Well… that’s it people. I think it’s pretty much case closed now.

Economists, academics, thought leaders, bestselling authors… it seems just about everyone has weighed in on the topic of the new economy and the fact that self-employed professionals are taking center stage.

But this month, freelancing or “working independently” or being a “solopreneur” (no one has quite settled on the catch-all phrase to describe us yet) was officially ordained as the way of the future by the mainest of mainstream media…

It’s right there in black and white, on page 42 of the July issue of O Magazine…

“Stop looking for a staff position…” “…package yourself as an independent contractor for hire on a project by project basis.” – Suze Orman O Magazine, July 2010

O My!
Let’s just pause for a second and appreciate the gravity of this… here you have Suze Orman, perhaps the most recognized personal finance expert in America, in one of the nation’s leading magazines, telling millions of readers to eschew the traditional J-O-B and go solo.

Um. That’s HUGE.

You can read the full article online for the proper context, but basically Orman’s advice came in response to a reader (someone with a master’s in HR) who was frustrated with job hunting after 40 applications turned up crickets .

With her advice to look for project-based contract work, Orman adds her voice to the chorus of people like Seth Godin, Dan Pink and countless others who’ve been telling us for years (many years, in Pink’s case) that freelancing, or whatever you want to call it, is increasingly how we roll in North America now. (Seth Godin even refers to himself a freelancer, in this recent video interview.)

Seeing advice like this in the pages of O, from a mega-high profile author like Orman will be a wake-up call for a lot of people. If you thought “going solo” was just a trend, watch what happens now, and in the next few years to come.

Who stands to profit from this? YOU!
If you’re reading this blog, odds are you’re already an indpendent professional, consultant, freelancer, solopreneur, whatever-you-call-yourself or you’re working toward that vision. So… if you’ve been hesitantly dipping your toe in the warm waters of freelancing, now is the time to take the plunge. FULLY. Get ahead of the wave, go all out, and build your solo business. NOW is the time.

*
Pete Savage is co-author of The Wealthy Freelancer and doesn’t quite know how to answer, “Why were you reading Oprah Magazine, anyway?” so don’t ask.

Oh, wait a minute—you mean I have to control my costs now that I’m on my own?

Yup, afraid so. But the good news is there are a lot of ways to hold down costs that many people don’t think of when they’re still working as corporate slaves. Here are five great tips that will keep more money in your pocket as you operate your freelance business, whether you’re a fledgling freelancer or a seasoned pro.

1. Switch to an unlimited phone plan. When you’re freelancing, the phone is your friend. Use it to call sources, work with co-authors, gain new knowledge in teleseminars, follow up with distant editors, send the occasional fax, and more. Unlimited U.S. or U.S./Canada calling plans might run $50-$70 per month for a landline, much less with Voice Over Internet (if you can tolerate the quality). And then you don’t have to worry about it; when you want to make a call, you pick up the phone. You can even set up your own teleseminars so sources you interview can share their knowledge directly, and perhaps earn you some revenue.

2. Market online through no-cost methods. Participate in social networks like Facebook and Twitter or e-mail discussion lists such as those found on Yahoogroups. Take the time to learn the culture of each group you select, but then participate actively, helpfully, and appropriately. Work will begin to flow to you after a few months.

3. Become known as an expert in your niche, and then use your network of professional contacts to bring in more work. As you speak and write on your topic, as you build relationships with people who already reach your prime prospects, you’ll attract clients at no cost other than your time. Sometimes, you’ll even get paid directly for working on activities that generate revenue for yourself—cool, huh?

4. You don’t need to impress anyone with a fancy office or fancy furniture.  You do need a comfortable chair (don’t scrimp on that!), a work surface for your computer and phone, and good lighting. Everything else is gravy. And as a freelancer, you can keep costs down by working from home. When you need a conference space, either rent one by the hour, work out an arrangement with a friend in an office, or meet at a coffee shop.

5. As soon as you can, outsource or automate the low-level work. Why spend hours every month managing your e-zine subscription list when software will do it for you, free? Why sacrifice the $50 or $100 per hour you might get for magazine work, or the $150 to $300 per hour you get as a commercial writer in order to maintain your website or accept social network friend requests, when you can pay an assistant $20 per hour to free up your time? Hire a fellow freelancer, and pay only for the time you need.

