Christmas Bonuses from Clients
Posted by kathrynv at 8:19 am in finance, freelance

As a professional blogger I have a number of steady clients who I have been blogging for over the course of several years. This year a couple of them have already sent me Christmas bonuses via PayPal. Totally unexpected and so sweet!

I am happy about this for three reasons:

  • The money is nice of course. But this is actually a small reason compared to the other reasons this makes me happy.
  • It makes me really feel like a part of the team. I work every week for these clients. I do all that I can to promote and build up their website and blog traffic. It’s nice to know that I am considered a regular “employee” deserving of a Christmas bonus even though I work remotely because it really makes me feel like I’m recognized as an important part of the company’s team.
  • I think this is a hint that things are shifting in the world of freelance and independent contracting work. More and more people are doing this type of work. I think that there are more “freelancers” who are really functioning as work-at-home employees for specific businesses. The Christmas bonus is one sign that this is beginning to be recognized. Another sign was a recent announcement by oDesk that their freelancers can start getting group health benefits through them. This recognition of the difference between true freelance work and work-at-home independent contracting is important and I think it suggests bigger changes to come.
Do you receive Christmas bonuses from clients? What do you like about this?
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My Ads and Affiliates
Posted by kathrynv at 9:08 am in finance, freelance

One of the things that I’ve adjusted to with web writing is that income from blogging and article writing often comes from ad revenue or affiliate sales. I don’t like to come across as too spammy with ads or to push products or services on other people. It’s just not my style. But I do use ads to generate income as a web writer.

I try to limit the number of ad and affiliate programs that I’m involved with. These are the ones that I use and like so far:

  • Adsense. I remoed Adsense ads from most of my personal sites and blogs because I could just never quite figure out how to make them work for me. However, I do have these ads on some of the specific sites that I’m a writer for and they do well for me in terms of generating a decent chunk of passive income every month. So the verdict is that I like Adsense when someone else is figuring out the ad style and placement for my posts.
  • Amazon Affiliates. This is my favorite way to promote product and get revenue. That’s because I actually like everything I promote through this site and I think Amazon is a good place to buy stuff from. I use this on multiple sites through both sidebar ads and text links.
  • Kontera. I started using Kontera text links on a few of my sites. I like it so far. It brings in some extra income and isn’t overwhelming to look at on the sites.
  • Magpie. I’ve just started trying out the option of doing ads on Twitter using Magpie. So far I like it. You can change the settings so that you don’t post ads too often and you can control which ads go live on your account. That said, I haven’t seen any earnings through it as of yet.
  • Clickbank. I’ve also just started using this one since everyone tells me it’s the one to use. No opinion on it yet.

What ad programs and affiliate programs do you use and like?

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I started working as a freelance writer nearly ten years ago. I went full-time with this work approximately five years ago. There have been a lot of ups and downs in that time, particularly in regards to the finances of being a freelancer. When the recession hit, I definitely had my fears about losing money as a result of the changes in the economy. This made me wonder if it was smart to be basing my career on work as an independent contractor. What I discovered is that the recession has only strengthened my conviction that freelance work is right for me.

Some of the core reasons that the recession has made me happy to be a freelancer include:

• I’m already used to fluctuations in my income. A lot of people have been hit hard by the economy because of the fact that the recession has altered their income. It’s the nature of freelance work to have an ongoing feast-or-famine income stream. I’ve learned to adjust to and accommodate for this. As a result, the recession hit me less hard than some of my friends with mainstream employment in terms of adjusting to income changes.

• My levels of fear about my job haven’t changed much. The recession has struck a chord of fear in the hearts of many. People who always thought that their jobs were stable are now biting their nails as their bosses sit in closed-door meetings to discuss potential layoffs. I definitely had a few moments of worry about how the recession would impact my freelance career. However, this worry wasn’t a whole lot worse than any of the worries I’ve had about my freelance career. I already took a big risk when I chose to go full-time as a freelancer. That’s when I dealt with those worries. Today’s worries about the recession are minor in comparison.

• I like my work. A lot of my friends with mainstream jobs really don’t like what they do. Those who still have jobs feel stuck because they can’t move on to something better when good jobs are so scarce. Those who have lost their jobs have mixed feelings about not having a job they didn’t like in the first place. People who get involved in freelance work do it because they enjoy it. I wake up each morning and like what I do with my day. I can say that whether there’s a recession or not.

