I’m probably asked this question more than any other question when people hear what I do for a living. It’s also a question I dread because there’s no set answer and there are certainly no guarantees.

When I worked in a corporate job, I could easily give a salary range for what I did. I could even state my exact salary if I wanted to.

As a freelancer, it’s not quite so simple.

In this post, I’ll take a closer look at some of the very real issues behind the question of “how much can you earn as a freelancer?”

Freelancing Must-Have #1–a Marketable Skill

To become a freelancer, you first need a marketable skill. But not all marketable skill sets translate well into freelancing.

Creative types often transition easily to freelancing. The freelancing community is full of writers, designers, programmers, photographers, and other creatives. These skills seem to be easy to market.

Other jobs are not quite so easy to take freelancing. This is particularly true of jobs that require you to be at a specific place during a specific time in order to get the job done. A bank teller, for example, or a nurse–these skill sets are not so easy to translate into freelance income.

When someone asks me how much freelancers earn what they often mean is “how much can I earn if I start freelancing?” I really can’t answer that without knowing whether they have a marketable skill.

But simply having a marketable skill is not quite enough. Many freelancers with marketable skills fail at freelancing. That’s because they don’t have the next freelancing must-have.

Freelancing Must-Have #2–Marketing Savvy

Not only do freelancers need a marketable skill, but they must also know how to market that skill. This is a huge obstacle for many people coming from traditional employment.

In traditional employment, your company brings the work to you. There’s no need to develop marketing skills. Freelancing is quite different.

You may be the best graphic designer in the world, but if you can’t get the word out you won’t succeed as a freelancer.

Creative types are notorious for hating marketing. I dislike it myself, but I also realize it’s necessary if I’m going to earn a living as a freelancer.

If you’ve always relied on traditional employment to provide you with an income, you may have no idea where to start with your freelance marketing plan.

Here are a few freelance marketing tips from the Freelance Folder archives:

• Why Your Freelancing Business Must Have a Brand
• Plan a Marketing Strategy for your Freelance Career
• Two Weeks to More Client Leads

You can find even more freelance marketing tips under the marketing tab on this blog.

Let’s take a closer look other factors that affect freelance earnings.

Your True Freelance Earnings Potential

So what is your earnings potential as a freelancer?

What I usually tell people about freelance earnings is that the amount you can earn depends on how hard and how smart you are willing to work.

Of course, this assumes that you have a marketable skill and some basic marketing skills.

That’s the short answer, but it’s only partly true. The freelancing community is full of talented freelancers who are just barely scraping by because they don’t charge enough for their work. They are in danger of burning out before they realize that they should charge more.

Many other freelancers are part-timers. They may freelance a few hours a week, but they also have a full-time job. Naturally, they earn less–by choice.

Still, I’m really optimistic about freelancer earning potential. There’s virtually no limit to how much a talented freelancer with marketing smarts and lots of drive can potentially earn.

It’s not unusual to hear of freelancers who earn six figures–far more than they could have earned from a traditional job.

Sadly, most freelancers will never reach their true freelance earning potential due to some of the pitfalls I mention above.

Your Turn

How would you answer the question of “how much can you earn as a freelancer?”

Have you reached your true earnings potential as a freelancer? Why, or why not?

Share your answers in the comments.

Image by Peter Gene

With more and more workers turning to freelancing, you may wonder whether you should freelance. Are you ready? What is the best path to take to become a freelancer?

In this post, I’ll identify five different routes people take to freelancing. I’ll discuss the advantages and disadvantages of each.

Path 1. Right After College

Faced with a weak job market, many new graduates turn to freelancing to find employment. There are some positives and negatives to freelancing right out of school.

Here are three advantages to freelancing right out of college:

• Find a job quicker–In today’s economy, new grads may wait months before finding a job in their field. With freelancing they can start right away.
• Earn more money–New graduates are often relegated to entry-level jobs with entry-level pay. With freelancing they decide how much to charge.
• Fresh training–College graduates are often equipped with the latest information about their field. Often this means more enthusiasm.

Here are three disadvantages to freelancing right out of college:

• No proven experience–A recent graduate often has no paid work experience relative to their field. They may have trouble providing samples of their work.
• Lack of confidence–Because they’ve not yet worked for pay in their field, recent grads may be unsure of themselves. Prospects can pick up on a lack of confidence.
• Culture shock–Going from an academic environment to the freelance marketplace is a big change. Working on an assignment for a teacher and working on an assignment for a client is different.

Of course starting freelancing right after college is not the only path. Let’s look at another.

Path 2. After Working for Someone Else

Many seasoned professionals eventually strike out on their own as freelancers. Freelancing after spending a few years in the traditional workforce also has some pros and cons.

