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When it comes to paying freelancers, different interests collide: But what remuneration is fair, and should I offer trial work for free?
As a freelancer, you are always happy to receive new inquiries and potential orders. But it is not uncommon for joy to give way and disappointment spreads when it comes to remuneration. In order to raise awareness of fair pay among clients, it is important to talk about it. This article is therefore dedicated to the payment of freelancers and tries to find an answer to what is fair.
When it comes to the remuneration of freelancers, two different interests collide
As everywhere in the economy, two contracting parties each have their own interests, which they want to enforce in the best possible way when negotiating the terms of the contract. When hiring freelancers, the focus on the client side is on the one hand that the service is right, and on the other hand that it is also offered at a good price. This is understandable from an entrepreneur’s point of view, because after all, the investment in content, programming services or accounting should also pay off. There is nothing to give away in the free economy.
Freelancers, on the other hand, finance their own or an entire family’s livelihood with their work. They also have an interest in receiving adequate financial value for the work they have done.
But what is the best way to solve this dilemma and what is fair remuneration for freelancers?
Compensation for freelancers is fair if both parties feel good about it
When two different interests collide, the solution is always a compromise.
The simplest solution is for clients to simply accept an offer without renegotiating. In this case, the remuneration is fair, because the freelancer would not have called up these prices if he had not calculated them beforehand and felt comfortable with them. Since the client accepted the offer, it seems to have been a fair offer for him as well.
But let’s also turn to the other side, because so far the focus of our fairness article has been primarily on freelancers. But what about the clients? Fair remuneration for freelancers also means that clients get what they want. It is therefore not a question of freelancers being able to call up fantasy hourly rates, but that these prices also correspond to market prices, one’s own experience, scope of work and project.
Fair remuneration therefore has two sides and ultimately both sides must feel comfortable with it.
For freelancers, this has a decisive advantage: If the price-performance ratio fully meets my client’s expectations, better-paid follow-up jobs are not unlikely. However, if I demand too much and don’t convince with my work, the employer won’t come back to me. To ensure that freelancers are not wrong when it comes to pricing their services, it is important to make an accurate calculation in advance. In this post, we’ll tell you how freelancers should calculate prices.
Fairness in remuneration requires fairness in the execution of orders
In order for payment to remain fair, my performance as a freelancer must also be right. And that’s exactly why it’s important that I calculate my prices well and know what my work is worth. For example, if you accept an assignment even though you don’t actually agree with the remuneration, you risk being unmotivated about your work and performing it in a rather average way. Certainly, freelancers’ existential fears often play a role in negotiating the price of orders. Many would rather take on lower-paid jobs than have no jobs at all.
However, such a vicious circle can develop: Poorly remunerated orders are accepted, these are executed with less motivation in poorer quality. Therefore, the customer is dissatisfied and complains about defects. There is rework, which reduces motivation even more. At the same time, the pressure is increasing because reworking makes time for other orders scarcer. Stress increases, which in turn affects other work. In the worst case, as a freelancer, I lose not only my current client, but also others.
It is sometimes difficult, but as a freelancer I should only accept a job if the remuneration is right for me, I am motivated to carry it out and can ensure that the work is delivered in the agreed quality.This means fairness towards clients
As a freelancer, do I have to negotiate prices?
An important issue in the question of fair remuneration for the self-employed is the negotiation of prices. There is no one-size-fits-all approach that applies to everyone. As a freelancer, I have to ask myself whether I am ready to go down in price or whether the job is done for me. Here’s the golden rule again: if both parties are comfortable with the result, the price is obviously fair.
Sometimes the path to an agreement is not so difficult. It is possible that one more correction loop can lead to texts or, in the case of a software project, an additional hour of consulting can already lead to the goal.
If you know that your client likes to negotiate, you can use a simple trick. The offers are priced a little higher. In the end, both meet at the desired price and both parties have a good feeling.
Why it’s not fair to ask freelancers for free trial work
Unfortunately, in the everyday life of freelancers, it happens again and again that potential clients wave with a lucrative job offer, but demand an unpaid trial work in advance. It is not uncommon for something similar to happen in pitches for marketing budgets or IT projects.
In short, free trial work is not fair. To make a small comparison: Would the same companies also offer their products or services for free “to try out”? Or would you ask a new heating installer to service the heating system free of charge “on a trial basis” so that they can convince themselves of the quality of their work?
Of course, if you hire freelancers for the first time, you first have to develop a workflow with the new service provider and find out how good the other person is. But this is a completely normal process. And there are many different ways to find out whether your counterpart really has all the skills and knowledge necessary for the successful execution of a job.
- References: Clients can ask freelancers for references for successfully completed projects. It is also possible to ask for contact persons.
- Resume: As with permanent positions, companies can ask for a resume before hiring freelancers.
And of course, trial work, trial texts, trial days can also be arranged. Then, however, only for a fee. After all, why should only freelancers take the entrepreneurial risk of making their work available free of charge in order to possibly end up empty-handed?
Even without free trial work, companies have many advantages when working with freelancers. On the one hand, when they remunerate trial work, they increase the motivation on the part of freelancers to do a good job. On the other hand, they show that they are fair and that it could be fun to work for them.
Conclusion: Fairness in pay is a question of empathy and self-esteem
Fair fees for freelancers require two things: On the one hand, companies should also understand the situation of freelancers and consider whether they would also agree to this remuneration. On the other hand, freelancers should make their prices fair enough to match their experience, market value and desired performance.
