|
INCOME / FEES Why Not Charge What You're Worth? 10 Myths About Low Voice Over Fees
 By Paul StrikwerdaVoice Actor "It’s not the crook we fear in modern business; rather, it's the honest guy who doesn't know what he is doing." - Owen YoungThe lines have been drawn. The time to mince words is over. Every day, our community seems to get more polarized around the issue of low rates. Listen to
the buzz. Look at the chatter. Do you think this bubble is about to burst? ANGRY AND FRUSTRATED Some
people are past being polite. They're frustrated and angry. I like that. If
you're pissed off at something, it means you give a damn and you want things to
change. Some of
my voice over friends are a bit more diplomatic. Recently, I asked a few
Facebook buddies a loaded question:
"Is charging low rates a sign of fear and lack of confidence, or just a smart strategy to attract more business?" Here are
some of the responses:
"I believe it's mostly the influx of part-timers and hobbyists to VO that drive down rates. They simply don't depend upon the income to pay their bills. Anyone who has to depend on this work to feed, house and clothe themselves (not to mention a family) could never survive charging such low rates. To them, it's pocket money. And in some parts of the country the cost of living is much lower than in others, so those fewer dollars go further." - Diane Havens THE ALTERNATIVE VIEW Not everyone agrees. Of course, most
colleagues would rather do a well-paid job than a low-budget project, but they
say there's no shame in accepting work in the first place.
"Do low rates ruin it for the rest of us? No, they don't. They really, really don't. They mop up low-budget work that others don't want. If they didn't provide that service, the money would simply be spent elsewhere, such as print." - Phil Sayer THIS IS WHAT I THINK Even
though we're talking about voice over services, you'll find the same type of
reasoning when other freelance rates are discussed. Here we go ... 10 MYTHS ABOUT CHARGING LOW RATES 1. There will always be a high end and a
low end of the market. Accept it and move on. That's a given, and it's not addressing the
real issue. We all know that there's a market for KIA and Roll-Royce. The point
is: How low is the KIA dealer willing to go to make a sale? Is he prepared to
sell his cars at a loss, just to get his business going? How long can he keep
that up before he goes bankrupt? It's not a way to get loyal customers either.
Next time, they'll just buy from someone who's willing to go even lower. Bottom line: You need to cover your costs
and then factor in a profit. But once you get clients hooked on cheap
prices, they will never pay full price again. 2. You may lose money on every sale, but
you'll make it up in volume. That's like buying melons for a dollar
each, and then selling 12 for 10 bucks. Does that make any sense? No matter how
many KIAs a dealer sells, if he sells them below cost, he's not making any money. A small business owner once said: "Sales numbers feed egos, profits
feed families." It's not how much you sell, but how much
you keep that matters. Business is a game of margins, not volume. Bargain
airlines tried making money on volume. Guess what? They're gone. To paraphrase
Terry Daniel: Would you rather do less for more, or more for less? 3. Purchase decisions are primarily based
on price. If that were the case, Mr. Client, I will
send you your order in two years, okay? I'll also make sure that it will fall
apart in two weeks, and you won't be getting your money back. Don't bother
calling me, because I just closed our customer service department. Most people do not buy on price alone.
They will talk about price, but what they really mean is that you haven't
offered enough value to justify paying the price you're asking. There's this cartoon with a picture of a
brother and sister each with their own lemonade stand side by side. The
brother's lemonade stand reads: "Lemonade 25 cents." The sister's
lemonade stand reads: "Lemonade 50 cents (clean water)." Do you want your service to be known for
being the cheapest on the market or for high quality? Competing on price is a
losing battle. The key is adding value. If you don't
offer exceptional value, then your product or service becomes just another
commodity. Value
means offering more for a higher price. 4. Price does not influence the perception
of a product. If that were the case, why are people
prepared to pay thousands of dollars for a Rolex, instead of buying a $50
Seiko? Most watchmakers agree that the Seiko is the better time piece. Let's talk about brain surgery. Why don't
people go to the cheapest surgeon in the area? Because low prices make people
think he isn't any good.
