As the unemployment rate in many industrialized countries continues to languish in double digits – or close to it – government policy makers are devising all sorts of programs that will put people back to work. Most, if not all of them, focus on the creation of jobs.

Now, since this is FreelanceSwitch, the j-word is something that provokes a rather strong reaction. Many of us have not had the happiest of experiences with conventional employment. And we’re not going back to the job world unless it kidnaps us. Which is unlikely to happen.

But when it comes to the world’s economic recovery, we’re anything but a sideshow. If anything, we’re a major part of the solution. To the point, we’re building a new economy.

This article takes you on a tour of three of this freelance economy’s major features. Continue Reading

In our last Linkswitch, we had a look at a NY Times article on the “self-employed depression.” While it’s true that recent events have made making a living harder for many people who put themselves in the self-employed or freelance category, many freelancers are finding that business is as good as ever. A few days after, we published a piece by Martha Retallick on surviving the economic downturn. It’s clear that the state of the economy is an important issue for freelancers, as tiresome a topic it can get with the media milking it for all it’s worth.

So here’s what we want to know: how many of our readers are doing well despite it all, and how many of you are facing difficulties? Is the depressing and rather biased NY Times piece accurate or just another story written to sell? Cast your vote in the poll and then feel free to vent your economy frustrations in the comments.

You’ve probably heard that sad song, the one that goes, “Been down so long, it looks like up to me.” It seems to be the theme for our current economic news.

This theme has a close friend called “The Worst Economic Downturn Since the Great Depression.” I’m skeptical about that line, because I’ve seen worse.

Back in 1980, I was just a year out of college, and I found myself unemployed. The grant that funded my job had run out, and I was living in the state of Michigan. Even then, Michigan was developing a reputation as the Unemployment State. Which meant that if you wanted to find work, you’d best go elsewhere.

Since I had some savings in the bank, I decided to indulge my passion for bicycling before settling back into the job world. I spent a good bit of the following two years exploring the United States by bike.

By June 1982, I’d had my fill of life on the road. Or so I thought. I’d decided to move back to the city where I was born, Pittsburgh, Pennsylvania. From the old hometown, I’d launch my professional career.

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It’s not unexpected that individuals and businesses have tighter wallets in this economy. This, coupled with people who have been laid off and are now starting up their own companies, can be tricky. Little or no money creates a difficult situation for folks trying to promote themselves, thus raising the number of times we service providers hear “no, it’s just not in my budget right now.”

When I first started freelancing, I thought the conversation had to stop there. “They’re simply not interested,” would go through my head. However, I’ve come to realize that responses like these are actually great starters for conversation. There are essentially three things we can do when we hear such a response.

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Photo by Endlisnis.

Recently a client of mine tried to low-ball me. She knew our standard rate for the project in mind, but asked if I would consider going lower–of course, just this once.

And I’m sure I’m not the only freelancer that this has happened to. After all, our global economy isn’t so hot. Some people are trying to get something for nothing, while others are honestly having a tough time. As a freelancer trying to keep business afloat, where does that leave you? Is there a way to deal with a prospect or an existing client who wants a discount, or an unreasonably low price? Is it better to do a one-time job on the cheap rather than “spoil” an existing client relationship?

Here are some points to keep in mind when a client asks if you can “go a little lower.” Hopefully they’ll help you assess whether or not you want to reduce your rates, and if so, what the future ramifications of that could be.

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Photo by Michel Filion.

If the economy isn’t impacting your business, that’s great news in and of itself. But many freelancers are feeling the pinch from the global economy’s condition. Whether your business is thriving or flailing, try implementing these tips to help your business stay strong despite a weak economy. Not only do these ideas help you better reach potential customers, but they offer the kind of practical marketing advice you’ll want to continue to implement long after the stock market recovers.

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Photo by laffy4k.

We’ve reached the end of our series on New Year’s Planning. The previous three articles covered:

1. Next year’s tax bill
2. Next year’s budget
3. Next year’s client acquisition plan

Now we’re going to talk about you. Specifically, about making you into a smarter business person. Here, my rule of thumb is that it’s not enough to be in business. You must also be a student of business.

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Photo by tophee.

No matter how much freedom you have as a freelancer, if you’re suffering from a double whammy of recession and rejection, it’s tough going. Throw in the big holidays (Thanksgiving, Christmas, New Year’s), and for some lonely freelancers, it’s a difficult time. What do you during times like this?

Weathering a Downturn

Here are some general tips for improving your lot as a freelancer during a business or economic downturn.

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Photo by HAMED MASOUMI

It’s 11:30 pm. My wife has already gone to bed. I was cramming to get an ad
done for the paper the next morning. The phone rings. It’s the client’s assistant.

“So? Is it okay?” I ask.

“She hates it,” she replies.

“Did she say why?”

“No.”

Frustrated silence. After a fruitless exchange of profanity and exasperation
we get off the phone. My wife is exhausted and livid at this ungodly hour.
So I turn off the ringer and go to bed, knowing full well that the assistant
is still furiously trying to get through to me and leaving messages on my voice
mail. I have a choice here between my wife and my client. I choose my wife.

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Photo by Powi

You know that commercial where the two girls sit around eating their yogurt and talking about how “it is sooo good?” Yeah, I hate that commercial.

But you know what? Freelancing in the U.S. economy has been good to me lately.

“It’s like, $4.00 a gallon gas good!”

“No, no, it’s like write-off your new laptop good.”

Kind of like that.

Thinking of making the freelance switch? Here are a couple reasons why you should buck up and go for it, recession and all. Continue Reading