The State of Freelancing: 2010
Last month, I started a Freelance Switch Forum discussion on jobs. The context for this discussion is the high unemployment in the United States and many other countries.
In the U.S., there has been a lot of talk about putting people back to work. In early December, President Obama held a Jobs and Economic Growth Forum at the White House and in Allentown, Pennsylvania. Americans have also been encouraged to host their own forums.
In light of the feedback to my November 2009 Freelance Switch article, “Finding Jobs vs. Finding a Job,” I don’t think the solution lies entirely in creating employment. Many Freelance Switch readers report that they’ve been able to earn a good living without a job. More than a few say that they’re doing much better as freelancers than they were as employees.
Which leads me to this, the State of Freelancing: 2010 Edition. What follows is a brief look at where we are, and what we can expect to deal with in the months ahead.
1. Trend #1: There are freelancers-for-now. And there are those who are in it for the long haul.
You probably know someone who’s been laid off, and now she’s trying her hand at freelancing until the job market improves.
This isn’t new. When the U.S. went through a deep recession in the early 1990s, I belonged to an association for communication professionals. Unemployed people would come to our monthly meetings and tell us, sotto voce, that they were consulting. Which would lead more than a few members to ask, “Okay, what kind of a job are you looking for?”
The consultants’ reaction to the j-word question was predictable. They’d be all over the meeting room, pumping anyone and everyone for job leads. Which made some of us wonder what would happen to their consulting clients once they got a job. (Does the expression “hung out to dry” come to mind?)
Although most of the freelancers-for-now may be a competitive headache for now, they’ll be back in the employment world soon enough.
2. Trend #2: What if they decide that they like freelancing?
You may think that from what I said about the previous trend, that the temporary freelancers are muddying our lovely swimming pool. However, some of them find that they enjoy the life we live. You know, hustling for gigs, pouring their workaday souls into what they do and constantly finding ways to make it better, wowing the clients, and hey, who needs a job anyway?
They’ll quickly learn about what I’m going to describe below.
3. Trend #3: The freelancers who survive are those who are good at what they do, and are excellent at business. Especially when it comes to saying no.
If you’ve been freelancing for more than five minutes, you’ll know that there are all sorts of offers to work for free, or almost-free in return for exposure, referrals, publicity, or future assignments at your full rate.
For example, you might find yourself like the record store, restaurant, or hairdresser shown in the popular YouTube video in which customers ask for substantial discounts off the quoted price.
Or you may be asked to give your work to organizations that can well afford to pay for it. Happened to me this past summer. I was asked to share some of my photos with a local organization. I told the person making the request that I’d be happy to work out a licensing agreement. Her reply: The organization had no money for such a thing.
I guess I was supposed to take pity on this organization and share my work, but I didn’t. Something just didn’t seem right. After all, this outfit has a well paid staff and a nice office in downtown Tucson. I later found out that its annual budget is more than $1.5 million.
As you can see from the above, the ability to say no is one of the most valuable things you can develop. You can say it nicely the way Washington, D.C. photographer John Harrington does with his prospective clients. Or you can be nasty like Harlan Ellison is in this YouTube video, where he describes how he refuses to have an on-camera interview reproduced on a DVD.
4. Trend #4: You’re not alone anymore, so learn to work with others. And manage them.
One of the best things about the Internet is that you can form virtual teams to work on projects. They’re being formed right here on FreelanceSwitch. Or they’re sprouting up from social networking venues like Facebook, Flickr, LinkedIn, and MySpace.
I run a lot of my Web design projects through virtual teams. The transition from being a one-woman band to a symphony conductor is interesting, to say the least. For the first time in my career, I’ve had to develop management skills. Back in my employment days, management was the thing that I avoided like the plague. I just didn’t want to be a boss.
Now I’m finding out that being a boss isn’t necessary. Instead, I have to be a coach. For example, in addition to being paid promptly, subcontractors need just as much praise as employees. If not more. I’m also learning that a subcontractor who was perfect for my 2008 projects might not be who I need for this year’s work. The ability to spot a sub with talent–which includes the ability to get the job done–is a must.
