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The business of working for yourself
Biz Wealth FocusThe business of working for yourself

Pricing

Being paid in exposure is being paid in a promise

Offers of visibility, future work or a recommendation instead of money are offers of something real, and the only questions are whether it can be valued and whether the person offering it controls it.

By Nikhil Bose3 min read

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The offer is not automatically ridiculous

Being asked to work for something other than money produces a strong reaction in most self-employed people, usually because they have been asked several times by people who had no intention of giving them anything at all. The reaction is understandable and it is not quite an analysis.

Non-monetary payment is a normal part of commerce. Businesses give discounts for a case study, do work at cost to enter a market, and take on a job because of who else will see it. What separates those from the version that wastes your year is not the absence of money. It is whether the thing being offered instead has been named, valued and made deliverable.

Ask what is being offered and who controls it

Exposure is not one thing. It might be a link, a mention, an introduction to a named person, permission to describe the work publicly, a photograph you may use, or a genuine promise to recommend you to a specific audience. Some of those are valuable. Several are worth nothing.

The decisive question is control. An introduction to somebody they actually know is within their gift and can be delivered next week. Being seen by a large audience is not within anybody’s gift, because attention is decided by the audience rather than by the person promising it. When the offer depends on things the offerer doesn’t control, what you are being given is a hope rather than a payment.

Future work as payment is credit extended to a stranger

The most common version is a reduced price now in return for more work later, and it deserves the same scrutiny as any other credit decision. You are handing over value today against a promise from somebody whose ability and intention to deliver you cannot verify.

Occasionally the promise is credible: an established buyer with an obvious ongoing need, who is proposing a trial rather than a favour. Frequently it is not, and the tell is vagueness about quantity and timing. A real commitment can be written down — this many units, by this date, at this price — and somebody who won’t write it down has told you what it is worth. There is also a middle path that costs nothing to propose: the low price applies to the first job and rises automatically afterwards, so that the discount expires whether or not the promised work appears.

The first price is the reference for everything after it

Whatever you charge at the start becomes the number that relationship is anchored to, and raising a price later is a considerably harder conversation than setting it properly at the beginning. A first job done for nothing establishes that your work is available for nothing, and the second request will arrive with the first one as its precedent.

This is why free work more often produces requests for more free work than it produces paid work. The mechanism is not ingratitude. It is that the buyer now has a price in their head, and it is the one you gave them.

When it is genuinely worth doing, bound it

There are real cases. Work that gets you into a category you can’t otherwise enter, a piece for a client whose name changes how other buyers read your list, or something that produces material you can show when you have nothing to show. Any of those can be worth more than the fee.

Treat it as an investment with a budget. Decide what you are buying, decide how much of your time you are prepared to spend acquiring it, put it in writing including whatever they are providing in return, and stop at the limit whether or not the benefit has appeared. An investment without a cap is not an investment.

Declining without the speech

The temptation is to explain at length why the request was unreasonable. It is rarely worth it, partly because the person asking has usually heard it and partly because the industry is smaller than it looks and a lecture travels further than a decline does.

A short answer works better: this is what the work costs, here is a smaller version within a lower budget, and if the situation changes you would be glad to hear from them. That leaves the door open, costs nothing, and occasionally produces a paid enquiry six months later from somebody who remembered that you were straightforward about it.

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Nikhil Bose
Consumer editor, Biz Wealth Focus

Nikhil joined to cover starting out, pricing, cash flow and stayed for the awkward questions and would rather show the working than assert the conclusion.