IntroductionWelcome| 00:04 | There are many reasons to start
freelancing, but it's a tricky road to follow.
| | 00:08 | How will you get your first projects?
| | 00:10 | How will you survive until you do?
| | 00:12 | What can you do to avoid difficult clients?
| | 00:15 | These are some of the questions
that this course aims to answer.
| | 00:19 | Although this course is designed
primarily for people who want to sell their
| | 00:23 | services to companies, most of the
lessons will help you even if you plan to
| | 00:26 | sell goods or market directly to the public.
| | 00:30 | In this course, we'll look at what a
freelance life is like, day to day.
| | 00:34 | You'll see what's required to live it,
and if you're missing anything, you'll
| | 00:37 | see how to get what you need.
| | 00:39 | I'll show you how to narrow your
scope by service, customer, and industry.
| | 00:44 | You'll see how to build a
professional network that leads to clients and
| | 00:47 | partners who you want to work with.
| | 00:49 | While we're at it, you'll see how to
get what you need from clients in terms of
| | 00:54 | payment, future work, and recommendations.
| | 00:57 | Once things get going, you'll see how
to stay motivated and grow your business.
| | 01:02 | You'll see how to deconstruct big jobs
and how to estimate how long they'll take
| | 01:06 | so you can plan and bill accordingly.
| | 01:09 | Finally, you'll see how to create
schedules that will keep you relaxed, even as
| | 01:14 | demand for your talent grows.
| | 01:17 | Like a lot of people, I started my
own career working the grind, 9 to 6.
| | 01:23 | I got tired of that and set out on my own.
| | 01:25 | But my freelancing business failed because
there was just so much I didn't know how to do.
| | 01:30 | Then I repeated the cycle a few times,
making every mistake along the way.
| | 01:35 | Finally, I got it right in 2006, and
I've enjoyed being a freelance writer and
| | 01:40 | presenter ever since.
| | 01:42 | The lessons I learned have continued
to help me grow my business, and I hope
| | 01:46 | they will help you start, run, and
grow yours as well no matter what sort of
| | 01:51 | freelance career you want to launch.
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| What is freelancing?| 00:01 | No matter what the economy, there's
always a reason to consider a freelance career.
| | 00:06 | When times are good, freelancing can
help you gain flexibility and spend your
| | 00:09 | time more enjoyably.
| | 00:11 | And when times are bad, freelancing is
one way to make your own path despite
| | 00:15 | the tight job market.
| | 00:17 | But before we get too deep into things,
we need to define what we're talking
| | 00:21 | about starting with the word freelance.
| | 00:24 | I like Wikipedia's definition which is
"Somebody who is self-employed and is not
| | 00:28 | committed to a particular employer
long-term." It's worth noting that
| | 00:33 | freelancers are generally considered
sole proprietors or sole traders as they're
| | 00:36 | called in Great Britain.
| | 00:38 | In the United States, the word
freelancer is synonymous with
| | 00:41 | independent contractor;
| | 00:43 | a group of over 10 million
people in the United States.
| | 00:47 | The fact that so many people are
independent contractors is good news for you
| | 00:51 | because it means that the market is
accustomed to hiring and working with such people.
| | 00:56 | But independent contracting
is only one of four alternative
| | 00:59 | employment arrangements.
| | 01:01 | Another type is on-call work;
| | 01:03 | for example, a graphic designer who
comes in to lay out a department store's
| | 01:06 | ads once in a while.
| | 01:08 | About two-and-a-half million
Americans fit this description.
| | 01:11 | A second type is temporary help
agency work, more commonly known as temps.
| | 01:16 | This is actually how I got my
own start fresh out of college.
| | 01:20 | A temp agency would call me, often a
date in the morning, and I'd go into their
| | 01:24 | client's office, and do small projects.
| | 01:26 | A little over a million Americans are temps.
| | 01:29 | The last kind of alternative employment
is work from agencies that specialize in
| | 01:33 | long-term contracts.
| | 01:35 | It's a lot like temping except that
the jobs tend to be full-time and they
| | 01:40 | last for much longer.
| | 01:41 | A little under a million American
workers are in this kind of arrangement.
| | 01:45 | You can read more about all of
these definitions and the U.S. government's
| | 01:49 | statistics on each type of
employment by visiting the URL on your screen.
| | 01:53 | I should mention that this course
won't talk about all the unskilled or
| | 01:58 | piecemeal work such as stuffing
envelopes or mystery shopping.
| | 02:02 | To be blunt, a lot of those alleged
jobs are out and out scams, and the ones
| | 02:06 | that aren't are so low-paying that
you can't truly build a career on them.
| | 02:10 | I'll talk a bit about them
in the video Avoiding Scams.
| | 02:14 | But let's get back to independent
contracting which is where you handle all
| | 02:17 | the details of the job.
| | 02:19 | Admittedly, the differences between
this and other kinds of alternative
| | 02:23 | employment can be subtle.
| | 02:25 | And in fact, you'll probably find
yourself doing a mixture of all four of
| | 02:29 | these so-called alternative
employment arrangements during your freelance
| | 02:32 | career, and that's okay.
| | 02:33 | It's what I've done myself.
| | 02:35 | For this course however, I'm going
to focus on independent contracting.
| | 02:40 | I think it's the hardest of the
four work styles because you have the
| | 02:43 | most responsibility.
| | 02:44 | But along with that comes greater
freedom to work as you want, to grow your
| | 02:49 | business, and to spend your
time doing what you really love.
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| How freelancing and employment differ| 00:01 | If you've always had salaried
positions in the past, you might wonder how
| | 00:05 | freelancing is different.
| | 00:06 | I'd like to look at that from three angles;
| | 00:08 | legal, practical, and personal.
| | 00:11 | I'll start with legal definitions, but
keep in mind that I'm not a lawyer, and
| | 00:15 | new information might
appear after I record this video.
| | 00:17 | So, don't depend on what I say here
if a serious legal question arises.
| | 00:22 | The I.R.S., that's the U.S.
government's tax authority, says that a freelancer
| | 00:27 | is an independent contractor if the
payer has the right to control or direct
| | 00:31 | only the result of the work and not
what will be done or how it will be done.
| | 00:36 | In other words, the client could say,
design my website and deliver the results
| | 00:40 | as a Layered Photoshop File, and
you'd still be considered a freelancer.
| | 00:44 | But if the client says, "You must use
Dreamweaver and do the work in our office
| | 00:48 | between 9 AM and noon," then the I.R.S.
is likely to consider you an employee
| | 00:52 | rather than an independent contractor
which would lead to differences in such
| | 00:56 | things as tax withholding, benefits and so on.
| | 01:00 | Such distinctions vary from country to country.
| | 01:03 | In the U.S., the I.R.S. released some
specifics that set forth 20 factors to
| | 01:08 | separate employees from independent contractors.
