Cheap Costs Money

 I have written in the past about the challenges I have faced while job hunting. The recruiting industry is broken, subject candidates to indignities like junk science psych tests, involved homework assignments that amount to free consulting, and applicant tracking software that reduces human beings to numbers in an algorithm. All of this lead me to continue as a self employed consultant, with the ultimate goal to own my own business or at the very least keep my options open by building multiple streams of income.

But I ran into a new wrinkle in my quest for self-actualization. (Editor's Note: A 70's junk psychology term that means freedom from any real responsibility or gainful employment.) I have signed up with a couple of marketing agencies that have a different business model. They offer freelancers the chance to be considered for their clients' work assignments. One focuses on managing social media accounts and the other has a wider focus, offering a wider range of marketing, advertising, and PR services. The problem was with the former, the social media agency.

Once you go through a screening process including interviews, tests, and the need to obtain a certain marketing certification you become eligible to bid on assignments. Most of these jobs involve answering consumer posts to the social media accounts and adding a human touch. The postings give details about the client without naming them, details about the specific hours and duties required, and, most important to this story, a budget range for the hourly compensation.

I had received an email encouraging me to bid on an assignment that they said I would be perfect for. It was for a certain category of retailer that I had a lot of experience with, at least as a customer. I filled out the online form, listing why I would be the right person for this job and agreeing to the terms and hours. I offered to work for an hourly rate that was in the lower half of the budget range, but still a number I was comfortable with. I then had to wait while the winning bid was selected based on what I thought were pretty clear criteria. That's where I was wrong.

Two weeks later, I was informed by a form email that I was not selected for this assignment. I had developed a good professional relationship with the person who initially interviewed me, so I reached out to them for some feedback on why I had lost out so I could improve my bidding in the future. My contact wrote me back and told me the person selected had direct experience with that type of social media account, and more importantly, had bid less than the budget range offered. I emailed back that I had concerns about the lowball bid, and that I probably wouldn't be bidding on any more assignments in the future if that was going to be the way it worked.

In my days as an account executive in radio, we had a concept called "rate card integrity." This meant that we had a price range for commercial time that we wouldn't go below, in order to keep the station profitable. We even had a person whose job it was to set those rates, and make sure everyone followed the rules. This person's title was Director of Revenue Management, and they were crucial to making sure the radio stations made enough money to meet budget projections and a profit.

Even though I was assured that this wasn't a "race to the bottom," I knew that two things were going to happen. First, as people became more desperate to get their first assignment through this platform, they would start bidding lower and lower. Second, the more talented and better qualified candidates would seek work elsewhere, leaving people that wouldn't be willing or able to deliver the type of quality that would retain this agency's clients. If they negotiate an hourly rate, or a range of rates, then they should maintain the low rate as a floor that they won't pay below. If they think they will get to make a little extra by taking it out of the pockets of their contractors, then it will cost them in the long run.

I have direct experience in this fact business. When I ran my production company in Orlando back in the 90s, it was successful for one important reason. I had a reputation among the contract performers and techs in the area as someone that paid better than most. This meant I attracted the best talent, and that translated to a higher quality of work, leading to a steady flow of business and happy clients. I grew my company from a one man DJ business to one of the industry leaders in the entertainment production business in a town that had some major players. If I had tried to run things on the cheap, it would have cost me, and I wouldn't have lasted long. That only works in cartoons.