Bad Freelancing Opportunities
With the economy being the way it is, the bad freelancing opportunities are coming out of the woodwork. Here are three to watch out for:
1. Continuing to work for the same company, but as an independent contractor. Last year, this happened to employees at advertising and PR agency here in Tucson. Our local newspaper headline said, “Most Unnamed Inc. employees losing benefits.” (Unnamed Inc. is not the real name of this agency.)
The newspaper’s online comments were very harsh in their assessment of this agency. The politest comments were of the “lousy PR move by Unnamed Inc.” variety.
If your employer decides to make your benefits your responsibility, I’d advise lining up other work. Things aren’t going to get better. Or you could start freelancing – for other companies.
2. Freelancing for very low pay. Last week, I was at a networking mixer in a building that’s being converted into a collaborative workspace for creative professionals.
The mastermind behind the conversion process gave us a brief history of other local businesses that had previously occupied the space. One of those companies was an Internet Service Provider (ISP), and the very mention of its name set the alarm bells off in my head. I really had to struggle to keep my mouth (aka The Troublemaker) shut.
Around Tucson, that ISP was known as the company that offered freelancers the measly sum of $10 an hour for website work. I don’t know of any freelancer who accepted this offer, but it sure got talked about around town. And not in a good way. By way of an update, this ISP was bought out by a competitor.
Moral of this story: If your potential client is paying so little that you’ll struggle to cover even the most meager operating expenses, it may mean that the business isn’t viable.
3. The job that isn’t. In my previous FreelanceSwitch article, I talked about how I stumbled and fumbled around in the publishing business. In the spring of 1995, I realized that my publishing venture was doomed. So, I started job-hunting. Finally got an interview in the summer of 1996.
Here’s what happened: The interview was with another local ISP. This one was much more devious than that $10 an hour outfit. Starting with the advertisement in the local paper. It looked to all the world like the ISP was looking to employ a website designer.
Then there was the appointment at the ISP’s lavish headquarters in a Downtown Tucson office tower. We, the job-seekers, sat in the lobby, hunched over the applications that we were required to fill out. While we were working on our applications, haughty employees strutted back and forth, barely hiding their condescension toward, us, the lowly job-seekers.
A Gordon Gekko lookalike summoned me to his back office for the interview. At last, I thought, here was my chance to leave Struggleville and return to Steady Paycheck Land. The guy quickly disabused me of any such notion when he said that the job wasn’t a job. It was freelance. I was too stunned to point out the bait-and-switch that his company just pulled on me and the other job applicants.
A few weeks later, I got a form letter from the ISP. Among other things, the letter said, “We are not in a position to offer you a position at this time.” I was tempted to send them a thesaurus so they could find some synonyms for the word “position.” Wasn’t too long after that when I heard that they were on the verge of going under.
Oh, by way of an update, this ISP was also bought out by a competitor.
So, there you have ‘em. Three cautionary tales from the Martha file. Feel free to add your own in the comments below.
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4. Going back to freelance for a company you left (which is sort of like #1, I guess).
I made the mistake of helping out a former employer once – mostly out of self-induced guilt. Never again.
You’ve gotta remember there’s a reason you left them in the first place. Unless there have been some drastic change, those problems/annoyances are still going to be there.
A company that hires all of it’s staff under contract or freelance is really creating a temporary working environment where employees come and go and this can’t be good for building a company with longevity. I know of one here in Toronto and the sentiment of the employees is not to bother investing to much, (they never know if their contract will be renewed). Freelance or contract employees should be an addition to full time employees, not a replacement
Just a note on this story, $10 an hour is not very much, but if this story is about an event that happened in 1996 , which is 14 years ago. $10 at that time is much different than $10 now .
These are excellent examples, and I have similar stories myself. However, I must point out that this is applicable in the USA, Canada, UK and other well-developed countries that have established freelancing as an official mode of business. As I live in Croatia, which is pretty much a corrupt country where connections are everything, I can tell you that stuff like this happens everyday. Also, it is quite common that an employer does not give paychecks on time (unless it’s a Government institution). So being underpaid and basically blackmailed into continuing to work for an unfair employer is something that I’m used to.
