Podcasts > Money Rehab with Nicole Lapin > "Negotiating Makes Me Want To Puke. What Do I Do? (Listener Intervention)

"Negotiating Makes Me Want To Puke. What Do I Do? (Listener Intervention)

By Money News Network

In this episode of the Money Rehab podcast, Nicole Lapin offers insights and strategies for overcoming anxiety around negotiating salaries and freelance rates. She explains how facing insecurities head-on and practicing through role-playing exercises can build confidence in negotiation situations.

Lapin shares tactical tips for negotiation, such as starting high to anchor negotiations favorably, proposing trial projects to demonstrate value, and taking pauses before responding. She also addresses the universality of imposter syndrome and provides advice for managing negotiation anxiety through thorough preparation. The episode helps listeners benchmark fair rates for their experience by researching industry standards and positioning their unique skills to secure desired compensation.

"Negotiating Makes Me Want To Puke. What Do I Do? (Listener Intervention)

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"Negotiating Makes Me Want To Puke. What Do I Do? (Listener Intervention)

1-Page Summary

Negotiation strategies and tactics for freelancers and employees

Nicole Lapin shares insights into overcoming anxiety around negotiating and developing strategies to ensure fair compensation for your work.

Develop negotiation confidence

Lapin acknowledges the anxieties and imposter syndrome many feel when quantifying their worth and negotiating rates. She recommends facing these insecurities head-on and practicing through role-playing exercises to build experience.

Strategic negotiation tactics

Lead with a higher initial offer

Lapin advises starting high to anchor negotiations favorably, then compromising. For example, requesting $30 if your target is $27.

Offer a test project to prove value

Proposing a test project demonstrates skills and dedication, often leading to a job offer, according to Lapin. Though unpaid work carries risk, strong results can justify higher rates.

Pause before responding

Lapin celebrates not rushing into agreements but taking time to provide evidence supporting your ask for the best outcome.

Overcoming negotiation anxiety

Imposter syndrome is universal

Even seasoned professionals experience imposter feelings. Lapin shares feeling out of place when signing with a speakers' bureau representing former presidents.

Manage anxiety through preparation

Thoroughly preparing, including rehearsing responses, can ease nerves. Lapin also advises using strategic silence, which feels longer than reality, to avoid rushed decisions.

Benchmarking freelance rates

Research industry standards

Joining groups where peers transparently share rates provides insight into typical ranges for your experience level, as freelancer Ella discovered.

Position your value

Once establishing a rate baseline, highlight unique skills benefiting the employer to justify your desired rate. Offering trial work can demonstrate capabilities.

1-Page Summary

Additional Materials

Counterarguments

  • While starting with a higher initial offer can be a good strategy, it may also backfire if the number is unrealistically high, causing potential clients or employers to dismiss the negotiation outright.
  • Proposing a test project can demonstrate value, but it also risks undervaluing one's work if not compensated fairly, and it may set a precedent for expecting unpaid labor.
  • Pausing before responding is generally good advice, but in some fast-paced industries or situations, taking too long to respond can be seen as indecisiveness or a lack of preparedness.
  • While imposter syndrome is indeed common, not everyone experiences it, and some individuals may have overconfidence, which can also negatively impact negotiations.
  • Preparation is key to managing anxiety, but over-preparation can lead to rigid thinking and an inability to adapt to the dynamic nature of negotiations.
  • Researching industry standards is useful, but these standards may not always reflect the true market value or individual circumstances such as cost of living, niche skills, or the current economic climate.
  • Highlighting unique skills is important, but focusing too much on individual capabilities without aligning them with the client's or employer's needs may not lead to successful negotiations.
  • Offering trial work can be beneficial, but it can also be exploited by some employers, and it may not always lead to fair compensation or a job offer.

Actionables

  • Develop a personal 'negotiation playbook' by writing down potential scenarios and your ideal outcomes. This can help you visualize success and create a mental framework for real negotiations. For example, if you're a graphic designer, outline a scenario where a client wants to pay less than your rate, and script out a clear, confident response that communicates your value and justifies your price.
  • Create a 'skill inventory' to identify and document unique abilities you bring to the table. Regularly update this inventory and refer to it when preparing for negotiations to remind yourself of your strengths. For instance, if you're proficient in a rare programming language, note it down and be prepared to explain how this skill benefits your potential employer or client.
  • Practice 'silent negotiation' by observing and reflecting on everyday interactions where negotiation is involved, like at a flea market or during a service upgrade call with your internet provider. Take mental notes on tactics used, body language, and the flow of the conversation to gain insights without the pressure of being directly involved. This passive observation can sharpen your awareness of negotiation dynamics and strategies.

