If you're a new or aspiring copywriter, here's one important tip: don't be cheap.
Too many beginning copywriters believe that offering cheap rates will get them more business. I'm not saying that it doesn't. Of course, offering low rates and discounts is one way to increase your portfolio. But there are other ways around this while offering competitive rates or even higher.
Of course, focusing on a specialty or a niche is one way to differentiate yourself, and it gives you some leverage to price your services higher. If you're a copywriter who specializes in, say, flooring and carpeting companies, you will be able to command higher fees within that market — and get paid them, too.
But if you lowball your rates, you will not get as much business as you think you'll get. Sure, you will probably get some. But it's the kind of business you don't want.
Instead, remember this important rule…
Cheap copywriters attract cheap clients.
And by cheap clients, we're talking about three types:
- Clients who pay the least;
- Clients who demand the most;
- Clients who do both.
If you lowball your rates to attract clients, you are also putting yourself behind the eight ball. Because, typically, most cheap clients will also be demanding ones. They will wonder what else can they get for free or cheap, and will demand heaven and earth for it. They will become pain-in-the-anatomy clients.
Remember Sanborn's Maxim:
“The customers who are willing to pay you the least will always demand the most” — Mark Sanborn.
Plus, dealing with exasperating clients is only the beginning. Because by lowering your rates, you also are sending signals out in the marketplace that you're not in demand, or that you're perfect for other penny-pinching, attention-sucking vampires who can't afford your even low fee.
Based on my personal experience, I would even go as far as to say that those clients who do want cheap copy will have money issues. I don't mean the “I'm broke and having a hard time paying the bills” variety. What I mean are clients:
- With scarcity mindsets who won't listen to you or value your work,
- With poor products that don't sell no matter how good the copy is,
- Or with small budgets that grossly limit how they use your copy.
A word to the wise: if a client attempts to negotiate for lower rates, that's fine. You can work around that and even avoid it if you play your cards right. But if they're looking for “cheap copy” right away, that should be a red flag right there.
I'm not saying it's true in all cases. There are some genuinely great clients out there who can't afford the average fees some copywriters charge, let alone the outrageous ones copywriters of a higher caliber charge.
If they do have a product that's well-researched and in demand, and the product is still not selling for whatever reason, then likely it's because they have either a poorly defined market or a poorly targeted one.
(If that's the case, then you've just placed yourself at the mercy of a poor marketer who will require extra hand-holding, and their copy will demand critical marketing direction from you — beyond the work for which you were commissioned, and for the same low rate.)
But it's a red flag nonetheless.
Red flags shouldn't sway you from choosing to work with the client. But they should prompt you to dig a little deeper and become a little more discriminate.
If you do a little digging, you may discover that they are demanding, excessively frugal, and fussy. Therefore, chances are high that they will be problem clients, even abusive clients. Just the perfect kind of client you don't want.
Why? Because, beyond the extra work (for no extra pay) you will have on your plate, their persnicketiness might be a sign that they are prone to self-sabotage, such as, among many examples, modifying your copy before testing it and then blaming you for the failure, even demanding a refund in some cases.
(It has happened to me more times than I care to count.)
Second, these vampires will be sucking precious time away from you — time you could have invested in working with other, higher paying clients, or at least from marketing yourself to attract and work with better clients who are both able and willing to pay your fee.
If a new copywriter wants to be cheap for fear of not getting any business, three problems tend to crop up:
1) They attract poor clients.
And by poor clients I mean both clients who are poor and can't afford a copywriter in the first place, as well as poor quality clients who are going to be more demanding and troublesome than not.
2) They reduce their perceived value.
They lower the perceived value in their services, even if the copy they write is good. They will lose prospective clients who don't want cheap copywriters — good clients who would have easily paid what the copy's worth.
Fees set too low will communicate that their copy is equally cheap — or, worse still, that they mustn't be in demand and have trouble getting work. Low rates are red flags, but this time for potential clients.
3) They waste their resources.
Cheap copywriters will waste time, energy, and money working on these problem clients when their time could have been better spent on marketing for, and projects by, other, better, more value-interested clients.
