Of the many difficult things about freelancing, the worst is probably negotiating agreements with customers and managing their expectations. This section will provide some tactics that you can try.

Client Contract Negotiations

One of the most contentious areas of freelancing surrounds the terms of agreement between provider and client, but this is an area where you need to pay close attention, because it can make a big difference in the income you earn. You also want to make sure that everything is spelled out so that there are no misunderstandings later. Yes, freelancers need a contract for each and every job they do. A very good argument supporting this can be found in Always Have a Contract.

In negotiating your contract, an area where you’re likely to find your client interested in discussion concerns what you will be charging them. In the early stages, don’t be lured by throwing out a “ballpark figure” until you have a good understanding of the scope of the project because that number will come back to haunt you if you estimate low. And once you have submitted your quote, be prepared to be counter-offered. It could be a legitimate budgetary issue or the client may simply be looking for a way to save money. It’s a good idea to find out what their budget for the project is from the onset. That way, you can tailor your quote to fit into their range, as long as it’s reasonable.

And don’t forget about your rights regarding the work you produce. While in most cases you must cede ownership over to the client because of the works made for hire rule, in your negotiations, you may be able to secure the rights to reuse your output for other clients (software program code, for instance) in exchange for lowering your rate. Be aware, however,  that your client may have you sign a non-disclosure agreement for anything that they regard as proprietary.

Negotiations involve many factors, but two of the tenets of successful negotiation is that you need to know when to walk away from the offer and what your fall back position will be.

For starters, you should at least know what your expenses are and the minimum you need to make with some profit built-in, in order for the job to be worth your efforts. If the client counter-offers you at a number that is below that level, that is your signal to walk away from the offer. Given that the job specifications you originally based the quote on remain the same, there is no further negotiation available at this point. You should hold steadfast on this. Remember, you’re in business to make money.

Your fall back position is that you will be willing to work at the offer price if the client is willing to accept some trade offs. This could be in the form of dropping some of the requirements, performing a scaled down version of the original specs or perhaps more flexibility in the schedule to permit you to take on outside work during their project. The point is to be open and forthcoming in your discussions to accommodate their needs as well as your own.

You should submit your price quote as a formal fee agreement along with your contractual terms. If the client hasn’t responded in three business days, it’s proper to follow up by email or phone to ensure that they received it.

Negotiations can take anywhere from several hours to several days to complete. The key with potential new clients is to be patient and cordial in your discussions, and be willing to compromise. A successful negotiation has taken place when both parties feel their interests have been served and this lays the foundation for a long lasting and profitable client relationship.

Managing Client Expectations

Managing client expectations starts with finding out what those expectations are. What is the best way to find out? Ask! In your initial meeting with the prospect, while you’re discussing the nuts and bolts of the project, also find out what the vision and philosophy behind it is. Have them give you the “big picture”. This will often uncover unstated outcomes that the customer is also looking for.

Taking their expectations into account, assess how well you feel you will be able to meet them. In addition, you will need to be able to uncover all the concerns that your client may have that will affect how they evaluate your service. Come to a meeting of the minds as to how expectations should be set and be honest with an assessment of when you can realistically meet deliverables based upon your resources, talents, and project timeline.

Managing client expectations is more about managing their perception than anything else. The often quoted phrase “underpromise and overdeliver” rings true here. Two freelancers may be able to deliver a project in the same timeframe, but the one who tells their client that they will complete the work in 10 days and then finishes three days earlier will be more highly regarded than the one who tells their client they will complete the project in 5 days, but then finishes two days late. The difference was not in the length of time it took to do the job, but in the client’s perception.

Communication is the key to ensuring that your freelancing relationship with your clients runs smoothly. Keeping your client in the loop on the progress you’re making with their project will help relieve the heat they may be feeling from their superiors to get the job done. Be proactive and provide a periodic status report, even if one is not requested.

You are being hired because the client believes you can deliver an expected outcome. There are bound to be hiccups along the way — every project has them. In order to maintain your client’s confidence in you, you constantly have to reinforce the value you bring to the relationship. Doing everyday things well and providing excellent service are a start.

Going beyond the normal expectation is where you’ll differentiate yourself against your competition. The majority of people and businesses just strive to meet expectations, and some are not even successful in doing that. Try to go out of your way to do something extra — throw in a bonus, go the extra mile to accomplish something, refer someone to the client’s business — anything that will bring you some extra value in your client’s eyes.

Ultimately, client satisfaction will be measured by how well you met their expectations, and not necessarily on the project outcome itself. More importantly, expectations drive all their future actions and decisions, so in order to be hired back to work on another project or to get referrals, make sure you meet or exceed their expectations.

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