Posts filed under 'This freelance life'
Being your own boss means different things to different people.
For me, it means kissing those dreaded dry cleaning bills goodbye and working in my sweatpants. For Harris, a Web programmer I met at a friend’s wedding, it means never having to set the alarm clock again. For my friend Tammy, a marketing maven and mother of two, it means losing the commute and saving a bundle in day care.
Contrary to popular belief, achieving this kind of career autonomy without winding up on food stamps is entirely possible. And it doesn’t even require a four-year college degree or a significant financial investment.
Even better, there’s a rich market of customers just waiting to be tapped.
The U.S. Bureau of Labor Statistics reports that more than 12 million people work for themselves. And I can tell you from years of experience in the freelance trenches that many of us self-employed slobs need help with everything from setting up a blog to tracking our business expenses to keeping up with our blasted e-mail in-boxes.
In honor of Independence Day, I’ve outlined five low-cost freelance businesses that you can start from the comforts of your home and market to other independent professionals — plus, the skills, training and overhead they require. See if one lights a firecracker under you.
You can read the rest of the article here, at abcnews.com.
July 4th, 2008
Lauren and Emira, authors of The Boss of You (which is getting rave reviews, by the way), are back with another guest post. A couple weeks ago, I was struggling with the question of business liability insurance — what I needed for myself as a company of one, and what to say about it in my new book. I asked them for their thoughts on the matter, and the result is this post. If you have any questions about small business liability insurance, feel free to post ‘em in the comments. I’m sure Lauren and Emira would be happy to answer.
For the first few years of our business life, we weren’t that concerned with liability insurance. While it would have been nice to take a “better safe than sorry” route, we didn’t really relish the thought of putting our meager earnings into insurance. At the time were a small company, without any staff, and our contracts state that we have no responsibility for our clients’ data and that our liability doesn’t exceed the value of any individual contract.
It was actually when we moved into our office space that liability insurance came up — our building required that we carry a minimum amount, as well as Errors & Omissions (E&O) insurance. Shortly after that we also hired staff, and while we certainly trusted our staff implicitly, things began to get a little more removed from our control, while ultimately if anything went wrong we’d be the ones holding the bag. At that point in time, we were really happy that we already had liability insurance in place.
Over the last couple of years, we’ve encountered a new situation with liability insurance that we hadn’t really considered when we first started out: we’ve been working with larger clients (particularly with government organizations) that actually require us to have liability insurance in order to be a successful bidder on any contracts.
We didn’t start our business with a vision of working with these kinds of larger organizations, but we know some people go into freelancing with the plan to work primarily with bigger organizations — often they actually come from having worked for a larger organization and move from a paid staff position to consulting after some time away, a maternity leave, etc. The point is, if you think you’re going to work with these kinds of larger institutions or organizations, you definitely don’t want to be trying to figure out your insurance while you’re replying to a 20+ page Request for Proposal. So, if that describes your target client, we’d strongly recommend getting some insurance in place from the get-go.
When working with larger organizations that are likely to require that you to carry liability and E&O insurance, you should work that into your pricing. With additional overhead expenses like that, you will need to charge more, simply because your cost of doing business (as required by clients) is significantly higher. So make sure you feel very comfortable charging enough to cover those expenses.
In our case, we actually went from working with an organization that didn’t require business liability insurance to that organization changing their policy (requiring us to carry insurance). And after that change, when we submitted our next quote for work at a higher rate than we had charged in the past, we made sure to gently remind the client that our rates were going up to reflect the additional costs they required we incur.
When you’re seeking out quotes on liability and E&O insurance, be warned that many insurance providers don’t really understand how to sell this kind of insurance to smaller outfits. They often have predetermined categories that are actually for bigger businesses. So it’s worth pushing back on your initial quote and making sure they really understand what it is you do, and what your actual level of risk is so you’re not paying the same amount as a firm with hundreds of employees that can technically be slotted in your category.
This is especially true for freelancers. When we first started looking for liability and E&O insurance, the carriers wanted to slot us in like we were a hosting company (we’re a web site design company), which is a whole other kettle of fish (hosting companies are explicitly responsible for their customers’ data for example, where our contracts state we are not). So we had to make the carriers understand what it is we actually do in a day, and what the real risks we carry are. And the price difference was significant.
Another piece of advice we always give on pricing and insurance is to try to renegotiate your policy annually, especially after you’ve held it for a year or two. We have a great insurance agent and she prompted me on this one initially, by basically saying, “You know I can probably get you more coverage for this premium since you’ve had no claims/are in good standing” — and she did. Now typically they don’t want to actually lower your premiums, because of course that’s how they’re getting paid too, but they will go to bat for you on getting you more for your money and that’s better than nothing.
