Getting started freelancing

[sbdiane]

I have toyed with the idea of freelancing for a long time, but I've never really gotten very far. I want to give it another go. I feel a strong desire to prove to myself that I can take care of myself without latching on to the nipple of corporate America.

My problem is that I am usually asked right at the beginning what my rates are but I never feel like I can answer that question. I am not sure what is better, to charge by the hour or by the job. I charged by the job when I did some freelancing as a partner and it worked ok, but some clients never wanted to sign off and say the work was done. What do you think? Also, do you have standard rates or do you charge different for different kinds of clients or work?

Also, it seems that most people don't even know what they want. I prefer to meet them and see if I can find out, but lots of times that ends up being coffee with a stranger and not getting any work because either they couldn't figure out what they wanted or their problem was so simple I could answer a question in 5 minutes and that's all they needed. How do you handle this part of the process, the figuring out what the job is part? Do you give free consultation? Do you charge for this?

Any other tips? I'm really very un-business-savvy and not really a people person but I do think I can do this if I can get over the initial fear and ignorance.

[sbdiane]

Oh and one more question, the work often involves a significant amount of research on my part. I don't immediately know how everything is done so I have to fiddle around until I figure it out. How do you handle this? Consider it to be an educational expense for yourself and keep your general rates high enough to absorb? Add those hours into the rates for that individual client?

[sunj]

If it's an answer you can give in 2 seconds or in 5 minutes, just don't answer it. If you are one of the very few who knows the answer then it's valuable and it has a price. Also, just because you think an answer is easy doesn't mean it is for the other person, in that case they have to pay for the knowledge. I get asked by customers at work some very easy basic questions. If they don't know those, then either they're too lazy to find out themselves or they want a quick answer. In either case we charge them. Some answers take me 2 seconds, that costs them $100. (My company charges that rate not me ).

[jasonwisdom]

There is much more to this than you can find out in a single discussion thread, but here are some tips to get you started:

- NEVER charge by the project until you know what you are doing. Clients will wave $2000 in front of you, then occupy your time for 3 months straight with customizations, revisions, new features, formatting issues in IE 6, etc. If you think I'm exxagerating, you haven't been through it yet. Instead, say, "This is my hourly rate, and I estimate this project to take 20 hours but it's just an estimate."
- As for figuring out your hourly rate, the simple way is to take your full-time salary, divide by 1,000, and that's your hourly rate. If you make $50,000 as a salaried employee, your rate is $50 per hour.
- If you want to research industry standards for rates, check out PayScale.com.


*Shameless plug for my upcoming book/info product How to Succeed as a Freelance Consultant*
(as soon as I can figure out what term to use!!)

[spirit4711]

Originally Posted by sbdiane

...
or their problem was so simple I could answer a question in 5 minutes and that's all they needed. How do you handle this part of the process, the figuring out what the job is part? Do you give free consultation? Do you charge for this?
....

There's an old joke on this one.

A TV repair guy goes to a customer who shows him that his TV doesn't work right. The TV guy looks at the distorted images on the TV screen, takes a hammer from his bag and gives one blow with it to the side. The TV works perfectly again!

The customer asks how much it costs. $100 says the TV guy. Customer: 'what?? you're in here 1 minute, give 1 tap and then you charge $100? Why so much?'
TV guy: 'It is $1 for the tapping, and $99 for the knowledge where to tap.'

[SatvikBeri]

Also, it seems that most people don't even know what they want. I prefer to meet them and see if I can find out, but lots of times that ends up being coffee with a stranger and not getting any work because either they couldn't figure out what they wanted or their problem was so simple I could answer a question in 5 minutes and that's all they needed. How do you handle this part of the process, the figuring out what the job is part? Do you give free consultation? Do you charge for this?

Here's a big tip-one of the most important parts of consulting well is being able to figure out how you can help a client. This means knowing what questions to ask to understand their individual situation, whether you can help, and how you can help. You will provide much more value and make more money if you can tell a prospect what you can do for them, instead of needing them to request.

I don't know what exactly you do, but keep in mind that since figuring out the problem is part of the service, you can certainly charge for it . If possible, you should also come up with lists of questions to help you identify opportunities for you to help a client-that'll make you look very impressive and be much more valuable in the long run. Think of a Website Designer as an example-one who can figure out what you want your website to be able to do, and design it accordingly, is much more valuable than one who just waits for you to tell them how you want the site to look.

My problem is that I am usually asked right at the beginning what my rates are but I never feel like I can answer that question. I am not sure what is better, to charge by the hour or by the job. I charged by the job when I did some freelancing as a partner and it worked ok, but some clients never wanted to sign off and say the work was done. What do you think? Also, do you have standard rates or do you charge different for different kinds of clients or work?

For rates, the first thing to do is check how others in your field charge. Don't be afraid to find an expert and send them an e-mail or invite them to lunch for some questions. If there are some services that you provide over and over again (such as removing spyware from a computer), then feel free to pick a fixed rate for that type of work.

Any other tips? I'm really very un-business-savvy and not really a people person but I do think I can do this if I can get over the initial fear and ignorance.

-When people ask you for rates, first find out their situation, then address the value you provide. Translate into $ value as much as possible. Then tell them your rates, showing that they're much less than the value you can provide .
-Start an e-mail newsletter that lets you keep in touch with your prospects-people are much more likely to buy after repeated contacts.
-In general, really focus on identifying problems/opportunities within individual clients. Then all the people who don't know what they want will turn to you, and you'll have more business than you can handle.

[ellie]

Umm this is roughly what I do, if a potential client comes to me and says, "I want a website". I will send them a form asking them a list of questions and get them to send it back to me, before I do anything.
What is the website about
Will it have a shopping cart etc

There's more questions...I hand this out, but do not charge for this.

