"You can refuse to compromise on your rates, provided that you can afford to walk away if necessary"
I also wanted to move away from so-called freelancing, but in the end I discovered that it gives me incredible flexibility: I now cherry-pick my clients, taking only projects that are challenging and truly stimulating. I charge a very high hourly rate but I also put my soul into the project, and in the end the clients are more than happy with the work. This allows me to work for ~4 months/year(in blocks, of course), and the rest of the year is spent on personal projects, travelling and building (self-driving)race cars. Try to find your niche and go for it, it's really worth trying!
>You can refuse to compromise on your rates, provided that you can afford to walk away if necessary.
This is very important advice, and I've applied it to car purchases, condo lease agreements, cable and phone contracts, you name it.
It's about leverage. If you have alternatives, and what the person on the other side of the table offers doesn't fit your needs, take your business elsewhere. You have to be prepared to leave or say no.
On the other hand, if you can't say no, then you don't have any leverage.
The key is the perception of the other party, not the actual reality of whether you can say no or not.
Robert Ringer's amazing (and must read) book, "Winning Through Intimidation." Talks about how he manufactured the perception of being able to walk away, and why image and perception are more important than actual circumstances.
It's of course much simpler to play the part of being able to say no, when you can actually walk away...but you can hack your own perception to believe you can walk away even if you can't, and pull it off... or you can be a good actor and take some risks...
Either way... The premise is true...but it's more about the story you are selling than anything else.
"I didn't mean to cut off your hands, but I had no choice when you reached for my chips."
This is his argument for DEMANDING a contract for every business deal, especially with friends or people you trust. (I admit I am not great at this...)
He opens with a theory that most successful people who claim "hard work and a positive attitude" drive success are lying. They are either too embarrassed to admit how easy it was for them...or they can't see the forest from the trees and really have no idea why they are successful.
He has a few key points that really stand out for me...
"The results you get from a negotiation are inversely proportionate to how intimidated you are."
"With every deal...The key is to hope for a good result, but expect a negative one. (otherwise you will get discouraged way too quickly and give up.)
Image is everything...
"It’s Not What You Say Or Do That Counts, But What Your Posture Is When You Say Or Do it."
I highly recommend Winning Through Intimidation. It's not about what you think. I read it after someone else recommended it in another discussion on HN.
1. Jim Camp's negotiation book, "Start with No": http://www.amazon.com/Start-No-Negotiating-Tools-that-ebook/... One key takeaway: You can refuse to compromise on your rates, provided that you can afford to walk away if necessary.
2. Patrick McKenzie's (patio11's) advice for moving beyond the "freelancer" title, in particular http://www.kalzumeus.com/2011/10/28/dont-call-yourself-a-pro... and http://www.kalzumeus.com/2012/09/17/ramit-sethi-and-patrick-...
I used these strategies to double my daily rate as an Ember.js consultant from $1k to $2k, and it was a fairly straightforward exercise in the end.