Now, after I originally published this article, someone riposted with the following negative albeit insightful comment:
Your concern about the effect on your reputation for accepting a low rate is silly. How are your clients going to know what you are being paid and who your other clients are unless you tell them?
Other than a high-priced copywriter who negotiates or discounts after the fact, tell me how many “cheap” copywriters keep their fees — and their portfolio of past clients — a secret? Their low fee is the main selling point in their marketing.
But I digress.
Let me clarify the point I made about reputation (more specifically, perceived value). If I told you I have a brand-new BMW for sale and it's only $500, would you think something's wrong with it? Of course, you would. In fact, you might even think it's stolen or it's a lemon.
Copywriters who underbid do get some traction, particularly inexperienced or less-than-skilled copywriters who cannot get work otherwise. That's fine. If they lack a track record, have no reputation, and want to establish themselves in their market, it's not a bad option.
But remember that it's only one option, and there are many more and better options out there.
But in general, cheap copywriters are like that BMW for $500: to potential clients, either the copy is a lemon or it's stolen. (You wouldn't believe how many copywriters I have caught copying my salesletters, word for word, sadly.)
Does that mean cheap copywriters are all thieves and do shoddy work? Not at all. Like the $500 BMW, you just might stumble onto a heck of a deal. But that, I'm afraid, is exceedingly rare.
For beginning and aspiring copywriters, they can start low if they really have to. But to retain or heighten the perceived value in their services, it's better to offer moderate fees and negotiate afterwards. The concession might be a cut in price, but it might be a lot smaller than originally anticipated.
Plus, by asking for something in exchange for making the concession, their fee is expressed in forms other than just money. Whether it's in the form of a referral, a testimonial letter, a bartering arrangement, a chance to gain feedback they can tout in their promotions, etc, asking for something in exchange for lowering the price does three things:
- It retains or heightens the perceived value in the copywriter, even if they end up charging a lower fee. Because the client is still paying for it through other means.
- It stops the grinding away process. A concession has value. Rather than offering a low rate right off the bat, offering a discount in exchange for some concession on the part of the client adds a price tag to each demand.
- It increases the perceived value in the service, too. Because clients don't think they got a cheap copywriter writing cheap copy, they think they're getting a deal from an otherwise expensive one.
Asking for a testimonial or referral after finishing the project is often too late. It will be harder to obtain because, in the mind of the client, the service is delivered and paid for, and now the copywriter is asking for a concession from the client without making one in return.
(If they agree, they will likely make you pay or work for it. They will ask for extras, negotiate any balances due, or expect a deeper discount on the next job.)
Therefore, setting fees a little higher, in the beginning, grants the new copywriter some negotiation leverage.
If you're still unsure, here's a tip: start low but offer the most basic services. In other words, tell them you will write only plain-text copy. No layout suggestions, no formatting, no revisions, no consultations, no marketing direction. If they ask for more, put a price tag on each individual “extra,” and add it to your fee.
Eventually, as you get busier and more confident, you might include these previous extras as part of the main deliverable but charge more overall.
Another benefit of doing this is, if they try to negotiate afterwards, you have itemized your service into smaller segments, each with its own price tag, allowing you to remove bits and pieces as a means of lowering the rate. That way, you're not discounting at all but rather selling a reduced package.
Ultimately, look at it this way: do you want 100 cheap clients who will demand all of your time? Or do you want 10 good clients, paying you the same income, and demanding only a fraction of your time?
Photo Source: Wikimedia Commons
Michel Fortin is a senior marketing specialist, renowned copywriter, and digital marketing expert. For the better part of 30 years, he's produced countless successful marketing communications and profitable campaigns that generated in excess of $300 million in sales. He's broken many industry sales records, including being instrumental behind the first ever “million-dollar day” online marketing campaign in 2004. He's worked with thousands of businesses and entrepreneurs around the world in a wide variety of industries on building their businesses, improving their marketing, and increasing their profits. He's a published author and often speaks at industry events. To connect with him, visit his LinkedIn profile where he is most active.