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Shel Horowitz’s seventh book is Grassroots Marketing for Authors and Publishers. He started his writing and marketing/publishing consulting business in 1981. Learn more about Shel at his main website www.frugalmarketing.com.  

There is a devastating pricing mistake that almost every freelancer has made. (Me included.)

Here’s what typically happens.

Say a potential new client calls you. She is the marketing director of a large company and has a project she wants you to quote on. It’s right up your alley. You’re excited! You want the work. And, if you do a good job for her, she could potentially send a lot more work your way in the future.

But first you have to quote the job. Hmm. How much do you charge?

You don’t want to take any chances. So you quote a low fee, a real bargain, just to ensure you get the work.

Big mistake.

Why? There are two reasons.

First, when you quote too low, you look like an amateur. It’s a red flag. The client thinks, “This writer is a beginner.” She wants to hire a professional who can work independently and write great copy, not someone just starting out who may need a lot of direction and hand-holding.

In a quick survey I did of writing opportunities posted at elance.com (an online job board where freelancers can bid on projects) virtually none of the low-ball quotes ever won. Not surprising.

But what if you do get the job?

That’s the second reason why quoting too low is a big mistake. You get locked in at that bargain basement rate. You see, when a new client receives a first-time quote from you, it’s like a calibration setting. That price level becomes fixed in her mind — and it is very, VERY difficult to raise your fees to that client later on.

Think about it. If you charged a measly $250 to design a logo, what are the chances that you can get $500 form that client for a similar letter later on? Zero. The client would balk at your 100% increase in fees. Even if you explained that you gave her a great deal on that first job, she would still feel ripped off.

Trust me. You don’t want to be locked in at a low rate with a client. I can tell you from experience, there is nothing more miserable than toiling away on projects that are paying you far less than you could have been earning.

Now, I can understand how tempting it can be to quote a low fee. There are a lot of issues that come into play. You want the job. You may feel uncomfortable or even too shy to quote a higher rate. You may not even know what the market rate is for a particular writing project. (And if this is the case, do some research and find out!)

But, despite the temptation, know that a client is MUCH more impressed by a writer who confidently quotes an accurate, professional fee than one who comes in at a low price (as if begging for the work.)

So quote the right fee (hint: it’s probably much higher than you’re quoting right now) and clients will take you more seriously. You’ll have a much better chance of getting the work. And you’ll earn more money, too.

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Steve Slaunwhite is co-editor of The Wealthy Freelancer and author of the popular manual Pricing Your Writing Services.

If there’s one thing every freelancer absolutely hates, it’s waiting to get paid for your work.

There’s nothing worse than going weeks on end without a check and watching your bank account balance nosedive as the bills and expenses keep rolling in.

Many just accept this as part of the freelancing game.  I know I used to. But then I came up with a technique for getting clients to pay me earlier. Now I regularly receive checks on time and sometimes I even get paid in full before the project is complete.

All I did was make an adjustment to the Fee Agreement (i.e. contract) that my clients sign. At the end of the agreement, just above the line that indicates where the client is to sign off, I inserted two check boxes, with this accompanying copy:

For your convenience, two methods of invoicing are available. Please choose your preferred option:

Option A: Invoice us in two installments. 50% of the total project fee is invoiced now. The remaining balance will be invoiced upon project completion or 30 days from project start date (whichever comes first) and is payable net 15 days. Work for this project begins following my receipt of this initial deposit check. 
 


Option B: Invoice us once. 100% of the Total Project Fees amount is invoiced now, payable in 30 days. 


The result? It works like a charm, and has sped up my receivables cycle tremendously. With two invoicing options, you give your clients a choice in the matter, yet, either option is great for your cash flow! A true win-win.

To my surprise, several clients choose Option B, which means you get to send an invoice for the entire project fee before you even begin. I suspect it’s because they prefer to not go to the trouble of preparing a check more than once.

I love “Option B” clients because it sometimes means your check will arrive before the project you’re working on is even complete!

Remember, just because some clients take a long time to process invoices, you shouldn’t have to be the one who suffers by waiting forever to get paid!

Instead, use this technique to get your invoice into their payables stream 15 to 30 days early, depending on how you’re currently invoicing, and start getting paid on time. You deserve it! 

