For many freelancers, the traditional business practice of signing contracts for every job is a thing of the past. With many freelancers taking on one-off jobs and projects, a contract can be more of a series of emails than an official document.
Nevertheless, there are some cases where all freelancers will need to sign a contract, and it’s in these circumstances that knowing how to effectively negotiate a contract to ensure the terms are fair for all parties is essential.
Why Negotiating Work Contracts is So Important
If you’ve never had a contract as a freelancer before, you might be wondering why you need to bother with this before taking on a job.
Contracts are in place to protect your best interests as well as your employers. You should have a contract to:
- Clearly define the nature of the project and its terms
- Agree payment terms, deadlines, and a set number of revisions included in the fee
- Provide legal protection for both the client and for you
- Show that you are running a professional business practice (this is very important for higher-paying clients!)
A contract ensures that you are paid fairly for the work that you have been hired to do. Too many freelancers find themselves hired for one thing, and then have to jump through endless hoops to actually be paid.
Likewise, a contract ensures that the client knows what they are paying for, and ultimately, ensures both parties get a fair deal.
Here are our 5 must-have clauses in a contract that you need to have in mind for your contract negotiation.
How Should a Freelancer Negotiate a Contract?
Contract negotiation can be an intimidating process as a freelancer. You may be worried that you will lose the client if you do not agree to their terms, when in fact, negotiating is a natural course of any contract agreement.
Here are a few key things to remember when negotiating your own contract:
1) Have a Solid Idea of What You Want
If you are not sure of what terms you want out of a contract, you could end up selling yourself short.
Clearly define how much you are worth, what kind of deadlines you prefer working by, and be sure to think about smaller factors such as the number of revisions you are willing to include in your agreed rates before requesting a higher fee.
Knowing what you want – and what you are worth – puts you in a far better position to negotiate fairly but firmly with your client.
2) Prioritize the Things Most Important to You
It is a rare occasion when both parties get exactly what they want out of a contract. In most cases, you will both need to make some compromises within a contract.
For this reason, prioritizing the things that are most important to you is key when negotiating a contract. Are you more concerned about a set deadline or about the rate you have proposed?
A few things that you could negotiate and prioritize:
- Percentage in company results
- Further development
- Project / Hourly rate
- Late payments
- Long-term working relationships
Consider the thing you are not willing to negotiate on and accept that you may have to be flexible on other aspects of the job terms in order to be fair to your client.
3) Be Reasonable and Fair
We would all like it if clients paid us our highest rate and gave us the ultimate freedom to complete a job. However, we all know that this is not how the world works – and expecting clients to give us everything we ask for will often end in us having no clients at all!
Be reasonable in your negotiations, and consider what your client needs from you in return. If both sides act fairly and with one another’s perspectives in mind, you will be able to agree on a contract that suits both parties.
4) Remember: Communication is Key
A lot of contract negotiations are agreed via email, often over the course of several emails. While this is convenient for freelancers working from home or with no fixed location, it can also be incredibly easy for text-based communication to be taken the wrong way.
To avoid miscommunication, don’t be afraid to pick up the phone and talk to your client rather than allow email exchanges to continue to be read in the wrong way. Client communication is key.
5) Negotiating a Contract Isn’t About Winning or Losing
Don’t make the mistake of viewing contract negotiations as a ‘win’ or ‘lose’ affair. Putting a contract in place is purely there to protect both you and your client, and so finding a middle ground that suits both parties is the best approach.
The goal is to have a mutually beneficial contract in place that will allow you to start a trusting, reliable relationship with your client – and vice versa. This is the first step to building a long-term, trustworthy client for your freelance business.
Have you learned any important lessons while negotiating with your clients? Share some of the things you’ve learned in the comments below!