| | 01:11 | I won't go into them, but if
you're interested, do a search online for
| | 01:15 | the 20-factor test.
| | 01:17 | So that's the legal view.
| | 01:19 | But on a day-to-day level,
you'll be more affected by the
| | 01:22 | practical differences.
| | 01:24 | The big one is, if something needs doing,
you're the one to do it, and there's
| | 01:28 | nobody else to blame if it doesn't get done.
| | 01:31 | You're now in charge of among other
things, marketing, sales, accounting,
| | 01:36 | project management, IT, and legal matters.
| | 01:39 | You also have to keep
yourself busy, and motivated.
| | 01:42 | And if you expand by hiring other
people, you have to become your own human
| | 01:46 | resources department.
| | 01:47 | If you think that's all
daunting, well, you're right.
| | 01:50 | But don't worry, I go into all
these aspects during the course.
| | 01:55 | Finally, we come to the personal
differences between freelancing and employment.
| | 01:59 | That is, how your mentality
and lifestyle will change.
| | 02:02 | For example, you're likely to find
your work life creeping into your personal
| | 02:07 | life and vice-versa.
| | 02:08 | So it becomes much harder to
judge whether you're being productive.
| | 02:12 | And that can lead to some unexpected anxieties.
| | 02:15 | It's a big subject.
| | 02:16 | So rather than gloss over it here,
we'll go into more detail later.
| | 02:20 | In short, there's a lot to think
about as you transition to freelancing.
| | 02:24 | But don't worry, it's something you can
do successfully as long as you prepare,
| | 02:29 | plan, and of course, take action.
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| Preparing your mindset| 00:01 | When people start thinking about a freelance
career, they usually focus on three things;
| | 00:06 | the service they're going to offer,
how they'll get new clients, and what
| | 00:10 | they'll do with all that new-found
money and free time.
| | 00:13 | These are all fine things to think about.
| | 00:15 | But there's one more to consider, and
I'd argue that it's the most important.
| | 00:19 | How are you going to spend the minutes,
hours, and days of your working life?
| | 00:24 | I believe that your approach to this
question is ultimately what determines your
| | 00:27 | happiness in a freelance career
because if you're not happy with the minutes,
| | 00:32 | hours, and days, you won't be happy in life.
| | 00:36 | It's hard to know how things will go
until you actually start working freelance.
| | 00:40 | But some practical preparations will
improve your mindset and then you can
| | 00:43 | make changes as you go.
| | 00:44 | I've made a list of
questions to get you started.
| | 00:48 | It's available as a worksheet in
the exercise files titled Mindset.
| | 00:52 | You've probably already answered most of
these questions subconsciously, but now
| | 00:57 | it's time to write your answers down.
| | 00:59 | That will be an important motivational
tool after you've been working freelance
| | 01:03 | for a few months, and you start
feeling bogged down in the details.
| | 01:07 | The first question is why
do you want to freelance?
| | 01:11 | Your own answer might seem obvious to
you, but there are many possibilities;
| | 01:15 | to make more money, to have time to travel,
to be at home with your children and so on.
| | 01:20 | Whatever it is, knowing your answer will
help you make decisions as you go forward.
| | 01:25 | The second question is why can't you
get that in your current situation?
| | 01:29 | Maybe you can with some small changes.
| | 01:32 | But let's assume that
freelancing is right for you.
| | 01:35 | Four simple questions will help you
be ready for your freelance career.
| | 01:39 | First, where will you work?
| | 01:42 | Even if you're happy working in just
one place, I recommend scouting out
| | 01:46 | secondary spaces just in case there's
a problem with your preferred space.
| | 01:50 | Keep in mind that you'll probably
need a place where you can meet clients
| | 01:54 | face-to-face once in a while.
| | 01:56 | It should be a quiet, private place that
shows that you take your client's time seriously.
| | 02:01 | If you have a colleague who will let you
use their conference room, that's great.
| | 02:05 | Otherwise, look into co-working spaces
and business incubators in your area.
| | 02:10 | On that note, what do you need for your work?
| | 02:14 | If you're a digital artist, maybe
that's a flat space for your tablet along
| | 02:17 | with an electric outlet.
| | 02:19 | If you're like me, you also need Internet
access and a place to have phone meetings.
| | 02:24 | Going on, figure out when you'll work.
| | 02:26 | Do you want to take long lunches?
| | 02:28 | Will you work weekends?
| | 02:29 | Do you like to stay up late or get up early?
| | 02:32 | Keep in mind that you'll have to work a
certain number of hours every week, and
| | 02:37 | those hours have to happen some time.
| | 02:40 | Finally, figure out who else will be
affected by your move to freelancing.
| | 02:45 | This is especially important if you live
with anyone and plan to work from home.
| | 02:49 | But even beyond the home space,
freelancing could affect your
| | 02:52 | personal relationships.
| | 02:54 | Once you've got this all down, your next
step is to actually practice your work habits.
| | 02:59 | It's one thing to say that you're going to
get up at 8 AM and work from the local cafe.
| | 03:04 | It's quite another to get yourself out
of the house when that time arrives, so
| | 03:08 | actually start doing it even
before you have any clients.
| | 03:11 | Get to your workplace at the appointed times.
| | 03:14 | Then you can work on your own projects
if you like, but you'll be getting used
| | 03:17 | to the circumstances of client work.
| | 03:20 | So, start discovering the work habits
you enjoy as early as possible long before
| | 03:25 | you have any clients.
| | 03:27 | Then when the work starts arriving,
you'll find yourself happier to do it.
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1. Making PlansDefining career goals| 00:00 | A key to staying motivated is being able to
see and measure your progress toward that goal.
| | 00:05 | Let's take a few minutes to figure
out what success is to you because it's
| | 00:09 | not the same for everybody.
| | 00:11 | I prepared a worksheet to help you.
| | 00:13 | It's named Goals in the exercise files.
| | 00:16 | It's broken into two parts.
| | 00:17 | The first is a list of
common reasons for freelancing.
| | 00:20 | I gave 12 among them;
| | 00:22 | to make more money, to work fewer hours,
to do a bigger variety of work, to be
| | 00:27 | able to work wherever you are, and so forth.
| | 00:30 | I also included a few spaces
for you to add your own goals.
| | 00:34 | Start by ranking at least the top three.
| | 00:37 | My main goal was to be free to
travel and to work wherever I was.
| | 00:41 | Having a greater variety of work was
also important to me, as was having
| | 00:44 | a flexible schedule.
| | 00:46 | When you're done filling it out
according to your goals, the things you'll have
| | 00:49 | ranked are still just dreams--that
is, vague wishes about the future.
| | 00:54 | The difference between dreams and
goals is that goals are specific.
| | 00:59 | So, now we'll move down to the bottom
section of the worksheet to make our
| | 01:02 | progress toward those goals measurable.