May 10th, 2008
I am sleep deprived and drowning in deadlines. Posting will continue to be light until May 5th or so. For now, enjoy this freelancer-related randomata.
Here’s what happens when Homer Simpson decides to work from home. (Via Jezebel.)
Here’s what the New York Times has to say about charging your clients enough money. (Here’s what I — and some of you — have to say.)
Here’s what a recent study on individual health insurance found:
People who buy their own health insurance saw their average annual premiums rise 18 percent between 2002 and 2005, a modest increase compared to the 34 percent jump in average premiums for people insured through their employers, according to the latest News and Numbers from the Agency for Healthcare Research and Quality.
Somehow that didn’t make me feel any better about the 30+ percent increase in my health insurance premiums this year. After all, I don’t have an employer to subsidize the monthly premiums. Instead, I raised my deductible so I can afford coverage. Lame. But a common problem in this country.
Here’s a story that made me feel better about the above. This kind doctor quit the medical rat race and started a clinic that serves people with no health insurance. 40,000 patient visits since 2002. Nice!
April 25th, 2008
Exhibit A: I’m sure you’ve by now seen the sensationalist New York Times piece that might as well have been called, “Blogging Killz!” While it’s tragic that three prominent bloggers have had heart attacks recently (two of them fatal), this article was a huuuuge stretch. It did remind me, however, that no career is worth compromising your health (as I write this at 5 am, said the insomniac).
Moral of the story: The webconomy didn’t invent workaholism, crappy pay practices, and on-the-job stress. Workaholics, companies with crappy pay practices, and stress bunnies did.
Exhibit B: It’s worth reading Freelance Fizzle! The Decline and Fall of the Writer in the New York Observer, which pines for a freewheeling freelance past (complete with expense accounts!) that died decades ago — and probably only existed for a handful of A-list writers anyway.
The Reader’s Digest version: Once upon a time, magazine writers in Manhattan supposedly had it made. Today they have dwindling markets/readership/budgets to content with, not to mention — cue scary music — the web. Believe me, it saddens me greatly that print pubs are in peril. (Just this week, one of my beloved print clients had massive layoffs.) But I can whine about it, or I can wake up and smell the new economy.
Moral of the story: Freelance publishing rates haven’t gone up in decades. And unfortunately print as we know it is rapidly becoming yesterday’s news. Writers who want to eat need to have at least a couple toes in the digital pool (and depending on how much money they need to make, perhaps a couple more in the copywriting world).
Exhibit C: Procrastinating writers, take heart! Now you can strip away all toolbars, inboxes, and web connections and focus on the blank page at hand. Two distraction-busting word-processing programs (Mac version here; PC here) try to recreate the supposed glory days of writing by typewriter or clunky 80s computer, only with today’s processing speed.
On the one hand, I’m sorely tempted to check out this cool-sounding app. On the other, I did a fine job of procrastinating in the 80s and 90s, first with a typewriter, then with a Mac SE.
I applaud entrepreneurial software devs who sell their creations one download at a time, so I’ll skip the snide moral of the story here. And if anyone’s tried an app like this, I’d love to know what you think.
April 10th, 2008
Thanks to everyone who wrote in with their burning freelance questions last month. I really appreciate it. This question really stuck in my craw, so I decided to give a quick answer now.
Frustrated Freelancer asks: I recently was negotiating a project with a client I really wanted to work for. After I told them my price, they came back with, “We think this could turn into a lot of ongoing work, so would you be willing to come down?” It made no sense. If they are going to come to me with more work (and therefore take up a higher percentage of my time, which is then unavailable for other projects), why would I lower my price? Maybe there is some logic to lowering your price for some situations? I’d love to know.
I answer: Your instincts are right. “We will give you more work later” does not justify a haggle-down now. It’s a pretty weak argument for the client to make. Not only are you forfeiting 5, 10, or 20 percent of your earning potential now, you’re doing it month and after month if you continue to work with this client. And since you’d ideally want to raise your rates in another year or two to keep up with the cost of living (a topic for another day), you’re starting out wayyyy behind where you need to be.
The client’s tentative language (”Would you be willing…?”) indicates they’re just bluffing and trying to save a few bucks. Something more hard-and-fast like, “We’d love to work with you, but $xx.xx is the highest our budget will allow” lets you know there’s no more wiggle room (say, because you’re negotiating with a non-profit organization or a small company with limited funds for outsourcing projects). So my answer would be, “No, but I could do [a price midway between what you initially suggested and what they’re now offering].” If you’ve padded your first offer by 10 to 20 percent of what you actually want for the job and a haggle-down ensues, you have a much better chance of coming away with a price you like.
