Start by researching the going rate range for that specialty, so that you’ll know what to expect to pay and you can rule out those who attempt to take advantage of you.  People will do their best work when they feel valued. They’ll be happy to give extra to make you look good and make themselves shine along with you.  They’ll go above and beyond because they’ll want to be hired to work with you again since you value their capabilities.

If you encounter someone who seems a perfect fit for the project but his/her subcontracting fee is somewhat beyond what you planned to offer, then ask what perks might make that person happy, in addition to money.  You may be able to get who you want for a little less money if you give a little more in another area that demonstrates how you value the skill set.

Set clear expectations

If the project is on a tight time frame and in order to meet the deadline long hours and a seven-days-a-week schedule will be needed then you, the external team leader, must present this schedule information to your candidates in the interview.  You need team members who are able to block out the necessary time and are willing to work hard.  If time is an issue, expect to pay a premium to your subcontractors and add a premium to your own fee as well. Develop a contract for your subcontractors, so that all responsibilities, relevant milestones, the project deadline and the rate of pay are in writing.

Communicate often

Request weekly or bi-weekly written progress reports from your subcontractors and send similar updates to your client.  Announce to the client and your subcontractors whenever a project milestone has been met.  Interim victories will give you an opportunity to thank and congratulate your subcontractors and inspire them as you do.  Learning that you and your team have reached a milestone gives your client confidence in you.

View work samples

In the subcontractor interviews, be sure that work samples provided correspond with the project specs, to confirm that you are evaluating what is relevant.

Check references

Ask to speak with two of your candidate’s clients.  Confirm the type of work that the candidate has done for each reference.  Inquire about the quality of that work and the candidate’s willingness to do what was needed to get the job done.  Ask what it’s like to work with the candidate—is s/he positive and upbeat, or a constant complainer? Finally, ask if there’s anything else you should know about the experience of working with the candidate.

Paperwork

Once you understand the project specs, the role that your subcontractors will play and what you will pay for their services, you can then write a draft contract.  Also, download from the IRS website tax form W-9 for your subcontractors to complete and return to you. You’ll retain the W-9 and use it to prepare and mail to subcontractors IRS form 1099 before January 31 of the following year if payments to any subcontractor reach $600.

Finally, set up an accounting method that will allow you to easily and accurately calculate hours worked and dollars earned for each subcontractor.  If you’ve seldom worked with subcontractors, then speak with a bookkeeper or accountant for more information.

Thanks for reading,

Kim

Photograph: Seven Samurai (Japan, 1954) Directed by Akira Kurosawa and starring Toshiro Mifune (foreground)

 

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When Negotiating A Project Fee

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There are ways to strong-arm a highly competent Freelance professional who is ready to give a client his/her best work into accepting less than that Freelancer’s proposed project fee.  So many desperadoes are willing to work for pennies and that can make it difficult for those whose work quite simply is more valuable because s/he brings expertise and work ethic that ensure the project work will be flawless and client expectations will be met.  Those qualities should justify almost any project fee.  But sometimes, clients like to low-ball.

What do you do when s/he who would be your client tells you that you charge rather more than others for the same work? Remember that the best defense is a good offense and start justifying your pricing strategy from your initial contact with the prospect. Continuously model professionalism and expertise that separate you from the hoi polloi.

Remember also that Rule Number One in the consultant’s bible is to never cut your price. Not-for-profit organizations can receive a 10%- 25% discounted rate, but under no circumstances do you lower your hourly or project fee for any client.

Instead, add in a modest service upgrade at no charge, to make the price more palatable.  You can also scale back the work and that would be associated with a fee reduction, but one does not do the originally requested work for less money.  If the client becomes adamant about receiving the original project specs at less than your proposed fee, then find the courage to walk away.

I know that billable hours may not be falling out of trees, but you cannot participate in a race to the bottom.  Do not get sucked into competing with online Freelance service mills.  Read on and learn to create your rebuttal.

Exhibit your expertise

Clients get what they pay for and pay for what they get! Let prospective clients know that when you are hired, a task can be completely handed over to you and you will own it. Furthermore, you are willing to use your expertise to make suggestions that might improve the quality of the project deliverables.  You are a first-rate service provider who is dependable, responsive, talented and trustworthy.  Your work is done correctly the first time and there will be no need for either micromanaging or do-overs.  The client’s role in completing the project will be much lighter and that adds up to value.  These practices and competencies are reflected in your project fee and hourly rate.

Reveal your responsiveness

Especially when an important deadline looms, reassure your prospect that you are prepared to work hard and ensure that project milestones and the deadline are met.  You understand that sometimes, late nights, weekends and holidays must be at least partly devoted to work.  Your admirable work ethic is reflected in your project fee and clients who are in a hurry find your fee structure reasonable.  Your project fee includes timely communications, responding to feedback, generating ideas and more.

Demonstrate your dependability

Clients can be confident and relax when you are on the job because they know and trust your work, attention to detail and diligence.  You make life easier and allow the client to attend to other duties while you manage the project.  Project work is reliably completed as requested and within budget.  Your clients look good to their superiors, peers and direct reports.  No one winds up with egg on their face when they hire you.

Trot out your testimonials

In addition to your LinkedIn recommendations and endorsements, you no doubt will be able to supply client testimonials from one or two satisfied customers who will speak on the record with a prospective client.  If you have one or two client success stories on your web site so muh the better, as these are case studies that detail the client journey and spell out the wonderful work you can do.

Thanks for reading,

Kim

Photograph: Mike Tyson (left) by Milo threeoneseven for ESPN (date unknown)