Potential client wants to pay in free stuff not money, how should I respond?

Question

A potential client wants me to design promotional material for an event. However, in their initial solicitation, they said they would pay me with a free pass to their event which they claim is "$X value".

I am only interested in this work if I get compensated adequately in money. Not only does their "$X value" not leave much room for negotiating based on how much work it will take (it's not like they can give me 1.5 passes for instance), but I would not have gone to this event anyway, so to me it is $0 value.

I would like to say something like:

I'm interested in the offer but I only work for money, not "$X value" items. Also, I will propose you a pricing after we discuss the project and I can gauge how much work it will be for me.

How can I say this politely? Or should I just decline the offer outright?

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How to deal with a company that wants to pay you with items instead of money? is very similar but not very relevant to me, since it concerns a situation where the work has already been done.

Answer 1

I'd respond with something similar to:

Thank you for your inquiry. While I'm unable to accept a ticket to your event as payment for services I'm happy to provide a quote for you and a payment plan once we've discussed the project requirements. Let me know when you'd like to meet or call regarding this project.

Answer 2

That is polite enough in my opinion. I would make it even shorter.

"I'm sorry but I don't do work on those terms, please let me know if you would like me to provide a quote for the job."

If they don't answer I haven't wasted much time. It clarifies my position and leaves the ball in their court if they want to negotiate.

Answer 3

It's unclear to me why so many people are afraid of negotiation and for asking for what they want/deserve.

Quote a price. Either it will be worth it to them or not. You don't need to be polite about not accepting an offer, that doesn't necessarily make you rude. You don't even need to necessarily reference it.

Don't let them set the standards or the options for the value of your work.

I would say something like:

"My price for that work would be $xxx. Let me know if that works for you!"

Consider this. If you went to a car dealership and offered a car dealer a few cases of wine for a car, the dealer doesn't have to apologize for not accepting it, they will probably just tell you their price for the car.

Answer 4

I think you should seriously consider bartering as payment for some jobs. I agree barter isn't acceptable for every transaction but sometimes it can lead to surprisingly beneficial outcomes.

In a book I read recently, The Entrepreneur Mind, one section spoke specifically to working with barter as payment.

The gist of that section is this:

If you think you can leverage the barter into an outcome that is worth more than the monetary value you would be paid then you should take the barter.

You may have little interest in the ticket but you could sell it, give it to another client/perspective client, or trade it for something else. I admit this takes more effort on your part but if you trade well you can come out ahead.

You also say ticket is free. People are more willing to part with items like tickets, which can be thought of as a kind of option, than with money since they see them as possible income rather than immediate loss. Look up delay discounting for a better explanation of the phenomenon. Working with this assumption, you may be able to negotiate for more worth than the client would be willing to pay directly.

Answer 5

To offer a the other side of the argument, if the event had plenty of potential future clients, I would take the pass, or possibly a cut of the gross, and use the event for grabbing future clients.

Answer 6

I would not bother to respond (with anything more than "No. Thanks. Be well."

Clients that try to engage in business relationships this will often have other corners they are trying to cut, or otherwise compromise. Chances are that you will pay more in wasted time, even if they actually pay in cash.

I have had this happen a few times to me, and as well to colleagues and other associates.

I would never recommend it, but if somehow you feel you need to barter, be sure to only accept the COGS-value for what they are offering. They are they ones that need to (initiated) barter — they can afford the comp in order to get a nearly-free service that will stimulate more cash-sales (e.g. tickets in this case).

Answer 7

I'll keep it short and simple, and a little tough.

Thank you for your offer sir, but we deal in money system rather in Barter system. Please let us know if you are interested in having a project discussion and further getting quotes from us

This might not look gentle enough but is an effective approach to speak up every thing in small words. It will caste an image that you sell your knowledge as per your style not others

Answer 8

The number one underlying thing here is how YOU value the service that you're offering. Potential clients will come and go, and they're going to test you with stuff like this. It's up to you, with each one, to figure out if the end-result is going to be a win-win situation.

Offering you a ticket for compensation is a test -- no more, no less. If you're not firm in your resolve, then this potential client learns that you can be strung along and that while you might turn out high quality work, you don't value your time. And you'll be abused until you get sick of it.

If this potential client really needs your unique services badly enough, then a better offer would be put on the table. Like the others here have noted, receiving an offer like you have already sets a bad precedent. You've already been labeled, by the client, as a potential sucker. But that same client wouldn't try that with, oh, some design firm with a big downtown office somewhere. Absolutely, do not accept. But also, give a lot of thought about the impression you're making on potential customers, and adjust yourself so they'll know you're serious (right from the start!) and won't try this kind of stunt.