| | 01:05 | First, write down today's date.
| | 01:08 | Then figure out the date six months,
a year, and two years from now, and
| | 01:12 | write those down too.
| | 01:14 | My number one goal was to be able to
travel, and to work from wherever I was.
| | 01:18 | Well, what's needed for that?
| | 01:21 | First, I'd need clients who didn't
require me to be in a specific place.
| | 01:24 | Second, I need equipment to work from the road.
| | 01:28 | For me that's a laptop and mobile Internet.
| | 01:31 | I also had one more requirement;
| | 01:33 | to prove to myself that it would all
work as expected both in my city and in
| | 01:38 | two other locations.
| | 01:40 | Altogether, these seem like
achievable goals for the first six months, but
| | 01:43 | they're going to take
real action to make happen.
| | 01:46 | I might need to buy a new laptop for
example, or sign up for a better phone plan.
| | 01:50 | Then I'll need to test it out under
conditions that fit in with my travel goals.
| | 01:54 | These are things you might not
actually think to do if you don't write them down.
| | 02:00 | But by doing so, you'll be able to
make it happen, and you'll get great
| | 02:04 | satisfaction looking back six months from now.
| | 02:07 | The next steps of course would be
to fill in the slots for your next
| | 02:10 | two high-ranking goals.
| | 02:11 | For example, if money is important to
you, specify how much you want to make
| | 02:15 | every month starting six months from now.
| | 02:18 | If you want recognition, give
examples that would satisfy you.
| | 02:21 | Once you've finalized your six-month
goals, repeat the exercise with higher
| | 02:26 | ambitions for a year
later and then for two years.
| | 02:29 | Speaking of which, right after writing
down all your goals, go to your calendar,
| | 02:34 | and make notes to check in on those dates.
| | 02:36 | And above all, don't be afraid to dream big
or that your answers will somehow be wrong.
| | 02:41 | It's only for your own guidance, so
you'll be sure you're on the right track as
| | 02:46 | your career progresses.
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| Sharpening your market focus| 00:01 | In marketing, one of the worst
statements you can make about a product is
| | 00:04 | that it does everything.
| | 00:06 | People respond best to specific proposals.
| | 00:08 | Then they can just say, "Yes,
I need that," or "No, I don't."
| | 00:11 | They don't have to think too hard about it.
| | 00:14 | So, you'll have to be specific about
what you do and who your market is.
| | 00:18 | There's a worksheet in your Exercise
Files called Market-Focus to help you
| | 00:21 | identify what your ideal target markets will be.
| | 00:25 | You can think of your business as
being in a space with three axes.
| | 00:28 | They are, the skill you're selling, the
industry you'll target, and the type of
| | 00:33 | customer you'll sell to.
| | 00:36 | If you make these definitions too narrow,
you'll end up describing too small a
| | 00:39 | market, perhaps only one potential client.
| | 00:43 | But if you make them too broad, you
won't be able to focus your efforts.
| | 00:46 | It will take some time in
the market to get it right.
| | 00:49 | But don't worry, that will come.
| | 00:51 | We'll start with skill.
| | 00:52 | At first, I recommend that you go
with the things that you're good at, have
| | 00:56 | experience in, and enjoy doing. So, take me.
| | 00:59 | I'm a writer.
| | 01:01 | When I got started I realized that I
was good at explaining things, I had
| | 01:04 | experienced writing non-fiction, and I
enjoyed delivering information directly.
| | 01:09 | So I started with educational writing.
| | 01:11 | A lot like the course I'm delivering right now.
| | 01:13 | I didn't try to sell myself as a
writer of political speeches or TV comedies.
| | 01:19 | Although those are perfectly good ways to
make a living, they just didn't match my skills.
| | 01:24 | It's sort of like selling on eBay.
| | 01:26 | If you look at the top sellers, you'll see
that they specialize in fairly small areas.
| | 01:31 | They get good at those specific areas,
and just as important, they get known as
| | 01:36 | the experts in those areas,
and that's what you want.
| | 01:39 | That brings us to the second axis,
the industry you'll become a part of.
| | 01:44 | As before, you'll look at a few criteria.
| | 01:47 | First, what industry do
you know something about?
| | 01:50 | Is there one where you're known
where your name already has value?
| | 01:53 | And is there enough work for
people of your skill in this industry?
| | 01:58 | The final axis is your audience.
| | 02:00 | That is, the kind of customer you'll sell to.
| | 02:03 | Some freelancers sell directly to the
people who will ultimately benefit from
| | 02:06 | their services, what are
called consumers or end-users.
| | 02:10 | But a lot of business comes from
selling to organizations who in turn deliver
| | 02:15 | benefits to their end-users.
| | 02:17 | For those markets, one criterion I pay
a lot of attention to is customer size
| | 02:22 | measured in the number of employees.
| | 02:24 | That will drastically affect how you work.
| | 02:26 | For example, if you're dealing with a
three-person company, you'll probably work
| | 02:31 | directly with the owner.
| | 02:32 | But for a major corporation you might have
to go through several layers of administration.
| | 02:38 | Also important is the
stage of your target company;
| | 02:41 | whether it's a start-up or an
established corporation, and the sort of
| | 02:45 | involvement the company typically expects.
| | 02:48 | Some will be happy with just one off
project work, while others might expect
| | 02:52 | a monthly commitment. Which is better?
| | 02:55 | It's up to you and your work style.
| | 02:59 | By the way, consumers also have stages.
| | 03:02 | The way you position yourself will
depend on what the market actually needs, and
| | 03:06 | you'll continue to
discover that while you freelance.
| | 03:09 | So, keep revisiting your worksheet as you go.
| | 03:12 | If you're not getting enough work or
you're not getting the kind of work you
| | 03:14 | want, make adjustments as needed.
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| Transitioning to freelancing| 00:00 | Starting a freelance career means
leaving behind your current situation.
| | 00:04 | No matter what that situation is,
you'll have to answer the same two questions.
| | 00:09 | First, how will you end
your current situation well?
| | 00:13 | And second, how can you
use what you gained there?
| | 00:15 | We'll look at possible answers of
these questions whether you're coming from
| | 00:19 | full employment, partial
employment, or unemployment.
| | 00:23 | First, full employment.
| | 00:25 | If you decide to keep your job and
freelance in your spare time, I recommend you
| | 00:29 | to not do the same thing for both jobs.
| | 00:32 | You're likely to get bored and your
employer might actually see outside activity
| | 00:36 | as unfairly competitive.
| | 00:39 | If you decide to leave, don't burn your bridges.
| | 00:42 | It might be tempting to yell, "So long!"
on the way out the door, but you know what?
| | 00:46 | They might be your number one
best source for future work.
| | 00:51 | That leads us to using what you gained
because the biggest asset you'll take
| | 00:54 | with you is your network
of professional connections.