5. Trend #5: Being good doesn’t go hand in hand with being a prima donna. One of the big employer complaints about creative people is the attitude that some of us have. This is also a common complaint among graphic design clients. Although you have professional expertise that deserves to be respected, that doesn’t rank you above your clients. After all, they’re paying you. You don’t have to be a pushover, but you do need to be nice.
So, there you have it. Five trends to be aware of in the New Year. Make it a good one!
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Great Article ! and good tips for those interested in bettering themselves. Customer service always goes a long way ..and like you said you don’t have to be a pushover but little touches that don’t take up much of your time always impress clients and keep them coming back .. (that and staying on deadlines)
6 years and going strong!
The ability to say “no” is a useful tool for the freelancer or anyone! If I said “yes” to everything I’d be very busy making not very much money. This is an important point for me.
After 2 layoff in 1 year i finally went full time freelance in Feb 09. With Dec 09 being my best month. We sometimes forget that the big US companies at one time was one person with a vision/dream.
Working for someone does not always mean job security, just read the paper. Yes it is challenging but you get up each morning with purpose.
Martha – This is a great post! I agree that there are a lot of unemployed professionals trying out the freelance waters right now. And you’re absolutely right that those who aren’t disciplined and fail to understand that you need to be great at running a business will fail.
However, I think this recession is different from all the other ones. I don’t believe we’ll return to full employment soon. One reason: instead of hiring full-time staff, more and more companies are currently hiring freelancers and solo professionals to complete critical projects. But unlike in previous recessions, I truly believe they’ll continue to do this, even when the economy turns around. They’ll see the value in having part of their workforce be more flexible and project-driven. And they’ll continue to experiment with this approach.
I’m starting to see this in areas outside of the traditional freelance fields (writing, photography, graphic design, illustration, etc.). It’s now moving into more mainstream areas such as accounting, senior management, sales, operations, project management — you name it!
Part of the reason for this trend is the increased regulations, costs and risks involved in hiring/firing employees. Another reason is increased competition, which forces businesses to be more creative in how they source talent. And yet another reason is that companies want to tap into the creative energies of independent professionals who aren’t mired in toxic company politics.
Bottom line: I think more and more professionals will go solo over the next decade. But at the same time, the size of the pie will grow, which means more opportunity for all.
Great post! I think Ed is right. Corporate America now know that there are people that are desperate for jobs, so they lay off their High paying employees, and bring in someone who can do it 20-30% less.
But #3 is dead on. A lot of people will try and jump into the freelance/Blogging business, thinking and feeling that they can make it work. The problem is, you have to be in it for the long haul, and you have to come in with a marketing plan that’s going to get your work out there! Lot of people really don’t know how to “Stage themselves” for all to see!
There’s a door that is being open for Freelancers to walk into. You just have to bring your A-game when you do it!
Great article Martha,
I loved the video of Harlan Ellison, I think he’s right, but I wouldn’t say it the way he did to a possible client… He reminds me of Joe Pesci in Casino!
Well thought-out post, you make great points. I especially agree with “being good does not go hand-in-hand with being a prima-donna”.
I’m in full-time freelancing for the long-haul – it is a choice I made before the recession hit and I’ve been fortunate enough to have great clients through this time. Freelancing is not a career choice for the faint of heart – it requires much work, time and constant effort.
Awesome discussion…One of my biggest learning points as a freelancer was learning how to say no to people who were just trying to take advantage of my work rather than pay for the hours put into a project. Freelancing is certainly a process, and it can really help you learn more about yourself as an artist and businessperson.
The biggest thing here is realizing how many people are freelancing now. With the help of FreelanceSwitch, among other blogs, so many people are getting into freelancing and making it their career! If it’s a career you want to be in, you have to commit and really work hard at it.
Good post and explanation on the topic.
Thanks for all of the great feedback on this article!
As a follow-up to the Community Jobs Forum, I was asked to submit (via the U.S. White House website) answers to the following questions:
Q: From what you have heard about the President’s Jobs Forum, what seems relevant to your community?
A: I am a contributing writer for a website called Freelance Switch. This is one of several site is run by an Australian company called Envato.
Freelance Switch is an international gathering place for independent professionals in fields like website development, graphic design, computer programming, writing, illustration, and photography.
