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?

There are three main types of legal forms of business to consider when starting a freelancing business. These types include sole proprietorships, partnerships, and corporations. In this post, I’ll discuss two of these three types of business in detail.

The Most Popular Business Form for a Single Owner

A sole proprietorship is the most common structure for any entrepreneur starting a freelance business that is owned by only one person. This form of business is also the easiest to legally form since it requires no paperwork and can be created quickly.

Sole proprietorships have certain advantages depending on the situation (i.e. plans for the business, your personal life, etc.), but there are quite a few tax and audit risks that a freelancer considering a sole proprietorship needs to be aware of.

While starting a business as a sole proprietorship may be ideal, it’s important that you revisit the legal form of your business as the business changes since being a sole proprietorship may actually become a disadvantage. One potential downside in a sole proprietorship structure is that you may end up paying just as much money in self-employment taxes as you pay in income taxes.

Here’s an example…

Let’s say that your freelance business has a year-end profit of $80,000–not bad! If your business is a sole proprietorship, then you’ll pay regular tax at your usual tax rate. However, you’ll also pay approximately $11,000 in self-employment text. Think of the self-employment tax as a replacement for the Social Security and Medicare taxes that your employer would have had to pay if you had worked for another company. Depending on how much revenue your freelancing business generates, this option can end up costing you more money in the long run compared to other forms of business.

A Corporation with Unique Tax Benefits

The “S” Corporation is basically a corporation that’s taxed in the same manner as a partnership. In an S Corporation, the corporation pays you–the owner–fair wages for your work just like you would get paid for a traditional job. Any left over profit at year-end passes through the corporation to you and you’ll pay income tax on the pass-through amount. The S Corporation divides the owner’s income into two categories: wages and pass-through distributions.

For a freelancer, the S Corporation might actually be a very attractive model due to the tax structure of the S Corporation. As an S Corporation, your wages are subject to the same percentage (15.3%) of tax that you would pay as self-employment tax. However, you do not have to pay social security or self-employment tax on the amount of the dividend pass-through.

Using an S Corporation, the owners of the corporation can create a tax savings through a reduction in the self-employment tax compared to the previous sole proprietorship example.

So Which Structure Is Right for You?

While both of the structures described above have their own legal and tax advantages, it’s important that you consider your specific situation to make the best decision. In many cases, new freelance business owners consult with an attorney, so their decision is usually influenced by the legal nuances surrounding the formation rather than the tax breaks available.

If you are in the process of forming a freelance business and don’t have a specific reason why you’re choosing the structure you’re considering, then you need to look deeper into the choice from a tax perspective. That’s a common situation I see with new clients and something that is a sign that you have not considered the tax advantages available for your business in the long run.

While planning for tax advantages can seem confusing during the formation of your business, it’s important to understand that the right decision can save you thousands of dollars or more in the years to come. With that said, the tax code can be very complex and is something you’d probably rather not focus on–after all, you’re going to have a freelance business to run.

If you need help determining which entity is right for you, consult a professional who not only has a good knowledge of the tax code and filing requirements, but someone who will work with you proactively throughout the year to make sure you are taking advantage of every available break.

Your Turn

(Editor’s Note: This post is based on the knowledge of our guest poster. It does not represent legal or accounting advice on the part of Freelance Folder. If you have a specific question in this area, consult with a professional.)

What business structure have you selected for your freelancing business? Why?

Share your answers in the comments.

But being heard over the noise and standing out doesn’t have to mean you shout louder than the rest; that just adds to the clutter. Instead, you should take a minimalist approach, stripping the layers of bulk away and following a more simple blueprint toward success. I guarantee that if you make it a little easier, you will be better off.

You may be wondering how you can apply minimalist ideals to a freelance career. It is all about getting back to basics and ignoring the call of more complicated promotion and activity. This will reduce your legwork and let you focus on your real career.

Don’t Branch Out on Services

Every freelancer seems to be trying to provide a multifaceted service list straight out of the gate. They claim to be able to write everything from ghost-written novels to press releases, and they hatch together a sales ad that gives the price to each one like a shopping list.

But going this route will actually hurt more than help. If you focus on a single service for a time, you will be able to establish yourself as an expert while gaining important experience. Not to mention, you will be more able to take referrals, which is the easiest way of scoring work.

Start with a niche, then work your way up to offering more. You will also sometimes find clients who want other types of work done, which you can take when you are ready and start asserting yourself as an expert in that category as well.

Don’t Splurge on the Site

What is with the sudden increase in overcomplicated and flashy freelance sites? This seems to be a trend, but it actually detracts from rather than adds to your appeal. That is because most clients are looking for a quick peek into your abilities, not a full rundown of everything you have ever done, set with special effects and a light show. They have too many people to interview to be interested in all of that.

