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"How do I negotiate when the budget is small?"
To celebrate the launch of my Substack and spotlight the effort it takes to build a better work-life, I'm live coaching on Instagram and LinkedIn every Wednesday at noon PT through August.
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Yesterday's kick-off session featured two brave callers:
βοΈ Danielle: Struggling to articulate her value as a freelance marketer with a "nonlinear winding" career path
βοΈ Jen: Gearing up for a salary negotiation in a suffering industry, and wondering how to know if/when to look for a new job
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Today's newsletter will focus on Jen. I've written a lot before about how to prepare for a salary negotiation but what I haven't really shared is how to get creative about comp when the budget is tight.
- The first step is to get crystal clear about your bottom line. What money do you NEED to make to live comfortably (and yes, that includes some saving.) No matter how great the opportunity is or how compelled you feel to say yes, this is your walk away - dealbreaker. Or as I like to call it, your "I Respect Myself Too Much" number π
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Once you've determined that, we have some room to play. Or in "negotiation parlance", increase the slices of the pie. For example:
- Full compensation (standard rate)
- Payment plan (spreading full payment over time)
- In-kind trade/barter
- Percentage of sales
- Equity/ownership stake
- Commission structure
- Deferred compensation (pay full rate when budget improves)
- Hybrid arrangements (e.g., 50% cash + 50% equity)
- Performance bonuses/milestone payments
- Retainer plus project fees
- Revenue sharing
- Barter with third parties (company arranges compensation through partners)
- Professional development budget (training, conferences, certifications)
- Flexible work arrangements (remote, compressed schedules, sabbaticals)
- IP or licensing rights (creator retains some usage rights)
- Credits and visibility (attribution, case studies, marketing opportunities)
- Product/service credits
- Referral agreements (introductions to other clients)
- Equipment or software (tools/subscriptions contractor keeps)
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How do you know which one is right for you?
- Reflect on what matters most to you, not what you *think* you can get. I've coached many clients to pitch agreements that were first-of-its-kind; the key is not what you pitch, but how you pitch it. (Hint: it's presented to their benefit.) In Jen's case, we focused on her biggest life + career priorities for the next 1-3 years. It helps to keep things contained within a timeframe, so as not to get overwhelmed. She realized that having a child was most important, which then increased the walkaway number she'd originally come up with.
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To prepare to pitch your ideal number plus creative ways to get there, work backwards from all potential resistance.
- Get into the headspace of all the gatekeepers: what keeps them up at night? How will this pitch factor into it?
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The most compelling case factors in all the reasons they might say "no", proactively integrating solutions that de-risk what you're suggesting.
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Jen's ah-ha moment during our coaching session came when I told her how critical it is to not make the other side do any work. For example, she wants a better healthcare plan. This is absolutely something she can - and should - ask for, especially considering they may not have the money to increase her base.
- But don't make them figure out what plan and how much it costs! Come armed with that data plus a pitch for why it's to their benefit to give it to her. (In Jen's case, it would mean staying at the firm.)
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The beauty of creative compensation is that it transforms negotiation from a zero-sum game into collaborative problem-solving.
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Different benefits often come from different budgetsβhealthcare from HR, equipment from operations, professional development from L&Dβwhich means you can craft a package that works within their constraints while meeting your needs.
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The key is to arrive prepared: know your worth, understand their limitations, and present solutions that make it easy for them to say yes. As I reminded Jen, when you stop seeing "no budget" as a dead end and start seeing it as an invitation to get creative, you'll often walk away with something even better than a simple salary increase.
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π Sometimes the most valuable compensation isn't just about the moneyβit's about building a role that truly supports the life you're trying to create.
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What's yours?
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Now go get paid.
x Claire
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PS For those who tried to watch on LinkedIn, apologies for the feedback mishap. Will (hopefully!) get the tech stuff straightened out by next week's sessions :)
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Looking for a job?
Dreaming of a (potential) new career?
Preparing to negotiate?
Seeking guidance?
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