Erik Sherman's WriterBiz

A spot about the business of writing as seen by a freelance writer. That includes marketing, sales, contracts, copyright, planning, research - in short, the business end of writing.

Name: Erik Sherman
Location: Massachusetts, United States

I'm an independent writer and photographer who covers business, food, technology, books, media, general features, and pretty much anything appealing that results in a signed check. My work has appeared in such places as the New York Times Magazine, Newsweek, Newsweek Japan, Fortune, Inc, Fortune Small Business, the Financial Times, Advertising Age, Saveur, US News & World Report, and Continental

Friday, July 27, 2007

Writer Rationalization

As human beings, we often try to make ourselves feel better about our choices - a process called rationalization. It's not an occasional activity, but constant. Virtually every time you buy something, you make an emotional decision and then come up with rational-sounding reasons for having chosen what you did, because we all like feeling as though we are in control. When we rationalize, we really make excuses so we don't have to face how we really act. Aesop's fable about the fox that couldn't reach the grapes and so decided they were probably sour anyway (source of the term "sour grapes") is a perfect example. And when we rationalize, we lock ourselves into behavior and decisions. That's fine if the choice is healthy, but dangerous when it's not.

If this happens constantly, you might expect that it also rears its head in business, and you'd be right. Writers often rationalize, for themselves and for colleagues, why the low pay they take is acceptable, or why they had to accept the punitive contract terms, or put up with poor treatment by a client.

There are times that a business decision makes sense, and other times that a choice is poor, and you don't want to face it more directly. For example, maybe the 50 cent a word assignment really is so easy that you effectively make $60/hour. But you need to look a bit deeper. Is $60/hour really that good for the work you are doing? Billable time for an independent practitioner often goes far higher on projects, and if you ever wanted to gross six figures, you'll need to be billing more like $75-$100/hour, depending on how many projects you can actually sell and complete. And your calculation presumes that you're accurate about the time you actually do spend, and people often grossly underestimate the figure.

But consider the possibility that the business analysis might also be an excuse to not break into better paying markets or to find more upscale clients. The contract terms might not be something that actually concern you, or you might be saying that because you're scared to try negotiating something better. Perhaps you are an XYZ-type of writer, or you could be scared of branching out into a new area and prefer the comfort of what you've always done. Maybe that editor really is that good to work for, so you take a lower rate, or it could be that you're focusing overly on wanting to be liked and that distracts your attention from improving your business.

No one else can give you the answers to such questions. It could be that in a cold business analysis, your reasoning is sound. Only be sure that you at least ask, and that you scrutinize your own answer. We are creatures who often lie, to ourselves more than to anyone else. And there's one person who gets hurt when we do.

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Thursday, July 26, 2007

Low-Balling Pricing is Bad Business

There are a lot of writers who take low-paying work. If you're one of them, know that it's killing you and your business - for no good reason. Here are some of the results of this business strategy:
  • You get caught in a trap. When you take low-paying business, it means you need to do more work to make what you need. That leaves you with even less time to do marketing and to pull yourself out of the hole.

  • It's the marketing of need. People who are willing to work for little send off vibes of being needy, because the client generally knows that what it's offering is less than the market might generally demand. If you're willing to take it, that must mean you are ripe for the picking.

  • You drive down the average. The more writers go for low pay, the more they help drive down average rates, and so actually create a condition for lower pay for everyone.

  • You miss the power of value. People and businesses buy things because they perceive that they want or need them. They want value for what they pay. When you charge low amounts, you say through the action that you don't offer much in the way of value. If you're talking to an entity that has a real need, there's a good chance that you'll lose the business to people who charge more, because they communicate that there's something of value to be had.

  • You feed low self-esteem. When you work for too little, you feel like crap. By taking more work at too low a rate, you only feel worse. That turns into self-pity (keep a look for it as it hovers near), which likes even more such experience. I once heard self-pity described as sitting in a tub of warm piss. Keep that in mind next time you're feeling sorry for yourself.
Getting out of this rut is easy - charge for the value you can deliver. If you can't deliver enough value, learn how to. I recently got a large chunk of corporate work that will pay very nicely over a month, without even being full time. I know there were three other people in the running, and I doubt I was the low-bidder. When they wanted a sample to compare to the other writers, I said sure - at my regular rates. And they agreed.

If you have respect for yourself, your abilities, and the value you can bring to someone, then you charge a reasonable amount. When you have true respect for yourself (not defensive attitude), then others start to as well. Remember the saying that the way to get respect is to earn it? This is the big first step.

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