How to succeed in freelancing—the way the pros do it
Filed Under (Uncategorized) by Arthur Kaliisa on 23-07-2008
Here is what AIPB’s most successful freelancers advise, based on their experience:
1. Get that first client. To get your first client, consider accepting any fee you can get. Give your rate, but compromise. For instance, say your rate is $30 an hour and your prospect offers $15. Take it and say: “I’ll do it for $15 an hour but if you like my work, I want $20 (or $25 or $30) after 30 days.”
You can ask for a limited raise any time. Most prospects jump at this offer, planning to drop you in 30 days. But if you do quality work—correct, complete, on time—they will never let you go. Good bookkeepers are always in short supply.
2. Make sales calls pay off. Here’s how to turn prospects into clients:
a. Present a businesslike appearance. For men, a conservative suit or blue blazer. For women, a business suit.
b. Be practical: Don’t knock on doors of firms too small to afford a bookkeeper.
c. Be firm, but not pushy. Ask, “Are you the owner or manager?” When you find one, say: “Hi, I’m Ann Jones. I have a bookkeeping service in the area and wanted to introduce myself. Do you do your own bookkeeping?” If they have a service, be positive: “Great, I’m sure they do a fine job.” (Never try to steal satisfied accounts.) If a prospect is unhappy, ask what’s wrong. if they keep their own books, ask which tasks they do. Then explain what you do.
d. Keep the door open: Set a second appointment to explain more precisely what services you provide and what they cost. Leave a list of your services on stationery with your letterhead.
e. On second visits, act as though you have the job. Bring a sample of work the prospect was interested in: a budgeting tool, sample invoice, etc. Leave something that shows the quality of your work. Best: Bring a disk to demonstrate your work on the prospect’s PC or your laptop. Talk as though you have the job–e.g., “When should I pick up your work?”
3. Get referrals. Send an introductory letter to CPAs. Better: Make dates and introduce yourself. CPAs who meet you are much more likely to refer. Caution: Watch for clients who are too small or are “problems.” Another strategy: Visit newly opened businesses (their names are at your local licensing office). Best: referrals. Do a great job at a fair rate and you can expect a lot of business.
4. Bill for top dollar. Here’s how to make sure you charge the highest rate you can get:
a. Base fees on local CPA rates. Peg your top rate to CPAs’ lowest rates (for client write-up work). This approach works regardless of your locale.
b. Vary your rate by the job. This may mean charging as little as $15-$25/hour for some bookkeeping work. Before you quote a job, analyze a new client. How well do they understand what you are doing? Do they have a ledger? Is their work set up? Are their records kept well and only a few weeks or a month behind—or disorganized and 2 years behind?
c. Be prepared to back up your fees. If prospects question your rates, have handy names of clients and CPAs as references, and make sure to explain how much you will save them on their CPA costs.
d. Get to know local CPA firms. Work closely with them because most of your jobs may come from their referrals. Tactic: When you start with a new client, arrange to meet with the client and client’s CPA. This will impress both of them and add another CPA to your list of potential referrers.
e. Triple-check your work. Quality pays. Check as many times as you need to (plus a few extra times) to make sure things balance and that you have support for all balances. Do a mini-audit before you submit work.
5. When to bill by the job v. by the hour. Avoid a flat fee until you work for a client for a few months. The less experienced you are, the greater the margin of error. Open-ended commitments lead to too many hours for too little money. Find out: How long will it take you to get the client’s information? How neat and up to date are its books? How neat does the client expect your work to be?
When new clients insist on a set fee, agree on a trial basis (two or three months). Then re-evaluate. Estimate on the high side: It’s easier to reduce a fee than to raise it. To “lock in” prospects, accept the fee they paid their last bookkeeper.
If they question your fees, explain: “These are the kinds of businesses I work for, and my usual fees.” Point out any differences: “I do everything for them and I don’t know if you will want me to do all that for you. For instance, I have a distributor and a store that both have a part-time bookkeeper; you have none.”
A letter of agreement helps in flat-fee arrangements. Exception: mom and pop firms. They are intimidated by “contracts.” If the prospect is very small, have a low-key, friendly, but thorough discussion to explain what you will and will not do.
It takes time to learn when to give extra service, and when you are being used. Until you are sure, give extra. If clients need you to answer the phone, offer to. If they normally drop off and pick up work, offer to do it if they are too busy.
