This is a guest post by Matt.
You know you are ready to start freelancing and you are determined to be successful at it, so now it is time to get serious about it. With proper planning, you will be able to say good-bye to the constraints of a wage earning job and be free to earn money freelancing. One of the first things you will need to do is to determine how much you really make at your wage earning job. Then you can estimate what your freelancing income will be and how much you will need to save to survive the transition. In addition to financial considerations, you will need to be skilled at more than the work you will do freelancing, you will need to to have other skills to be successful.
Know Your True Income
You know how much you make an hour, but when transitioning to freelance work, you’ll need to know your actual hourly income. When determining your true hourly income, be sure to include the following:
- Vacation time – how long do you intend to take on leave every year
- Insurance contribution – how much was contributed by your previous employer?
- Bonuses you receive – did you get any quarterly or annual bonuses linked to performance?
- Discounts you qualify for – were you able to receive a discount on work related goods or services?
- Company matches for pensions, stock, and anything else – did your employer pay in to any financial scheme?
Add the above benefits to your hourly pay. Once you do that, you can determine how much per hour that you need to earn freelancing.
Estimate Freelance Income Potential
You know what you can charge for your work and about how much you can make per week, but to estimate your true income, you’ll need to know the expenses you will have as a freelancer. When you have your own business, you will need to calculate your expenses and that amount will need to be subtracted from your freelance income. Consider the following expenses when estimating what you can earn:
- Taxes (local, state and/or federal) – work out what you’ll need to set aside to cover tax
- Business licenses – if your area of work requires a license to operate, factor in how much it costs
- Advertising – if you need to build up your clients, you’ll need to advertise your services to them first
- Rental or purchase of property, equipment, vehicles, etc. – what will you need to run your business?
- Insurance (personal and for business) – do you need personal liability cover for your line of work?
- Accounting – a good accountant might be more expensive per hour, but they can save you a lot of money and headaches
- Business loans – will it take some seed capital to get started, and if so, what interest will you be paying on it?
Depending on the type of freelance business that you have, when you take time off you may need to have someone fill in for you. You will need to include that as an expense, also.
Skills Needed to be Successful
When you do freelance work, you won’t have a boss to tell you what to do, this can be a blessing or a curse. Successful freelancers will need to do/be the following:
- Customer service – you’re front of shop now!
- Set goals – you have to motivate yourself to get stuff done
- Manage time – you’ve got to be able to stop yourself from working long hours on projects that don’t pay well
- Self-motivated – nobody will tell you to get back to work when you’re your own boss
- Be organised – without proper organisation, you’ll waste time and make less money because time is money for any freelancer
- Be decisive – beating round the bush doesn’t help anyone, especially you!
- Work well alone – working by yourself can be challenging, especially when you have long and arduous tasks to do
- Avoid distractions – online it’s so easy to get distracted for long periods of time, so it’s up to you to stay focused
- Accounting – you should probably get an accountant to do your books, but it’s down to you to track expenses and keep receipts now
Evaluate what you depend on those above you to do and be responsible for at your wage earning job, and develop the skills needed to do yourself so that you have those skills when it’s your responsibility.
Saving Before Transitioning to Freelance Work
Once you know your true wage earning income, actual expenses of freelancing, and are confident you have the skills needed to be a successful freelancer, you can start your business part time and save for the day you can do your freelance work full time. Before you can set savings goals, you will need to know the amount you need to save. You should have enough saved to cover living expenses, business expenses, and pay bills for both for three months. A separate savings for unexpected expenses will be needed, this one should be about the equivalent of 1 month of your income.
It will take some time to prepare, but you when you plan wisely, the transition to freelancing can be a successful transition.
Matt is a contributing writer for CreditCardCompare.com.au, an Australian comparison service, where he reviews small business credit cards. Visit their website at www.creditcardcompare.com.au.
This guest post was written by Danny.
Being a freelancer is a great way to earn a living. However, there are a number of little gadgets that can help make your freelancing career go a bit smoother. Below is a list of five computer gadgets that you can use right away.
