A recent story in The Australian caught my eye. The title of the piece is “Online magazine offers less than 2c a word to freelancers”. The name of the online magazine is Breathe Magazine Australia (BreatheMagazine.com) and it is scheduled to launch in April 2012.

The Australian journalists’ union, called Media, Entertainment & Arts Alliance (MEAA) has a recommended word rate of 93c a word (which is comparable to U.S. currency).  The MEAA criticized Breathe Magazine’s owner, Flujo, stating that “Employers must realize that journalists must be paid properly for their work.”

Flujo is looking for three full-time writers, and is asking journalists to agree to write a minimum of six 400-word articles throughout the course of a month in the hopes they are hired for the full time gig. A 400-word article, by Breathe Magazine’s pay rate, is $7.

Many established freelancers would scoff at that rate—and it’s unclear by this article if the full-time writer would be paid more than that once hired. Continue Reading

Was your New Year’s resolution to start your own freelancing business? We’re five weeks in—how is it going? I found this article on Freelance: UK that got me thinking about financial issues to consider before taking the big freelance leap. Here are some of their suggestions as well as some of mine. Continue Reading

I had never heard of the freelance-writing online marketplace Contently until I stumbled across this piece of info from the Wall Street Journal:

Freelance-writing marketplace Contently has raised a $2 million Series A round led by Lightbank. Co-founder Shane Snow said he started the company to help resolve some of the business challenges–such as securing a string of new assignments and getting paid in a timely manner–common to many freelance writers. —wsj.com

What does this mean, exactly? Well, it means that Lightbank, a Chicago-based company that help create and fund early stage entrepreneurs, has given a sizeable chunk of venture capital money to an online community that supports freelancers. Lightbank is run by two guys who were the first two angel investors in Groupon. Guess they know a good thing when they see it.

Kinda cool, huh?

I decided to check more into this Contently company and see what it was all about. Their manifesto states, in a nutshell, that they believe in high quality content that is created by experienced journalists and writers, not blather cranked out by content farms. Continue Reading

I really liked this article on Mashable.com’s business page about giving yourself a raise in 2012. With the economy being what it is (and has been), the thought of raising your freelancing rates might make your heart rate increase and sweat collect on your forehead. Before you go ballistic, ask yourself this question: when was the last time you adjusted your rates? If it was a decade ago—it’s time to give yourself a raise.

Whether you are a writer, photographer, or graphic designer, you need to make sure your current freelancing rates match your abilities.

With the rise of the Freelance or Gig Economy, more professionals are shifting from full-time positions to self-employed, freelance or contract roles. And often, for company employees accustomed to regular raises and pre-determined fee hikes, the notion of being in charge of one’s own prices is challenging. —Nellie Akalp for Mashable

How long have you been in business? If you are still charging the same low rates you started out with to get your foot in the door, you are shooting yourself in that same foot.

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According to an article in the Indianapolis Star, nearly 5% of the workforce in the U.S. held multiple jobs in November, up slightly from the same time last year.

For some, working two jobs has become the only practical way to get by. Some who take on extra work do it to pay off debt, cushion their savings or provide a fallback in case they lose their primary job. Others take part-time work hoping it turns into a full-time position, despite typically low wages and few, if any, benefits —Indianapolis Star

Holding two jobs for many freelancers is a way of life. Let’s take a look at a few case examples of how this can work well, and a few pitfalls to consider!

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For over a year now I’ve been working with a well-known producer/writer/director as his Internet marketing manager on two movies; one in development and the other now in pre-production. It is an interesting experience that has taught me loads about what not to do as a freelancer as well as educated me about finances, the business of freelancing, and how Hollywood really works. It is exciting, exasperating, engaging, frustrating, upsetting, and rewarding. But I have no clue what my job actually encompasses.

I thought I would share the wisdom I’ve acquired along the way.

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What would happen if tomorrow I forced you to double your rate?

If you bill hourly, your rate just doubled. If you bid by the project, you have to bid twice as much as usual. If you sell a product on the side (WordPress theme?), you have to double its price too.

For the sake of exploration, let’s ignore the understandable backlash from existing customers. Instead, let’s focus on the more interesting question:

What would you have to do to justify the rate?

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Copyright is as old as printing and as new as today. As freelancers, whether writing, designing for print or the Internet, broadcasting, filming, or creating music, you should be aware of your rights of ownership of your work as well as when you actually can’t retain full ownership — the down side of selling your work for a living.

Note: You cannot copyright an idea or name, only an actual creation; and the item does not have to be published to hold a copyright. The minute you create it and even if you don’t mark it with a copyright symbol, it still is fully owned by you.

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This post is a part of our Client Week series (check that page for an index as the week continues).

Many people turn to freelancers to complete project-based work, but some contractors can be on the pricey side. In addition to providing their services, freelancers have to factor in other costs associated with self-employment. Still, there are numerous advantages to seeking a solo worker, and ways to optimize costs in doing so.
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When it comes to increasing our income, freelancers face a challenge. We’re used to trading our time for money — even if we charge a per project rate, rather than work for an hourly rate, we don’t get paid until we’ve put in a certain amount of time. But there are ways to make money without that direct connection between the number of hours we work and the amount we get paid. That sort of approach to making money is known as passive income — although passive income is a bit of a misnomer. It does take work to bring in money that way, although there is definitely potential to increase the ration of money to your time.

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If there’s one thing I’m bad at in this whole freelancing business it’s bookkeeping. I mean, I’m a writer — and frankly, one of the things that draws me to writing is that it’s not bookkeeping. If you’re a writer, a designer, or even a coder, chances are you were drawn by the possibility of putting words, images, and code together in creative ways, not by the prospect of meticulously recording financial transactions.

The bookkeeping and accounting a freelancer has to do boils down to three things:

1. Recording invoices and payments,
2. Recording expenses, and
3. Computing and paying your taxes.

For the past year-and-a-half, I’ve been using LessAccounting to handle the first two, and sort of “winging it” to handle the third. I like LessAccounting, and with a little creative data entry (e.g. holding off on entering payments in months when I get several payments and entering them during slower months; the free account limits the number of payments you can enter in any given month) I’ve managed to do pretty well for myself with a free account. But that’s changing – I’m developing more clients and more steady invoicing and payments to record, and at the same time my income is growing to the point where taxes are becoming a nightmare.

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People become freelancers for all sorts of reasons. Very few do it to get into business – that’s just a side effect. To be successful freelancers, we need to be savvy business people.

Understanding business takes work – some light reading, some heavy ploughing though your government’s forms and requirements, maybe some serious study, and keeping up with business news and events. Material for small businesses and entrepreneurs will be especially helpful.

Here is a reading list for you to pick and choose from: 40 Places Where Freelancers Can Learn More About Business. This list is a starting point. Please add to it in the comments.

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