Price makes a statement: Cheap = cheap What does your rate tell the world about what you think you're worth? 5. Some clients just can't afford paying
higher rates. I can't change that.
How do you know they can't pay you a better rate? Buyers lie in order to get you to lower your price. It's the oldest trick in the book. If they could get it from someone else at a better price, why are they still talking to you? Stop making excuses for those who don't
respect you enough to pay you a decent fee. Unless you've seen their balance
sheet, you don't know what they can or cannot afford. Know your bottom line.
Add value.
Don't compromise so easily. Negotiate.
Dare to say "NO" to a bad deal. Study the art of making the sale. It's part of being a pro. 6. I don't set the rates. The market does. So, what you're saying is that you don't
take responsibility for your prices? They are forced upon you at gunpoint?
You're just a helpless leaf in the wind? Let me put it bluntly: The market
doesn't determine your price. Your client doesn't set your fee. You do.
It's just very convenient to tell the world that you don't have any influence
over your rate. If you can't control it, you can't change it. You're a victim
of circumstance. End of story. Now go feel sorry for yourself.
Price-cutting is a self-inflicted wound. Alternative: Look at union rates and make those the basis of your pricing structure.Or talk to an agent. If you're any
good, she might want to represent you. She'll fight for a decent rate because
if you do well, she will do well. 7. I'm not a sales person. I'm an artist. I
don't know how to negotiate. No, you're a wimp and you need a firm kick
in the pants. Nobody is forcing you to be a full-time freelancer. But if you
tell the world you are doing this to make a living, it automatically means that
you're the head of the sales department, whether you like it or not. Any idiot can cave in at the first sign of
buyer resistance and offer a price cut. That's not selling. That's being lazy
and fearful. It's a sign that you don't believe in the value of your product or
service. Clients always pick up on that and it will cost you dearly. The way I see it, you have two choices.
You either learn the rules and become good at playing the game, or you stay out
of it. Remember: experience is the slowest teacher. 8. Low-end rates do not affect high-end
rates. If that were the case, why aren't rates
going up, instead of down? Why have so many auditions turned into a bidding
war? Actor, writer and producer J.S. Gilbert said:
"While it's not being broadcast, I'm seeing people I know who have made six figure-plus incomes at voice over for years now, looking at incomes that are fractions of what they were a few years ago." I understand that we'll never get back to
the golden days of Don LaFontaine and his limo. Thanks to the Internet, the
rise in home studios and online job boards, clients no longer have to book
union talent at union rates through an agent. Talk has become a lot cheaper.
As Gilbert notes, "A job that used to cost the client $1,000 is now offered at
$250. But why pay $250 if some fool is willing to do it for $25?" 9. But I'm just getting started. I can't
possibly ask full price. Some beginners admitted to me that they've
offered their services for free, just to be able to build a portfolio. Mind
you, they were not talking about doing stuff for charity. I think a freebie only makes sense if you
have something else to sell. That's why a baker hands out samples, and that's
why my custom demos are free of charge. But if you're giving $500 worth
of services away for free, you're not only creating expectations, you're in
fact saying: This is what I think my work is worth. Meanwhile, you're robbing a colleague of the chance to make five hundred bucks. 10. I don't need to make a full-time
income. It's only a hobby. If it's only a hobby, why are you
advertising yourself as a voice over professional? I play the piano, but I don't
market myself as a concert pianist. If you enjoy reading to other people, go
volunteer at your local children's hospital or elder care facility. You will
probably get more appreciation for doing this, than for anything you've ever
done before. Most talent I know are only freelancing
part time because they're still building what they hope will become a
full-time business. A part-time teacher only gets paid less because she puts in
fewer hours. Does a part-time cab driver fix the meter so he can drive you around
at half-price? So, why should you offer your services at bottom dollar? BE A BREADWINNER This is not about shameless greed or about
becoming filthy rich and famous. This is about being able to provide for your
family, being able to send your kids to college and save some money for a rainy
day. Your voice could help sell millions of
dollars worth of product. It can introduce people to brilliant books that
enrich their lives. Your voice can be the voice of a mentor, teaching valuable
skills to e-learners across the globe. Your voice can inform, entertain, sell
and assist. Surely, that must be worth something?