Here are three advantages to becoming a freelancer after working for someone else:

• Plenty of proven experience–Seasoned professionals can point to years of relevant work experience. They will probably have many samples of past work.
• Good references–Because of their years of work experience, most transitioning professionals can provide references. In fact, for some their first client will be their former employer.
• More confidence–Since they’ve already worked as a professional, an experienced worker is likely to be more confident about themselves and their work.

Here are three disadvantages of becoming a freelancer after working for someone else:

• Less hungry–A traditional employee may have had time to establish savings and may have worked up to a higher pay level. They may not be driven to freelance.
• More obligations–A seasoned worker is also more likely to have made major purchases such as a home and may even have dependents. All of these obligations may make them more comfortable in a traditional job.
• Accustomed to traditional workplace–There are many differences between freelancing and traditional employment. Seasoned employees are not used to wearing the many hats freelancers wear.

Of course, not all freelancers are full-time. In fact, one of the paths to freelancing is as a part-timer.

Path 3. As a Part-timer

Is having a traditional job and being a freelancer mutually exclusive?

Of course not! The thousands of workers who successfully combine freelancing and employment will tell you that this is a very real path to freelancing.

One of the greatest benefits to freelancing part-time is that you still get to enjoy all of the benefits of a full-time employee (such as insurance, paid vacation, sick days, and other employee perks).

Part-time freelancing is not without its hazards, though. Time management is probably the biggest challenge that part-time freelancers face.

Many part-time freelancers do eventually move on to become full-time freelancers, but many others are happy to continue freelancing on a part-time basis indefinitely.

Not everyone is a freelancer by choice, though. Some people turn to freelancing because they feel that it is their only option for earning an income.

Path 4. Job Loss

The path to freelancing that no one wants to talk about is job loss. Some freelancers turn to freelancing because they have lost a long-term job and feel that they cannot replace it. Freelancing is their last resort.

These freelancers often the most stressed out and desperate. Often, they never planned on being a freelancer at all. They may not even enjoy freelancing.

Some of the challenges these freelancers face include:

• Low budget–Being thrust into freelancing as a last resort sometimes means these freelancers may be so desperate that they take jobs below market rate. They also can’t afford to make an investment in their freelancing business.
• Financial Distress–A freelancer who turns to freelancing because of sudden job loss may be caught without savings or they may have already exhausted their savings.
• Culture shock–The differences between traditional employment and freelancing are even more stark for those who feel freelancing is their only option. Remember, these freelancers never wanted to freelance.

Path 5. A Need for Flexibility

The final path to freelancing is taken by those who need a more flexible working arrangement. They may have others to care for during the day or they may just prefer a non-traditional work schedule.

For these folks, freelancing fits the bill like no other type of job. As a freelancer, you can choose when you want to work, how much you want to work, and even which projects that you accept. You can’t get more flexible than that.

Your Turn

Did I miss a path to freelancing? What was your path? Why did you become a freelancer?

Share your answers in the comments.

Image by Laenulfean

Yet, despite the growing popularity of freelancing, many freelancers fail. The most common cause of freelancing failure is a lack of concrete knowledge about how to run a business.

With these facts in mind, today I’m going to explore the question of whether schools should teach basic freelancing skills. I’ll look at the pros and cons surrounding the issue and give you a chance to weigh in with your own opinion.

Advantages of Teaching Freelancing Skills in School

Imagine graduating from school and going straight into a freelancing career with the confidence of fully understanding what freelancing is about.

This freelancing confidence could become reality if students were taught basic freelancing skills in school.

The strongest case for teaching freelancing in school is that many students eventually find themselves freelancing anyway. With the number of freelance workers rising and with many workers having multiple careers, the odds are good that today’s graduate will attempt freelancing at some point in his or her professional life.

While the schools may do a great job of teaching professions (like writing, graphic design, and programming) that lend themselves to freelancing, most schools don’t prepare their graduates to run a freelance business.

Here are some points in favor of teaching freelancing skills in our school:

1. In the past, basic life skills (such as typing and basic computer skills) have been required subjects in school. Freelancing skills are becoming increasingly necessary to today’s worker. One never knows when they might need to turn to freelancing to earn a living or to supplement their other earnings.
2. Teaching basic freelancing skills might increase the number of freelancers who succeed. Many freelancers fail after a short time. This is usually due to a lack of basic business knowledge, but with early training they would have the knowledge they need.
3. Understanding basic freelancing skills helps give students a better understanding of business overall, which could also serve to make them more marketable as employees. Many of the same skills that freelancers use to succeed can also be used in traditional employment.
4. Having freelancing skills gives recent graduates more options. Not everyone is cut out for a nine-to-five job. Many employees wish they worked more flexible hours, but just don’t have the opportunity to do so. Freelancing can provide that opportunity.