I know what you mean Martha. After one year of searching for good
freelancing sites, I haven’t found one yet and was even scammed by one.
in response to #1, when i first started freelancing, i worked about 8 hours a week for the company i had been working for full-time. i was also billing them about triple what i was making there on salary. luckily i could get on my husband’s insurance, so that wasn’t an issue….so it actually turned out to be a great thing for me, especially as a new freelancer. so, it’s not ALWAYS a bad thing.
I agree with Melissa, I have been a contract employee for a company for 4 years that has in house employees, and it’s not always a bad thing. One of the reasons I freelance is so I don’t have to fall into the grind everyone else does. I actually rather enjoy the continuous flow of work without the rush to work and rush to home.
I agree with Melissa, I have been freelancing with a company for over four years that has in house employees and I rather enjoy having that freedom of working from home without the headache of going to work in house. That’s actually the major reason I freelance is for the freedom. So working a long time with a company isnt always a bad thing, but you do have to keep your eyes open and make sure they don’t take advantage of your working situation.
I was recently contacted by someone who wanted me to head up his freelancing team. After 2 conversations and 2 hours, I hadn’t arranged to get my Outlook sending exactly right so that his server could send him a copy of every email, I had enough of his condescending comments about my “inability” to get it straight (still don’t know what that was about). I finally just said on Skype that I had better things to do that made money and disconnected.
I next got an email saying he was filing suit (naming a VA law firm) for stealing his clients.
Beware, there are some really not so nice folks out there.
Good post, Tuscan seems like a non friendly place for freelancers.
I was previously the in-house designer for a high end audio/video integration company where I was employed for three years doing everything from the web site, the blog, email marketing, all print advertising and just about everything else. I was paid well and had a nice benefits package. Then the economy tanked and they moved me to 20 hrs a week. Which was a blessing as it allowed me to build up my freelance business. When they decided to do more with less and make me a contractor. I said sure. no problem, here is my standard freelance contract and basic hourly rate. Needles to say they decided not to continue with their advertising and marketing and I am free to pursue my freelance business. So the moral is, make them pay you what you deserve!
I just want to add an experience I had so others may avoid it. If an employers tells you that you must start out with a 90 probationary period during which you will be a contractor and not yet an employee and that after said 90-day period you become an employee and start making X amount of salary per year, like anything else in life, make certain you get it in writing. I won’t mention any names but I had this exact situation occur to me and then once my 90 period was up not only did they not make me an employee, but they were talking about paying me less per hour because of having been less then 15 minutes tardy on two occasions. The moral is, even when you are seeking a job, get all agreements in writing on a legally binding contract. If you do not know what makes a contract legally binding, it’s never to early to learn. Knowing that one piece of knowledge alone will help you out tremendously. Hope this helps someone out there.
Like Melissa, I disagree with the first one. When I announced my intent to go full time freelance, there were still some projects at my old job that couldn’t be wrapped up over the next few weeks. Rather than leave them hanging, I offered to complete those tasks as an hourly consultant, which gave me more control over when and where the work was completed, but also ensured that the work got done and I left on a positive note. Then, a few months later, when they hired my replacement, I came in again on an hourly basis to show her the ropes.
I’ve now moved away from that company as a client because they’re focusing on full timers, but I’m so glad that I was able to work for them during the transition. It gave me more work than I would have had otherwise (they paid me a decent hourly rate) and helped them through the transition, too. Some of the issues I’d had before I went freelance became a non-issue because I was working from home and only on a single project. Under the right circumstances, I’d definitely recommend this to other people making the transition!
I would add: Freelancing for “Opportunity”
There are lots of people out there claiming that while they can only pay a token amount, if anything at all, this *is* a great opportunity to get noticed / get in on the ground floor / split the profits, etc.
What you end up with is a client with a “great idea” who wants you to do ALL the work for next to nothing. Even larger, well-known companies, studios, musicians, artists etc. will try this tactic from time to time.
After 10 years of doing freelance work I’ve concluded the “opportunity” card is always a load of crap. Ends up YOU’RE the one creating the opportunity FOR THEM.
YES! I was going to add this same one to your list. It has happened to me twice in the past couple of months. I took one person up on it and they have decided to give me a monthly retainer after the low fee to build a site. that’s not bad. the other was a complete waste of time since the client kept pulling the rug out from under me — one minute she adored me and begged me to throw out my contract and work exclusively for her for $1,000 per month for 6 months and then she would resind the offer and say it was really a bonus or she would call me six, seven times a day with complaints. And in the end, she decided not to do the website at all.
