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| © Hajime Nakano |
1. How much can this person afford?
There may be people who simply can’t afford your services,
but could really benefit from them. They may be turning to you as a last
resort and will most likely be really appreciative of your help. Others
are just looking for a deal or price break. Those who truly understand
how much of your time and effort will go into your “free” services, will gladly
pay you what your services are worth.
2. How well do you know each other?
Are you really friends or merely acquaintances? It
seems like everyone is looking to save a buck anywhere they can. We’re
living in a world fueled by discounts where we’ve been trained that “it doesn’t
hurt to ask.” Keep in mind that there are risks to discounting your
services. Firstly, discounts may become an expectation by the person who
has received it. If you don’t offer the discount the next time, they may
walk away wondering what they’ve done to offend you, feel hurt, and/or not
return for future business. Secondly, they may refer others to you by
saying “they’re so cheap!”; consequently, promoting your business at fees that
aren’t sustainable and not in line with product/service quality. Lastly,
once you do it for one friend or family member, how can you deny another?
How would others feel if they found out they didn’t receive a discount but
someone else did?
It’s best practice to share your regular rates with
everyone before you decide to discount. It’s even better practice
to charge your regular rates to everyone, but provide exceptional value to your
family and friends by putting in some extra effort on their projects or adding
in something special. If you choose to discount, don’t discount your
rate, rather charge less hours to get the appropriate revenue. That way
you will never negotiate rate and you’ll appear very efficient at product
delivery.
3. Do I have the time?
Your time is precious. Reality is that you can
always make more money, but you can’t make more time. Although offering
products for free eats away at your bottom line, offering your services for
free eats away at your free time, time that you may normally spend with your
family, friends, or other priorities. If you decide to provide free
services during working hours it takes away from your availability to make an
income. Although some may get great joy from volunteering for worthy
causes, it will not provide for the people who are counting on them for daily
survival or cover their overhead business costs. Some consultants work
this out by setting aside a certain number of hours for volunteer work each
month. When your services are requested for free, consider how much time
you have left in your schedule for pro-bono work. If you’ve used up all your
time this month you can refer them to another professional with some
availability, or tell them the realistic timeline of when you could get it
done.
4. Do I owe them one?
We’ve all been there; helping a friend move or assisting
them with some other daunting task, leaving you feeling that they “owe you
one.” Bartering or trading products/services with others is a great way
for both individuals to get what they’re looking for. It doesn’t have to
be business-related, it could be much simpler like housesitting while you’re on
vacation, babysitting, or dinner. Go with your instincts; if you feel
like you are both getting a good deal, then go with it. If you feel
you’re being taken advantage of then the deal is not worth the resentment that
could eat away at your relationship.
5. Do I really want this project?
Whenever a project is requested, you do have the right to
decline it - especially if it is something you wouldn’t particularly enjoy
doing or one that may give you a great big headache! In that case, it may
be best to respectfully decline the project and refer to another professional
that may be better suited.
6. Will this lead to other business?
Let’s face it, not all remuneration is monetary.
Many volunteer projects lead to amazing career opportunities. When
considering a project think about the extra benefits such as a great
recommendation from a respected individual, referrals for new paying
clients/customers, experience in a new area, an “I owe you”, etc.
When you receive a request to provide free services, your
initial response could be something like, “I’ll have to take a look at my
schedule and let you know if I have room for pro-bono work right now.” This
gives you an opportunity to think about the implications of accepting the work
or not and/or whether to offer a discount.
If you’re sure this project isn’t for you, Leslie Ayres of
the Resume Writers and Career Coaches LinkedIn Group suggests, “I wish I
could but my schedule is too busy to let me take on any more pro bono work
right now, sorry!” It would be helpful to then give them the number of
another trusted professional. Another response could be, “I wish I could,
but considering my overhead business costs I am unable to do this for
free. I can gladly extend you my ‘friends and family discount’.”
How do you feel about this topic? What do you charge
(or would you charge) your family and friends for your consulting services?
What other questions should be added to this framework?
