Q: 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 be 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?
A: 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.