Working for middlemen clients can be a lucrative thing for freelance commercial writers. This is when you work for a company like an agency on projects for their own clients. They bring you an often-steady stream of work, and you get to work on projects for different end-clients without seeking them out yourself.
This kind of work might be convenient and even time-saving when you have one middleman client running point. But does that mean you should discount your regular rate for them? That’s what one freelance commercial writer wanted to know in this Mailbag entry.
Should Freelance Writers Discount Rates for Middlemen Clients?
One of my clients is a print broker with his own writers, designers, and pre-press people, who is happy to give me work when his in-house staff is too busy. My dad (in the retail business) suggested I might offer a different rate for someone like that because a middleman like this will be able to give me access to far more clients than I would be able to meet on my own. He compared it to his shop getting a discounted price from a manufacturer because he’s a reseller and they know he’ll buy a lot more product than a regular customer.
I understand what he’s saying, but I’m not sure the analogy holds in our business. I mean, wouldn’t I rather have a few jobs at $75/hour than a lot of jobs at $25/hour or less? My goal is not to “fill up my time.” My goal is to get enough good jobs so that my time doesn’t have to be that full! What’s your take? Isn’t it better to deal with “middlemen” because you can charge your regular hourly rate, and they pass those costs along to the customer?
Peter Bowerman on Discounting Fees for Middlemen Clients
You’re right, the analogy isn’t quite the same, but there’s a grain of validity in his assertion.
For starters, who says a middleman client can give you access to far more clients than you’d be able to meet on my own? Not true. You can pursue end-user clients all day long. More importantly, in our business, middlemen clients don’t need writers in most of the business they generate for themselves.
Now, while I don’t charge less to middlemen, but many freelancers do charge a bit less because that middleman is marking them up to the end client and the MM doesn’t want to price themselves out of the market.
But one-third? ($25 vs. $75) Not a chance in the world.
Maybe $65 vs. $75 or at most $60, but I wouldn’t offer unless they ask (and by ask, I don’t mean, “Do you have a different rate for MM?” to which you should say no. But more like, “Would you discount your rate a bit for us if we can turn you on to steady work?” Then you can talk about it.
Minus a contract, no one can truly promise you steady work, but if someone is, and you don’t have to do anything to get it, then maybe that is worth a financial concession.
It’s a very similar dynamic to the one that occurs when a commercial freelancer takes on writing subcontractors. They pay the sub less, then charge the client their normal rate, and pocket the difference. That sub is thrilled to get the work without having to hunt for it, and as such, is delighted to charge far less than their boss is making.
Just know that, like most things in our business, there are no hard and fast rules about it. Go with your gut. If you feel you’re going to lose the deal if you don’t, then do what you have to do.
Jennifer Mattern on Discount Rates for Middlemen Clients
It sounds like your head’s in the right place. Too many freelancers have a more-more-more mentality when it comes to landing clients. But that’s not a great way to run a freelance business.
You have a limited number of hours you can devote to client work. It doesn’t take that many good clients to fill a schedule while still offering some security through diversity (not overcommitting to too few clients where losing one would lead to financial hardship).
Your goal is more in line with the “work smarter, not harder” approach. It’s about earning more in less time rather than constantly trying to book more hours.
What’s the point of that? I’d much rather reach my financial goals while working fewer hours, leaving me more time for friends and family, personal projects, and hobbies. And it sounds like you’re of a similar mindset.
Peter noted the similarity to a freelancer hiring a subcontractor. And he’s absolutely right. But whether or not that applies to you working with middlemen clients depends on things like your experience level and any additional value you bring to the table.
If I were to hire a subcontractor, it would likely be a much less-experienced one. So they wouldn’t expect to be paid the same rate I charge the end-client. It’s still ultimately my experience and specialized expertise the client is paying for, and they get that in an editorial capacity (hypothetically; because I market based on that personal specialized experience, I don’t hire subcontractors for client projects).
In this case, if you were a new or generalist writer and the expertise comes more on the middleman client’s side, it might be reasonable to accept slightly lower fees if you need more consistent work or more diverse samples. But if you’re highly-experienced or being hired for your subject matter expertise, I would absolutely not offer discounted rates. It’s up to the middleman client to sell your work at a premium, not up to you to cut your rates.
Peter mentioned contracts, and that’s also important. Don’t take vague promises of “regular work” into account. They mean nothing. But if you’re offered contracted guarantees (like a retainer rate guaranteed minimum even if they don’t need you for all of those hours every month), it might be worth considering.
I understand why newer freelancers especially feel like they should offer discounts to middlemen clients. It sounds good in theory, that the quantity of work will make up for the difference in rates. But what they often forget is that working with fewer clients is risky. And middlemen clients are asking you to take on the bulk of that risk — lose them, and you lose all that regular work as opposed to losing a one-off client who fills less of your schedule. And you’re expected to take on that added risk often with no guarantees and for less than you’ve already decided your work is worth.
No thanks.
Definitely do what feels right to you. It sounds like your gut is leading you in a particular direction already. And if you’re not in a desperate situation, I’d say “trust it.”
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