| | 00:58 | You'll also carry away valuable
knowledge, but there's a catch.
| | 01:01 | You should still respect the
company's secrets even if you didn't sign a
| | 01:04 | non-disclosure agreement.
| | 01:07 | You might get a quick client by selling
out your old employer, but you'll also
| | 01:10 | get a reputation as
someone who can't be trusted.
| | 01:14 | Transitioning from partial employment,
such as working 20 hours a week is
| | 01:18 | similar to transitioning from full
employment, but with a few twists.
| | 01:23 | The first is that it might not be
as clear whether you should quit.
| | 01:27 | On one hand, a part-time job
is a good financial crutch.
| | 01:30 | On the other hand, like all
crutches, it could keep you from truly
| | 01:34 | embracing your future.
| | 01:37 | My advice is, whatever you do, make it definite.
| | 01:40 | Where it makes sense, announce your decision.
| | 01:43 | And if you're keeping your part-time
job, at least consolidate your hours, so
| | 01:47 | they fit in with your new freelancing career.
| | 01:51 | As for using what you gained,
the same caveats apply as for
| | 01:54 | full-time employment.
| | 01:55 | Use your connections and general
knowledge but give past secrets the
| | 01:59 | respect they deserve.
| | 02:02 | Finally, we come to
transitioning from unemployment.
| | 02:06 | This is perhaps the toughest
one psychologically to deal with.
| | 02:09 | I recommend two things.
| | 02:12 | First, you'll need to get
back into the work habit.
| | 02:15 | And the only way to do that is to start.
| | 02:18 | The problem is often in
figuring out what that means.
| | 02:21 | That is, what tasks will
actually help build your future.
| | 02:26 | By watching this course, you've
already taken the first step, and the tasks
| | 02:30 | described here will help to get you going.
| | 02:33 | If you're coming from unemployment it
might be hard to see what you've gained
| | 02:37 | from your current situation, but you did get
something that most 9 to 5ers lack; perspective.
| | 02:43 | If it was unwanted unemployment, let
the memory of it drive you to succeed.
| | 02:48 | If it was by choice, remember its
benefits during the tough times to come as a
| | 02:53 | way to relax and de-stress.
| | 02:55 | Your immediate past is an especially
valuable resource because we're a forgetful species.
| | 03:00 | We forget skills, we forget what we did,
we forget about other people, and other
| | 03:04 | people forget about us.
| | 03:06 | Wherever you're coming from, the
transition to freelancing is a chance to
| | 03:10 | continue and capitalize on all the
good parts of your previous situation.
| | 03:15 | So, strike while the iron is hot.
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2. Marshaling ResourcesPreparing your portfolio| 00:00 | Every time you talk to prospective clients,
they'll want to know why they should trust you.
| | 00:05 | Remember, it's not just money.
| | 00:07 | If someone does a bad job for them, they
might not have the time to get it done right.
| | 00:12 | So, the stakes are high.
| | 00:13 | Your past work is one of the strongest
ways to show that you're right for the job.
| | 00:18 | Collecting it in a portfolio is
one way to convey this information.
| | 00:23 | The first step in building one is
to have evidence of what you've done.
| | 00:26 | If you're a writer, a graphic artist or
other creative professional whose work
| | 00:30 | ends up online or on the page, your
pieces can go straight into your portfolio.
| | 00:35 | If on the other hand, you create
works that aren't packaged so well, you'll
| | 00:39 | have to package them.
| | 00:40 | For example, a make-up artist could
take before and after pictures of clients;
| | 00:45 | and an architect could include
drawings and photographs of the work.
| | 00:50 | What if you're something like a
massage therapist or a business consultant?
| | 00:54 | In that case, you'll have to devise
ways to depict your work that are true,
| | 00:58 | relevant and convincing.
| | 01:00 | Here, recommendations from past
clients are especially important, but you can
| | 01:04 | create an impressive portfolio as well.
| | 01:07 | Photographs of a well-appointed and
spotless massage studio tell a tale of
| | 01:11 | competence, as to a description of
your methods, materials and clientele.
| | 01:17 | And a business consultant can show
figures and charts that demonstrate good work.
| | 01:21 | You should anonymize details about past
clients or contact them to be sure it's
| | 01:25 | okay to mention them by name.
| | 01:27 | Once you have all the pieces in one
place, you need a way to display them.
| | 01:33 | Nowadays, the usual
place is a portfolio website.
| | 01:37 | lynda.com has plenty of videos
about creating websites, including a few
| | 01:41 | specifically for portfolios.
| | 01:43 | If your potential clients live more
in the off-line world, or if you expect
| | 01:47 | to meet a lot of them face to face,
you might also want to have a printed
| | 01:51 | version of your portfolio.
| | 01:52 | We've assumed that you have work to show.
| | 01:56 | What if you're trying to
freelance in an area where you don't yet?
| | 02:00 | Frankly, I'd recommend you
reconsider your choice, because the lack of a
| | 02:03 | portfolio is really
going to hamper your efforts.
| | 02:06 | One other option is to plan to
start with forms of marketing that don't
| | 02:10 | require a portfolio.
| | 02:11 | For example, advertising.
| | 02:14 | Another is to do some jobs for low pay or
even for no pay to build up your portfolio.
| | 02:19 | This is a good opportunity to do
favors for family, friends and non-profit
| | 02:24 | organizations that you support.
| | 02:27 | Finally, it's a good idea to create two
other pieces to complement your portfolio.
| | 02:32 | The first is a brief text that summarizes
your experience, maybe a hundred words or so.
| | 02:38 | You'll use that in e-mails,
applications and marketing materials.
| | 02:42 | Eventually, you'll have several
versions of it for various purposes.
| | 02:45 | I personally keep a plain text file on my
computer so that they're always at hand.
| | 02:51 | You'll also want to create a resume.
| | 02:53 | lynda.com has several courses
that will help you out with that.
| | 02:56 | It'd be nice if others could intuitively sense
that you're right for a job, but they can't.
| | 03:01 | They need to be shown and
nothing convinces as well as a clearly
| | 03:05 | presented record of success.
| | 03:07 | That's what a well-
prepared portfolio does for you.