While the advantages of teaching freelancing in school seem compelling, there are also some disadvantages to consider.

Disadvantages of Teaching Freelancing Skills

There are some definite drawbacks to teaching students freelancing in school. Not everyone desires to be a freelancer. Many employees are perfectly happy working for someone else. Some may not even have a skill that could be offered in the freelance marketplace.

Here are a few disadvantages of teaching freelancing skills in school:

1. What material should be included in a course in freelancing and who would decide? Freelancers wear many hats. Should a course in freelancing encompass business skills, marketing, social media, or some combination? Can one course cover enough ground? No one knows for sure.
2. Many study programs are already crowded. Adding a required course (or courses) in freelancing might cause other useful courses to be dropped. Requiring freelance training might even mean that it takes longer for a student to graduate.
3. At what level of a student’s learning should freelancing be taught? Should it be at the high school level or the college level? Most freelancers do have a college education, but some are self-taught. Would it be more effective to teach freelancing skills early on in high school, or should freelancing be taught in college just before a student starts his or her professional career?
4. Some students still may never become freelancers. For those students, a course in freelancing would be wasted time. Besides, it could be argued that those students who are really interested in pursuing freelancing will make an effort to learn what they need to know on their own anyway.

Your Turn

What do you think? In your opinion, should freelancing skills should be taught to students in school? Why or why not? Share your thoughts in the comments.

Image by alamosbasement

What most of those articles don’t mention is that a sizable number of freelancers are part-time freelancers. That means that they have another job and freelance on the side or that they work less than a full workweek by choice. (A full workweek is usually defined as thirty hours.)

In this post, we’ll explore the world of part-time freelancing. We’ll look at some of the reasons people freelance part-time and explore some of the unique challenges they face. Plus, I’ll incorporate tips and advice from five freelancers who work part-time.

Why Freelance Part-time?

There are many reasons that a freelancer may choose to work part-time. Here are just a few:

1. Gives the freelancer the opportunity to “try” freelancing while still working their regular job–Many people are interested in freelancing, but they aren’t sure if they can make it as a freelancer. Working part-time, they can try to get their freelancing career started and still get a regular paycheck.
2. Allows the freelancer to hold onto the employment benefits that go along with a traditional job–The one thing keeping many employees from freelancing is the loss of the “safety net” of benefits that comes along with most full-time jobs. This safety net can include health insurance, sick pay, and many other perks.
3. Offers a higher pay scale for those who can’t work a full-time job due to their other responsibilities–Many freelancers need to earn money, but can’t put in a thirty-hour week due to their life situation. They may be the caretaker for a young child or for someone who is sick. They may be located too far from most employment centers.
4. Lets some in-demand professionals earn extra money–Some professionals take on occasional freelancing gigs so that they can purchase something they wouldn’t be able to afford on the income from their salaried jobs. Others may take on freelance work to reduce or eliminate debt.
5. Provides an income when no other opportunities are available–In today’s economy, traditional employment is often hard to find. This is particularly true for those who are just starting out in their profession. Often, taking on freelancing work is the quickest and easiest way for a new professional to start earning an income.

Despite the many reasons for freelancing part-time, it is not without its challenges.

Part-time Freelancer Challenges

While part-time freelancing may seem safer and offer some advantages that full-time freelancing doesn’t provide, part-timers have their own problems. Here are some challenges that part-time freelancers face:

1. Time crunch–All freelancers must learn to manage their time, but part-time freelancers can be especially vulnerable to running out of time. Lynda Bullock has been a part-time freelance writer for the last two years. She has this to say, “My greatest challenge is finding enough time during the day.”
2. Rate pressure–A part-time freelancer may be tempted to accept a lower rate since they have another job. Also, if a client realizes that a freelancer has traditional employment to fall back on, they may offer less money.
3. Life balance–For many part-time freelancers, finding the right balance can be a real struggle. For Michelle Kulas, who has been a part-time freelance blogger for five years, balance is critical. She says “It’s hard to find the time to fit it all in. It’s a constant juggling act.” Jessie Fitzgerald, a part-time health and nutrition writer, agrees. Fitzgerald also lists work/life balance as her biggest challenge.
4. Keeping up with clients and other commitments–Most freelancers work with more than one client at a time, but for part-timers this can be difficult. Osny Santos Netto has been freelancing for five years. According to Netto, his biggest challenge is “dealing with different clients” and “having the time to do the tasks on time for the clients.” Samuel James White is a student who has been a part-time freelancer for the last six months. White says, “I have to be careful, or I risk losing control of my studies.”

