Eight Lessons from Eight Months of Full-Time Freelancing
Samuel RyanI’ve been creating websites for about half of my life now — nearly 14 years focused on creating comps, writing code, and, of course, making designs look right in Internet Explorer. I’ve spent many of those years moonlighting, creating websites for clients who didn’t mind me working only at night. But it was only eight months ago that I decided to quit my third job in four years (all of which were decent jobs by the way) and launch out on my own.
Although I’ve really enjoyed the last eight months, I will say that I’ve learned quite a bit about freelancing and myself. Many of these lessons are the more obvious ones like “Work Hard” or “Budget Well,” but there are a number of lessons that are probably not so apparent. Here are eight that I’ve learned:
1. Focus Your Offering
An easy trap to fall into as a freelancer is to accept any work that is offered, even if the skill necessary is not really related to your field. You quickly find yourself promising the finest work in not only web design, but also in print work, content writing, photography, and business consultation. I guarantee that no individual can be all these things, and potential clients that hear you say this will be equally skeptical. Though there may be times when wearing multiple hats is necessary, in general, try to keep your offered skills focused. If your talent and skillset are up to snuff, there will always be work in your niche.
2. Business Skills Are More Important Than Freelancing Skills
A talented businessperson with subpar freelance skills (in whatever field) can still make a pretty good living. But a talented freelancer with subpar business skills is often found working 80-hour weeks for much less than what he/she could earn in the 40-hour corporate world. When you’re freelancing, you’re running a business, and thus, you need to develop those business skills (or find someone who can help or do it for you). There’s no reason why a freelancer should not be able to make a good salary.
3. It’s All About the Numbers
Expanding on point #2, keeping financially soluble as a freelancer comes down to simple math. You often hear people voice these types of concerns about freelancing: “What will I do about health insurance? What about my retirement account? How will I pay bills without a regular paycheck?” Well, I personally feel that these are red herrings and the real issue is simply, “Can I earn more than my expenses?” It takes less than 30 minutes to find out how much health insurance will cost or how to set up your own IRA, 401k, or other retirement account. Add those figures to your bills, mortgage, etc. and now you’ll know exactly how much you need to earn. Focus on the actual cashflow and it’s really not all that complicated or worrisome.
4. Go For More Work From Fewer Clients
Your greatest and most profitable clients are usually your current ones. Good relationships with current clients can cut out a lot of non-billable administrative and correspondence time trying to find new clients. Furthermore, when looking at new work, consider whether the potential client has long-term potential. A “one-and-done” job may pay a little more than a job with a current client, but be sure to take into account all the extra time and uncertainties associated with new clients.
5. The Customer Is Not Always Right
Chances are, one of the reasons you first considered becoming a freelancer was so you could create an environment with less stress and a happier workday. So why put yourself in a situation where you are daily stressed by certain clients that make you thoroughly unhappy? Understandably, there may be times when they’re paying your bills and you need to bear the pain for a little while. But remember that you are your own boss for a reason, and if a client isn’t working out, find replacement work and politely move on.
6. Structure Your Work and Time
Let’s be honest: it’s quite easy as a freelancer to take more breaks than you should and live in a sloppier work environment than you should. I know many will claim, “It’s my style and I’m just as productive,” as I also used the same line more often than not. But when tax season came or when it was time to add-up billable hours for a week, it’s hard to deny that a little structure would have helped. So try to add at least a little structure to your work environment and schedule, whether it be a few labeled envelopes or a small time slot where you always plan to work billable hours. A little structure will actually make you more free.
7. You Need Less “Stuff” Than You Think
When it comes to bootstrapping (operating your business as inexpensively as possible), everyone is different. When I first began to freelance, I thought the first thing that I needed was business cards and a portfolio website — I have had neither to date because I get steady work from current clients and referrals. Obviously, I’m not suggesting you forgo business cards (although I have met a couple other successful freelancers who still don’t have them), but you should not make business purchases unless you actually need them. Chances are, except for a few tools of the trade, there are many things you can go without or at least find a cheaper substitute for.