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| Estimating costs| 00:01 | Even if you've decided to keep your
job while freelancing, it would be wise to
| | 00:05 | figure out how the start-up will affect
your finances. Because no matter what,
| | 00:09 | you're going to have some new expenses.
| | 00:11 | I've created a spreadsheet
to help you figure this out.
| | 00:14 | It's in the exercise files.
| | 00:16 | Use this cost-analysis worksheet to
estimate your own costs as we go through the
| | 00:20 | most common expenses.
| | 00:22 | First are the large,
infrequent costs such as equipment.
| | 00:26 | That could include a new
computer, software or a desk.
| | 00:30 | Basically, anything you'd normally
find in a workplace but don't own yet.
| | 00:34 | It also includes necessary
certifications and one-time professional services.
| | 00:38 | These comprise the bulk of your start-up costs.
| | 00:42 | The second kind of expense is recurring
costs, such as utilities, subscriptions
| | 00:47 | and monthly insurance payments.
| | 00:49 | Keep in mind that as a freelancer, your
phone and Internet bills are likely to
| | 00:53 | increase along with your home
utilities, if that's where you'll be working.
| | 00:58 | Third are occasional costs, such as
those for conferences, training and
| | 01:03 | professional consulting.
| | 01:04 | These can be substantial, but hard to predict.
| | 01:08 | Finally, we have living costs, which are
likely to change a bit when you start freelancing.
| | 01:13 | In the United States for example,
you'll probably have new expense of health
| | 01:17 | insurance, which can run into
hundreds of dollars per month.
| | 01:20 | There's one other cost you
can't ignore. Debt repayment.
| | 01:24 | I'll talk more about that in a minute.
| | 01:25 | If you want a nice breakdown of these
costs in a slightly different form but
| | 01:30 | much greater detail, I recommend Laura
Spencer's article, "What it Really Costs
| | 01:34 | to Be a Freelancer" at freelancefolder.com.
| | 01:38 | For all expenses, mentally balance the
cost of the item against the benefits you
| | 01:43 | expect to get out of it.
| | 01:45 | Sometimes the benefit doesn't
have a direct financial value.
| | 01:47 | For example, spending an extra $100 on
a comfortable chair won't necessarily
| | 01:52 | make you more money, but your cost-
benefit analysis will help you decide whether
| | 01:57 | that comfort spread over the
life of the chair is worth the $100.
| | 02:02 | Take a look at the exercise
file to calculate your own expenses.
| | 02:06 | The point of this is to figure out how
much money you'll need for that initial
| | 02:10 | spending spree and then for
each month for a while after that.
| | 02:14 | As I said before, I think it's good to
have six months of expenses in reserve
| | 02:18 | although more is always better.
| | 02:20 | You'll start with your initial costs,
then subtract the amount of money you have
| | 02:24 | available to give the business.
| | 02:26 | The amount left over is how much
you'll have to raise to get started.
| | 02:30 | For your ongoing finances, first figure
out what your monthly cost will be, then
| | 02:35 | subtract any continuing income
that doesn't come from freelancing.
| | 02:39 | For example, from royalties,
investments or a partner who supports you.
| | 02:44 | That amount is what you'll need to either
finance or earn from freelancing every month.
| | 02:50 | Putting this all together, we
get a formula that looks like this.
| | 02:53 | Your start up costs plus six times
your monthly deficit equals the amount of
| | 02:57 | money you'll need to stay afloat
until your income covers your expenses.
| | 03:02 | Now that you have a target, you need
to gather that amount of money together.
| | 03:06 | I'll cover the various ways to do so next.
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| Funding your startup| 00:01 | Once you've figured out how much money
you'll need to get your business going,
| | 00:04 | it's time to look at how to get it.
| | 00:07 | If you have savings to
cover the gap, you're all set.
| | 00:09 | Put it in a separate account right away, so
it's clear that the money is for the business.
| | 00:14 | If you don't have savings, there are
basically two ways to get the money.
| | 00:18 | Either sell stuff in the
usual way, or take out loans.
| | 00:22 | You could also get the money in forms
that you don't have to repay, such as,
| | 00:25 | gift sponsorships or grants, but by and
large, loans are the biggest source of
| | 00:30 | startup funds for freelancers.
| | 00:32 | Institutional loans are
straightforward, but they can be hard to get.
| | 00:36 | Loans are likely to either be from
friends and family or from credit cards.
| | 00:41 | Each source has its
advantages and disadvantages.
| | 00:45 | In either case, work the figures into
the funding spreadsheet, to figure out
| | 00:49 | your monthly payment.
| | 00:51 | Friends and family is a group that
includes any individual that makes a private
| | 00:55 | loan or investment in your business.
| | 00:57 | The advantages are that the loan is
specifically for your business; it's sized
| | 01:02 | to your needs and such
loans usually have simple terms.
| | 01:06 | On the other hand, the money comes from
an inexperienced lender, so you'll lack
| | 01:10 | such nice at ease as a monthly statement.
| | 01:13 | The lender might also want things
besides money, such as free work or a piece of
| | 01:17 | the business or a control over how it's run.
| | 01:21 | If such a loan goes wrong it can
ruin the relationship you have with that
| | 01:25 | friend or family member.
| | 01:26 | Credit cards, on the other hand, have
their own pluses and minuses, as do credit
| | 01:32 | card like loans, such as equity lines of credit.
| | 01:35 | On the plus side, you can borrow as
little or as much as you like, the lender is
| | 01:40 | well regulated and professional, and
monthly statements make repayment clear,
| | 01:44 | while automatic deductions make it easy.
| | 01:47 | On the minus side, there's no chance
the credit card company is going to give
| | 01:51 | you a break for long,
unlike say, your Uncle Arthur.
| | 01:53 | Credit card loans can be expensive
with both high interest rates and big
| | 01:58 | penalties if you miss payments.
| | 02:01 | Finally, having ready access to a
variable amount of cash can ruin you if
| | 02:05 | you're not disciplined.
| | 02:07 | If you do decide to borrow from credit
cards, I recommend you use one specific
| | 02:11 | card and only take out one loan on it.
| | 02:14 | It's possible that you will get
an institutional loan or make some other
| | 02:18 | arrangement. But whatever route you
take, figure out what the repayment plan
| | 02:22 | will be and budget for it, including interest.
| | 02:26 | This is part of the
calculation on the funding exercise file.
| | 02:28 | So, now you know how much you need to borrow,
and how much you have to pay back each month.
| | 02:33 | It might seem intimidating, but making
such arrangements is necessary to pull
| | 02:38 | together enough money to stay in
the game until business picks up.
