Knowing your worth

If you have read this article, it will be easier for you to know for yourself what you are worth in relation to a client. The tips we describe, based on information we received from the Kunstenbond, will help you determine your rate. For many self-employed people, this is still a difficult task. This is because, for example, the assignments you carry out often differ from one another, the cultural sector is a world in which rates can differ from those in other sectors and because, as a self-employed person, you take more variables into account than when you are, for example, an employee.

Convince yourself of your worth

It is very important that you convince yourself of your own worth because that way you start with a solid foundation. This is quite exciting for many people because you can have all sorts of thoughts to the contrary. It may be that you are very good at convincing a (potential) client of your idea, methods and the quality of your work, but that you clam up when it comes to money. You fear that you are aiming too high, that your relationship will take a dent when you ask for money, or you are afraid to say "no" when there is too little budget available. Let go of all those thoughts immediately because fear is not a good counselor in this regard. If you look at the situation without too much emotion and in a businesslike manner, you will be convinced soon enough that it is not at all crazy to make certain amounts of money. In any case, realize that an assignment for you is also just work, from which you have to pay rent and your living.

Consider the bigger picture

It can get you a long way down the road to write down an entrepreneurial or business plan (general) or a project plan or plan of action (for a specific assignment). Then list the following to help you understand your plans, costs and methods of operation.

• Who are you and what experience and knowledge do you have (curriculum vitae)?
• What is your idea and what are you offering?
• At what price do you want to do that?
• What does the market look like (the SWOT analysis)?
• How do you organize your business legally and practically?
• How much money is needed and how do you arrange it (think operating budget and cash flows)?
• Create plans and budgets by project and by (sub)stage.

In this context, it is also good to discuss your situation with others to gain insight into their practices as well as to convince yourself of your own abilities. Follow the steps below to get you started in the process toward the client.

Step 1 - time is money

- Work you never have to do for free, even if it is for "friends. After all, you can only spend your time once.

• If you do something as a favor to a friend, don't ask for anything in return to keep the expectations and relationship pure.
• Always keep track of your hours, whether through an app or your calendar or not. You do this anyway for tax purposes, but it also gives yourself insight into the time you spend on a project.
• You often make more hours in addition to actually doing content. Therefore, also look at the time you spend on preparation, consultation, travel, aftercare, administration and the like.
• Also chart your hourly rate for a fixed or project fee. Divide the total amount by the number of hours you spend on it. Always mention that to the client as well.
• If your client has a lower budget, don't say yes (or no) right away, but see how you can curtail your work to still reach agreements. "For that amount of money, I can do this, but not that."

Step 2 - substantiate why you are worth the fee

If you have identified for yourself what the actual costs you are incurring are then this can help you in convincing the client.

• Always substantiate how you arrived at something because this will help you frame your arguments and lead to faster understanding from the client.
• Always think of it as a business transaction and don't be ashamed of it. After all, time is money and work makes money.
• Tip: Put your desired net income at the top. Determine what you want to have left over to live on, i.e., what do you need?
• In addition to project costs, include your fixed costs. Running a business simply costs money. Consider costs for rent, insurance, reservations for illness, disability, retirement and vacation pay.
• Include remittances to the Internal Revenue Service.
• Use knowledge from the field including applicable collective bargaining agreements in your profession.

If you use the Arts Union' s fee checker you include all of these things.

Step 3 - vary rates

Not all assignments are the same and not every client has the same budget. That's why it's good to learn to vary your rate. The tips and principles below will help you do that, in addition to sometimes just going lower because you enjoy doing the assignment.

• Try to find out the client's budget and financial clout.
• Determine whether the client is private, commercial or non-profit.
• See if the assignment is high risk in some ways or not.
• Is it your first time working together or is it a follow-up assignment? Also look ahead to see if it could lead to more assignments in the future.
• Is it standard or custom for you, and do you have to deal with a lot of aftercare or extra service around the project?
• Are you the only one who can offer this or do you have a lot of competition (in a certain area)?

Step 4 - discounting

Discounting is much more fun to communicate than a rate increase. Don't be too easy about this, however, and include the following so you don't sell yourself short.

• Don't just discount but always substantiate why you are doing so.
• Always tell the client that you are discounting because that makes it clear to them as well.
• Always make discounts visible on the invoice.

Step 5 - negotiate

Actually negotiating is easier for some than others. You probably already feel more confident when you have gone through the steps above. Here are some more tips that can help you in negotiating.

• Show initiative and dare to come up with a proposal.
• Have several amounts in mind, for example, the amount you would most like to receive, a target amount that you are also very happy with, and a minimum amount (breaking even with a small profit, for example).
• Also, dare to say no if you can't figure it out.
• An amount can quickly seem very high, but when you look at what costs you incur and how much time you spend on it, it is often realistic.
• Practice negotiating in front of the mirror or with others. This really works!
• Even if you have a friendly relationship with a client, it is not at all bad to be businesslike.

Setting appointments

Always lay down the agreements made (including the work, the compensation in return, the duration and practical matters and preconditions). A contract is very good but it can also be less formal. Even if you make verbal agreements, it is good to confirm this by e-mail. You can also use the now widely used model agreements.

Shoe, fun and prestige

Finally, we'll give you one more tip. When in doubt about whether to take on an assignment or not, it is interesting to ask yourself if it is balanced for you. Look at the '3 p's':

• Poen: Does it make enough money?
• Pleasure: do you derive pleasure and satisfaction from it?
• Prestige: For example, does it look good on your resume or can you include it in your portfolio?

If that is balanced then it is easier to say yes. Of course it depends on your feelings but if you can put a check mark on two of the three points then you do have a good indication.

Disclaimer

For this article, we drew on the knowledge and expertise of Peter van den Bunder who is an advocate for the visual arts & self-employed at the Kunstenbond. The Kunstenbond provides advice in the form of workshops, among other things. If you are a member of the Kunstenbond, you can also request a personal consultation. Elsewhere on this website we have written another article related to this topic. There you will find other tools besides the Kunstenbond's rate checker, including by specific professions in the cultural sector.

If, from your expertise, you yourself have knowledge that would fit this topic, or if you see opportunities to improve this text, we look forward to receiving your message at info@cultuuracademy.nl.