Fortunately, there are few guidelines you can follow to help overcome these challenges if you freelance part-time.

Part-time Freelancer Guidelines

As a part-time freelancer, how can you make sure that everything goes smoothly? Here are some guidelines to help part-time freelancers:

1. Manage your time–Don’t overschedule yourself. If you have ten hours to spend freelancing, don’t schedule fifteen. Netto advises other part-timers to “take control of your time.”
2. Prioritize your schedule–White says, “My advice to other part-time freelancers would be to prioritize correctly.” His advice for doing this is “don’t get carried away by ignoring what really matters.”
3. Keep going–Bullock says, “The best advice I could give other part-time freelancers is to simply never give up. Despite what many believe, freelancing isn’t easy and requires a lot of hard work.”
4. Don’t cave in to rate pressure–What you charge for your work is just as important as what a full-timer charges.
5. Get help–Kulas delegates “household tasks to my kids and outsources some projects to carefully hand-picked fellow professional writers at times.”
6. Focus on profit–Fitzgerald says, “Keep your time profitable and make every minute matter.”
7. Remember that you’re not locked in to part-time freelancing–One of the beauties of freelancing is that it’s flexible. You may be a part-time freelancer now, but you can change that if and when you want.

Your Turn

Are you a part-time freelancer? Add your own tips and challenges in the comments.

Are you thinking of freelancing part-time? Ask your questions to our freelance community in the comments.

Image by peretzpup

The fact is, for most internet users, social media is the main reason they get online. Chances are that many of those same users are also your clients and potential clients. If your freelancing business is not on social media yet, you’re falling behind.

Whether you’re new to freelancing and want to set up an online social media presence ASAP, or you’re a seasoned freelancing veteran who is just now taking the social media plunge, you’re sure to find a platform that appeals to you.

In this post, I’ll provide a quick overview of each of the major social media platforms and explain why a freelancer might wish to use each.

Ten Social Media Platforms for Freelancers

Here are some of the most popular social media tools that freelancers use:

1. Facebook–Even if you’ve never been active in social media, it’s likely that you’ve heard of this social media site. That’s because as of February 2012 Facebook has over 845 million monthly active users (according to Facebook’s own statistics). You may know Facebook as the network to use to contact your out-of-state cousin or long-last high school friend. But did you know that you can also create a Facebook Fan page just for your freelancing business?
2. LinkedIn–This social networking site differentiates itself by marketing itself as a professional network site. As such, it’s a favorite of corporations and other businesses. For starters, think about it as your online resume, except on steroids. You can list your work experience, links to your work samples, and even invite people to leave references for you. There’s more, though. LinkedIn is also home to hundreds of professional discussion groups.
3. Twitter–Twitter is quick and fun. If you can encapsulate your freelancing business message in 140 words or less, then you can use Twitter. Currently, the site seems to be a favorite of journalists (citizen and otherwise) who use it to broadcast articles and other information. It’s also a favorite among conference organizers since Twitter live blogging an event can generate interest. Others use it as a way to instant message contacts using the DM feature.
4. Quora–Do you have a depth of knowledge in a specific field or fields? Quora is a question and answer site, but prides itself on the quality of the answers that Quora users provide. In fact, the answers on Quora are often article-length and can be quite comprehensive. Not only is Quora a forum for showing off your expertise, it can also be used to research topics. Ask a new question of your own, or browse through the answers to existing questions.
5. Pinterest–This is an up and coming social media site that has shown fast growth and popularity. Basically, it works like this. Users “pin” images of things that they are interested in to their “bulletin boards” on the site so that other users can view and comment on the images. Some freelancers have experimented with using affiliate links or using the images that they share to draw traffic to their website. If you sell a product or need to drive traffic, it’s worth looking into.
6. Google+–The search engine giant is branching out. If you hadn’t noticed, they’ve launched a number of business and consumer-oriented products in recent years. Google+ is an important social media platform–both because it is tied to the powerful Google search engine and because it has shown a healthy growth during its first year. Users tend to be less frivolous than those on other sites. Expect to see even more upgrades and attention paid to this social media tool in coming months.
7. MySpace–In many ways, this is the granddaddy of all social media sites. MySpace was the first of the “mega” social media sites. It was originally founded in 2003 and was once the most visited social networking site in the world. MySpace still gets millions of visitors each month. This social media tool is known for its active music and entertainment industry communities, but there are other communities as well. Don’t discount this one if your prospects are here.
8. Tumblr–Tumblr is a microblogging tool. It allows users to create and share original content of various types. As of the time this article was written, Tumblr was getting over 15 billion page views in a single month (per Mashable). Now, that’s significant! One thing that Tumblr has going for it from a freelancing perspective is that it’s very easy to use. In general, Tumblr users tend to be younger and more visually oriented. If you like to share photos or images, Tumblr might be right for you.
9. StumbleUpon–This is one of a number of popular news bookmarking sites. (There are many others including Digg and Reddit.) Like all bookmarking sites, StumbleUpon gives you the opportunity to mark and share content that you like with other users. Users select the interests that they would like to explore and the shares that they see are tailored to this preference. StumbleUpon also allows you to comment on shares and contact other users.
10. YouTube–No list of freelancing social media tools is complete without YouTube. This is an extremely popular site where users share videos of all types. Not only that, many videos can be embedded in blog posts and on other sites. You’ve probably already watched many YouTube videos. For a freelancer seeking to establish their expertise, YouTube can be an invaluable tool. You can create an interesting video that explains a topic of interest to your prospects.

