Archive for February, 2009
Like everyone else, I’m looking for ways to shave expenses. Dinners, presents, movies out, and tickets for live music are now few and far between. If I need clothes, I buy used as much as possible (I’ll break for new undees, sneakers, and socks though). If I play with friends, one of us suggests eating in or going to a free event, like a book reading or a talk. European vacation plans with the boyfriend are on hold. You know the drill — the frugal freelance budget, only on steroids.
I’m especially psyched that this insurance agent helped me pick a healthcare plan that costs $1500 less a year but still covers the stuff I need covered. (By dropping maternity, pharmacy, and vision bennies, I save money — who knew!?) And I made the switch from cable TV to Netflix a little while back. Together, these changes save me $200 a month, which ain’t too shabby.
Still, each time I revisit the “Where I can save?” question, two monthly expenses that I don’t really need to be incurring jump out at me:
(1) The money I pay to have my house cleaned every 4 to 6 weeks (about $100, depending on how dirty the house is). This is a total guilty pleasure for me. But I hate to clean and rarely have time to anyway. Besides, I look forward to that one day a month when I sit on the freshly vacuumed couch, survey the tidy, dog-hair-free living room, and think “Ahhhhhh.”
(2) The money I pay to have a 40-pound bag of Buddy’s food delivered every 4 to 6 weeks (about $10 delivery charge each time). For some reason, picking up the dog food is an errand I’ve always hated. Usually I realize I’m out of kibble when the dog needs breakfast and an editor needs the article I’m working on. Also, those bags are dang heavy. So when I heard about a local delivery service, I was all over it.
Although I aspire to live leanly as possible — even if it means sucking it up and picking up my own mutt chow and mopping my own damn floors – I have a hard time letting either service go because these people are independent business owners. It’s a total thrill to not have to pay Comcast $60 extra a month or to tell LifeWise Health Plan where they can stick their stupid, plundering rate increases. But it does not feel good at all to take business away from another self-employed person. So I’ve decided that I’m keeping both services, depression be damned. Unless I have to start dipping into the dog’s food myself, I’m getting my house cleaned and my kibble delivered to my doorstep.
How about you? Are there expenses you feel you should cut back on but can’t bear to dump because you’d be contributing to another small business owner losing income?
February 28th, 2009
Kate asks: If you’re not quite ready to quit your day job…or in my case, if I’m just about to graduate college and plan on getting a “real” job before transitioning to full-time freelancing, would it hurt my chances with future employers if they know that I ultimately want to be a freelancer? My Dad was looking over my LinkedIn profile and mentioned that he thought it wasn’t a great idea for future employers to know that I eventually want to work for myself. Do you think that a magazine wouldn’t hire me for that reason?
I answer: This is a great, great question. I wouldn’t tell them. At all. Or put that detail on LinkedIn. It’s just like saying, “I think your magazine is a nice way to pass the time for now, but I really want to go into veterinary medicine.” It’s a turnoff to an employer. It basically screams that you’re out of there as soon as you get your big freelancing break, which is not a message you want to convey.
Just say you want to be a writer (or editor, designer, or whatever it is you want to be) and keep your dream of full-time freelancing on the down low. If you do pick up a bit of freelancing work on the side while at your 9-to-5 gig and your coworkers catch wind of it, just play it off as something you’re doing because you need more money (don’t we all?) and because you’re looking to beef up your skills.
Before you freelance on the side, make sure your day job doesn’t have a “no moonlighting” clause in your employment contract. This could prevent you from freelancing in the same industry that your employer’s in, at least while you’re still working for that employer.
February 26th, 2009
Seattle freelancers: You don’t have to travel far for fresh ideas and savvy resources to pump up your freelance business. I have a few upcoming events happening in your neck of the woods. Some details below, and more info on my Events page.
When: 7:00 to 9:00 pm, Wednesday, March 4
What: “How to Make the Media Notice Your Small Business” – Tips on writing an irresistible media pitch and tools you can use to put your business in front of hundreds of lead-hungry reporters and bloggers. More info.
When: 1:00 to 6:00 pm, Friday, March 6
What: “All-Access Pass” Journalists Conference – A great event for those trying to figure out how to survive as a freelance journalist right now. Learn how to diversify your income. Seize the opportunity to schmooze with local writing rockstars/editors in attendance. More info.
