offering discounts for freelance services a good idea?

I have been pondering about providing discounts and wonder what you guys think.

I am against it because I want to get paid for what I am worth. However, a partner is suggesting offering special discounts to effectively attract and increase business interaction with "potential" clients.

Although offering discounts may possibly attract more clients, I am really not so sure.

Any opinions to this matter is always appreciated bhwers!!!

Hard to say without knowing your situation, e.g. market, your service and current state of your business. One thing I can say is, don't over do it, or it will devalue your service permanently with people expecting discounts from you.

Competition is quite fierce in the market and that is the main reason for the discount idea. Our business is doing okay. We are not desperate. We however, would like to attract a certain target more than any other.

Applying discounts does sound feasible but if we were going to apply discounts, But I think I would only give them to a certain target niche within a market like mentioned above.

For example in the world of web design, only dentists will receive a discount...

You are right about the undervaluing. Need to be very careful with that. I did not think of the repercussions if one were to be careless with giving discounts.

I wouldn't use discounts, especially for freelance services. There are many more ways to attract clients that will have a better result.

Here is a good video about discounting your product or service:

If you know what your real value is then do not make discounts. The services you provide are your hallmark and this is why you should only do what you think is best for your reputation. Of course discounts can bring you clients but it can also mean that you do not have services that are highly professional and that's why you work for less. Maybe give something in addition, for free, such as customer support, management or anything else that fits your field of expertise.

If you don't have a lot of clients at the moment, then yes, offer discounts. That's the best way to attract new clients.

It can work, better yet, play it smart: Workout your hourly rate that is acceptable, add 20% on top and allow up to 20% discount

I think it's more important to decide which end of the market you want to operate in and then find appropriate clients.

In any business there is a cheap end, an expensive end, a quality end, a quantity end, etc.

They are all lucrative areas, but customers tend to be in either one or the other. You can't swim in both ends of the pool at the same time.

One piece of advice I would give you though, is if you do ever agree to work with a client at a discounted rate, negotiate something in return.

That could be exclusivity, quicker payment terms, volume of business or many other things. And once you have an agreement, get in writing and get it signed.

This serves two purposes:

1. You are getting something beneficial out of the deal too.

2. That negotiation serves to solidify your business relationship from the start - a client that is agreeing to terms and signing a contract is a much more serious client.

How much are you charging for your services? If you're targeting the low end of the market, discounts may very well attract the right clients. For everything else I would look for ways to provide more value.

If you're looking for in-depth info, Brennan Dunn has a course on doubling your freelancing rate, which covers this stuff.

Depends what your workload is like and how important it is for you to get new clients.