What Do You Think?

Of course, these are just overviews of some of the most popular social media tools that freelancers should consider using. There are many other social media tools available.

If you’re a veteran freelancer who has already been using social media for a while, what tool have you found to be the most useful? Share your answers in the comments.

If you’re properly prepared, though, you can handle most freelancing challenges that come your way while minimizing your stress.

In this post, I’ll outline some of the common challenges that freelancers face. I’ll also discuss how to handle those challenges that are most unique to freelancing.

Types of Challenges

There are basically three common types of challenges that freelancers face:

1. Personal challenges–While they affect freelancers, these challenges aren’t unique to freelancers. Nearly everyone faces challenges related to their personal lives such as the birth of a new family, the death of a family member, serious illness, and so on.
2. Professional challenges–Professional challenges have to do specifically with the work that you do. For a freelancer this could be changing technology, changing your niche, starting (or ending) your freelancing career, or even losing a client.
3. Socioeconomic challenges–These challenges are also often not specific to freelancers. They have to with such broad issues as governmental change, marketplace conditions, and cultural changes. These challenges can even include dealing with natural disasters such as earthquakes, hurricanes, and other weather-related changes.

While there’s no denying that all types of challenges can affect a freelancer, the professional challenges that freelancers can face are somewhat unique. That’s why this post will focus mostly on those.

Dealing with Professional Challenges as a Freelancer

As a freelancer, you may have already faced one of the challenges listed below. (If you haven’t dealt with any of these yet, you soon will.)

Here is a list of unique freelancing challenges and a few words of advice on how to deal with each one:

1. Starting freelancing–Starting out as a freelancer can be quite a challenge. Most freelancers have preconceived notions (often idealized) about what freelancing is like, and usually the reality turns out to be quite different. So, what’s the best way for a prospective freelancer to tackle the challenge? Read everything you can about freelancing before you start, paying particular attention to materials written by actual freelancers. Make a list of recurring problems in what you read because if something is being written about over and over again, chances are that it is happening to most freelancers. Brainstorm and come up with possible fixes for the items on your list.
2. Ending freelancing–It’s not often written about, but ending a freelancing career can be just as stressful as starting one. If you’ve decided to stop freelancing (for whatever reason), realize that you’ll need to make some adjustments. If you’ll be assuming a traditional job, remember that there will be certain restrictions on your activities. As a freelancer, you enjoyed an immense amount of freedom that may not be yours as an employee. Just some of the challenges that you may face include adherence to a dress code, set working hours, a commute, and dealing with office politics. To prepare yourself, try easing into your new schedule. Even before your job starts, begin getting up at what will become your regular time and dressing up. You may want to practice driving the route to work.
3. The feast or famine cycle–A popular topic among freelancers is the feast or famine cycle. This is a reference to the fact that one week you may be very busy with project work and the next you may have practically nothing to do. Nearly every freelancer has experienced this challenge at one time or another. If the famine part of the cycle persists, the freelancer may even find themselves facing financial difficulties. Prepare for this challenge by keeping in touch with prospective clients (even when you are busy), saving money for your slow periods, and negotiating better deadlines when you are overbooked.
4. Losing a long-term client–Long-term clients often become friends, but even without that relationship there’s a certain amount of comfort in knowing that you have work to keep you busy for the foreseeable future. So, when a long-term client leaves you may be tempted to torture yourself by wondering what went wrong. While a little bit of introspection can be healthy, make sure that you don’t wallow in it. Sometimes clients just leave through no fault of yours. To prepare yourself for the loss of a long-term client, avoid relying too heavily (emotionally or financially) on a single client. Continue to communicate with prospective clients even if you feel that your long-term client is giving you enough work. Finally, if they move on, be ready to move on as well.
5. Changing a niche–Freelancers often change niches. Sometimes they discover an area where they excel or that interests them more than their original direction. Sometimes they become bored with they are doing and decide to make a change. Whatever the reason, this challenge can be almost as stressful as starting a new freelancing business. Do minimize the stress, do your homework. Learn everything that you can about your new niche before you make the change. Make sure that there’s a market for what you plan on doing. Decide whether you will continue to offer your current specialty to existing clients only, or whether you will refer them to another freelance professional.
6. Client criticism–If you’ve ever had to deal with the public, you know that people can be mean and clients can be worse. Many freelancers are wrapped up in what they do, so if a client offers criticism it can seem personal (even if it isn’t). This is especially true if the client uses a harsh tone of voice or otherwise seems angry. This is a difficult challenge for freelancers to face. To prepare yourself for it, establish a policy of not responding immediately if you are angry. It’s better to let the client wait while your emotions die down than to fire off an angry email or make an angry phone call. If a client phone conversation unexpectedly takes a turn for the worse, try to stay calm until you can get off the phone. Try saying something like, “let me research that and get back to you.” This has the dual purpose of allowing your emotions to settle while you investigate the client’s complaint.
7. Technology changes–Freelancers must stay current to stay marketable. This means constantly learning and updating your skills. While some freelancers enjoy learning new things, others may find it a stressful addition to an already busy schedule. In addition, getting training can cost money and freelancers are often on a tight budget. To overcome this challenge, learn to expect it. Set aside a portion of your budget and part of your time for training every month. Make a list of skills that you need or would like to learn. Update it often. (What you’re doing is developing your own professional training plan.)

