Much has been said and written about low-balling in the freelance community. Essentially low-balling is used to describe the (unethical) practice of pricing a project way below its fair market value. It is done by both freelancers who wish to compete on price (although they just end up hurting themselves and their fellow freelancers) and by outsourcing clients (who want to get the lowest possible price for their project).

I recently had my first brush with low-balling on Elance from the client-side. But thanks to numerous freelancing sites discussing low-balling tactics, I knew exactly what I had to do and say to this buyer.

So here’s the thing: he came through a referral and wanted X number of articles. I placed a bid, quoted my price, delivery time, etc. I got back a response saying the price was too high and he has another writing service lined up (URL provided) that is willing to do the project for a third of the price and would I be willing to “close the gap”?

Well, thanks to the fact that I am now confident about my abilities and sure about the value of my services, I was able to compose (what I thought was) a fairly level-headed, professional response: (edited to exclude specific names and amounts).

I started by thanking him and letting him know right away that I was prepared to stand my ground and give a solid reasoning for doing so:

“Thank you for your response. I do understand your need for cost-effective articles and to that end wish to reassure you that my costs reflect both my experience (both on and off Elance) as well as expertise in completing a perfectly turned-out product.”

Next I regurgitated my excellent feedback and history with providing quality work:

“I started on Elance at [amount deleted] and have since then built up a reputation consisting of 100% satisfied clients in the past year and testimonials which state that ‘Wonderful provider and none of what she provided needed any tweaks at all. That is rare’ and ‘All of the articles were very well written and exactly what I was looking for.’ I have worked hard for these accolades and that is because each project I take on gets my individual and customized attention.”

Then I backed all that up with the fact that I have reached this price fairly and that it is an accurate estimation of my time and effort involved in the project. I ended by outlining the long-term benefits of the content to him.

“The money invested now in article marketing will generate long-term dividends over the months and years in directing targeted, relevant traffic to your business. Since I too, run my own business, I am familiar with the need for great SEO content, perfectly positioned articles and a focused marketing campaign. Hence my current rates reflect the above traits.”

I also offered him a way out of the deal gracefully, by letting him know that I would fully understand if he decided not to award me the project and scout the market further but that I hoped he made whatever decision worked best for his business needs.

At that point I had pretty much given up hearing again from this buyer. So imagine my pleasant surprise when I received a “Congratulations, you’ve been awarded…” notice a few hours later!

Essentially, the buyer (now a client) responded by saying that my confidence in my abilities (backed with facts) gave him confidence in me and that he would be willing to award me the project at my stated price.

I guess it just goes to show that there are genuine buyers out there on Elance and elsewhere who are willing to be convinced if you have the confidence in yourself to be able to convince them. I really dislike it when perfectly talented freelancers let themselves get sucked into accepting projects at lower than their fair market values simply because they don’t believe in themselves.

So my advice to a beginner freelancer (especially on bidding sites like Elance) would be to start with hard work, keep your nose down and build up an excellent case for yourself. Once you’ve become established in your field, make sure you respect yourself and your abilities. Others will respect you more because of that.

Have a low-balling story you’d like to share? Tell us how you got out of a low-balling pickle – would love to hear some interesting takes on this rather unfortunate aspect of freelancing.