When: 8:00 am to 5:00 pm, Saturday, March 28
What: “Beyond the Red Pencil” Editors Conference – I’ll be leading a “Dealing with Difficult Clients” workshop (conference registration required). More info.
And for freelancers nationwide, I haven’t forgotten about you! There are still spots in my “Dealing with Nightmare Clients” teleseminar with the Freelancers Union this Wednesday, February 25. From my ear to yours, I’ll share stories from the trenches and the resources that helped me see the light of day again. Further details and registration info here.
February 22nd, 2009
Calling all Bay Area freelancers (working or aspiring): I’m headed your way for a night of freelance banter; I read to you from My So-Called Freelance Life, you ask me questions, I answer, you ask me more questions, and then I sign books. It’ll be an opportune time to learn new tips and resources, talk about freelancing in a down economy, and meet other independent pros who walk your walk. The event details:
When: 7:30 pm, Tuesday, February 10
Where: Books Inc. in the Marina, 2251 Chestnut Street, San Francisco
Info: Free admission. More info at Books Inc. or (415) 931-3633.
And if you’re a professional organizer, dream of being one, or call one your BFF, you (and possibly your organizer friend) should join me and the San Francisco Bay Area Chapter of the National Association of Professional Organizers (NAPO-SFBA), for a presentation about how to deal with difficult clients. The event details:
When: 6:30 to 8:30 pm, Wednesday, February 11
What: Seminar, Q&A, and networking for professional organizers
Where: The Doubletree Inn, 835 Airport Boulevard, Burlingame, CA
Info: NAPO-SFBA
Registration: $20 members, $25 guests
Co-sponsor: Books Inc.
If you attend either event, be sure to say hello. Thanks and happy weekend.
February 6th, 2009
For those recently laid off who now find themselves gigging, today’s ABCNews.com column shares my top 10 recommendations for navigating your newfound freelance status.
In January, Daily Beast editor-in-chief Tina Brown dubbed the current rotten job market the “Gig Economy,” where both high earners and low earners increasingly find themselves cobbling together paychecks from a menagerie of freelance, contract and part-time work.
Suddenly media outlets from CNN to Newsweek followed suit, telling the freshly unemployed what those of us who’ve been freelancing and consulting for years already know: if you have skills to hawk, you can make a decent living hopping from project to project.
But merely welcoming this army of accidental freelancers to the self-employment club won’t groom anyone for the challenges of running their own show.
If you, too, have found yourself cast in the role of accidental freelancer — presumably because you’ve had better luck finding project work than a staff job — take heart. As someone who’s been a full-time freelancer and contractor since 1992 (by design, not accident), I assure you that there is a method to this self-employed madness.
It doesn’t matter if you’re a writer, designer, programmer, marketer, builder, bookkeeper, recruiter or project manager; the principles of staying afloat as an independent worker are the same. Herewith, my top pointers for surviving your first freelance year:
Read the rest of this article on ABCNews.com.
February 5th, 2009
I’ve caught some flack in the past for not letting people know when I’ll be on the radio or TV. So I’m going to try to be better about that this year, aided by the help of my trusty helper Jackie and a soon-to-be hired (uh, just as soon as I get around to it) social media intern. It’s in this spirit of on-top-of-it-ness that I give you news of the radio interview I’m doing tomorrow…
I’ve been on Small Business Radio a few times and my next interview is tomorrow, Wednesday, 2/4. You can listen here at 8:30 am EST. Or you can listen to the webcast after the fact. Or you can check out a couple of other interviews I did on the show last year.
I love being on this show because (a) host Jim Blasingame is a hoot, (b) Jim opens every show with the Allman Brothers’ “Jessica,” and (c) you never know what’s going to come out of my mouth at 5:30 in the morning Seattle time.
February 3rd, 2009
February finds me wanting to catch up on my backlog of Ask the Cubicle expat questions. Here’s another good one I hadn’t yet answered online…
Rebecca asks: I’d like to ask my current clients for referrals, but I’m not really sure how to go about it. Can you help?
I answer: I have a few suggestions.