Your Turn

Did I miss any common freelancing challenges? If I did, be sure to share them in the comments.

Have you faced any of these freelancing challenges? If so, how did you solve them?

Image by andy_c

So, which advice is right? Do freelancers need a business plan or don’t they? In my opinion, both opinions are correct.

While not all freelancers need to have a formal business plan like the kinds that you would take to the bank or to investors, all freelancers do need to engage in some sort of business planning. That’s just part of running a business. (However, do keep in mind that if you do plan on going to bank for a business loan, selling your business, or going public with business–then a formal business plan will most likely be needed.)

In this post we’ll go over the four essential elements of business planning that freelancers can’t ignore (even if they choose not to use a formal business plan). My goal is to streamline the process and make it easy for most freelancers.

Element #1: Your Freelancing Vision

What is a business vision?

Simply put, it’s the difference between having a vague idea that you want to be a freelancer and knowing that you are starting a freelance web design business that specializes in creating customized WordPress themes. Vision gives your freelancing business a purpose and a direction.

Your freelancing vision should reflect your business and personal values as well as your dreams for the future of your business.

Now that we’ve explained the importance of having a vision as part of your freelance business plan it’s time to discuss the importance of goals.

Element #2: Your Freelancing Goals

Goals are the objectives that you are striving for as a freelancing business. They should flow naturally from your freelancing vision.

The best goals are:

• Specific–Business goals are more specific than business visions. You should know exactly what it is that you want to do.
• Measurable–To measure your goal, you need to identify a quantity that you are striving to reach. For example, “get five new clients” (the quantity is five) as opposed to the more vague goal of “get new clients.”
• Achievable–A good business goal is achievable. Over time you should be able to predict what your freelancing business is able to achieve. At first, however, you may need to make an educated guess (and that’s okay).
• Time-based–Your goals will change over time. In fact, your business environment will also change over time. For those reasons, it’s best to set a time limit on your goals.

An example of a good freelancing goal for the freelance web design business mentioned above would be: create two new WordPress Themes by February of 2012. That goal meets all the criteria: specific, measurable, achievable, and time-based.

Another element that is closely related to your freelancing goals is action steps.

Element #3: Action Steps

Action steps are the road map that allows you to achieve your freelancing goals. They are extremely specific and detailed.

Your action steps are your plan for how you are going to achieve your goals. You may find that you need to tweak your action steps fairly often to make them work more smoothly.

The final element of a good freelancing business plan is measurement.

Element #4: Measurement and Analysis

At the end of the time period that you specified you need to measure how successful you were at meeting your goals. While there are a number of professional tools designed for this purpose, most freelancers may want to use a less formal approach. A spreadsheet may be helpful.

The most important questions to consider when measuring and analyzing business goals are:

• Did I meet my freelancing business goals for this time period?
• Why (or why not)?
• If my goals were off, how much were they off by?