*Disclaimer: Contract language shown in articles and posts are for illustrative purposes and should not be interpreted as legal advice as the authors are not lawyers.

***

Pete Savage is co-editor of The Wealthy Freelancer and host of the The Freelancer’s Friday Call-In Club, the world’s only FREE weekly teleseminar for freelancers. Membership is complimentary for subscribers to Pete’s free SAVAGE Marketing newsletter.

The garbageman who picks up my trash every Thursday morning has an advantage over me. He knows exactly how much he’s going to make that day. All he has to do is show up and do the work. When he goes home at night, he knows he’s earned a paycheck.

Not me. As a freelancer, I know (firsthand, I admit) that it’s possible to fritter the whole day away and not make a dime.

I remember a few years ago, during dinner, my wife asking, “How was your day?” I answered, “Very busy. I worked on my website for a while. Updated my portfolio. Cleared up some bookkeeping and . . .”

Then it hit me. I didn’t make any money! Not one cent.

So the next day, I put “Make money” on my to-do list. And it has been there ever since.

The best favor you can do for your freelance career – and your bank account — is to set a daily income goal. And then strive to reach that goal before you go onto anything else. Say, for example, your goal is to earn $200 a day. To achieve that target, you need to give your paying jobs priority and do $200 worth of work BEFORE you surf the blogs, chat online with colleagues, or sip coffee at Starbucks. (My wife calls it Fivebucks.)

I’ve been at this for a while, so my daily goal is relatively high compared to many freelancers. Yours doesn’t have to be. Even if your goal is a modest $200 per day – an eminently reasonable target for most freelance professionals — that’s $1,000 per week; $4,000 per month; $48,000 per year! And a four-week vacation!

The most important thing is, by setting a daily income goal, you’ll sleep better. You’ll know that, by the end of the day, you’ve made money. And that’s a damn good feeling.

“But what if I don’t have any billable work to do today?” you might be asking. Then you know EXACTLY how to spend your day: prospecting and marketing!

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Steve Slaunwhite is the co-editor of The Wealthy Freelancer and publisher of www.ForCopywritersOnly.com. He coaches freelance professionals in attracting more clients and better paying projects.

Ever struggle to get paid? Ever have to deal with a slow-paying client?

For some freelancers, this is a constant struggle. Cash flow is a problem. And the time they spend collecting money is time they can’t use for billable work. A double whammy!

Aside from picking good clients, there are simple things you can do to avoid these problems.

#1 – Put it down on paper. I’ve heard this issue debated over and over again in a number of blogs and newsletters. Arguing about it is senseless. At the end of the day, a simple written contract trumps a verbal agreement, should things go wrong. Period.

I’m not an attorney. And I didn’t sleep at a Holiday Inn Express last night. So seek legal counsel on these matters. Your attorney will tell you what you need to include and what factors you should consider.

#2 – Get a deposit from new clients. With new clients, always insist on a deposit of 30% to 50% of the total project value BEFORE starting work.

Asking for a deposit is a common industry practice. Your client should understand this and be willing to pay it. If you get resistance, that’s a clear sign that taking them on may be too risky.

#3 – Tie final payment to submission of INITIAL draft. Your final payment should be due within a specified period after the submission of your INITIAL draft or comp. Not the final version.

In other words, your payment shouldn’t be delayed just because the client is taking longer than usual to review your submission.

This is a very reasonable request, and I can’t overemphasize its importance. This strategy alone has saved me countless headaches and helped me avoid cash flow issues.

#4 – Use a “kill fee” provision. Should the client terminate the project midstream for whatever reason (budget constraints, change of direction, new priorities), you need to be protected. No reasonable client would expect you to eat those hours.

So make it clear in your written agreement that a “kill fee” will apply should the project be cancelled or put on hold before you submit a draft or comp. That fee should be based on the total number of hours you’ve put in and a predetermined hourly rate.

#5 – Follow up every time payment is late. Follow up on every invoice that’s more than 3 to 5 days past due. And don’t be shy. I’ve found that in most cases, past-due invoices are the result of oversight – not an unwillingness to pay. This is especially true in larger companies, where things can fall through the cracks more easily.

Good clients understand that your livelihood depends on getting paid on time. They won’t mind your follow-up. And they’ll respect you for your diligence.

What other measures or habits have helped you avoid the payment nightmare?