Archive for Starting out

Technology for Freelancers

December 14, 2012 Business Tips, Starting out, Tools No comments
technology toolbox

Every few months I’m asked to present of the best technology for freelancers. As I cut my teeth as a journalist writing about technology, there are times when my peers look to me for advice. This week, I present to a group of recently retrenched journalists who are looking at freelancing for the first time in their career.

The temptation with this is to simply focus on a few choice applications, look at some specific hardware and then provide everyone with a laundry list of stuff to buy. Of course, this would be a list of what works for me – not much use to someone with different expertise, experience and access to technology.

My approach is to ensure that freelancers look at each different part of their business and get them to choose the best tools for each part of their business. Running a successful business takes more than choosing an accounts package. It’s about managing a whole bunch of conflicting priorities and managing your time so that everything you need to do moves forward. Sometimes, the worst thing a freelancer can do is work to finish one thing and let other tasks stagnate. For example, if you use your spare time to only pitch stories for current clients, you won;t build your client base with new ones.

The presentation I put together is based on one I gave at a freelancer convention with  few tweaks and updates. If you’re interested, it’s on SlideShare.



The Elevator Pitch

October 17, 2012 Business Tips, Guides, Starting out One comment
elevator pitch

A while ago I described my elevator pitch – short description of what I do that can be delivered to a stranger. It assumes that they know nothing about me or what I do and can be shared in the time we share an elevator ride.

The folks over at Freelance Switch have developed a useful guide on creating an elevator pitch that’s worth a look.

They offer several tips but this is the big one in our view.

Once you’ve put something together, practice it. The trick with an elevator pitch is that while it’s planned, it needs to sound spontaneous; not robotic. Practice this by saying your pitch while your in the car or shower, making sure the words are natural and it’s easy to remember.

We’d also suggest trying it out loud in front of a mirror and then running it past a family member or friend who doesn’t understand exactly what you do.

Having a couple of different versions is also handy. I think a long version that lasts about a minute and a one or two sentence “highlights” version work well. For example, my short version says that I am a professional communicator that helps people tell their story. If that piques the listener’s interest (it usually does – who doesn’t like a story teller?) I can go with the longer version.

A solid elevator pitch needs to be memorable without being ridiculous. You want potential customers to remember you for what you do and stand for, not just because you were funny. And make sure you back up the pitch with a business card that tells people what you do and not just who you are. Consider it your paper-based elevator pitch.

How’s your client mix?

October 15, 2012 Business Tips, Starting out, Working 2 comments
Client Mix

In a superficial way, there are really only two types of clients; good and bad. But the reality is that you need a client mix. If all your clients are the same you might as well have one boss and go back to working for someone else.

There are lots of different ways to categorise your client mix. Here’s one way.

Meal tickets

Meal tickets are a critical part of your client mix. They are regular clients you can reasonably rely on to commission work and pay reliably every month.

They may not offer the most exciting or enjoyable work on your ticket but it’s regular, pays your required rate and keeps things ticking over. You have a good relationship with these clients and you rely on each other. These clients are as close to a regular job as you can get.

One thing to watch out for are your local tax rules. In some jurisdictions, if you get too much of your income from a single source then you may be deemed to be an actual employee – the very thing you’re trying to avoid as a freelancer. If you’re in Australia, the ATO provides information for contractors.

Specials and one-offs

There will be times when clients come out of the blue. They commission you for one-off jobs, never to be seen from again. Can also be clients that commission you once, seem like they’ll be good but aren’t worth the hassle as they keep changing the brief, are slow payers or get started on a project only to try and milk you for extra services for no charge.

In other words, they’ll be one-offs either because they only need you once or because they haven’t been great clients.

If a one-off client proves to be a good client then make sure you keep in regular contact. Even though their need might have only been short term, add them to your newsletter list and stay in regular contact. It’s always good to stay in touch as you never know when they’ll need some help again.

Pro-bono

As a general rule you should never work for free. If you don’t value your work why should anyone else. However, when you start out, doing a small number of freebies can be a good way to build a CV, references and portfolio of work. Include clients that pay low rates but are great for your profile.

Also, doing local community work or helping out a preferred charity can be a great way to network as well as providing assistance to someone in need.

Profile Builders

There are some clients that look great on your client list as they are well known, high profile, prestigious or could direct you towards other clients. You should make an effort to pursue some of these as they give your business a great credibility boost. Also, if these clients are large companies they’re likely to have great budgets.