Before you enter into any negotiations with a client, I’d get clear on what “I really want to work with them” means. Would one sample in your portfolio from this company meet your needs? If all you’re looking for is to be able to say, “I’ve worked with Fancypants Client X,” then the answer is yes.
If, however, you believe strongly in the organization’s mission and want to do whatever it takes to forge an ongoing relationship with them, maybe you resign yourself to working for them at a discounted rate (if that’s the best you can do) in the name of community service and make up the difference with higher-paying bread-and-butter clients. Or, if the client’s offering some high-profile work that would get you noticed by other potential clients, industry bigwigs, and perhaps even the media, maybe you do a few pieces for them and reap the rewards in other ways (perhaps press for your business, which leads to more business) before moving on.
But back to the haggle-down at hand: Say the client’s shot down your counteroffer or shut you down with a “We simply can’t afford it” statement. You want to work with this client at least once, but you don’t want to get branded as someone who makes 80 percent of what she knows she’s worth. So you tell them you’d really like to work with them on their campaign to save the polar bears and will give them a 20 percent discount on this one gig so they can afford it. If it’s a for-profit company, you can add that you hope they can come up in price in next time.
Then on your project agreement and invoice, be sure to indicate that you’re giving a 20 percent discount. That way, the client won’t expect the same low price in the future. And neither will any of the colleagues they recommend you to.
April 3rd, 2008
I told myself I wasn’t going to post the cover of my new book on the site until I’d put the sucker to bed. The manuscript’s not even due till next week. But then Kristen Fischer kindly did this infomercial about me Q&A with me on Freelance Switch, which means the 22,000+ people who subscribe to the mother of all freelancing blogs now have the link to my new book (not that I mind). So I thought it was high time I let the cat out of the bag here too. In addition, I’d like to mention five things you probably didn’t know about my new book:
1. It’s called My So-Called Freelance Life: How to Survive and Thrive as a Creative Professional for Hire, and it’s due out this fall from Seal Press.
2. I interviewed several of the working class heroes I mentioned yesterday for it.
3. Kate Basart, the fab designer who’s responsible for The Anti 9-to-5 Guide’s good looks, did my new cover too. (Clicking the image at the top of this post will make it bigger, in case you were wondering.) Note the recurring post-it motif! Also, note that those are not my feet, though I do own a pair of pink flip-flops.
4. Just a hunch, but I suspect publishers like to announce their books on Amazon as early as possible so their authors can’t weasel out of their deadlines.
5. The book is available for pre-order on Amazon. I’m just saying…
March 24th, 2008
I recently did a Q&A with Cat Morley of the UK-based online craft community Cut Out & Keep. Cat asked me who my working class heroes are, and I liked the question so much (it was a first for me!) I thought I’d post my answer here.
I love the same funny writers everyone else does: David Sedaris, Sarah Vowell, Anne Lamott, Steve Almond… But I’d have to say my real heroes are the freelancers on the rise whose work I’ve come to know and love in the past few years, several of whom I’ve come to know personally: writer Judy McGuire, who’s as snarky and funny as they come; writer/illustrator Ellen Forney, whose performances of her work impress the hell out of me; writer Diane Mapes, whose ongoing news of book deals, newspaper columns, and assignments from enviable publications keeps me reaching for more too; writer/instructor Angela Fountas, who got a couple of kickass grants [last] year and does a tremendous job of giving back to emerging writers; writer/blogger Ariel Meadow Stallings, who’s got the online social media thing down; illustrator Nina Frenkel, who’s one of the most talented and prolific thirty-somethings I’ve ever met; erotica writer/editor Rachel Kramer Bussel, who besides being mind-bogglingly prolific is pretty dang fearless — I mean, if writing erotica isn’t literally putting your ass on the line, I don’t know what is.
I don’t think someone has to be a stranger who’s been pulling in six figures for the last decade to be a hero. The successes all these women have achieved feel accessible and within reach to me, which I find all the more inspiring. It’s not as daunting as comparing yourself to, say, Michael Chabon or J.K. Rowling and thinking, “Will I ever be that brilliant or rich, will I, will I?”
What about you gals/guys? Who are your working class heroes? Your mom? Sis? BFF? Fave blogger/designer/photog/coder/translator? Let’s hear it. And if you want to read the rest of my Q&A with Cat, it’s here.
March 24th, 2008
Jasmine asks: I just started out as a full-time freelance writer/producer/creative consultant in NYC about a month ago. I am a little unsure whether it is my responsibility to offer a W-9 form to clients, or if it is up to them to ask me for one. (Obviously, I’d rather not hand out my social security number willingly.) I have good record-keeping practices to ensure I am able to determine the appropriate amount of taxes I will owe, but expect that without a W-9 I won’t receive a 1099, although I will certainly report the income on my own returns. Any insights as to who needs to initiate a W-9 are very welcome.