LessTimeSpent.com
They say that time is money, and that is certainly true for the freelancer. It is important to accurately keep track of your time, because minor mistakes with your time tracking could end up costing you quite lot in unpaid money by the end of the year. LessTimeSpent.com is a great way to accurately keep track of your time and the tasks you have completed.
SimplyBill.com
As well as keeping track of your time, you need to be able to invoice your clients for the work you have done. You don’t want to waste time getting bogged down with software that is too complicated or time-consuming to use. SimplyBill.com enables you to easily send out attractive invoices to your clients with minimal fuss. Let SimplyBill.com take the time and hassle out of your invoicing.
BackPackIt.com
If you are working on team projects, it is important to be able to easily share documents and information with your team members. BackPackIt.com enables you to keep all your project’s documents in one central location all the time. So, no matter where you are, you can access the relevant documents with just a few clicks. No more having to shuffle through pieces of paper from your briefcase.
RememberTheMilk.com
One of the most important things when you work freelance is being able to organise your day. But if you are juggling many different tasks throughout your day, it’s not good enough just to have loads of post-it notes or scraps of paper lying about. RememberTheMilk.com is a central online location where you can easily organise your tasks, and makes the whole process an enjoyable experience.
Scirocco Take a Break
If you work as a freelancer, you don’t have the structure of set hours and routines that you would have if you were working in a standard office. While most freelancers work on a computer, spending too long in front of a computer can be bad for your health. Take a Break is a little program which prompts you every hour to take a 10-minute break away from your computer. This prevents you from spending hours and hours hunched in the same position, which can lead to back and neck pain and also eye strain.
This guest post was written by Danny who writes at his blog: www.androidtabletfanatic.com (if you want to ask him any gadget questions then feel free to email: androidtabletfanatic@gmail.com)
This is a guest post by Mariana Ashley. Learn more about her at the end of the post.
There are many aspects of freelance writing that make it an extremely enticing career to pursue. With the freedom to create your own work schedule, make a living from the comfort of your own home, and be your own boss, freelancing has several alluring perks. While freelance writers all love what they do, there is not a single one of them that would describe their career as easy. Many of the aspects of freelance writing that make it enticing also make it challenging. Being your own boss means managing your own time. For many this can be a difficult responsibility to completely master, but time management is essential to a successful freelance career. One of the first steps to optimizing your career as a freelancer is learning to effectively utilize your downtime. Use these tips to help maximize your success in-between projects.
Vary the Time Intensity of Your Projects
One of the easiest ways to mismanage your time as a freelance writer is by having an excessive amount of downtime between projects. Try to organize your projects so you have several going on at one time that are of varying time intensity. As a freelancer, you will get projects that will require more time than others. It is a good idea to try to take on a few projects that you know you can finish quickly and then maybe take on one or two that might be longer term endeavors. This way, when you have finished all of your short term projects, you can go on to work on your longer term projects in the downtime. As we all should have learned from our grade school teachers repeating it over and over again, procrastination always makes things much more difficult. Rather than put off longer projects until the last minute, use your downtime from other projects to put in a little time on the longer ones. This is a great way to utilize extra time and complete longer more labor intensive tasks on time and without much stress.
Organize Your Workspace and Computer
Another great way to effectively utilize your downtime is by doing a little spring cleaning. Because freelance writers work from home, it can be easy to overlook the importance of a tidy and put together home office. With a little time off, take a break to clean up your office and put things in order so that you have an environment that encourages productivity. Many people underestimate the importance that their physical work environment plays on their ability to work efficiently. Create a space that encourages focus and creativity. Make sure that your desk is not cluttered or difficult to maneuver on. Furthermore, as a freelancer much of our work is done on the computer. For this reason, it is important to thoroughly clean up your computer and to organize your files. Be sure to back up all of your important work information and projects. Also, be sure to keep up with your computer’s regular maintenance, so that you are not stuck with a slew of work and a broken computer.