Your goal measurements will help you determine how successful your freelancing business has been and guide you in planning and in setting future goals.

Final Freelance Business Planning Thoughts

In this explanation, I’ve tried to streamline and simplify the business planning process in a way that will meet the needs of most freelancers. If you own a more mature business or are considering selling your business or getting a loan, then you may need to use a more formal business planning process.

While many freelancers keep their informal business plan in their head, if you’re like me you’ll benefit the most from keeping a written copy of it. It doesn’t have to be formal document–just a list that you can glance at from time to time so that you stay on track. For me, it’s just too easy to lose track of goals that aren’t written down.

Your Turn

Do you have a freelancing business plan? Is it written down or in your head?

Share your answer in the comments.

Some people want to increase their earning potential. Some people want to start an empire. Others are simply looking for a way to spend more time with friends and family. Still others may start freelancing for an entirely different reason.

Every freelancer has a set of goals that is unique to them. The beauty of freelancing is that with a little talent and a lot of hard work, it’s likely that you can achieve your goals as a freelancer.

That’s why today we’re asking you about your unique set of goals. We’d like to hear:

Why did you become a freelancer?

Your answer could be one of the reasons I listed above, a combination of reasons, or something that I haven’t even thought about.

Share your answers in the comments.

Image by Andi Sidwell

Unlike a traditional employee, who may go years without being interviewed once they have been hired, a freelancer may face an interview nearly every time a prospect considers them for a project. So, good interview skills are an important part of a freelancer’s arsenal.

In this post, I’ll provide some tips to help freelancers prepare for various types of interviews that they might face. I’ll also identify some good answers to tough interview questions that freelancers get asked.

Preparing for the Interview

Often, freelance interviews are conducted by phone. However, if you are located near a client’s office, then you may be asked to participate in a face-to-face interview.

Here are some general tips to help you prepare for all interviews:

• Research the client as thoroughly as possible before the interview. Try to learn about their business as well as what is currently going on with their organization.
• Go with a positive mindset. Remember, the client is choosing to spend the time to learn more about you. This means that they’re more than likely serious about hiring you.
• Have a “cheat sheet” available with pertinent information such as links to your samples and contact information for your references.
• Ask for the business. Enthusiasm counts. If you want this work, be sure to tell that to the client.
• Follow-up. One of the biggest mistakes that freelancers make is not following up after an interview. It’s perfectly acceptable to send an email the day after the interview thanking the client for their time and asking if they have any additional questions.

Here are some tips to help you prepare for face-to-face interviews:

• Dress professionally. Yes, freelancers are known for their extremely casual dress, but the freelance interview is one exception. Make sure that you look as professional as you are.
• Arrive on time. Map out the route in advance and allow yourself extra time if you will be travelling to the client’s office during peak traffic times.
• Bring your business cards. Not only will this give your prospect a handy way to contact you, having business cards also adds to your image as a freelancing professional.
• Bring your tablet. Your iPad or other tablet can be a great tool at an interview. You can load a slideshow of your samples, discuss the client’s website, or even look at examples of other websites that the client likes.
• Be prepared to take notes. The client may wish to start discussing the project details with you. If this is the case, make sure that you are ready. You may be able to use a Notes app on your iPad or you may prefer pencil and paper.

Although, interviews may be uncomfortable, remember that the client is deciding whether they want to spend money on your services. It’s important to help them feel good about doing that.

Now that you’re ready for the interview, it’s time to think about some of the questions that you may be asked.

Answers to Six Tough Interview Questions

If you’re a freelancer you may face some particularly difficult interview questions. Here are some answers to those tough interview questions:

