Rehearsing an argument here -- do I sound reasonable?

[FriendlyLadybird]

I have been freelancing for many years. Over the past five years or so it's been a bit up and down but I'm still hanging in there and have got quite a lot of work on at the moment.

I have recently teamed up a bit with a friend who does something different but complementary. We both have approximately the same basic day rate.

He increasingly wants to add me in to his company's 'offering' which is fine and interesting for me as he has a subtly different client base. He also wants to make some money on me, as it were. I've done this before when working for an agency I charge them my day rate; they charge the client 1.8 x my day rate. But my friend is suggesting that I drop my day rate and he collects the difference from the client.

Fair enough, he's doing the work in getting these clients, but I'm adding value to his offering, aren't I? So it's reasonable that I should charge him my day rate, and he can mark it up when billing the client, isn't it? Otherwise it feels as if I'm paying him commission to get me work, which isn't the case. Possibly he's dug himself into a hole with one client by quoting his company's day rate, so feels he can't charge more than that -- but it wouldn't be grasping of me to suggest that in future he charges a higher company day rate in order to allow for paying me what I charge everyone else (and what I'm worth)? I can be a bit flexible with my rate, but not for too many days or I end up not making enough money.

Yanbu!

You are absolutely right. Fine for him to add commission, but no reason you should work for less than you're worth. Good luck sorting it out.

Welllll I have a range of different rates for different clients. I do a lot of work for one particular agency and charge them a very reasonable rate - but I get tonnes of work off them and they pay up quickly so tbh I'm happy with that.

So I'm not saying you should work for less than you're worth, but if he's going to fill up days that would otherwise be empty or make a quantifiable difference to your number of days worked as opposed to empty, it's probably worth negotiating.

Think the issue is the similar day rates. I imagine he is going to find it difficult to 'sell' you to his client for £x+ when the client is used to paying x for his services? Depends how different your services are. If he is an accountant and you a lawyer then fair enough, but a copywriter and a social media person as an eg might be too similar?

It can be difficult presenting different rates to clients. I know that I have been aware of it in the opposite way when writing a VA into a proposal, I didn't want her very reasonable rates make mine look too expensive etc.

I guess it depends how much work he is doing for his cut/your reduction in rate - ie is promoting you equally as part of his biz dev activities or is just adding you into proposals etc. Also is he project managing your contribution or will you work directly for the client?

I am an Associate of an org and they do all the biz dev & project management, so I am happy to give them a cut. The day rate there is negotiated based on who the client is and how rich they are.

I think it needs to work for you in the long term, so you need to discuss the fact you need to make your standard day rate. So you need to discuss how can you both develop an offering a price that works for you both and for clients. It will pay to sort this out now.