However, those who can't build
value, have nothing left but to compete on price. ---------------------------------------  ABOUT PAULPaul Strikwerda is a 25-year veteran of the voice over industry whose Nethervoice service features German and Dutch voice overs, translation and evaluation services. Born in Holland, he has worked for Dutch national and international radio, the BBC and American Public Radio. Although 90% of his work is in English, Strikwerda also records in Dutch, German and French. Clients include Novartis, Johnson & Johnson, and the Discovery Channel. He also publishes an informative and entertaining blog, Double Dutch. Email: paul@nethervoice.com Web: www.nethervoice.comDouble Dutch Blog: www.nethervoice.com/nethervoice |
|
|
I agree with David: there are many aspects to this issue and they can't all be dealt with in one article. As you know, there's much more to explore on my blog and on VoiceOverXtra. I believe I have written at least 20 articles about voice-overs, freelancing and money.
Have I been "moaning" about losing jobs to lowballers? Was writing the above story a waste of time and should I be focusing on drumming up new business instead?
Well, writing is sort of a hobby of mine. It's physically impossible for me to talk for hours on end, and writing my blog is a nice break from doing voice-overs. Secondly, it's also about giving back.
When I started in this business, countless people gave me valuable advice, and they are in part responsible for where I am today. Reader feedback tells me that my articles are appreciated and considered to be helpful. Educated freelancers make better decisions that can benefit our group as a whole.
Lastly, I'm all for maximizing my income. In order to do that, people have to know where to find me before they can book me. My blog and these articles on VoiceOverXtra have driven traffic to my website in a way I could never have imagined.
Thanks to these articles, colleagues pass my name on to their clients who are looking for an international voice. Producers and agents have stumbled upon my stories and ended up hiring me for a VO project. I have turned some of my blog series into eBooks. Not only do I get passive income from that, I was also able to invest part of the profits giving micro loans to deserving entrepreneurs in Third World countries.
Every week I am in touch with colleagues from all over the world who have read my blog. They enrich my life in ways that go far beyond making money.
Marketing is a must, and that's precisely one of the reasons why I keep on using my pen to attract business. As long as there's still music in me, I will keep on singing!
Fantastic article! It should be required reading for every VO artist out there. Thanks so much for sharing your insightful perspective.
What a great article! And SUCH an important topic for anyone doing voice-overs, whether you’re full-time or part-time. And I really appreciate your balanced assessment of the whole situation. And I love Terry Daniel’s comment too. Very true!
I appreciate that we’re all in this biz for different reasons. And there are many voice actors who feel that by lowering their rates they’ll somehow make more money.
Here’s my take on this subject:
The LOWER your fees are, the less clients will value you, the harder they’ll be to work with, and the more difficult they’ll be to obtain payment from.
The HIGHER your fees are, the more clients will value you, the easier they’ll be to work with, and the more quickly and efficiently they’ll pay you.
Or look at it this way – who would you prefer to work with?
Ten different clients, who pay you $50 each for projects that are poorly planned, entail difficult and sporadic communication, and who take 90 days to pay you.
One client, who pays you $500 for a well-planned project, whose communication is efficient and professional, and who pays you in advance.
And I wholeheartedly agree with you that if someone’s starting out in the biz, using the SAG-AFTRA union rates as a starting point when setting your (non-union) fees is a great way to go.
The Pay 2 Play sites have opened things up to everyone and they have driven rates much lower. But they've also allowed a lot of folks to get into the business who would never have otherwise landed a single client.
Just a few days ago I spoke with a friend who booked a job on one of the big 2. It paid her $650. The allotted budget range was $750-1000. So yes, she underbid. She drove the rate down. But she still made a tidy sum for her 3 hours work (including editing) and she's convinced that if she'd bid $800, the job would have been awarded to someone else.
This is a competitive business and we must each decide for ourselves what we're prepared to do to put food on the table. The biggest myth of all is that we're not in competition with each other. Fact is that we have to do what it takes to win a contract. When we moan about losing jobs to folks who undercut our bids, all we're doing is wasting time we could be using to search out more work!
Happy holidays!