(1) Call each client (yes, by phone) to discuss their project. Pick a time when you know they won’t be rushed. Tell them you’re looking to expand your client pool or get more clients in their industry or niche (perhaps they’re the first musician you’ve designed a blog for and you’d like to get more musicians as clients). Then simply ask if they have any colleagues — at their company or otherwise — who might need your services. You may even want to throw in a little joke about how they’ll always be your first priority, no matter how many of their friends they refer you to.
(2) Send out an email or social media blast saying that you’re growing your business and offering a referral bonus to any client who hooks you up with a colleague that purchases at least 10 hours of your time (or whatever parameters make the most sense to you). Pick the compensation you think would be most valuable to your clients: $200 off their next job, $100 gift certificate, free one-hour consult with you, free toaster. Stay away from offering a percentage-based kickback. You don’t necessarily want your clients to know what their friends are paying you. Besides, a 1 or 2 percent kickback sounds so low, even though it may be just the right amount to offer (on a $10,000 job, you’d be giving away $100 or $200). And a 5 or 10 percent kickback is way too high (on a $10,000 job, you’d be giving away $500 or $1000, which is excessive).
(3) Couch your plea for referrals in a larger email or postcard update to your clients. Tell them about your website makeover, your spring break (or summer, or year-end) vacation schedule, or a new service you’re offering (SEO consulting, web hosting, translation). Then tell them that, by the way, you have this great new referral policy.
(4) Do a blog post linking to recession-busting tips or deals you know about that could benefit your client. Example: Web hosting company X is running a promo called 5% Discount February. Business coach Y is offering a special introductory package of 10 sessions for the price of eight. And of course, you’re currently offering an excellent referral incentive.
(5) Add mention of your desire for referrals (and any kickbacks you offer) to your website, email sig, and social media profiles. Biznik — a SM site for indie professionals — even offers a spot in your profile for featuring such promotional offerings.
Anyone else have any referral-raising tactics that have worked? Do tell.
February 3rd, 2009
We talk about taxes a fair amount on this blog. But before we go any further, I would like to remind you that I am not an accountant or any other form of tax professional. So please take the advice you are about to read as one freelancer’s experience and not the gospel of IRS law. (In legalese that’s “I’m not responsible for what happens with your tax bill.”) And if you have any tax questions whatsoever, consult your tax professional or tax software of choice. Okay, on with the question…
Liz writes: At the beginning of 2008, I was a freelance Photoshop retoucher for a photographer in NYC. Halfway through the year, I took on another part-time contract job with a larger company and was eventually hired on full-time in October 2008 (which subsequentially ended my freelancing career). My questions are:
(1) Having had freelance, contract, and full-time employment this year, will this seriously screw with my taxes, since some of the taxes were taken out and some were not? (The corporate job took out taxes, the photographer did not.)
(2) Unfortunately, I have had a hard year transitioning between these jobs, and I’m afraid I will not have enough money saved to pay the full amount of my freelance taxes by the time April 17th rolls around. What standards does the IRS have for unpaid taxes? (Will I be hunted down at the very moment I cannot pay the full amount, or are they lenient as long as you pay a lot of the amount due, and then make monthly payments afterward?)
I answer: (1) Having a mix of W-2 forms and 1099s (in other words, taxes taken out of your checks and taxes not taken out of them) won’t mess up your tax return. This is my sitch almost every year, as some of my freelance clients pay me as a contractor, and it’s not a big deal. Considering a third of us are now freelancing and contracting full time, I can’t be the only one in this situation. But having a mix of year-end tax forms makes filing more complicated, which is why you should hire an accountant. Or make dang sure you know what you’re doing if you use TurboTax.
(2) I doubt you will be hunted down, killed, and cooked on a spit over a bonfire by the Feds the moment you don’t pay every last penny of income tax you owe, but the “interest” (the nice word the IRS uses for the penalties they hit you with) on late taxes is hefty. And if they do put you on a payment plan and you don’t pay up when they want you to, that’s when things can get nasty (words like “garnish” and “lien” can enter into play).
A good accountant can ensure you’re deducting the right amount of business expenses, which often can help reduce your freelance tax bill. You may not owe as much as you think, though it’s impossible for me to say without knowing your earnings or being an accountant myself. Get thee to a professional!
February 2nd, 2009