You need a simple, clean and efficient site that shows off what you can do. It should be fast loading, be easy to navigate and feature the best work you have done. It should also be updated on a regular basis, which won’t be easy if you have a difficult-to-use website unless you moonlight as a graphic designer.

I usually suggest to people that they create a simple and stylish blog or else a bare bones website with a couple of pages. I have even seen some amazing freelancer sites that were a single page, with a cool layout that gave everything in different, bordered sections and scroll menus.

Focus Your Web

One of the biggest mistakes of any kind of marketing is casting too wide of a web. When you do this, you will be able to bring in many different types of people as your audience, but without a target the results will be mixed and weak. You will have more eyes on you, but fewer quality customers to select from because only a slim number will be interested in what you have to offer. That means less work, not more.

Instead, you should be specific in how you approach your marketing. Use language intended to draw people with a specific niche, making it clear what you are offering. That will provide a platform to attract your target audience, a much smaller catch of potential clients that will improve your chances of getting quality work.

Plus, it will help to push the reputation you have for your area of expertise.

Keep Things Simple

As you can see, freelancing isn’t rocket science. If you keep things simple, you will be able to present yourself efficiently while focusing on your actual work. This will work much better than if you were running around, overextending yourself and shouting at the top of your lungs to be heard above all the others. This will be a lot less stressful, too, which will keep you on top of your game better than if you were hassled and strained.

So apply minimalism to your freelancing approach and see for yourself what the simpler way can do for you.

Your Turn

How do you keep things simple in your freelancing business?

Top image by Marcus Vegas. Center image by Randy Son Of Robert. Bottom image by Nina Matthews Photography.

Making it in the big wide world is a daunting prospect for anyone, but in these tough economic times the difficulties and hurdles facing new graduates are bigger than ever. With rising student debt, youth unemployment and cutthroat competition for the small number of jobs available to hundreds of thousands of graduates, the prospects for university graduates may seem quite grim.

Nevertheless, there are opportunities for those tech-savvy graduates who are comfortable with social media and the online world. For those who are anxious to get their first foot onto a career ladder online, freelancing may be a great opportunity.

While the online world has a lot to offer new freelancing graduates looking for work, there are some fundamentals to learn first before diving in and losing your head.

What Freelancing Can Offer Graduates

Many of us are familiar with the stereotypical freelancer–the individual who was sick of their boss, their 9-5 job and the lack of creativity in their career. There is also the individual who chose freelancing in order to spend more time with their family or to become their own boss. The idea that freelancing could also be an ideal career choice for a new graduate may be new to some people, but in reality, it’s the perfect option.

If you are a graphic design graduate and have ambitions of joining a professional agency, you’ll discover that the competition for these positions (even lower-paid junior positions) is extremely high. Thus, no matter how passionate you are, you simply may not have a diverse enough portfolio of work and satisfied client recommendations to back up your credentials as a graphic designer.

Freelancing on a variety of jobs, working with a diverse clientele, is the perfect way to expand your portfolio when you’re fresh out of college. Moreover, to the client, opting for a graduate freelancer may be the more economical choice over opting for a big-name agency or other seasoned professional.

Building Trust as an Online Freelancer

Some clients may feel that choosing a seasoned professional presents less risk to their project than selecting a newly graduated freelancer. However, for small to medium sized projects the skill and passion of the freelancer can make or break the success of a project.

Of course, when it comes to convincing clients to select you (the new graduate) for their project over another freelancer, you do not have years of experience to compete for the job with. Nevertheless, remember that a professional agency made up of many employees cannot offer the client the same personal touch that you can.

Plus, if you are fresh out of university and haven’t got dozens of clients to work with, then you are in a much stronger position to work on a one-to-one basis with any client. As we all know, a glowing testimony from such a satisfied client can work wonders for future project prospects.

How New Graduates Can Succeed

If there’s anyone able utilize social media and online communication for their career success, it is recent graduates.

Today’s generation of graduates has literally grown up with Web 2.0 technologies. The opportunities for graduates to use their internet skills to impress potential clients, win projects and conduct client management are there for the taking.

Online mediation and freelancing platforms can offer freelancers of all stripes the chance to upload their portfolio and list their skills in order to find exciting and diverse projects in all fields. In fact, graduates can take advantage of these online platforms to create an international client base, and there are not many traditional agencies who can say that they make a living from globetrotting for new clients!

Moreover, online project platforms or not, according to a joint study by Dr. Mansour from the University of Denver and Peter Kuhn from the University of California, searching for work online can cut time spent unemployed by up to 25 percent. That benefit is even greater for younger people.