I’m not saying that I’m glad that we’re in a recession. It’s definitely not easy for anyone including those of us who freelance for a living. However, I think that being a freelancer has put me in a better position than some to deal with the issues arising out of the recession.

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Writers Worth Day
Posted by kathrynv at 8:16 am in finance, freelance, writer's life, writing

Today is the second annual Writers Worth Day, a day that was created by fellow blogger Lori Widmer as a way to raise awareness of the importance of valuing the work that we do as freelance writers. Many freelance writers sell themselves short by accepting low-paying jobs, doing writing for free and agreeing to ceaseless unpaid edits. This day is a day to help those writers learn to value their own time and talents enough for them to stop accepting inadequate pay for their work.

Freelance writers across the nation should support this issue because of the fact that those writers who do accept the low-paying jobs are impacting the industry for all of us. Every field has an average market value that customers are willing to pay for the work that they want done. When too many writers accept low-paying work, the market value goes down and it becomes more difficult for the rest of us to find good clients who are willing to pay a fair wage.

Learn more about what you can do to get involved in Writers Worth Day here.

And a thanks to About Freelance Writing which is how I learned about Writers Worth Day.

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Options for Monetizing Your Blog
Posted by kathrynv at 9:14 am in blogging, finance, writer's life, writing

I recently came across an old article with 101 Ways to Monetize your Blog. The truth is that there aren’t 100+ unique methods of monetization in this article because many of the items fall under the same category. (For example, CafePress and PrintInfection options are listed as two separate items when really the method that you’re using is selling merchandise on your blog.) Despite the somewhat misleading name, there are indeed over one hundred specific options here contained within different categories that should give you a good idea of how to start making money off of your blog in ways that you might not already be doing.

One of the suggestions that I’m really interested in here is ShareAPic. This is a site where you can host your own photo galleries and make some money off of them every time that they get viewed. Most bloggers use photos on their blog posts so that’s a simple way to use your blog to promote your photo gallery and make a little bit of extra cash. That’s one of the more interetsing options for monetization that I’ve looked at in awhile and it’s an idea that I’d like to explore more myself.

I’d also like to add a new method of blog monetization that isn’t on this list although the category it falls into is which is making money via Twitter. This would fall under the “begging” category on the original post which includes options like adding a PayPal button or a “buy me a coffee” option on your blog. The idea is the same; add a blog button through a site like TipJoy so that your blog readers can Tweet donations your way.

I try to keep my own blog monetization limited but I do like some of these ideas. What are your favorite ways to make some money off of your blog?

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6 Money-Wasting Things I Do As a Web Writer
Posted by kathrynv at 7:46 am in finance, writer's life

I write a lot about saving money and frugal living. For the most part, I believe that it’s really important for all people to be thrifty with their money and I definitely think that it’s something that freelancers need to be really aware of. I’m knowledgeable about all sorts of money saving tips and I share them frequently around the web.

However, I have to admit, there are some areas of my own life where I’m not as good about this as I should be. There are areas of my life where I definitely waste money. Many of these are directly or partially related to my work as a web writer.

Here are the six money-wasting areas of my web work that I really need to work on improving:

  1. Postage. I don’t always like to walk over to the post office and wait in line to weigh the packages that I sometimes send out in relation to my work (such as contracts that need to be signed). Often, I’ll just slap on some postage at home and drop those packages in a mail box. I never want the package to get sent back to me so I’m sure I always overcompensate and add too many stamps. It’s only a little bit of money wasted each time but I’m sure it adds up. On the plus side, I’m really good about using recycled envelopes and boxes for all of my shipping (especially when I ship books for Paperback Swaps).
  2. New Books. Although I’m a big fan of those Paperback Swaps and other used books that green my reading, I do have to admit that I sometimes buy new books. I usually buy them on impulse and it’s usually a bit of a waste of my money. It was pointed out to me by a commenter here though that at least this supports the author’s work which isn’t the case when you get library books and other used books.
  3. Fancy coffee. I am not the type of web writer who frequently works from coffee shops. I usually get too distracted there. However, on the occasions that I do go to coffee shops to work, I almost always get a fancy expensive coffee instead of a cheap regular coffee. And I often get a snack. And those things do cost money.
  4. Leaving the computer on. I am guilty of leaving multiple computers running in my home almost all day and night. I do it for convenience even though I know it wastes energy and electricity.
  5. Failing to get receipts. One of the worst things I probably do is that I often fail to get or save receipts related to work spending and then I can’t write off those things on my taxes which is just sad. Transportation to meetings and interviews is one that I almost never remember to get receipts for.
  6. The home office. This one is a tough one as far as deciding whether or not it’s a waste of money. The thing is that I could get rid of the home office, rent out that room as a bedroom, work from my living room and save a whole lot of money on rent. However, I’m not always as productive with a roommate around. Basically this is probably a waste of money but a necessary one for me.

