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These are all excellent and were all things that I practiced/discovered in my consulting days. The only thing I would add is: Never reduce your hourly rate fo

These are all excellent and were all things that I practiced/discovered in my consulting days. The only thing I would add is: Never reduce your hourly rate for any client. For repeat clients they will expect that rate again. Many of your clients may know each other. They talk to each other and soon many of them will be asking why you can't give them a discount. You can offer discounts in exchange for an action (like quick payment mentioned above). Never devalue your time.

jaden 7y ago
+1 - I gave a reduced rate to a client who was tight on funds as a favor. They began referring friends (thinking they were returning the favor) but the new clients had the expectation of low cost. Clients attracted by low rates are rarely the kind you want to attract.
enobrev 7y ago
I generally agree, although whenever a rate is reduced for any reason, it should be stated out loud and in writing and on every invoice with a clear end date or specification for the reduction. Never let the special deal be forgotten as anything other than a special deal and after the deal is up, raise your rates back to normal without hesitation or apology.
- toomuchtodo 7y ago
  Never reduce your rate. Always make it clear on the invoice what your rate is, and apply a clearly explained discount to the invoice. Discounts are temporary, rates are sticky.
- neltnerb 7y ago
  Just offer to help them scope something you can do within their budget, and maybe it involves training them to do it themselves. Or just a better (simpler) design anyway with better milestones and focus on deliverable prototypes.
speedplane 7y ago
> The only thing I would add is: Never reduce your hourly rate for any client. ... Never devalue your time. I generally agree with this, but there are some exceptions: 1. For large, repeat clients that have demonstrated loyalty, it's okay to offer a modest discount, no more than 10%. You still cite your rack rate on the invoice, but at the end add a "Loyalty Discount" so they know they are getting this discount for a reason. 2. While you should not reduce your rate, it can be okay to write off your time. If it takes you 20 hours to do something, but you're afraid the client will balk at the bill and run away, rather than lowering your rate, invoice them for 10 hours, or whatever seems reasonable. 3. When you're just starting out, and have limited understanding of the value of your skills compared to the competition, you may not know what your rate should be. In these cases, you may want to consider flat rate arrangements.
- maratd 7y ago
  > While you should not reduce your rate, it can be okay to write off your time. Strongly disagree. This is a failure of communication. If you're billing by the hour, your client should have a general idea of how long something will take. A lower bound and an upper bound. Time-box all tasks. As soon as you know you're going to break through the upper bound, stop work, inform the client, provide a new estimate, and let them make the call. Eating the difference defeats the purpose of working hourly. > you may not know what your rate should be. In these cases, you may want to consider flat rate arrangements. Disagree with this as well. If you don't know what your rate should be, how can you name a flat rate? You should know what your competition is asking for and ask for slightly more, because you're better.
  - speedplane 7y ago
    > If you're billing by the hour, your client should have a general idea of how long something will take. A lower bound and an upper bound. Time-box all tasks. In a world with perfect information, you'd be right. Unfortunately, people have to make decisions with incomplete and potentially misleading information all the time. Demanding perfect time-boxing ahead of time is a recipe for disaster.

jaden 7y ago

+1 - I gave a reduced rate to a client who was tight on funds as a favor. They began referring friends (thinking they were returning the favor) but the new clients had the expectation of low cost. Clients attracted by low rates are rarely the kind you want to attract.

enobrev 7y ago

I generally agree, although whenever a rate is reduced for any reason, it should be stated out loud and in writing and on every invoice with a clear end date or specification for the reduction. Never let the special deal be forgotten as anything other than a special deal and after the deal is up, raise your rates back to normal without hesitation or apology.

toomuchtodo 7y ago
Never reduce your rate. Always make it clear on the invoice what your rate is, and apply a clearly explained discount to the invoice. Discounts are temporary, rates are sticky.
neltnerb 7y ago
Just offer to help them scope something you can do within their budget, and maybe it involves training them to do it themselves. Or just a better (simpler) design anyway with better milestones and focus on deliverable prototypes.

speedplane 7y ago

> The only thing I would add is: Never reduce your hourly rate for any client. ... Never devalue your time. I generally agree with this, but there are some exceptions: 1. For large, repeat clients that have demonstrated loyalty, it's okay to offer a modest discount, no more than 10%. You still cite your rack rate on the invoice, but at the end add a "Loyalty Discount" so they know they are getting this discount for a reason. 2. While you should not reduce your rate, it can be okay to write off your time. If it takes you 20 hours to do something, but you're afraid the client will balk at the bill and run away, rather than lowering your rate, invoice them for 10 hours, or whatever seems reasonable. 3. When you're just starting out, and have limited understanding of the value of your skills compared to the competition, you may not know what your rate should be. In these cases, you may want to consider flat rate arrangements.

maratd 7y ago
> While you should not reduce your rate, it can be okay to write off your time. Strongly disagree. This is a failure of communication. If you're billing by the hour, your client should have a general idea of how long something will take. A lower bound and an upper bound. Time-box all tasks. As soon as you know you're going to break through the upper bound, stop work, inform the client, provide a new estimate, and let them make the call. Eating the difference defeats the purpose of working hourly. > you may not know what your rate should be. In these cases, you may want to consider flat rate arrangements. Disagree with this as well. If you don't know what your rate should be, how can you name a flat rate? You should know what your competition is asking for and ask for slightly more, because you're better.
- speedplane 7y ago
  > If you're billing by the hour, your client should have a general idea of how long something will take. A lower bound and an upper bound. Time-box all tasks. In a world with perfect information, you'd be right. Unfortunately, people have to make decisions with incomplete and potentially misleading information all the time. Demanding perfect time-boxing ahead of time is a recipe for disaster.