I answer: Congrats on going freelance! This question, cousin to “Help, my client didn’t send me a 1099!”, is one I hear a lot from new freelancers. For those who don’t know, a W-9 is a simple form that tells clients your tax ID number (your social security number if you’re not incorporated), which they need for their records and to generate those cute little 1099 forms they send you each January.
It’s in the client’s best interest to get this form to you, and 99 percent of them will. You’re right that you won’t get a 1099 if the client hasn’t asked you to fill out a W-9, either because they’ve never done this before and have no idea that they’re supposed to (in which case, your good records will come in handy at tax time) or because they’re just starting to use freelancers and are too lazy/busy/confused to follow proper tax practices.
Don’t worry so much about giving your social security number to a reputable business that other freelancers can vouch for. I understand the fear, but I’ve never heard of anyone getting their social security info misused by a standup client, and I’ve been doing this since the Pliocene Era. If, however, a new client is giving you the heebie-jeebies, that’s a clear indicator that you shouldn’t work with them. And if anyone has a juicy My Client Committed Identity Theft And/Or Sold My Social Security Number On The Black Market story, I’m all ears (and of course, sorry to hear it).
March 17th, 2008
Still chugging away on writing my new book. Meantime, some links you might like:
Inkthinker skewers 7 heinous freelance writing practices. Kudos to Kristen King for reminding us why acting like a selfish, immature, vindictive freelancer is unbecoming. Best blog post I’ve read in ages.
Getcher top 100 freelancer blogs here. The listmaker (Bootstrapper) does it again. Everything from The Golden Pencil to DIY Photography to The Anti 9-to-5 Guide. (Aw, thanks, Bootstrapper.)
The readers speak: Your on-spec design contest sucks. Sounds like this guy was trying to be helpful to newbie designers, but he should know better than to announce an on-spec design contest to a community of professional freelancers (given that he writes about freelancing). I’m glad he pulled the plug when the peanut gallery threw tomatoes.
Red Herring deflates Helium.com. Personally I wish freelance “marketplaces” like Helium’s would shrivel up and die. Once those new freelancers using the site get tired of competing against each other, on spec, for $.10/word gigs, they’ll still have to learn how to go out and look for decent-paying work.
Freelance Switch launches a Client Analyser tool. Is your client bleeding you dry? Now you have a digital algorithm to help you make the call. You have to enter eight clients into the tool for it to work.
Want to know what editors want? Check out Editors Unleashed: Magazine editors growl about their writer peeves, a much-needed e-book from The Renegade Writer. Short, sweet, and endlessly informative.
Seattleites, want to know how to sell your writing without checking your soul at the door? Check out this one-day marketing workshop in April taught by my buddy Diane Mapes. (For full class description, click here. Then scroll down for description or search on “Mapes.”)
Are you Not An Employee? You might like this fun new freelance site/swag seller/blog. I’ll be curious to see where it goes.
March 13th, 2008
While I haven’t had many problems getting paid by clients over the years, the occasional accounting snafu does arise. This week I’m dealing with a client who’s been all thumbs in the accounts payable department. (In their defense, a personnel change has led a few check-cutting hiccups.)
Fortunately I’ve had enough money in my account to cover the boo-boos. Still, I thought I’d share my Not Getting Paid Properly Hall of Fame with you. Curiously all these goofs happened during the December holiday season.
- Client who normally sends checks within 14 days of receiving invoice takes almost three months to cut me a check. This requires some prodding on my part. Check arrives unsigned by client. I fail to notice and race to deposit it. Bank returns check to me, unable to cash it. I’m left waiting for client to reissue a valid check. (Duh all around.)
- Long-time client accidentally pays me double the invoice. All on one check. Not wanting to embark on a life of crime, I let the client know. I tear up the check and wait for client to issue a new one. (Merry Chrismukkah. Not.)
- Another December, another long-time client insists that I bill them in advance for work I’m slated to do the coming January. Something about having to pre-bill their client. When the project scope shrinks, I wind up having to reimburse my client a couple thou. (Don’t try this at home. Just as stupid and painful as it sounds.)
- My personal fave: My check arrives in an envelope stuck to the adhesive of another envelope addressed to and containing a check for another freelancer. Clearly an automation goof. Rather than send the poor guy’s check back to the client, I Google him, let him know, and drop it in the mail to him. (A Christmas miracle!)
This probably goes without saying, but impeccable accounting records (via Excel, QuickBooks, or the program of your choice) are a must if you’re even going to catch this stuff (save for the sig-less check).
So what about you? Any stupid payment tricks/accidents on the part of your clients you care to share? Please don’t name names, unless you want to pay my legal fees.
March 5th, 2008
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