The freelancer and contractor sectors constitute of a contingent workforce that continue to grow all over the world. Many people who decide to be self-employed or take jobs on a contractual basis have no fixed monthly salary waiting for them. While that may worry some, contractors have the liberty of negotiating the prices and get the best deals—and payments.

As a contractor, you want to maximize your returns when working on a project without overwhelming your client with extravagant quotes. That makes it tricky for many contractors to negotiate the best deal that will leave them, and the client, satisfied.

Below is a useful guide to help you learn the knack for negotiating contract deals.

Do Your Homework

Before embarking on negotiations, research the various aspects of the job and the best means of executing it. Learn more about your client to understand how they pay on average. For example, a marketing contractor like CommCreative, Incify, etc. must review the client’s website, the blog section, and other press releases. Such insights enable you to learn more about the client, which helps you do a better job.

Your discoveries during your research also help you to gauge your skills with the job description detailed in the contract. You may find out that your current skills are not up to the standard required for the role, or you are over-qualified for the job. Regardless, it would be best if you went in prepared. It enables you to discuss what you can achieve with your client and what you cannot, which helps you reach a consensus about payment rates.

Know Your Worth

Many contractors and freelancers shy off from bringing up the topic of price because of its high sensitivity. However, it is critical to understand your worth before beginning the negotiation process with your prospective client. Therefore, assess your skills, noting any stand-alone talents you possess and the years of experience in the industry.

Having that understanding is key when marketing yourself and the services you offer. It also gives you the confidence to ask for a specific quote on the project. You need to understand that the client chose you because they believe that you are the right person for the job, and knowing your worth can help you negotiate the best deals.

Don’t Oblige to Everything

One habit that most contractors have [and one that makes them lose dollars when negotiating prices] is agreeing easily. Most of them resort to that because they either don’t know their worth or lack confidence in their skills. Once a client knows your inclination to say “yes,” they may push you to the limit by making extra requests. In case you compromise on an essential aspect of the contract, ensure you get something in return. Besides, a negotiation process should result in a win-win situation.

Have the Right Negotiation Approach

Money matters can make one uncomfortable, yet it is something that you cannot get around, especially when you are working as a contractor. The approach to the negotiation will depend on several factors.

Working with an Agency

When partnering with a contracting agency, the first thing you want to do is to contact them. The chances are that they are seasoned in handling negotiation processes, which means you need to come fully prepared. Take time to compile your portfolio and answer to why you are worth your asking price. It would help if you had the power to convince the client that your skills match the quote.

Working with a Direct Client

Imagine working on a contract directly with a supplier of ink and toner cartridges like HP, YoYoInk, etc; you need to do more planning and preparation because direct clients are often selective and won’t settle for a quote they feel is not worth it. One thing with direct clients is that negotiations take place face-to-face. It would be helpful if you professionally prepared your proposal and back it up with evidence.

Whether you deal with an agency or a direct client, your proposal document should contain the following:

1. Your Current Contract and Work History

This is a critical part of the proposal. At this point, you need to provide the client with pictures of your current project. Include the current rate, the project timeline, your position, and the price you desire. Remember, you need to support your rate-request with research and facts.

2. Maintain Professionalism

Don’t ruin your relationship with a prospective client just because your negotiation’s outcome was not as expected. You never know when you’ll want to work with such a client in the future.

3. Rate-Review Date

Sometimes your negotiations may not be successful on the first attempt. Still, you can indicate the date that you’d wish the rates reviewed. That makes the client aware that they are an expendable commodity in the contractor and freelancer industries.

Perry Mccormick holds a Journalism degree. He got over three years of experience in article and content writing. He is skilled in SEO writing, website copy, and eBooks.

Contractor stock photo by G-Stock Studio/Shutterstock