So these are the money-wasting areas that I need to work on as a web writer. What about you?

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Figuring out your Writing Rates
Posted by kathrynv at 7:53 am in finance, freelance, writer's life

I recently posted my thoughts here on whether or not you should reveal your writing rates on your blog or website. That sparked some discussions with my Facebook friends and Twitter friends about writing rates in general. What I learned is that a lot of my writing friends don’t actually have any set writing rates.

I found this to be somewhat shocking. I am definitely flexible about my own writing rates. I offer discounts to certain types of businesses (particualrly green businesses and local businesses). I take on jobs that don’t meet my standard writing writes because the jobs interest me or they seem easy enough or, frankly, because I need the money at that time.

But despite being flexible about my rates, I think it’s extremely important that I do have set rates. It makes discussing work with clients easier and it makes me feel more stable in my work. It’s professional and, in my opinions, it’s a necessity.

There are many many great articles out there on how to set your own writing rates. But I just came across a set of three posts that were recently done over at About Freelance Writing that I think sums it up best. These posts discuss how to track expenses and consider your need for a savings account so that you can determine your rates.

I think that most freelance writers are setting their rates based on the market value of their work. That’s definitely something to take into consideration. However, as a business person, you really need to have an understanding of what amount of money you need to be making to figure out if your business is worth staying in. If you spend more than you make for too many years in a row, you’re not going to last as a freelance writer.

How is everyone else figuring out their writing rates? And how flexible are you about them?

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Revealing Your Writing Rates
Posted by kathrynv at 11:42 am in finance, writer's life

I recently updated my website to include information for my clients on my standard blogging rates. One of the things that I have noticed to be true for most freelance writers who have a blog is that they don’t reveal their own writing rates on their blog. For the most part, this doesn’t bother me. However, I do wonder why freelancers don’t reveal their rates on their own websites more often.

Reasons that it doesn’t bother me that freelance bloggers don’t write about their rates:

  • Money is really a private issue. I don’t think it’s anybody’s business what you earn. I think that freelancers should have the right to keep their incomes to themselves in the interest of privacy.
  • Rates vary a lot from location to location. One reason that I think it would be good if freelancers shared information on how much they earn is that it would help to set a more standard industry rate for our writing. However, I also know that pay rates where I live (San Francisco) are considerably higher than pay rates in places with a lower cost of living so it may not really benefit freelancers to know what others are earning.
  • Rates fluctuate a lot. I have standard rates for my writing and blogging services. However, I also know that my rates can vary a lot depending on the nature of the job. Jobs that don’t require as much research or time investment can be done at a lower rate than my standard per-piece rate since I’ll still meet my hourly rate goals. I also offer discounts for working with specific clients including local businesses and artists. And admittedly, rates sometimes fluctuate with how badly we need work to pay our immediate bills.
  • There are ethical concerns. As a blogger, you have to recognize that your readers can be impacted by what you write. If you’re advertising rates that are much higher or much lower than theirs, this can cause them to question their own rates, something that a blogger perhaps shouldn’t be influencing.

However, I do think that there can be value for freelance writers in revealing their rates. Some reasons I believe this include:

  • It helps you get really clear about your rates. You have to really set clear rates before you advertise them which assists you in determining what you’re worth. Once these rates are advertised, it’s easier to stick to them to keep in line with your financial goals as a freelancer.
  • It makes it easy for clients to tell if they want to hire you. Many clients don’t want to hire you if you’re too expensive. Why waste your time with them? Having your rates on your website eliminate a lot of unnecessary back and forth conversation about jobs that you’re not going to take anyway. However, I do think it’s important to state in any applications if your rates are negotiable or if you offer any discounts.

So that’s where I stand on that. What do you think? Should writers reveal their rates on their websites or save that for email communication with potential clients? Should bloggers write about their rates on their blogs?

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My Money Saving Blog Posts Got Some Attention
Posted by kathrynv at 7:38 am in author update, finance

A quick pat-on-the-back to myself and the other writers over at The Money Saving Blog because that blog was named by the Times Online as one of the top 20 British personal finance blogs. It’s a UK-based blog that’s all about how to live frugally. And it’s a blog that I regularly write for.

