Becoming an employee rather than freelance - WWYD? Negotiation advice needed.

[freelanceconundrum]

I live overseas in a tax haven and freelance for 300y a day (example). Full time employees here usually get benefits to cover housing and flights too but i cost that into my pricing.

My latest project is developing behind the scenes before i have started. We agreed 300y a day, 3 days a week. So 3600 a month, initially for 3 - 6 months.

They have just offered a full time contract instead of 2500y a month because of local redtape issues, but of that my rate is 110 a day with benefits of 100. So salary is officially low. In terms of future negotiations, this leaves me at a bad starting point. However, the job is really interesting.

I'm not sure how far to push back. Added to the mix another agency just called to say there is a full time project until May, starting on Monday and they were very keen too.

Would you negotiate, what would you say? Would you mention the other role for example?

BTW an agency would charge a client 10,000 a day for this service!

It is (as you know) usual for a permanent employee's 'day rate' to be significantly lower than a freelance. So my guess is they can't afford a freelance, need the skills to do the job so have decided to make it a perm post in the hope of getting the skills they need at a lower cost. That's a sound business decision for them - but not for you!

So you either negotiate it up to a better level - as any perm employee would do on starting a new job, or you say no. The fact you've another opportunity coming along is a great negotiating tool for you, so I'd use it. Even though you've been involved in the early discussions, you're not obliged to take the role, especially as they've now changed the goalposts by making it perm.

Thanks. I used it. Short term contract agreed as the client likes me. Decided to have the conversation and said that a rolling daily rate was advantageous to me and a permanent role was advantageous to them, surely there was a way to meet in the middle. Still waiting for the new rate though!