Make a list of profile builders and make a plan to contact them regularly. Do your research and find out where the best contact points into those companies are – and there may be more than one.

With the right client mix you can be assured that you’ll have enough variety in your workload so that you don;t get bored.

Freelance Does Not Equal Employee

November 8, 2011 Getting Paid, Starting out 4 comments
Freelacne or not to Freelance

 

Earlier this week the trade union I’m a member of, the Media, Entertainment and Arts Alliance, released it’s recommended rates for freelancers. These aren’t law in the same way as minimum wages laws or award rates are in some jurisdictions. They’re indicative of the rates a freelance journalist ought to charge in order to make a decent living.

For writers, they suggest the following rates.

  • $911.00 per day
  • $607.00 per half day (based on charging 2/3 of the day rate)
  • $227.00 per hour
  • $925.00 for 1000 words or less (and then 93c per word)

The rates are similar for editors, proof-readers and photographers.

The assumption that these rates are based on “what a freelancer would need to charge to earn the same income as a mid-level journalist working on a metropolitan daily newspaper”. The mid-level journalist they have in mind gets paid about $70,000AUD per year. That includes super-annuation but I’ll work on the assumption that freelancers are contributing to their own super-annuation fund.

Let’s break that $70,000 down.

  • There are 365 days in year.
  • Weekends – 104 days
  • Public holidays – 10 days
  • Sick leave – 10 days
  • Annual leave – 20 days

That leaves 221 working days in the year making the mid-level journalist’s day rate $316.74

It’s not looking like the MEAA’s suggested rate of $911 per day is at all reasonable.

The MEAA also includes in their suggested rate “reasonable out-of-pocket expenses” such as travel costs, telephone, car mileage, fax costs (really – people still fax?). Even if I allow $800 per month for those things (that’s based on looking at my own expenses so I’ve added insurance and a few other bits and pieces) that’s only about $40 per working day.

I’ve written before about setting a pay rate. Advice like the MEAA’s rate card is useful but it needs to be tempered with reality. Even allowing that the real cost of a full-time employed is 1.5 times their salary (allowing for on costs such as a computer, etc), the MEAA’s rate suggests an annual salary of just over $200,000.

With all that said, I’m a self-employed contractor because I like being able to work flexible hours, dress in whatever I fee like much of the time, sneak out in the middle of the day for a tennis lesson, lunch or whatever I want. However, I expect those things to come at a price.

The MEAA’s rates aren’t realistic. You’re better off setting your own goals, working hard and enjoying life. If you can’t make it work as an independent freelancer (and it’s not for everyone) then perhaps the safe $70,000 per year job is what you want.

Choosing success

July 11, 2011 Business Tips, Starting out No comments
will_smith_photo

How do you get enough clients to make a living? If I got a dollar for each time I’m asked that question I wouldn’t need to find any clients. Finding good, regular clients that pay a fair rate on time is the biggest challenge to a successful freelance practice.

But how do you find those meal tickets? It turns out that the only true movie star in the world, Will Smith (at least according to this story by Bill Simmons) has done the leg work for us.

Here’s Smith’s plan:

When Smith was trapped on the Fresh Prince of Bel-Air set in the early-’90s, dreaming of starring in movies instead of selling Alfonso Ribiero’s jokes, Smith and his manager, James Lassiter, studied a list of the top-10 grossing films ever. Here’s what Smith told Time Magazine in 2007: “We looked at (the list) and said, O.K., what are the patterns? We realized that 10 out of 10 had special effects. Nine out of 10 had special effects with creatures. Eight out of 10 had special effects with creatures and a love story.

In other words

1. He looked at the market he wanted to succeed in

2. Determined what the common attributes of success were

3. Made sure that he modelled his work to take advantage of the success criteria he’d found through his analysis

How many freelancers, whether they’re photographers, developers, artists, writers or whatever, are that deliberate about their careers?

In my observations there are two types of freelancer: those that are successful and happy and those that wish they were (OK – so I might have ripped that off from My Big Fat Greek Wedding where the dad says there are two types of people – Greeks and those that wish they were Greek). If you’re in the latter group, you need to find people in the former group and talk to them.

If there are clients you really want to work for – pursue them. Very few potential clients will say “Yes” to you on a first meeting or contact.

Then, deliver what they want, how they want it, when they want it.

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