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"Negotiating Makes Me Want To Puke. What Do I Do? (Listener Intervention)

Negotiation strategies and tactics for freelancers and employees

In the professional world, negotiating your compensation can be intimidating. Nicole Lapin shares insight into overcoming anxiety associated with negotiating, as well as strategic approaches to ensure you're compensated fairly for your work.

Develop the confidence to negotiate your worth

Both freelancers and employees frequently encounter the challenge of quantifying their value and asserting it during negotiations.

Acknowledge and address feelings of anxiety and imposter syndrome

Ella, a freelance writer, represents many individuals who feel guilty or anxious when discussing contract terms with clients. Negotiating rates often sparks anxiety, with fears of asking for too much due to underlying imposter syndrome. Nicole Lapin suggests it's crucial to face these insecurities head-on and develop strategies to overcome them.

Practice negotiation through role-playing exercises to build experience

Practicing negotiations can significantly boost confidence. Lapin recommends engaging in role-playing exercises with friends, or even practicing speeches in front of a mirror or with a pet to become comfortable with negotiation dialogues. She emphasizes that routine experience with negotiation is key to skill development in this arena.

Utilize strategic negotiation tactics

Familiarizing oneself with proven negotiation tactics can lead to more successful outcomes.

Lead with a higher initial offer to anchor the negotiation

Lapin advises that beginning negotiation discussions with a higher initial offer can lead to a higher final number. She asserts that setting an ambitious but reasonable anchor point allows for some compromise while still achieving a satisfactory result.

Propose a compromise, splitting the difference between your ask and their offer

When faced with an offer that falls short of expectations, such as being offered $25 per hour when the desired rate is $30, proposing a middle-ground figure can be effective. ...

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Negotiation strategies and tactics for freelancers and employees

Additional Materials

Counterarguments

  • While leading with a higher initial offer can be a good strategy, it may also backfire if the number is perceived as unrealistic or if it sets an adversarial tone for the negotiation.
  • Practicing negotiation through role-playing might not fully prepare an individual for the unpredictable nature of real-life negotiations, where stakes and emotions are higher.
  • Acknowledging and addressing feelings of anxiety and imposter syndrome is important, but overemphasis on these feelings might reinforce them rather than build the intended confidence.
  • Proposing a compromise by splitting the difference can be seen as a lack of conviction in one's own value, potentially undermining the negotiation position.
  • Offering to complete a test project to demonstrate value could undervalue one's work and set a precedent for unpaid labor, which can be particularly detrimental in freelance markets.
  • Not responding immediately to an offer can be strategic, but it can also be misinterpreted as disinterest or indeci ...

Actionables

  • Create a personal value statement to articulate your strengths confidently. Write down your top five professional achievements and the skills or qualities that enabled you to succeed in those situations. Use this statement as a foundation for negotiations to remind yourself of your worth and to communicate it effectively to others.
  • Start a 'negotiation diary' to reflect on your emotional responses during negotiation scenarios. After any negotiation or practice session, jot down how you felt, what triggered any anxiety, and how you responded. Over time, you'll be able to identify patterns in your emotional responses and develop strategies to manage them more effectively.
  • Form a peer negotiation group with ...

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"Negotiating Makes Me Want To Puke. What Do I Do? (Listener Intervention)

Overcoming anxiety, imposter syndrome, and other psychological barriers to negotiation

Negotiating can be a daunting task filled with psychological barriers like anxiety and imposter syndrome. However, individuals can overcome these challenges through self-awareness and tactical preparation.

Recognize that imposter syndrome is a common challenge

Understanding that imposter syndrome affects many people, including seasoned professionals, can help individuals feel less isolated in their experiences.

Understand that even experienced professionals experience imposter feelings

Nicole Lapin acknowledges that everyone struggles with imposter syndrome at some point, sharing her personal story about feeling out of place when signing with a speaker's bureau that represents former presidents. This example highlights that imposter syndrome can affect anyone, regardless of their accomplishments.

Remind yourself of your true capabilities and qualifications

Ella, a caller who is part of a group of freelancers, struggles with asking for competitive rates because she compares herself to others who have more experience. She's aware of the need to overcome imposter syndrome, which is implied as a common issue for both new and experienced individuals in any field.

Develop strategies to manage great anxiety during negotiations

Effective strategies can help manage anxiety and enable individuals to approach negotiations more confidently.