8. You’ll Always Have Your Skills and Friends
If ever your business fails or in the unlikely event that all your clients leave at once, remember that you always have the skills you’ve learned and the friends you’ve made. If you have these two well in hand, there will always be a place for you in the world of gainful employment. Stay confident that even when the cashflow is low, the worst case scenario is usually that you might have to go back into the corporate world (with additional skills to boot). And if you have supportive friends along the way, very few “troubles” are worth stressing too much about. Freelancing isn’t as big a risk as some would make it out to be, so just work hard and always be learning…





















Concerned Subscriber
March 12th, 2008
How many of these will you write? =|
Travis King
March 12th, 2008
Some real good, practical tips. I especially like #8. You may make it. You may not. It’s not the end of the world.
The Freelance Writer's Blog
March 12th, 2008
Samuel:
Reading this post took me back many years (I’ve been freelancing since 1993). I especially like that you are aware of number five — letting clients go. Some freelancers take the same mindset into freelancing that they had in the corporate world, ie, “I have to put up with this to pay my bills.”
You hit the nail on the head when you said, “Chances are, one of the reasons you first considered becoming a freelancer was so you could create an environment with less stress and a happier workday.”
If you’ve been brave enough to step out on your own, trust that and gently let go of clients who may add to your bottom line financially, but cause you stress. End the relationship professionally (eg, finish the project if you’ve committed to it), but by all means, end it.
Excellent post. With this kind of insight, you should have no problem making a success of freelancing over the long haul.
Continued success.
Sincerely,
Yuwanda
Jeff Mackey
March 12th, 2008
Love this article–thanks! Number 2 should be number 1, if you’re listing them in order of importance.
I totally agree that you’re running a business. A lot of freelancers forget that early on. Bring on solosnap!
Michael Martine, Blog Consultant
March 12th, 2008
As someone getting ready to cut the cord myself, this is great stuff to read. I think the point about staying good with current clients is the most important takeaway for me.
camilo
March 12th, 2008
Great! Thank you!
Chris Pommier
March 12th, 2008
Great article. I’m also staring over the edge of that freelance cliff. Reading posts like this make it seem more and more do-able. Thanks!
Ron S
March 12th, 2008
Thanks this is great, i have been freelancing on the side for the past 3 years and i have 3 more days at my day job of in-house design and web, so for me this is great to read, and very timely. So thanks you for sharing.
Ron S
Justin Lilly
March 12th, 2008
Thank you! I like how you make freelance seem possible. Too many authors out there make it seem like the holy grail: wonderful but all together unattainable. Thanks for offering the alternative view.
Alex
March 12th, 2008
Thanks for the list some great points included!
Ben Griffiths
March 12th, 2008
Great article, I think that structure is something I most definately need to work on!
David Zemens - 1955 Design
March 12th, 2008
Good suggestions and ideas.
I think your comment about your lack of a “business card” is an great observation. The internet has leveled the playing field for web designers. In my experience if you are competent, work hard and have a web presence ultimately clients will come your way.
Word-of-mouth, even if it is done in the virtual world via email, is the best business card you can have. It takes time to build this base. The greater your need for income the longer it takes. But in my experience it happens.
Patience and hard work nearly guarantee that it will occur.
Andy
March 12th, 2008
Can’t stress #2 enough: you’re not a web designer/developer/photographer/graphics artist/painter/whatever. You’re a business owner. The services your business offers might include web design/development/photography/graphics creation/painting/whatever, but if you focus on being a business owner first, you have the best chance of succeeding where others will fail.
What will you do today to ensure you earn your salary next week or next month?
Ben
March 12th, 2008
Great article. I’m in a very similar situation myself, about to just to fulltime. thanks for the tips!Be
Klaus
March 12th, 2008
Good point, reflects much of my experience.
However, I strongly disagree with your #7 (business card and website):
As a freelancer, you sell your competence, and your professionalism. You need to communicate that with a professional business card. If it looks cheap or unprofessional, most people correlate that with your skills. If you say “oh, I don’t have a business card yet”, it’s obvious you are a greenhorn and have no experience. Even if you get the business, it’s likely you get it at a lower rate.
The same applies for your webpage. I think it is not necessary to have tons of pages, two or three will do. As a freelancer, you will get little new business directly from your web site, but you get a lot of bsuiness frompeopel who hear about you, and then go to your website. make sure that you don’t spoil the positive image…
PS.: Especially if you are a web-designer, I consider an excellent webpage a must.