In response to your request for Americans to hold Community Jobs Forum, I moderated one on Freelance Switch. Here it is:
http://forum.freelanceswitch.com/topic.php?id=7980
My decision to moderate this forum was based on the feedback to my November 2009 Freelance Switch article, “Finding Jobs vs. Finding a Job”:
http://freelanceswitch.com/finding/finding-jobs-vs-finding-a-job/
I don’t think the solution to our nation’s unemployment problem lies entirely in creating jobs. Many Freelance Switch readers report that they’ve been able to earn a good living without a job. More than a few say that they’re doing much better as freelancers than they were as employees.
Q: What parts of your local economy are working or thriving? What businesses and sectors are expanding and hiring?
A: In the Freelance Switch community, many of us are benefiting from a megatrend, and that is the movement of communications from print to the Internet.
Take, for example, the realm in which I operate. My primary focus is on designing websites and printed materials for university-based science, technology, engineering, and math (STEM) programs. These days, much of my design work never sees print, and if it does, I’m also asked to create a digital version that can be posted on a website or e-mailed.
Within the university environment, this megatrend has created winners and losers. Obviously, those of us who can create and manage digital content are on the winning side. However, things haven’t looked as bright for those who printed the university’s phone book, course catalog, and semester schedule. All of those things are online now.
Q: What parts of your local economy are not working or thriving? What businesses and sectors have been hit the hardest? What are people struggling with the most?
A: Many of us are noticing an increase in the number of “freelancers-for-now.” They’re trying their hand at freelancing until the job market improves. This isn’t new. It happens during every economic downturn.
While there’s much to be said for keeping the money coming in while being without a job, successful freelancers are in it for the long haul.
Q: What are the opportunities for growth in your community? What businesses and sectors seem poised to rebound? What do you see as the “jobs of the future”?
A: Like many freelancers, I work on website development projects that call for expertise that I don’t have. In order to fulfill the client’s requirements, I form a virtual team. For example, I’m currently working on a website redesign for the nutritional sciences department at the University of Arizona. I developed the site layout at my studio here in Tucson. The subcontractor who created the template based on this layout is in Massachusetts. I’m now working with a Texas-based programmer who is creating the Drupal theme for the website.
Q: What are the obstacles to job creation in your community? What could make local businesses more likely to start hiring?
A: In the freelance community, we’re not looking for hiring to come back. We work on a project basis. This means that we’re looking for the next project while we’re working on the current one. To be honest, this isn’t the easiest way to make a living, but take a look at the “Freelance Freedom” comic strip on Freelance Switch. Despite the pitfalls of our project-based lives, we wouldn’t trade them for employment.
Q: What other issues and ideas should the President consider?
A: Don’t just think of work in terms of having a job. There are many people who are contributing to their economies without being employed. And we don’t want to be employed. We are freelance and proud of it.
Q: Describe your event:
A: From my in-home studio in Tucson, Arizona, I moderated a community jobs forum on a website run by a company in Melbourne, Australia. Here’s the forum:
http://forum.freelanceswitch.com/topic.php?id=7980
I just wrote a forum follow-up article, “The State of Freelancing: 2010,” which can be seen here:
http://freelanceswitch.com/freelancing-essentials/the-state-of-freelancing-2010
Take special note of the comments after the article.
In short, all is not doom and gloom. The future belongs to the entrepreneurial.
Awesome answers.
Thanks for posting this. It’s so good to know that I’m not alone having clients test me to see just how low I’ll go.
Great article!
Trend #3: The freelancers who survive are those who are good at what they do, and are excellent at business. Especially when it comes to saying no. –> I definitely agree! I used to always say yes to projects and clients; however I realized that saying no to some things allowed for better quality, and consequently, more clients in the future.
Also, here’s an update for 2010 for freelancers in the UK. It’s an interesting read : http://freelancesupermarket.com/news/2010/1/19/freelancers-need-level-playing-field.aspx (The PCG is calling for the tax system to treat contractors and freelancers more fairly.)
Nice job..
Great article. Thank you very much. For a new freelancer, like myself, this is information is golden.
Hi Martha,
very practical information. They recognized right thing and writes!
Regards
Robert