Also, learning to effectively use online tools to freelance may come more easily to recent graduates than it would come to middle-aged professionals. For instance, if a new graduate wanted to create clear channels of communication between themselves and the client, they would probably have no trouble at all using Twitter or Skype to communicate during business hours. Plus, expanding social networks to include business contacts and clients is second nature to the generation who had their teenage years defined by Facebook.

So Get Out There and Freelance

Overall, whether freelancing brings you success, or not, rests on your ability to do your own marketing by reaching out to others in your field through tools like Twitter, LinkedIn and blogs. You will also need to impress potential clients with your passion and know-how with an online portfolio that can be easily accessed.

Recent graduates may have to learn the hard way that they must fight for every freelancing project they win. Yet, they are well placed to get the best out of what the online world has to offer.

What About You?

Are you a recent university graduate who has embraced freelancing as a career? What are some of the challenges and obstacles you have faced?

Share your answers in the comments.

Image by j.o.h.n. walker

While it may be tempting to look for a simple, single factor that always leads to freelancing success, the real truth is that all freelance success is due to the sum of many parts.

There’s no single path to freelancing success (and this can be frustrating). As I’ve said before, what works well for one freelancer may totally bomb when another freelancer tries it. That’s because every single freelancer brings something different to the job. Who you are, as a whole, contributes to the freelancer you become.

Holistic means looking at the parts that make up the whole and that’s just what I’ll do in this post. I’ll take a look at the whole freelancer and examine how who you are impacts your freelancing business overall. Here are some of the factors that we freelancers bring with us into our freelancing businesses:

Factor #1. Freelancing Field

What type of freelancer are you?

Your experience as a freelancer will be different, depending upon what type of freelancing you do.

For example, the web is content-hungry. Because of the constant need for content, I’m convinced that freelance writers have an easier time getting repeat business than other freelancers whose clients might only need their services once in a great while.

Also, is your field broad, or are you in a narrow niche? Your answer makes a difference. Being a niche freelancer can be beneficial, but watch out! If your niche is too narrow, you’ll have trouble finding work.

Factor #2. Education

While formal education can help you as a freelancer, it’s not always necessary. At Freelance Folder, we also support those who are self-taught.

Check out these posts to learn more about how to teach yourself about some select fields:

• Can You Teach Yourself Web Design?
• Can You Really Teach Yourself to Be a Freelance Writer?

Another aspect of education and learning that impacts who you are as a freelancer is whether you are continuously learning. I definitely recommend that you view learning as a lifelong process.

Factor #3. Past Work Experience

The jobs you’ve held in the past definitely play a part in your present freelancing success.

Oddly enough, you can get skills to take with you into freelancing from nearly any work that you do–not just those jobs in your chosen field.

Check out these real life stories from freelancers with varied backgrounds:

• From a former private investigator–5 Lessons Being a Private Investigator Taught Me About Freelancing
• From a former belly dance instructor–Freelance Lessons Learned–Make Your Own Music
• From a former fast food worker–5 Freelance Lessons I Learned from Working in the Fast Food Industry

As you can see, your work history plays a big role in who you ultimately become as a freelancer.

Factor #4. Personality

Is there an ideal freelancing personality?

Many, would say “yes.” In fact, the internet is full of courses and ebooks that recommend a “cookie cutter” approach to running your small business. It can be tempting to think that we are all the same with the same personality, needs, and goals. But personally, I don’t think there is just one ideal freelancing personality (although obviously some personality types may struggle with certain aspects of freelancing more than others).

If you really want to freelance, you can adapt it and make it work for you. So, whether you’re naturally shy, outgoing, messy, neat, whatever your personality type–there’s usually a way to make your freelancing fit you.

Factor #5. Values

Another aspect of yourself that you bring into freelancing is your values.

Are you the type of person who takes pride in what they do, or do you like to just do enough to get by? Can you be counted on to meet a deadline, or do you believe deadlines are just guidelines? Do you like people, or find them annoying?

Whatever your values are, they’ll come right along with you into your freelancing business.

Related to values is the question of what drives you (in other words, what is important to you). Are you seeking after life balance? Power? Money?

How you, as an individual freelancer, feel about these questions affects your freelancing business. In the end, that is why your freelancing business will look different from mine, which will look different than Lexi’s freelancing business, which will look different from… Well, you get the picture.

Your Turn

In this post, I attempted to examine the whole freelancer. The key thing is to understand the various aspects of your background and personality and how they affect your freelancing business.

What aspects of yourself have you brought into your freelancing business that are uniquely yours?

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If you’ve ever had a client balk at the price you are asking for your work, then you can probably relate to this post.

