At Xennial Traveler, we want you to grow and be the success we know you can be. We see freelancers and business owners making the same financial mistakes, time and time again. That’s why I have released this follow up blog post to the original “5 Business Finance Mistakes Freelancers Make With Their Clients.”
Get ready for some valuable communication tactics to get the financial results you are looking for.
5. Handing out client discounts without a second thought.
Are you a people pleaser?
Does it feel satisfying knowing you have helped someone? But on second thought, you regret it, especially if it puts you out of pocket. This behavior can be because of a lack of self esteem. People pleasers will do anything to make others happy, and they will go further and further to keep it that way.
Hold off on that magic “yes.”
Here’s what you should do instead:
This is your opportunity to put your client on a retainer.
Pitch them a 12 month retainer with a percentage off. You will have to calculate this based on your overheads, however, knowing that someone if guaranteed to be paying you monthly can give you that security you are looking for.
4. You start at the bottom of your rate bracket.
Rates.
This discussion can get messy.
But remember, start at the ceiling, not the floor.
You should be pricing your services at the top end with your middle figure in mind, being that sweet spot. It’s the number that you really expect people to be paying for your services.
Giving them a range to respond to will help create that win-win scenario. You can always suggest a smaller deliverable if things are too pricey for the client.
Tip: If you are going to suggest a smaller deliverable, make sure it’s worth your time, and that you aren’t going to be missing out on something better in the future.
This brings me onto the next point of common finance mistakes freelancers make:
3. They don’t walk away.
Saying no can be hard.
But remember, there are millions of clients out there and you are valuable.
Keep positive and keep going.
You don’t want to be stuck with a difficult client that isn’t worth your time.
2. They forget, or don’t feel comfortable to charge a deposit.
How do you know if a potential client is serious about your services?
They pay you a deposit.
If you think charging a deposit isn’t worth it, then trust me, you will be taken advantage of. Nobody wants to be messed around, especially if you have a tight schedule.
You could have produced amazing work for your client and then they disappear mid project without sending you any payment. That is a stressful situation you want to avoid!
Taking a deposit upfront insinuates that your potential client is not planning on letting you down. It provides accountability for the project and will give you peace of mind in terms of financial compensation.
1. They don’t chase overdue clients.
Do you feel awkward, sending that payment follow up email?
It’s not your fault.
You have an obligation to yourself to secure the payment for work you have completed. You have put time and effort into the project, along with producing results, so of course you should be rewarded.
If you are worried that it will affect the relationship with your client, don’t be. You need to set boundaries for your business, otherwise you will end up working for free, over and over again.
This is where providing a clear cut contract at the get go of a project so that you can hold your clients accountable. If you find that payment is overdue, you can start by sending a friendly reminder email. More often than not, your client will have forgotten by accident. If the problem persists you can then take further action.
We encourage you to confidently set boundaries in your business. If you follow these practices above, you will find that tricky finance conversations will start becoming a lot easier and that you will be able to avoid these finance mistakes that freelancers make. Need more help, check out the other articles in this series.