Based on their information I will give them a rough quote and break everything down, but in the quote "I stipulate if there are extra add-ons, or extra time is involved, then I will begin charging an hourly rate", which I will inform them about, before I go ahead with changes.

If after the quote they want to meet-up then I am happy to do this for an hour or so. I'm afraid for me that's part of the process. I do not charge for this, but if I actually do factor it into the quote, under sort of miscellaneous - he he! So If they do go ahead with it, then that money is recouped.

My hourly rate is a standard rate and I stick to it. I'm lucky to work with someone who was kind enough to explain the ins-and-outs of charging and what agencies charge and I what I should charge. Sort of like a mentor. Unfortunately there is not enough people out there that are kind enough to share this information with others, especially in my field.

[TheDude]

Check out this blog, it has some good articles to get you thinking.... Freelance Tools, Advice, and Resources | Freelance Folder

What field are you hoping to freelance in?

[Rebecca800]

Originally Posted by jasonwisdom

As for figuring out your hourly rate, the simple way is to take your full-time salary, divide by 1,000, and that's your hourly rate. If you make $50,000 as a salaried employee, your rate is $50 per hour.

This is an excellent rule of thumb.... Usually I charge $40/hour for basic copywriting and $50/hour for feature writing. Both include SEO if it's an online client. I also charge for the time it takes me to research a new topic, although I am very upfront about this. I also tell clients I usually write 400-600 words in an hour, so it gives them a rough idea of how long the work will take. You didn't mention what kind of freelancer you are, but if you're web designer, say, you can do a package quote for a whole site, then charge an hourly rate for any additional bespoke work.

As for any other tips; always protect yourself from getting burned. If a new client requests a batch of articles, make sure you agree a standard and get paid after the first few. (If you're a website designer, you can ask for an upfront deposit.) Your genuine clients wont mind this - what difference is it to them? I've had a couple of dodgy clients who just picked my brain for hours, got me to write lots of nice articles, pretended we were all chummy.... then kicked up a fuss when I wanted to invoice them - and after that it just got messy. I guess I learned the hard way... You should probably be more suspicious if THEY contact YOU although I guess it can work both ways.

Freelancing is a nice gig, especially if you can establish a friendly client base and get new business through word of mouth. Your work flow will never be that consistent but if you stick with it, times usually get better. I also supplemented my freelance income with my own website publishing and now that has taken the front seat. It's kinda interesting where freelancing can lead you.

[Curtis2011]

Originally Posted by Rebecca800

I've had a couple of dodgy clients who just picked my brain for hours, got me to write lots of nice articles, pretended we were all chummy.... then kicked up a fuss when I wanted to invoice them - and after that it just got messy. I guess I learned the hard way...

If you use Elance or a similar website, you can insist that they use the Escrow system, which is designed to help prevent this type of situation.

[jasonwisdom]

Originally Posted by Rebecca800

I've had a couple of dodgy clients who just picked my brain for hours, got me to write lots of nice articles, pretended we were all chummy.... then kicked up a fuss when I wanted to invoice them - and after that it just got messy. I guess I learned the hard way...

Being assertive about time=money is one of the most difficult challenges for any Freelancer to face.

I've gotten good at this... I usually give somebody up to about 30 minutes of my time on the phone, or meet them for coffee, then I say, "If you want more then let's agree on a rate." If they're a mooch I'll never hear from them again, and that's fine by me.

If I may be blunt... there is a bit of a lack of communication on your part when you avoid price, do a whole bunch of stuff, and then spring a price out of left field without first getting them to agree to it. (No matter how much you do or how reasonable your price is) It also sounds like it doesn't work out very well for you.

I've had 2-hour-long conversations with freelance writers, coaches, web designers...to sort of interview them. If we're both enjoying the conversation, then why not. However, if they would have said afterwards, "Okay, that will be $250" I would have replied, "Wait a minute, I never agreed to hire you!"

I'm definitely not a mooch... I spend over $20,000 per year on business coaches, lawyers, graphic designers, writers, virtual assistants, etc. But I'm picky and I want to make sure the person I hire is very good, and also our chemistry is compatiable. I am looking for a long-term relationship - I don't want to get involved with somebody who's afraid to commit.

[Rebecca800]

Originally Posted by jasonwisdom

If I may be blunt... there is a bit of a lack of communication on your part when you avoid price, do a whole bunch of stuff, and then spring a price out of left field without first getting them to agree to it. (No matter how much you do or how reasonable your price is) It also sounds like it doesn't work out very well for you.

To be fair I always quote my hourly rate up front and the last case was no exception. I just had the misfortune of running into some extremely unscrupulous characters. How I would love to name and shame but perhaps it's better etiquette just to say: freelancer beware.

[ar81]

To freelance...

What you need:
1.Customers
2.Suppliers
3.Money

How to organize your time:
50% marketing/advertising your business
50% production/servicing customers

How to make a rough estimate of prices:
Price = 3 x Cost of materials
For more detailed pricing find out about prices of competitors.

How people behave:
You have 1000 people.
100 people will tell you how great is what you have for sale
10 will show interest about buying.
1 will buy.

Demand has highs and lows. Save money for the lows.
As you go ahead you may need to learn about "Winters" seasonal forecasting algorithm.
Notice that forecasting assume same trend. If something breaks the trend, data is useless.

How much money do I need?
At least what you may need to survive 2 years of losses, plus the cost of mistakes you will make.

[jasonwisdom]

Originally Posted by Rebecca800

To be fair I always quote my hourly rate up front and the last case was no exception. I just had the misfortune of running into some extremely unscrupulous characters. How I would love to name and shame but perhaps it's better etiquette just to say: freelancer beware.

No offense was intended - yes caveat emptor is always good advice for freelancers.