The purpose of this post is NOT to tell you how you should decide to charge your clients or how much you should charge. There are plenty of posts out there for that already. Instead, this post is intended to outline some of the pricing dilemmas that freelancers face and maybe provide a few tips to give you an advantage in the great freelancer pricing war.

At the end of the post, I’d also love to hear how (or if) you’ve addressed these dilemmas in your own freelancing business.

Hourly vs. Project

The first dilemma that freelancers face is deciding whether they should charge by the hour or by the project.

Freelancers, themselves, disagree on which method of billing a client is best. Those freelancers in favor of charging clients by the hour say that it protects them from scope changes, unexpected client meetings, and other time drains that could ultimately cause them to earn less. Those freelancers in favor of charging by the project say that they can earn more overall by working quickly and efficiently and that clients also like it because they know up front how much they will pay.

Guess what? Both sides are right.

In my opinion, there are times when it is appropriate to bill by the project and other times when it is actually best to charge an hourly rate. Charging by the project is the most profitable option if the project scope is clearly defined and you are very familiar with the work required. However, if the scope is vague or you have limited experience with a particular type of work you may actually be better off charging hourly.

The Trouble with Market Rate

Have you ever been told that you should charge market rate for your freelancing services? Me too.

The trouble with charging market rate is that there isn’t just one market rate. That’s because, as much as some people would like to tell you otherwise, freelancing really isn’t a commodity.

Think about it. When you go to the grocery store to buy a banana, they are pretty much all the same. You likely only have two choices to consider: organically grown or non-organically grown. Otherwise, bananas are basically all the same. There’s a clear market price for organically grown bananas and another clear market price for non-organically grown bananas. (Okay, possibly there’s a third market price for overripe bananas.) Your choice is easy.

It’s not that way when it comes to choosing a freelancer. All freelancers are not basically all the same. There are just too many variables to consider, which is why there isn’t a clear market rate for freelancing services.

Here are some of the variables that affect what a freelancer charges:

• Innate ability
• Specific training
• Years of experience
• Industry-specific knowledge
• Whether the freelancer is specialized
• The reputation of the freelancer
• The freelancer’s availability
• The freelancer’s reliability
• The cost of living for the freelancer

As you glance at the list, you can probably see why choosing a freelancer is more complex than buying bananas. And, those are just a few of the variables that affect a freelancer’s rate. You can probably think of others.

Charging What You Need to Live

Many freelancers will start with what they need to live on and calculate their rate from there.

While it’s true that you definitely need to be able to live off of what you earn as a freelancer, starting with your living expenses is not necessarily the best way to calculate a rate for yourself.

First of all, your client doesn’t really care about what you need to live. Okay–well, some of them may care, but your cost of living isn’t what’s going to drive a client to purchase your services and to pay you fairly.

If your cost of living isn’t what you should base your rates on, what is?

In my opinion, the answer is value. Clients and potential clients are very interested in receiving value. If you can demonstrate that you provide value through your services, clients are likely to purchase AND to pay what you ask too–which means that you can earn enough to live on (and then some).

The Volume vs. Quality Paradox

Sadly, there are always a few freelancers who think that they can make up for charging a low price for their services by taking on a high volume of work. Some may even try to charge the lowest rate.

At first, this strategy for getting clients may seem to work. If you have extremely low rates, “clients” will probably flock to you, looking for a bargain. When you need just a bit more money to survive, what do you do? Well, you have to take on even more clients so that you can earn more.

The trouble with this strategy is that when a freelancer’s volume of work increases, the quality almost always eventually slips. Sure, some freelancers will be able to maintain a high volume of work for a while.

But in the end, you’re not a banana (see my earlier illustration). You also don’t have an endless supply of time. There’s more to consider when determining your rate than just the dollar amount.

Should You Be the Middleman?

Another rate dilemma that freelancers face is whether or not to outsource their freelancing work. This strategy allows a freelancer to take on more work than he or she would be able handle alone. A freelancer who does this can transition from being the provider to being the client.

However, this strategy is not without its drawbacks. Here are few of those to consider:

• As a middleman, you are ultimately responsible for the quality that the end client receives. This may mean stepping in to revise or redo the work of one of your subcontractors.
• You have to make sure that you understand the end-client’s request and convey it to your outsourced workers accurately. A middleman can sometimes be the source of communication difficulties.
• You need to charge enough money for your services to be able to pay the freelancers you have hired AND take a portion for yourself. This may put your rates near the top of the market for your services.

How Do You Deal with These Dilemmas?

How are you faring in the great freelancer pricing war? How do you overcome some of these issues?

Share your answers.

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