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| Establishing your workspace| 00:00 | The few hours that you invest to create
your workspace will pay off big as your
| | 00:04 | freelance career progresses, because
setting up well will improve behaviors
| | 00:08 | that you do everyday.
| | 00:10 | We'll start by revisiting questions
asked earlier, specifically, where will you
| | 00:14 | work and what do you need when you work?
| | 00:17 | To get the answers, try thinking through
what you expect a typical day to be like.
| | 00:22 | Let's say that you think you'll spend
about two hours everyday on email, one
| | 00:26 | hour on other housekeeping,
and five hours on client work.
| | 00:31 | The email part can be done anywhere,
so all you need is a laptop, an Internet
| | 00:35 | connection, and a comfortable place to sit.
| | 00:38 | Now that's the easy part.
| | 00:40 | Next comes the hour when
you do other housekeeping.
| | 00:43 | For that, you might need to file
paperwork so perhaps it can only be done where
| | 00:47 | your filing cabinet is.
| | 00:49 | That means you'll need a space there, with
a desk, light, and electricity and so on.
| | 00:56 | Finally, there's the client work.
| | 00:58 | If you're a graphic designer for
instance, you'll probably want a big monitor
| | 01:02 | and perhaps a graphics tablet.
| | 01:04 | If you're a caterer, then you'll need
an entire kitchen full of equipment.
| | 01:08 | Such items limit your mobility
so you'll have to prepare that
| | 01:12 | space appropriately.
| | 01:13 | Of course, all three of these spaces
could be in the same location such as your
| | 01:18 | home and that's fine.
| | 01:20 | But if your freelancing dream is
like mine and includes working while
| | 01:23 | you travel, then you need to set up for
multiple locations or create a mobile workspace.
| | 01:29 | Wherever you end up working, here are
some amenities you'll probably need.
| | 01:34 | First are the utilities.
| | 01:36 | These might seem obvious, but it's
easy to forget that an inviting looking
| | 01:40 | garage loft might get too
cold for work when autumn comes.
| | 01:44 | Tangential to utilities are environmental items.
I'm also sensitive to sound so
I want a place that's quiet enough to
| | 01:51 | concentrate, but loud enough, so I can
make a phone call without bothering anyone.
| | 01:55 | Next comes office equipment.
| | 01:57 | Skipping the small stuff--like paper,
pens, tape, and staplers--here are the
| | 02:02 | things that I think are essential.
| | 02:04 | First, a filing cabinet
along with plenty of folders.
| | 02:08 | People have talked about the paperless
office for years, but I think you'll
| | 02:11 | always need a place to put signed
contracts, past portfolio work and the like.
| | 02:16 | Similarly, you'll need a printer and a
scanner so you can create and scan such documents.
| | 02:22 | Next, a paper shredder.
| | 02:24 | Finally, we have the usual office
furniture: shelves, lighting, and a
| | 02:29 | comfortable place to work.
| | 02:30 | You'll be spending a lot
of time in your workspace.
| | 02:33 | Make it a place that you want to go.
| | 02:36 | The last category is the
equipment that you need to do the work.
| | 02:40 | This is where there's the
biggest variety among freelancers.
| | 02:43 | What you'll need is up to you and
the requirements of what you do.
| | 02:47 | Keep in mind that your business equipment
partly determines who your clients will be.
| | 02:51 | If you're a photographer, for example,
you'll need a certain kind and quality of
| | 02:55 | equipment to attract high end clients.
| | 02:58 | For such decisions, you should do a
cost-benefit analysis that bounces the
| | 03:02 | cost of the equipment against the
benefits you expect to get from it.
| | 03:06 | If you can't afford to buy such equipment,
consider renting it as needed until you can.
| | 03:11 | The cost worksheet you did earlier will
help you figure out what you can afford.
| | 03:16 | Lastly, as you get to know other
freelancers, take a look at how they have
| | 03:19 | their offices set up.
| | 03:20 | Visit as many as you can, steal their
workplace ideas, and try out plenty of your own.
| | 03:26 | It'll take awhile for you to settle in,
but eventually, you'll find your own
| | 03:29 | workplace style. Starting out with
the items in this video will get you on
| | 03:33 | the right track.
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| Building your professional network| 00:00 | I've mentioned how the biggest asset
you have from past jobs as your network of
| | 00:04 | professional connection, but that's
a use it or lose it kind of thing.
| | 00:08 | You have to take steps to turn it
from a bunch of folks I used to know to a
| | 00:12 | network of colleagues who'll
help me build my freelance career.
| | 00:16 | I break those steps into three
parts: collect, contact, and grow.
| | 00:21 | Before going into detail, I want to
point out that the purpose isn't to ask
| | 00:25 | these people for work.
| | 00:26 | You'll do that later.
| | 00:28 | Work might come out of it naturally but
forming bonds is more important right now.
| | 00:33 | The first step is to take
a walk down memory lane.
| | 00:36 | Remember and gather the names, phone
numbers, and email addresses of former
| | 00:40 | colleagues who know and like your work.
| | 00:43 | You can collect these contacts in any
system you like, your computer's address
| | 00:47 | book, a database system,
or just a plain text file.
| | 00:50 | Whatever you use, make it a sole,
central, and convenient place for such
| | 00:54 | information because you're going to use
it a lot throughout your freelance career.
| | 01:00 | I hope you've been saving all your e-
mails too, because they are prime place to
| | 01:03 | mine for old contacts.
| | 01:05 | As you copy the information over, it's
also a good idea to make notes about who
| | 01:10 | those contacts are and how you work together.
| | 01:13 | You'll need that when you contact them.
| | 01:16 | Beyond your list of previous contacts, I
found the website LinkedIn.com to be a great help.
| | 01:21 | I recommend you join it, fill out your
information and use it to research old colleagues.
| | 01:26 | However, I suggest that you not use its
automated tools to contact everyone from
| | 01:30 | your address book, because
that could irritate people.
| | 01:33 | Once you have all the information
gathered, pick out a few people to contact.
| | 01:38 | Don't just send them a form
letter. Nobody likes that.
| | 01:41 | Instead, write personal e-mails to
those who you think will be most relevant to
| | 01:46 | your freelance career.
| | 01:47 | If they're from awhile back, remind them
who you are and how you know each other.
| | 01:52 | Later on, you'll broadcast
your availability more widely.
| | 01:55 | But for now, your point is to start
building relationships with the top tier contacts.
| | 02:01 | Be sure to let them know
that you'll be freelancing.
| | 02:03 | This alone might lead to
work but don't be pushy.
| | 02:06 | If it's been awhile since you've talked,
ask them what they're doing and make
| | 02:10 | sure they have your contact
information and you have theirs.
| | 02:13 | Finally, ask them if they have any advice
or if they know anyone you should contact.
| | 02:18 | This last step can be amazingly productive.
| | 02:22 | It was one of these referrals that
basically got my writing career started.
| | 02:26 | That leads us to the last
step. Grow your network.
| | 02:30 | Besides your existing contacts, there's
also a world of colleagues out there you
| | 02:34 | simply haven't met yet.
| | 02:36 | The best way to meet them is to take
part in communities that'll bring you
| | 02:39 | together, such as mailing lists,
conventions, and volunteer projects.
| | 02:44 | I'd urged you to think broadly.
| | 02:47 | If you're a musician, talk to writers,
directors, and graphic artists, as
| | 02:50 | well as other musicians.
| | 02:52 | That's how the real collaborations get started.
| | 02:55 | I have to stress again that you
should do all of this with a light touch.
| | 02:59 | First, be sure to respect past
contracts when you connect with old colleagues.
| | 03:04 | A lot of companies have non-compete
agreements that say you can't take their
| | 03:07 | clients or employees when you leave.
| | 03:09 | If you have any questions about past
agreements that you've signed, talk to an attorney.
| | 03:13 | Also, some marketers will recommend
that you just hit them all hard and
| | 03:17 | repeatedly with your message.
| | 03:18 | But for freelancing that's the wrong approach.
| | 03:21 | You're not selling cheap trinkets to the masses;
| | 03:24 | you're building relationships to
provide highly personalized services.
| | 03:28 | Approach your network with respect and
you're sure to get the same in return.