Prepare thoroughly and rehearse responses ahead of time

Nicole Lapin implies that acknowledging and admitting anxiety is a critical first step, suggesting that recogniz ...

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Overcoming anxiety, imposter syndrome, and other psychological barriers to negotiation

Additional Materials

Counterarguments

  • While imposter syndrome is common, not everyone experiences it, and some individuals may have a natural confidence or a well-developed sense of their own abilities that prevents such feelings.
  • The assertion that everyone, regardless of accomplishments, can experience imposter feelings may overlook the fact that some individuals may have developed effective coping mechanisms or simply do not struggle with self-doubt in the same way.
  • Reminding oneself of true capabilities and qualifications might not always be sufficient for overcoming imposter syndrome, as the issue often lies deeper than surface-level achievements and may require more comprehensive psychological interventions.
  • While developing strategies to manage anxiety is important, it's also crucial to recognize that some level of anxiety can be a normal and even healthy part of high-stakes situations like negotiations, potentially enhancing focus and performance.
  • Thorough preparation and rehearsing responses can be helpful, but over-preparation can also lead to rigidity in negotiations, where adaptability ...

Actionables

  • Create a "capability journal" where you document daily achievements and skills used, to visually reinforce your qualifications and combat imposter feelings. By keeping a regular log of your successes, no matter how small, you create a tangible record that can serve as a reminder of your competencies when doubts arise.
  • Practice "anxiety role-play" with a friend or mentor where you simulate high-pressure negotiation scenarios. This exercise allows you to experience and navigate the physical sensations of anxiety in a controlled environment, helping you to develop coping mechanisms that can be applied during actual negotiations.
  • Inte ...

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"Negotiating Makes Me Want To Puke. What Do I Do? (Listener Intervention)

Benchmarking freelance rates and comparing compensation in an industry

Understanding how to set appropriate freelance rates can be a significant challenge. Industry standards, rate ranges, and individual value propositions are key components to successfully navigating and securing fair compensation.

Research industry standards and typical rate ranges

When freelancing, researching typical rate ranges within your industry is crucial. Ella's experience of joining a group where women freelancers share their rates is a valuable strategy for understanding the market. By connecting with peers, she was able to uncover that women with more experience could charge double or more her current rate—up to $100 an hour—providing her with insight into how to reassess and potentially increase her own rates.

Connect with peers to understand compensation benchmarks

Building networks and joining groups where industry professionals discuss compensation can provide internal benchmarks to gauge your rates against. This level of transparency among peers enables you to determine a rate that reflects your own experience and qualifications.

Determine a rating that reflects your experience and qualifications

Upon learning that others with more experience in the field were charging significantly higher rates, a freelancer may find it necessary to reassess and adjust their rates accordingly. This adjustment should reflect not only the industry standard but also their own growing portfolio and skills.

Position your value proposition to justify your desired rate

Once you've established a baseline for your rates, the next step is to communicate your value effectively to potential clients to justify your desired rate.

Highlight your unique skills and expertise that benefit the employer

It's important to a ...

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Benchmarking freelance rates and comparing compensation in an industry

Additional Materials

Counterarguments

  • While researching industry standards is important, it can lead to a race to the middle, where freelancers only aim for the average rate rather than a rate that reflects their unique value.
  • Joining groups and discussing rates can be beneficial, but it may also result in echo chambers or price-fixing, which could be detrimental to the market and potentially illegal.
  • Peer rates can provide a benchmark, but they may not always reflect the full range of factors that should influence a freelancer's rates, such as cost of living, niche expertise, or business expenses.
  • Adjusting rates based solely on what others charge might not take into account the individual freelancer's business model or personal financial goals.
  • Communicating unique skills is important, but it can be challenging to quantify and communicate this value, and not all clients may be willing to pay for perceived unique value.
  • Articulating benefits over others can be subjectiv ...

Actionables

  • Create a personalized rate calculator by factoring in your living expenses, desired savings, and investment goals to determine your minimum acceptable rate. This ensures you're not just following industry standards but also meeting your personal financial needs. For example, list your monthly costs, desired profit margin, and the number of hours you can work to find a baseline rate that keeps your freelance business sustainable.
  • Develop a unique value proposition (UVP) by listing the top five problems you solve for clients and how your specific skills make a difference. Use this UVP in your pitch to highlight why your rates reflect the quality and specificity of your service. For instance, if you're a graphic designer, your UVP could emphasize your expertise in creating brand identities that increase customer recognition and sales.
  • Implement a dynamic pricing mo ...

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