HOW TO LEARN FREELANCE
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1. Calculate Your Rate
Your basic hourly rate = (annual salary + annual expenses + annual profit) / annual billable work hours
But, is an hourly rate going to be the best choice for your business? Research the pros and cons of charging hourly or by project fees, day rates, or pricing packages.
2. Always Have a Contract
A contract helps freelancers solidify several things: the rate negotiated between you and the client, the parameters and scope of the project, deadlines, revisions or project cancellations, and reimbursement. Contracts also assist in protecting you from potential legal issues, disagreements, and they ensure you are paid for your work. You can find resources for contracts on websites like LegalZoom.
3. Be Sure to Get a Deposit Upfront
It can be tough being out there on your own. So, you want to make sure you get paid for your hard work. Before beginning any work for your client, secure a deposit. You can do this any number of ways; receive ⅓ upfront, ⅓ halfway through the project, and the final ⅓ upon completion, or require a variation of an engagement fee, or pick another percentage of payment that works best for your business.
4. Get the Low-Down on Taxes
Your tax obligations should be a part of setting your prices and since freelancers are considered self-employed, they are subject to self-employment tax. Keep in mind that you’ll have to provide yourself with necessities such as healthcare, dental, and retirement. Additionally, it’s important to think about how you can save on taxes and the best way for your business to file taxes (annually or quarterly payments).
5. Keep a Regular Schedule
It sounds simple but most freelancers know that it’s not as easy as it seems. That’s why it’s so important to plan your schedule and stick to it. Scheduling allows you to:
- Meet important deadlines
- Give each client the attention they deserve
- Create work/life balance
6. Apply Technology and Tools
There are some great technologies and tools available to freelancers. Here are some examples of tools that can help you get your work done:
- Invoicing: FreshBooks, Toggl, BlinkSale, Hiveage
- Project Management: Wunderlist, BaseCamp, Project Bubble, LiquidPlanner
- Preventing Distraction: Freedom, Cold Turkey, Focus Booster, or one of these other cool tools
1. Quality Matters; Not Quantity
If you are just starting out as a freelancer, it is quite likely that you would be soliciting job opportunities from online marketplaces like Freelancer.com and Elance.com. It is very natural for you to bid on as many projects as possible. However, a key lesson to learn here is that the quality of bid matters; not the quantity. Try to learn as much as possible about a client’s business, what they do, how they do it, and what is being asked of you. Once you do an in-depth study of the requirements, prepare a short document where you can comprehensively put down all the things that you bring to the table. Bidding is not a numbers game. One high quality bid is more likely to get you the job compared to dozens of low quality bids where you do not take the time to analyze either the client’s requirements or help them understand what your skills are.
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