Most of what I write for this site is tips-based articles on how to save money on different things. I’ve written recently about saving money for Valentine’s Day, saving money on groceries and saving money using a barter system.

I also just started writing a personal finance advice column for this site which is a really fun way to write on a topic that I think is really important. So far I’ve answered the question of how to stay fit while living on a budget. Of course, it’s pretty easy here in San Francisco where all you need to do is walk up some hills on your way to wherever you’re going but there are lots of other things that you can do as well and I had fun exploring those things in that advice column response.

I’m not the only writer for this blog and other posts on the site also got attention in the article but I just wanted to point it out since I received the link about it.

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I recently got myself into an unfortunate situation with one of my previous writing gigs due to my own failure to read a freelance contract before I signed it. The end result didn’t turn out so bad but I felt foolish because I know better than to read anything without signing it. And I know better than to faily to review my freelance writing contracts; after all, I’ve been in the writing business in some form or another for almost ten years. Heck, I ran a freelance writing company for awhile that relied heavily on the proper use of multiple forms of  writing contracts.

So, what happened? I’d been working for a blog network for several months under a contract (which I did read before signing). Then two things happened. First, I began to find that the time the site was taking was much longer than I’d anticipated and I was getting less and less inclined to work for the site. Second, a bunch of changes were made in the way that the network was going to be operated. As a result of those changes, all of the bloggers were asked to sign new writing contracts.

When I received the electronic version of my contract, I skimmed it. My excuse is the typical excuse that I was busy with other things. Additionally, I thought that I knew what the major change to the contract was which was that we were going to start receiving payments in a different manner and time frame than in the past. I was comfortable with that change so I went ahead and signed the contract without further review. I then promptly forgot about it.

Over the course of the next couple of months, I found that it was too much of a drain to keep my writing commitment to that site and I resigned from the position. I still have a few payments coming in from the old work. To my surprise, the most recent payment was lower than I’d expected. Long story short, the contract had changed not only the terms of payment but also the amount. Moreover, it had changed the number of posts I was required to write. Since I hadn’t read it, I’d been almost twice the amount of work that I needed to do – and of course I didn’t get paid for the extra.

The situation was bad for a number of reasons. First of all, it’s disappointing to do work and not get paid for it (through no fault of the network; I have only myself to blame there). Second, I’m a little bummed because if I knew that the requirements for the site had changed, I probably could have kep my commitment and not quit the job. And third, I just feel ridiculous about the fact that I didn’t read that contract in full before I signed it. What an amateur error!

But it’s good because it serves as a reminder that we should always read every word of a writing contract and make sure that we know what it says. Additionally, I would encourage you to consider amending three standard parts of each new freelance writing contract that you sign:

  • Late payment fee. Every freelance writing contract should specify not only the amount of compensation but when it is due (for example, the contract may say that payment is due within 30 days of the date on the freelancer’s invoice). Additionally, the contract should specify what the late fee is (such as ten percent) for failure to pay within that time frame. Most freelance writing contracts will not have this written in to them but you should negotiate a change with the client before signing the contract. This is a way to protect you from non-payment by clients (a problem which happens all too frequently in the freelance world); even if you don’t end up suing, the threat of the legal problem can suffice to motivate people to pay you in full and on time.
  • Length of contract. Make sure that the contract specifies something about how long it lasts and/or how to make changes to it. This is so that you can properly negotiate raises to your pay over time. For example, the contract may state that it requires renewal after one year. At that time, you are in a position to negotiate a better rate. It also puts a time limit on other terms of the contract so that you have wiggle room if you find out after a period of time that there are certain terms you agreed to that you don’t like.
  • Rights. Your contract will say somewhere in it who retains the rights to anything that you write for others. You should read this part carefully and try to retain as many rights as possible to your work. In many cases, this will mean amending the contract. Most clients are open to amending the contract within reason because they realize (or can be shown) that typical contracts in the world of publishing allow the author to retain certain reprint rights or to gain rights to the work after a certain amount of time passes. Read up on this area of copyright law so that you can protect yourself.

And read those contracts. Every time. No matter what!

Question of the Day: What stories can you share about problems and successes related to signing your freelance writing contracts?

[Tags] freelance, writing, contract, rights, legal, blogging [/Tags]

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