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|
|
3. Satisfying RequirementsGetting licenses, permits, and insurance| 00:00 | In this video, we'll look at three kinds
of professional requirements: licenses,
| | 00:05 | permits, and insurance.
| | 00:07 | Please note that there's a lot of
variation depending on where you are and the
| | 00:11 | sort of work you'll be doing, so
I'll have to be vague out of necessity.
| | 00:15 | To get the details, talk with local
authorities, other freelancers and business
| | 00:19 | organizations, such as the Small
Business Association for U.S. businesses.
| | 00:24 | Licenses don't usually come into play
unless you're working in a regulated space.
| | 00:28 | For example, if you're a lawyer, a
massage therapist, or real estate agent.
| | 00:33 | These licenses are often issued by
regional governments, such as a state in the
| | 00:36 | U.S. and they usually have
websites that explain the details.
| | 00:41 | The second professional requirement is
permits, which you might need to run any
| | 00:45 | kind of business legally.
| | 00:48 | Again, the details will
vary from place to place.
| | 00:51 | For example, when I was practicing in
San Francisco I needed to register for a
| | 00:55 | city tax in addition to the state
registration, but now that I live in Ohio I
| | 01:00 | only need to register with the state.
| | 01:01 | If you're going to call your business by
anything other than your personal name,
| | 01:05 | you might also need to file a
Fictitious Business Name Statement.
| | 01:09 | Again, online searches will help guide you.
| | 01:12 | And if you're lucky, you might live in an
area with a how to start a business guide.
| | 01:17 | After taking care of governmental
requirements, you might want to look
| | 01:20 | into business insurance.
| | 01:21 | This is different from personal
insurance, such as you might have for your
| | 01:25 | health, your home, or your car.
| | 01:27 | It usually covers such things as theft
from your office, along with damages from
| | 01:31 | any errors and omissions you might
commit in the course of business.
| | 01:35 | Finding someone who will sell business
insurance to you as a freelancer, could
| | 01:39 | take some searching.
| | 01:40 | Again, talk to other
freelancers for help with that.
| | 01:44 | Indeed, you can probably get by for
awhile without any of these things, flying
| | 01:48 | under the radar of regulatory agencies,
and hoping that no problems occur.
| | 01:53 | I have to admit that I didn't
carry business insurance until a big
| | 01:57 | international client required it.
| | 01:59 | But now I consider licenses,
permits, and insurance as costs of entry to
| | 02:03 | the business world.
| | 02:05 | Costs that I believe are well worth it.
| | 02:08 | In any case, I urge you to talk to an
attorney if you have any questions about
| | 02:12 | the legal implications of your choices.
| | Collapse this transcript |
| Creating contracts| 00:01 | When someone says they want to hire you
for a project, you'll need to agree on
| | 00:05 | a wide variety of points, what you'll do, how
long it'll take, and what you'll get in return.
| | 00:10 | If you don't write it all down,
you're in trouble before you even start.
| | 00:14 | That's what contracts are for.
| | 00:17 | If you get work from a large
organization that regularly uses freelancers,
| | 00:21 | there's a good chance that they'll
already have a contract for you. But very few
| | 00:25 | small companies are that prepared
and when starting out in your freelance
| | 00:28 | career, a lot of your clients
will probably be small companies.
| | 00:32 | So it's wise to have a generic
contract ready that you can edit to suit
| | 00:36 | individual clients as needed.
| | 00:38 | Again, I can't give you specifics,
because they change from place to place.
| | 00:42 | Also, I'm not a lawyer so I can't
give you legal advice, but here are some
| | 00:46 | overarching themes to get you started.
| | 00:50 | The essence of a contract is in two
elements, Agreement and Consideration.
| | 00:56 | The agreement part is where you spell
out what you're going to do, and then the
| | 00:59 | consideration part is where it says,
what you're going to get in return.
| | 01:04 | Sounds simple, right?
| | 01:06 | The reason that contracts tend to be
long is that the details can be quite
| | 01:09 | complicated. But they don't have to be long.
| | 01:12 | The important is that your contract
contains everything that you and your client
| | 01:16 | need to understand each other.
| | 01:18 | These things are usually set
out in sections known as clauses.
| | 01:23 | The contract itself might not give
the details of the work to be done.
| | 01:26 | Often, those things are put in to a
separate addendum, so that the contract can
| | 01:30 | be used for multiple projects
with only the addendum changing.
| | 01:34 | There's a sample contract and addendum
in the exercise files that you can use to
| | 01:38 | start thinking about what to
include in your own contract.
| | 01:42 | It's a good idea to have a
lawyer review it before presenting it to a
| | 01:45 | client, but let's get on to those clauses.
| | 01:49 | A contract often has an introduction
that states who the parties are and
| | 01:54 | provides a definition of terms.
| | 01:56 | For example, rather than saying the name
of the company throughout the document,
| | 02:00 | the introduction might define it as
the client, simply for simplicity's sake.
| | 02:05 | Then comes a description of
freelancer responsibilities aside from a
| | 02:08 | description of work to be done.
| | 02:10 | One example is that the freelancer agrees
not to give away any of the client secrets.
| | 02:16 | Matching that clause is one saying
what the client's responsibilities are.
| | 02:20 | Primary among them is that you get paid.
| | 02:24 | But there are others as well such as
to provide content that will let the
| | 02:27 | freelancer complete the work on time.
| | 02:30 | Then there are the clauses that deal
with legalities. Some of them are:
| | 02:34 | Who owns the finished work?
| | 02:35 | What can each party do with it?
| | 02:37 | What's the legal
relationship between the parties?
| | 02:40 | Who pays for expenses?
| | 02:43 | Other clauses spell out what it
means to break the contract and what
| | 02:46 | the consequences are.
| | 02:47 | For example, a lot of American
contracts specify that both parties will first
| | 02:52 | attempt to settle the matter outside of court.
| | 02:54 | There might also be a clause that
specifies the location of the contract;
| | 02:58 | that is what local laws prevail.
| | 03:01 | This is called the jurisdiction and
it can matter if like me, most of your
| | 03:05 | clients are outside your home state.
| | 03:08 | After all of these clauses,
comes the signature and date lines.
| | 03:12 | Those are to prove that the parties
truly have a meeting of the minds.