Brad C
March 12th, 2008
I’m glad I’m not the only freelancer out there without business cards. I have them designed, but never got around to printing them. I thought I would need them but almost all the work I’ve gotten has come through work I’ve already done. Altogether some great tips and I’ve learned many of the same lessons in the couple months I’ve been on my own.
Jason
March 12th, 2008
Your #4 is my #1 this year. Part of my ’structure’ is to touch current and ‘inactive’ clients on a regular basis. If I wrote content for a new client website, I suggest a press release to announce the site. If it’s a new business, I suggest a press release and an article. If I can plug the idea of a blog…blah blah blah….you all know how it works, but it’s amazing how many (or few) of us take this and make it real.
My switch will hit one year on March 24th. There’s no turning back.
brad
March 12th, 2008
Great article. I’ve had only 6 months of experience, but at least 6 of those lessons were right on from what I’ve experienced so far. Thanks for putting your insights into words for us.
riki
March 12th, 2008
I’ve been freelancing full time now for ten years, and never had business cards, never advertised or cold canvased, never picked up work from job boards and never had a professional web design portfolio site. But still manage to survive comfortably with a constant flow of work.
Mike Haynes - Miami Web Designer
March 12th, 2008
As a web design freelancer now for 5 years… the last two being full-time, I have learned a few more lessons myself:
1) Not only is the “Customer not always right”, but you can outgrow your customers. The clients that you brought in at the beginning of your freelance career for a few hundred bucks sometimes need to be jetisoned as your rates increase. It is a very hard thing to do, but firing your old clients is often a fiscal necessity.
2) Don’t be afraid to charge for phone time! I can’t count the number of phone consulting hours that I’ve given away over my career. I’m still guilty of it to an extent. But, do the math… several 15 minute phone calls per day can either be time wasted or time billed. If clients know that they will be charged for lengthy phone calls, they will begin to value your time more and NOT bother you when their Outlook settings mysteriously become misconfigured.
3) Don’t negotiate on price! When you prepare a quote for an engagement, make it specific and reasonable…. then stick to your guns. If the client can’t afford you, either move on or negotiate services. I will often agree to reduce the upfront cost of an engagement if the client agrees to an ongoing monthly maintenance fee. This helps to spread the cost out for the client while giving me another source of recurring revenue.
4) Don’t forget W-4’s and 1099’s! As a freelancer, I use a lot of contract labor. Anyone who I anticipate paying more than $600 to over the year gets a W-4 form AT THE BEGINNING of the engagement… not at tax time. Don’t let the IRS become more of an impediment than they already are to your small business. There are several online 1099 preparation and e-filing sites out there that make doing your 1099’s easy.
I guess I could keep on going… I have learned MANY lessons over the years. Some came harder than others.
Good luck all!
~Mike.
Eliffio
March 12th, 2008
It´s a great article. Very cool tips.
There´s just one thing I “can´t understand”…it is not having business cards. When you go to business meeting, and the client gives you his/her card (normally), what do u give him? it´s important because if the client doesn´t work with you this time, he will have your personal info for any future project that may come…
heavyweight
March 12th, 2008
Moo mini-cards: $20.
If you can’t spend 5 minutes uploading a JPEG and $20 to get 100 cards printed for those face-to-face meetings that happen in “The real world”, are you really serious?
Oliver
March 12th, 2008
2. Business Skills Are More Important Than Freelancing Skills: Very important point if not the most important one from my perspective. And it’s somehow one of the most challenging ones. Even the ugliest grocery stores can create revenue if they have keyclients who like the owner ..
2.1 One needs to carefully and constantly grow the business network and develop good and solid relations with clients whenever possible. At least that’s my deal. If you’re a little bit introverted the whole “business socialising”-thing is very challenging (I can tell). But life’s no chocolate cake, ain’t it.
Matt Halliday
March 13th, 2008
All very great tips for freelancers starting out (me), but I’m sure others already in the field could also benefit from them.
I think #1 is probably the most important - focus on what you know and you’ll succeed. Everyone has their own forte. As soon as you start offering services you know little about is when you’re really going to get in trouble.
Keep more tips coming!
sean steezy
March 13th, 2008
thank you very much for the article. its made me less of a wuss for when I make my moves. i hate taxes, also, but being organized with the proper forms and such is so worth it.