Spend Time Surfing the Web
I know this may sound silly. You’re thinking: “but I waste time on the internet all the time. How is this going to make me more productive?” A great way to utilize your downtime effectively as a freelance writer is by doing a little research. So, by surf the internet, I do not exactly mean peruse Facebook and Twitter. Take a look around the web to see what is new in the area of blogging, freelancing, and anything else pertinent to your specific project fields. A huge part of blog writing or freelance writing involves understanding where your skills might be of use. By reading other people’s blogs or exploring various websites, you can find new place to seek for a job opportunity or new inspiration for other projects you have underway. Search the web to keep yourself active and motivated in the freelance world even when you are not actively working on a new project.
Lull periods are common in freelance careers. Very often we are completely swamped on day and searching for new things to do the next. Learning to use your in-between time wisely and effectively is a great way to perfect your craft and maximize your payout as a freelancer.
Mariana Ashley is a freelance writer who particularly enjoys writing about online degrees. She loves receiving reader feedback, which can be directed to mariana.ashley031 @gmail.com.
This is a guest post from Alexis Bonari, a freelance writer and blog junkie. She is currently a resident blogger at onlinedegrees.org, researching areas of online universities. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.
Recently, my life as a freelancer was turned upside down. Granted I had slightly over nine months to plan for this lifestyle change, but nothing quite prepares you for how your life will change when you have a child. If you’re a freelance writer, organizing your work schedule around the needs of a baby and keeping ahead of deadlines is a surprisingly challenging experience. While I’m sure I’ll have to update my strategy as my daughter grows (she’s only 3 months old and isn’t yet mobile) here are four helpful tips for transitioning your freelance career when you’ve just had a baby:
1. Take advantage of any help you can get from your partner.
Understandably, not everyone has a partner who can devote their weekend or evening to watching the baby so that work can be done. If you do have such a person in your life; take advantage of it. Nobody is an island. Freelancing for a living is a full-time job. So is taking care of a baby. Four hours of completely uninterrupted work in the evening, and some extra time on the weekend, can make a huge difference in your overall productivity.
2. Look into a childcare exchange with another freelancer or another mother who wants some time off.
There are many mothers who want part-time childcare and are unable to find it for a reasonable rate. Find another mother in a similar situation and offer to trade childcare. As I already mentioned, a few uninterrupted hours can make or break your project.
3. Work around the baby’s sleep schedule.
This may seem obvious, but it often isn’t. It is not uncommon to fall behind on housework and laundry when you first have a baby. This is even truer when you have both a baby and a full-time job. Resist the urge to clean or do other household chores when you have a deadline coming up. Even though you’re at home, you’re on the clock. Schedule specific times for any housekeeping/cooking and stick to them. Otherwise, try to get through as much work as possible while the baby is sleeping.
4. Accept that it will take time to adjust to your new schedule, and that’s okay!
Go easy on yourself. Your life just changed in a very real way. There are many advantages to working from home when you have young children. That said, it’s not as straightforward as working set hours with no interruption. Enjoy your baby and slowly increase the amount of work you take on until you find the perfect balance for your life.
Michelle Rafter recently wrote a terrific article offering ten suggestions for freelance writers who are interested in launching their own businesses. The suggestions range from the obvious (train others in what you do) to the truly creative (launch a customized wire service).
One core reason that these suggestions are so important is because entrepreneurs are making the money when other people aren’t. A couple of years ago, I wrote a very basic article on things you need to do if you’re looking for a job. The article has gained hundreds of comments from unemployed people who are desperately struggling to find work. While I can sympathize with their plight, I have to confess that there is a part of me that wants to suggest to these people that they try to find creative ways to launch their own businesses rather than waiting for someone to hire them.
In the recession, nearly all of the people I know who are managing to do decently for themselves financially are people who are going out there and making their own jobs. I know people who have gotten laid off and used that opportunity to launch photography businesses, grow their writing careers and work in foreign countries. I realize that not being able to find a traditional job in your field is terrible but going out and making those opportunities for yourself is a creative and productive approach to the problem.
Freelancers who are struggling to make ends meet with traditional writing jobs can take their already-independent way of working and really make it work for them. The suggestions in Michelle’s article are a great start for that. And of course getting creative and launching a fresh new idea of your own would be even better.
