Seven Tips for Successful Freelancing
Freelancing is a great way to generate some extra income on the side, and it can also be a full-time career. If you're considering becoming an independent contractor, this blog post has seven tips that will help you stay ahead of the competition!
Have a set rate for the calendar year.
I say for the calendar year because of inflation each year. You'll want to have a set rate to keep up with cost of living expenses, as well as, the increase of value in your expertise over time.
This makes your proposals easy to edit annually also. Simply update your rates to reflect what you will charge for the coming year. Many people offer hourly rates. Hourly rates are helpful when there are unknowns.
For example, if you're working on a project that's never been done before or it is not very clear cut at the beginning what needs to be completed and how much time will be required.
I personally offer per-project pricing on most tasks I take on. Project-based fees are helpful when you have a clear understanding of what needs to get done. Plus, your client can also approve or decline your offer with confidence knowing that the price is set.
If you wind up getting it done sooner than you anticipated, you will obviously profit more per hour. If you happen to spend more time on a project than you originally quoted, you can always request more, but I just chalk it up to a lesson learned and deliver what I originally quoted my client.
Remember, it is about them. Also, what you learn along the way is valuable too, even if not monetary! In fact, some projects I no longer accept simply because of the details involved. I learned that no amount of money was worth the effort or the headaches for me and I instead, outsource or refer out, where I can to other freelancers who enjoy those types of projects.
Always Have a Contract.
I think it's safe to say that every client will want some sort of contract for their projects. They are also used as a legal binding agreement between you and your client, even if they're friends or family members!
Some people feel uncomfortable asking for them, but I've found that most clients appreciate the professional relationship with one another when both parties have a contract in place. It protects you both. Also, if someone does not pay for your services for any reason, you are able to use this contract to take legal action.
Be Sure to Get a Deposit or Paid in Full Upfront.
Obviously, do this with every intention of providing quality work as promised. Professional freelancers will put in the work, so it is up to you to make sure that your time is compensated. Oftentimes, clients are paying for the time you spend devoted to their project, and of course, the final results.
Recently, I was offered a time-sensitive project to complete for an agency that wanted to bring on a new client. My blog would be one of many services they offered in a package deal to the client. I had not worked with this agency before so I wanted to deliver quickly to show my work ethic.
The agency that hired me submitted the work to their client, but their prospect decided not to use their services overall. I had sent the invoice to the agency for my portion of the work, but they had yet to pay.
Normally, I wouldn't start work prior to a quote being paid, but again, this was a time-sensitive project and I trusted the agency to pay me for my time. In short, the agency told me they didn't get paid by the prospect!
I informed them, as gracefully as I could, that while I don't mind how they operate their invoicing in-house, I still expected my invoice and time to be honored. Needless to say, I also chose not to work further with that agency. There isn't any bad blood, but it is okay to protect your professional procedures also!
Know Uncle Sam’s Expectations for Tax Time.
When it comes to taxes, it is best to get your advice from a tax professional. Truth be told, I offer digital products so I do not add tax. I do keep track of all payments from Venmo, PayPal and Zelle and pay taxes on time. Keep in mind that part of why freelance fees cost more than an employee would is because the freelancer is paying for taxes.
As with any business, you will need to set up a separate bank account and file as an independent contractor or sole proprietor of your own business! It's important to make sure that the IRS understands how much money you are making from clients so taxes are calculated accordingly.
If this sounds daunting, you can always opt for a bookkeeper to help with your payment records and such. I would highly recommend a free consultation with my dear friend Melissa Leon of Two Sense Consulting, LLC. She has given me nothing but brilliant advice on how to best handle invoicing, tax record keeping and more!
Keep a Regular Schedule.
I am super guilty of having to relearn this one regularly. It takes practice and consistency. While one of the best benefits of freelancing is a flexible schedule, you still need to be consistent enough to deliver quality work.
When I first started freelancing, I was so excited to have an opportunity that would allow me to work around my kids' school and husband's ministry schedules. However, it didn't take long before the quality of my work suffered because I was not consistently getting time to brainstorm and focus on client work.
That isn't fair to the clients who have trusted me with their projects. So, that said, I often have to revisit what a week of work will look like and how best to carve out the time to devote solely to their needs. You may find you need to do this as well!
Sometimes, as a content writer, freelance graphic designer or crafter, creativity strikes at different times. Having a little notebook helps to keep the ideas at the ready when you can commit to your client's projects fully.
Apply Technology and Tools.
I have worked with both large corporations and small, one-person businesses. They all have great things to offer in terms of technology that can help your business be more successful.
It's important not to get hung up on what others are using or how you feel about the tools they use to run their biz! In this day and age, there are a bunch of different people telling you what to use and why, but, I highly recommend you just try new and paid software as you scale.
It's important to remember that technology can help make your business run more smoothly, but again, you don't need all the fancy premium tools, especially if you aren't going to use them fully. That could become money just going down the drain.
If apps like Excel and Google Docs work for you, keep them around and use them as long as needed. If your client request you use software, charge them accordingly for any fees, as well as, any additional time it may take you to learn how to use it. Be mindful to charge within reason. Oftentimes, if you find that you will benefit from learning a new tool overall, you can, again, see the value beyond monetary and keep it off the invoice.
Keep learning your industry.
One of the best things about being a creative entrepreneur is having no boundaries to your business. You can learn all that you desire. Attend conferences, listen to audiobooks on subjects relevant to your business, and more! As you learn more, you can charge more or offer upsell options.
Freelancing can be a lucrative, fulfilling career. If you're thinking about making the leap into freelancing or are already in it and want to stay successful, there is some work that needs to go into your business for this lifestyle choice to pay off.
What would you add to this list of tips for being a successful freelancer? Do you have your own personal recommendations for schedules, tools, or best practices that work for you? Let's hear them!