I’ve been doing this freelancing gig for almost 20 years and I still fall for the Opportunity card too often.
I like your attitude.
Doesn’t being “bought out by a competitor” seem more like a reward than a punishment? For many businesses, being bought out is the goal.
The biggest risk of #1 is getting too comfortable.
As a freelancer you MUST learn how to kill your game, drag it home, and cook it, caveman style.
It’s OK to sell a few hours to your previous employer. But you really, really, REALLY need to figure out how to find new business, and relying on low hanging fruit from a past life like that is a crutch.
I always say that the most difficult freelance gigs to find are the second, third, fourth, etc ones. The first one usually falls in your lap and is usually the gig that convinces you to try freelancing in the first place. The next one is much more difficult to land, simply because you’re looking for it and you need it.
gr8t post. this is true for anyone who owns any business. rely on one client who generates more than 40% (just guessing at the numbers here) of your business can spell trouble. if that client decides to move their business elsewhere… where will u be?
All business owners must learn to ” kill your game, drag it home, and cook it, caveman style”.
I gotta tweet your comment!
It’s even worse than over-reliance on one customer.
When you slide into a freelance relationship with an old employer, nothing has really changed. You didn’t even sell the job as a freelance job. You’ve gotten no business experience from the relationship. In fact your old boss may treat you like an on call employee but cut you whenever he feels like it. Familiarity breeds contempt, especially in this kind of situation.
Every former employee I’ve known who decided that they were a freelancer because their former employer re-hired them as a 1099, crashed and burned when that gig was over.
PS: Thanks, Sue!
Companies that claim you should give them a big discount because they’ll make you famous is a bad opportunity as well.
True most people who promise to make you famous won’t but the right client could.
Yeah, when people start talking to me about how much business they can send my way, how many contacts they have, etc. as they’re asking me to work for a lower fee it’s a huge red flag.
First, the business I got from those sorts of customers was virtually zero. The few clients I did get were – surprise – just like them and wanted top work for minimal pay!
Secondly, they invariably are the most demanding clients and even though they are getting a lower rate, they somehow feel that they are entitled to be your top priority and you should drop any full-rate work and run to do their bidding.
Finally, I realized that if they really had all those great contacts, why couldn’t they afford to pay my full rate?
KNau is so right, working on the premise of getting future work has NEVER led to anything substantial.
Great read.
PS: the job that isn’t and the insultingly low paid job are both completely par for the course for freelancers.
You learn how to grow a thick skin quickly in this field and you learn how to throw it right back, or you don’t make it.
You have a great point. My husband is always trying to teach me that business is business. I think the business side (and knowing good from bad business opportunities) is the hardest part of freelancing. It is also the constant marketing and knowing when to say no that makes freelancing something that is not for everyone. You can’t be complacent.
@Vuk – thanks for putting it in perspective.
I hear you on #2. Looking over Craigslist job postings for web/info design today, I didn’t find a single one that was offering more than $13/hour. Not to sound snooty, but I don’t get out of bed for less than $30, and I suspect that’s on the low end for most web developers.
It’s disheartening – even more disheartening when I consider that they’ll probably find someone willing to work for that.
I avoid Craigslist for the exact same reason – it’s maddening!
Craigslist also posts non-jobs. I’ve never gotten a response from any posting I’ve answered except that they forgot to take down the ad. I’ve given up on it for a lead source.
I have definitely been through those opportunities before.
My “favorite” one is what Amber said, the person who can’t pay you, but says it will make me famous or it will give me advertising space. Yes, those opportunities are great for freelancers just starting out because it gives them a chance to advertise and build their portfolio, but for a seasonal freelancer like myself, that’s a big no-no.
What you end up with is a client with a “great idea” who wants you to do ALL the work for next to nothing. Even larger, well-known companies, studios, musicians, artists etc. will try this tactic from time to time.
I second Rita’s Craigslist point. It seems to be filled with scammers that post vague and inaccurate want ads that ultimately do nothing but waste your time, perhaps the ultimate insult in my book.