And even freelancers who aren’t struggling may want to consider making this type of business move. It keeps your work fresh. It stops you from stagnating. It allows you to explore your limits, push your boundaries and challenge yourself in the work that you are doing. You don’t have a boss to promote you so you really and truly have to promote from within!
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.
I am always on the lookout for new freelance job leads. I like to know what’s being offered and what the average expectations are of the people who are hiring freelance writers and bloggers today. I also like to have a steady stream of new opportunities available to me.
I typically use the same few resources when looking for these job leads. I use Craigslist under both writing jobs and writing gigs. I use Problogger since I’m primarily looking for blogging work. And I use Deb Ng’s daily list of leads. However, I also like to play around with new options for finding work as these options emerge.
One option that’s emerged recently is TwitterJobSearch. Through this site you can enter a keyword for the job that you want to find and it will provide you with a list of such jobs that have been posted to Twitter. You can sort the results by date or relevance.
I have tried to use this tool to find blogging jobs and it doesn’t seem to be particularly useful. I’ve entered “blog”, “blogger” and “blogging” as my keywords and yet most of the jobs that come up don’t seem directly relevant to hiring a blogger. However, I’ve seen more success for general writing jobs when typing in either “writing” or “writers”.
I’m curious – is anyone else out there using TwitterJobSearch to find freelance writing / blogging jobs? Has it been successful for you? Is it any better than searching Twitter directly?
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?
I don’t know if I want to be a freelance writer forever. I have a lot of different business interests that I want to pursue and this may not be the one that sticks. Despite that, I’m really glad that I get to be a freelance writer right now.
Some of the things that I love about this work include:
- Working from home works for me. It’s not something that works for everyone but I love working from home. I love the option of solitude vs. working in a coffee shop or co-work space. I love the chance to get some work done before I’ve showered. I like being in my space.
- I love a flexible schedule. I love being able to work when I want to. I actually stick to a pretty good schedule but I love how easy it is to change me schedule if there are things that come up that I want to do instead of working.
- There’s a great freelance community. I like the fact that there are so many other people doing the same thing and communicating about it online and that I get to be a part of that community.
- Research is interesting. I write about a lot of different topics so I get to spend time researching really interesting topics. That’s fun!
- Work options are diverse. If I want to I can work on blogs, books and academic-style writing in the same day. I pretty much stick with blogging but I like that I have different options so that things don’t get boring.
- I’m the boss. Ultimately I really like that I get to say which work I do and don’t take. It lets me do the work I can really support and believe in and commit to which I think is important.
And it also pays the bills so I can’t complain about that either!
I mentioned here in yesterday’s post that I enjoy the fact that the writing business means constant change. It’s true that I enjoy the changes that happen in this line of work. However, I have to admit that sometimes the changes mean stress. The biggest cause of this is what I call the swinging door of freelance writing. Clients are constantly opening doors and closing them on us due to their own situations and financial restraints.
This affects me more than other writers because I strive to take on jobs that are going to be ongoing. I don’t apply for one-off jobs or short-term jobs (like writing a single batch of articles). I just feel that it requires too much effort on my part to learn the terms and style of a client that I’m only going to write for once. Also, I really like to promote my own work to improve web traffic for my clients and that’s hard to do when you’re only writing for them once or twice.
Since I take on jobs that are designed to be ongoing, I get hit harder when those jobs end. It’s frustrating to build up a portfolio with a client, get used to using their system, get good at promoting their specific type of work to the right industries and then to be told that they just don’t need you or can’t afford to keep you on anymore.
I counterbalance this by steadily applying for new ongoing jobs. I check freelance job boards on a near-daily basis and apply to all of the ongoing jobs that appeal to me. There are only about 1 or 2 per month that I actually get all the way through the hiring process of and decide to work with them. Still, this means that there are 1-2 clients per month that I’m learning a whole new system for (and often a new industry as well!)
And each month there are 1 or 2 existing clients who need to lighten the work load or let go of me altogether. So the swinging door continues. I’ve learned to accept this and to not get too worried about it. I know there will be other jobs when one ends. Nevertheless, I would say that this is one of the bigger sources of stress in my life as a freelance writer.
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