1. Can you devote all of your time to my project? Unless the project is full-time and pays enough to support you while you are working on it, you probably will be working on other projects while you work for this client. However, your answer to this question should address what are probably the client’s underlying fears. Try saying, “I am known for meeting my deadlines despite juggling multiple projects. If you have any questions and concerns I can be reached at XXX-XXX-XXXX.”
2. How long have you been in business? This question could be difficult for new freelancers to answer. However, once again the key to an effective answer is to deal with what the client is probably wondering and not with what the client said. Basically, the client wonders if you are qualified to do the work. A possible answer could look something like this, “I bring over five years of graphic design experience to the table–four years working with an agency and one year as the principal of my own graphic design business.” If you’re a new graduate, you may want to focus instead on your education. That answer might look like this, “I recently graduated at the top of my class in graphic design. While working on my degree I had the opportunity to intern at ABC Company.”
3. What is your biggest fault? (A variation of this question might be: What is the biggest mistake you’ve made?) If you substitute the word “challenge” for the word “fault” or “mistake,” you’ll get a good idea of the best way to handle this question. By describing how you overcame a challenge you avoid running yourself down. You can turn a potential negative into a positive.
4. How much do you charge per hour? It’s best to quote a project by the job, if you can. Try to get an idea of what sort of budget the client has set aside for the project. If you don’t know enough about a project to provide a quote, say something like, “I’d be happy to discuss the details of your project with you and develop a customized quote.”
5. What is your preferred means of communication? This question shows that the interviewer may be afraid that you will become unreachable. You can answer this by reassuring them that you can easily be reached. Say something like, “Although I prefer to receive emails while I am working, I’m usually also available by phone, Skype or instant messaging.”
6. Do you work from home or do you have an office? Many nonfreelancers can’t envision working from home because they don’t have a dedicated space at home where they could get work done. Reassure the interviewer that you will be just as effective at home as you would be working elsewhere. Say something like, “I have a room in my home dedicated to just my freelance writing business. During working hours, I find that I get more done there than I did when I worked in a corporation.”

Your Turn

What was the most difficult freelancing interview you ever had?

Without naming names, share how you aced your difficult interview. How would you have answered the questions above?

“I don’t believe anyone could earn decent money through the Internet.” My friend confidently stated and…I agreed with her.

Can you believe it? I agreed with her, yet today here I am today doing exactly what both of us thought could never be done. There are many things that I didn’t know about freelancing until I became a freelancer myself.

I guess the first surprise is how very possible it is to earn money as a freelancer. There are many other things that I never would have dreamed of before I started freelancing myself. I’m sure that I’m not the only one who has ever faced freelancing surprises…

In this post, I’ll share ten other freelancing “surprises” that most non-freelancers probably don’t ever think about.

10 Freelancing Surprises

Here are ten things about freelancing that take non-freelancers and new freelancers by surprise:

1. The low start-up cost. While it does cost something to freelance, the cost to start a freelancing business is usually much lower than the cost to start any other type of business. There are no franchise fees to pay, no building space to rent or buy, no employees to hire…
2. The importance of selling. Most freelancers probably don’t think of themselves as a sales person–at least, not at first. Yet, sales is a vital part of running a freelancing business since it is how freelancers get clients. No matter how uncomfortable, all freelancers need to know a little about selling.
3. The rate at which what you need to know changes. Even more than corporate employers, freelancers need to be on top of their field. This means keeping up with new software and hardware technologies, industry changes specific to your area of expertise, and being knowledgeable about the latest trends. If you don’t keep up, your competitor will.
4. The strength of the online community. For most freelancing fields, as well as for freelancers in general, there is a strong online community. Freelancers tend to interact with each other through social media and online forums. They also tend to read the same blogs and online publications. If you think you won’t have peers as a freelancer, you’d be wrong.
5. The lack of a market rate or standard. There are so many variables (such as skill level, location, experience, and so on) involved that it can be difficult for freelancers (and their clients) to know what a fair rate is. Not only that, clients (and freelancers) sometimes use almost the same words to describe very different projects. When it comes to pricing, freelancers are on their own.
6. The fact that many freelancers can be harder on themselves than many bosses would be. Some freelancers may have left traditional employment to get away from a bad boss. While having a bad boss is no fun, freelancing isn’t always the escape that one might think it would be. In fact, some freelancers are harder on themselves than any boss would ever be.
7. The importance of social media. Social media has gone mainstream and nearly everyone has some level of involvement in social media. For freelancers, though, social media is even more important. It’s the lifeline that connects them to their clients, potentials clients, and to other freelancers.
8. The importance of self-discipline. When you freelance, it’s up to you to make sure that the work gets done. There’s no one looking over your shoulder or sending you reminders to keep you on schedule. You absolutely must have the self-discipline to keep working even when no one is looking.
9. The global nature of freelancing. Another huge difference between most traditional employment and freelancing is the global nature of freelancing. As a traditional employee, unless you worked for a very large international company, you probably dealt mostly with people who are based in your own geographic area. This is not true of freelancing. As a freelancer working through the Internet, you may find yourself with clients (and colleagues) all over the globe.
10. The lack of personal days. It’s no fun working sick, trust me on this. As a traditional employee, you probably had a number of paid sick days or personal days that you could take off each day if you weren’t feeling well. As a freelancer, however, it’s up to you to save enough money so that you can take a day off if you don’t feel well. Even with savings, you may find yourself working sick to might a tight client deadline.

Your Turn

These are just some of the things that most people don’t think about when they consider freelancing.

What took you by surprise about freelancing?