When you know clients are taking advantage, don’t give an inch—let them know right away that you have rules. “I really don’t work that way—let me show you how I do it.” If this doesn’t help, let them go.
1. Get that first client. To get your first client, consider accepting any fee you can get. Give your rate, but compromise. For instance, say your rate is $30 an hour and your prospect offers $15. Take it and say: “I’ll do it for $15 an hour but if you like my work, I want $20 (or $25 or $30) after 30 days.”
You can ask for a limited raise any time. Most prospects jump at this offer, planning to drop you in 30 days. But if you do quality work—correct, complete, on time—they will never let you go. Good bookkeepers are always in short supply.
2. Make sales calls pay off. Here’s how to turn prospects into clients:
a. Present a businesslike appearance. For men, a conservative suit or blue blazer. For women, a business suit.
b. Be practical: Don’t knock on doors of firms too small to afford a bookkeeper.
c. Be firm, but not pushy. Ask, “Are you the owner or manager?” When you find one, say: “Hi, I’m Ann Jones. I have a bookkeeping service in the area and wanted to introduce myself. Do you do your own bookkeeping?” If they have a service, be positive: “Great, I’m sure they do a fine job.” (Never try to steal satisfied accounts.) If a prospect is unhappy, ask what’s wrong. if they keep their own books, ask which tasks they do. Then explain what you do.
d. Keep the door open: Set a second appointment to explain more precisely what services you provide and what they cost. Leave a list of your services on stationery with your letterhead.
e. On second visits, act as though you have the job. Bring a sample of work the prospect was interested in: a budgeting tool, sample invoice, etc. Leave something that shows the quality of your work. Best: Bring a disk to demonstrate your work on the prospect’s PC or your laptop. Talk as though you have the job–e.g., “When should I pick up your work?”
3. Get referrals. Send an introductory letter to CPAs. Better: Make dates and introduce yourself. CPAs who meet you are much more likely to refer. Caution: Watch for clients who are too small or are “problems.” Another strategy: Visit newly opened businesses (their names are at your local licensing office). Best: referrals. Do a great job at a fair rate and you can expect a lot of business.
4. Bill for top dollar. Here’s how to make sure you charge the highest rate you can get:
a. Base fees on local CPA rates. Peg your top rate to CPAs’ lowest rates (for client write-up work). This approach works regardless of your locale.
b. Vary your rate by the job. This may mean charging as little as $15-$25/hour for some bookkeeping work. Before you quote a job, analyze a new client. How well do they understand what you are doing? Do they have a ledger? Is their work set up? Are their records kept well and only a few weeks or a month behind—or disorganized and 2 years behind?
c. Be prepared to back up your fees. If prospects question your rates, have handy names of clients and CPAs as references, and make sure to explain how much you will save them on their CPA costs.
d. Get to know local CPA firms. Work closely with them because most of your jobs may come from their referrals. Tactic: When you start with a new client, arrange to meet with the client and client’s CPA. This will impress both of them and add another CPA to your list of potential referrers.
e. Triple-check your work. Quality pays. Check as many times as you need to (plus a few extra times) to make sure things balance and that you have support for all balances. Do a mini-audit before you submit work.
5. When to bill by the job v. by the hour. Avoid a flat fee until you work for a client for a few months. The less experienced you are, the greater the margin of error. Open-ended commitments lead to too many hours for too little money. Find out: How long will it take you to get the client’s information? How neat and up to date are its books? How neat does the client expect your work to be?
When new clients insist on a set fee, agree on a trial basis (two or three months). Then re-evaluate. Estimate on the high side: It’s easier to reduce a fee than to raise it. To “lock in” prospects, accept the fee they paid their last bookkeeper.
If they question your fees, explain: “These are the kinds of businesses I work for, and my usual fees.” Point out any differences: “I do everything for them and I don’t know if you will want me to do all that for you. For instance, I have a distributor and a store that both have a part-time bookkeeper; you have none.”
A letter of agreement helps in flat-fee arrangements. Exception: mom and pop firms. They are intimidated by “contracts.” If the prospect is very small, have a low-key, friendly, but thorough discussion to explain what you will and will not do.
It takes time to learn when to give extra service, and when you are being used. Until you are sure, give extra. If clients need you to answer the phone, offer to. If they normally drop off and pick up work, offer to do it if they are too busy.
When you know clients are taking advantage, don’t give an inch—let them know right away that you have rules. “I really don’t work that way—let me show you how I do it.” If this doesn’t help, let them go.