Pablo Matamoros
March 13th, 2008
Samuel,
I enjoyed your article. However I don’t agree with you and some of the comments about “business cards” and “professional portfolio”. You shouldn’t spend money in things that your business doesn’t need. But not having a “business card” is not one of them.
Business cards are not expensive. You don’t need to have an extraordinary design. Unless you are a graphic designer, in that case you can design it yourself. The point is that if you don’t have a business card or a website you are reducing the chances of new clients who might be willing to pay better money than the current ones.
In regards to a portfolio, you can temporally setup a site with Squidoo, Wordpress, Tumblr, etc. Only include your contact details and links to your previous work. Or you can have a simple static webpage with an HTML version of your CV (that’s what I had until a week ago).
It is a numbers game, the more you spread the word, the more chances you get to find new bigger clients. Word of mouth is the best option, but don’t underestimate the other ways of advertising (for cheap of course).
Samuel Ryan
March 14th, 2008
To the point of business cards and websites — I’m not arguing that people don’t need them. In fact, I would expect any subcontractor I work with to have them. But at the same time, you would be amazed to find out how many freelancers there are that are making very good money never having either.
Realistically speaking, many freelancers have a few loyal clients that provide 5-7 projects yearly that each pay a few grand. They’re aid well and are happy with their work and have had no shortage of it. So unless they need to find replacement clients or want to expand their business, they don’t need business cards.
What you don’t need is different for everyone. I was using a more extreme example to show that it can be surprising to find out what you can do without and still make a good living. Plus, I like being a contrarian whenever possible
Robert John
March 15th, 2008
Nice article, it really gives answers to questions that have been raising in my head for a few days.
Thomas
March 16th, 2008
Great list. I’ve had similar experiences. Especially the business skill part is so true. However, most of the lessons assume you already have a client. Being a skilled negotiator and getting paid what you’re worth isn’t really important if you don’t have anyone to negotiate with. Your number one priority is actually finding clients.
Coming from a 40-hour corporate world, you’re probably used to doing your “stuff” only (designing/programming etc). Someone else is doing the marketing/sales and your boss serves you new projects on a silver platter. Well, as a freelance, the marketing is now up to you.
If you think that business cards and a portfolio website is everything you need in order to get the phone ringing, you’ll probably soon be out of business. You’re most likely great at what you do, since you’ve decided to freelance, but the world doesn’t know that (unless you already have a good network). Marketing is crucial. You have to know who your customers are and how you are going to reach them, and how to sell yourself. You can’t rely on them stumbling over your portfolio site and being amazed by what they see. Or perhaps it’s just my site that sucks
So, you have to spend a lot of time finding new clients, perhaps 12 hours a week filling the pipe with new customers. You can’t sit there and iterate on your own website and wait for the phone to ring. That way you will end up with a great website which you can admire from back at your old job…
Just
March 20th, 2008
Wow. I really should come back to this website more often. I’ve always liked the content in the past, and I decided to stroll on by today only to scroll down and find this little tidbit that EXACTLY DESCRIBES MY LIFE for the past year. I have had 2 great resume making corporate jobs over 8 years, and I’ve been freelance for the past year. I am on the fence in my mind still, but my resume has started a foray leading me back into the corporate world. I have learned these same lessons, as well as many that are touched upon throughout this blog. For me, I think the biggest things that may make my freelance business less efficient are: not being picky enough in the work accepted, not managing work and personal time better, and undercutting myself. Also, it was brought to my attention by an entrepreneurial doctor client of mine that my skills would be better money makers in a niche market. So, while my return to the corporate world may be inevitable at this point, hope lies in the future to relaunch my freelance business with a new head on my shoulders, some much needed bills paid, some new experience and resume building, and some new contacts.
Brian Casel
March 28th, 2008
excellent list. I’m a newly switched freelancer (about 2 months now). I agree with (or will agree with) just about everything here… although my first step was setting up my new portfolio site. By the way - I found this article link from your main site: wakeuplater.com. Great stuff - keep it up!
dianewb
March 30th, 2008
Great article, and totally true. I’m especially connecting to #7 right now. I’ve recently had conversations with several people who are afraid to start their own business because they don’t yet “have everything they need.” I tried to tell them that they needed less that they thought, but they weren’t hearing me. I think it may just have been a way to indulge the fear and rationalize not getting started.
So thanks for #7 and all the rest. Really good read.