Great post!! #1 really hit home, since I recently was laid off from a salaried job do to “the economy”. I now see it as a blessing in disguise, because the only thing that kept me at the job for so long was the nicely paid (and very steady) paycheck. However, the owner of the company made poor business choices, ruled with an iron fist (to put it nicely) and managed her staff through fear tactics. She punished her staff by taking benefits away when unrealistic goals weren’t met, instead of giving positive reinforcement to staff when they deserved it. I personally found that when you have a family to provide for, you find yourself choosing biting your tongue a lot at work and justifying a paycheck over a negative work environment. This will inevitably destroy company morale.
After being laid off, she eventually asked if I wanted to pick up some jobs as a freelancer. I was very tempted to take her up on her offer. But, after some soul searching and I ultimately made the conscious decision to completely cut the “umbilical cord” with this previous employer (present and future). The negatives far outweighed the positives in my eyes (since the only positive was the money).
I can’t tell you how freeing that is to not have to worry about an employer day after day that drains all your positive energy like a black hole. When it comes to a career, there are many more qualities to look for than just money. Your overall happiness is worth far more than “job security”. The recession is proof to that, because no one’s job is 100% secure now a days. Life is too short… so why not be as happy as you can while you’re alive. Cheers!
“Nobody can go back and start a new beginning, but anyone can start today and make a new ending.” — Maria Robinson
Here is another potential pitfall “Give us a discount in this and we will give you more work” what they don’t tell you is that after the first work they say “we’re giving you work, can you give us now a bigger discount?” the ones that ask for discount are the ones that don’t wanna pay, some times don’t wanna pay at all.
Thae ones that want to pay ask you for fraction the work, pay by stages and thinks like that, that’s my experience with clients.
Great post. Seems like everyone is trying to get a deal… we’ve had interactions with prospective clients where they say they can’t afford our services and ask if we will lower our bid. One thing we’ve come to realize–if possible clients can’t afford our services, that’s their problem not ours. This comes from experience, and we made the mistake early on of taking any work that came our way. Not anymore.
Some people offer you the moon (at your own expense). That happened to me when an “influential” client offered me a project. It was to design a commemorative brochure for a respected business organization. But it was on a “volunteer” basis. She would “hook me up” with high-ranking members. I eventually turned it down because on top of not paying me she had me driving her all over town and never even treated for lunch. Telling the rest of this story would use up too much space, but I’ll say that this was a bridge I was all to happy to burn.
The lesson: Make em pay or walk away. I can hook myself up, thank you.
Good thought indeed. The idea of working for publicity but no money was what took me back. So weird, end of the day the all the efforts are so very wasted and you don’t even gain P of publicity. And you can kind a lot of these spammers in cragslist.
These are some pretty bad examples of freelancing opportunities, that ISP provider was no good! The relationship between worker and client needs to be fair. If you’re not being treated well by your client, take your services elsewhere.
In the end, the focus of freelance work should always be on quality, not price. If you’re providing a great service and a great client experience, the client should be willing to properly compensate you. Keep your dukes up!
Great Post! Seems like am not the only one ofering great service for next to zero , I would say that a legaly binding contract and other smart decisions should be enough to pull u out of so many freelance blackholes. Am in west Africa Ghana to be specific where a lot of cheating and zero payments are like ur daily Koko( porridge ), so please watch out.
I’ve had someone ask me to lower my prices in order to ‘get my foot in the door’, and I’ve done #1 to a certain extent.
This company was dying by inches when the economy turned and the owner made a bad choice and hit a few snags. I found my hours reduced, then I was made a 1099 employee. I should’ve quit, I knew I should’ve quit. Then I was offered a position in the production department that paid $8.00 an hour. I turned it down. So I was told not to come in until I was called. I only did that once, I came in and set up a job that only took twenty minutes. The boss figured that based on what he was paying me when I was working, he’d pay me for those twenty minutes.
He handed me three dollar bills.
I felt like the world’s saddest stripper.
great article. freelancing is really haaaaaaard job.
In some cases, it’s illegal to rehire former employees as contractors. The Department of Labor sees this as an effort to reclassify employees, solely to strip them of their benefits
http://www.dol.gov/elaws/esa/flsa/scope/ee14.asp
http://www.dol.gov/whd/regs/compliance/whdfs13.htm
Many of you probably know this, but there’s a new one born every minute.