| | 03:16 | So that's the contract that rules over
all the projects that you do for this client.
| | 03:22 | But we didn't give details for the
specific project that you are about to do.
| | 03:26 | Those, as I mentioned earlier, can either
go in the contract itself or in an addendum.
| | 03:31 | They should include what both you
and the client will do, when it'll be
| | 03:35 | delivered, payment details
| | 03:37 | including your rate and any other terms.
| | 03:40 | For example, how you'll handle
changes once the job is started.
| | 03:43 | You might need to add sections to your
contract that are specific to your work,
| | 03:48 | the client, or the industry you're in.
| | 03:50 | Don't use my example as your sole source.
| | 03:53 | Also, look at contracts that have
passed through your hands and talk to your
| | 03:57 | colleagues for further ideas.
| | 03:59 | And don't forget the Internet is a source.
| | 04:01 | I found that a search for a sample
freelance contract turned up a lot of
| | 04:05 | hits, including some sites where you
simply fill in the blanks and get back a
| | 04:08 | completed contract.
| | 04:10 | Now if you do turn to the Internet,
check that the contracts that you find are
| | 04:14 | relevant to your situation.
| | 04:16 | And again, review the resulting
contract with an attorney to settle any
| | 04:20 | lingering concerns that you might have.
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| Finding professional service vendors| 00:01 | As your freelance career
progresses, you'll occasionally need
| | 00:04 | professional services.
| | 00:05 | There are lots of people selling such
services but it can be hard to find the
| | 00:09 | ones who are right for you
and your type of business.
| | 00:12 | Just as it takes time and attention
to build a network of colleagues you
| | 00:16 | trust, it will take time and attention to
gather together the service providers you trust.
| | 00:22 | The big services you're likely to
need are in the areas of insurance,
| | 00:25 | bookkeeping and law.
| | 00:26 | As always, the first place
to go is to your colleagues.
| | 00:31 | Ask them who they're using
and who they've heard is good.
| | 00:34 | Also, be on the lookout for
professional networking events and mixers. At such
| | 00:39 | events, you'll be able to talk with
respective providers face to face.
| | 00:43 | Try to find professionals who are
right for you and what you are doing.
| | 00:47 | Make sure they've worked
with freelancers before.
| | 00:50 | The good news is that some professionals
even specialize in helping freelancers.
| | 00:55 | For insurance, your needs will vary
depending on your location and type of business.
| | 00:59 | There's not really a one-size-fits-all solution.
| | 01:03 | If you know anybody whose business is
very similar to yours, ask them who they use.
| | 01:08 | Some business and professional
organizations can also direct you to
| | 01:12 | appropriate insurance agents.
| | 01:14 | If that fails, try an online search for
small business insurance along with the
| | 01:18 | name of your state or region.
| | 01:21 | Whatever path you take, plan a
substantial first meeting with the insurance
| | 01:25 | agent to discuss your needs.
| | 01:27 | With so many variations,
professional guidance is a big help here.
| | 01:32 | The same is true for bookkeeping services.
| | 01:35 | The big thing you'll need to help with is taxes.
| | 01:38 | They're little complicated and I'll go
into more detail in another movie, but
| | 01:42 | the same tips apply for finding a
bookkeeper, as for finding an insurance agent.
| | 01:48 | For lawyers, I've had good
luck through the Bar Association.
| | 01:51 | The important thing to remember is
that you don't have to go it alone.
| | 01:55 | Although it'll be hard to spend the
money when you're first starting out, it's
| | 01:59 | smart to pay for others' expertise,
especially if its expertise you don't have
| | 02:03 | yourself, or if it'll save you a lot of time.
| | 02:07 | It doesn't cost anything to look
around or to ask your colleagues for
| | 02:10 | guidance when you need it.
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|
|
4. Handling MoneySetting prices| 00:01 | One subject that gives freelancers a lot
of anxiety is how to price their services.
| | 00:06 | We want to make a good living, but
are afraid of driving the market away
| | 00:09 | by charging too much.
| | 00:11 | So, what's the right amount?
| | 00:12 | Simply put, it's the area between
charging too much and charging too little.
| | 00:17 | Believe it or not, the bigger problem that
freelancers face is that they charge too little.
| | 00:21 | So, I'll talk about that first.
| | 00:24 | There are few reasons
freelancers charge too little.
| | 00:27 | If you're coming from a salary
position where you did similar work, you might
| | 00:30 | figure out your hourly rate there and
charge private clients a similar amount.
| | 00:34 | But that's way, way, way too low.
| | 00:37 | First of all, you're not
going to bill 40 hours a week.
| | 00:41 | Second, you now have to cover
expenses that your employer used to pay.
| | 00:45 | One rule of thumb puts a typical
freelance rate at two and a half times the
| | 00:49 | hourly rate that freelancer
would get with an employer.
| | 00:52 | That's not always right, but the point is
that your rates will be much higher per hour.
| | 00:57 | A second reason you might charge too
little is that you can't believe someone
| | 01:01 | would pay that much.
| | 01:03 | But if you had never been on the buying
side of the equation, you probably don't
| | 01:06 | have a sense of how expensive good labor is.
| | 01:09 | Talking to people in your professional
network can help you figure out what the
| | 01:12 | real market rates are.
| | 01:15 | Or maybe you can believe someone would
pay that much, but can't believe they
| | 01:18 | would pay it to you.
| | 01:20 | Assuming you have the skills
that's just basic insecurity talking.
| | 01:24 | It's hard to get a sense of ones own value.
| | 01:27 | Again, talk with colleagues and
other professionals to determine what
| | 01:30 | your realistic value is.
| | 01:33 | Some government bodies keep track of pay
scales for various professions and that
| | 01:37 | gives you another data point.
| | 01:39 | In the U.S., that's done by
the Bureau of Labor Statistics.
| | 01:43 | You can search for details on your
profession in their Occupational Outlook
| | 01:46 | Handbook at bls.gov/ooh.
| | 01:51 | The problem with charging too
little isn't just financial.
| | 01:54 | If you undercharge, prospective clients
will see the low figure and suspect that
| | 01:58 | you're just not very good. And
established clients who have gotten used to your
| | 02:02 | low rate will get spoiled wasting your
time just because they can afford it.
| | 02:06 | Higher rates make them value your time
more leading to better work relationships
| | 02:11 | and more fulfilling work.
| | 02:12 | Now let's talk about charging too much.
| | 02:16 | Basically, people buying your services
have to justify the cost to themselves.
| | 02:20 | It then comes down to a cost-
benefit analysis for the buyer.
| | 02:24 | The values are all pretty subjective
and they are not always easy for the buyer
| | 02:29 | to measure in dollars, but they do
perform such an analysis even if it's only in
| | 02:33 | the back of their mind.
| | 02:35 | If your rate is substantially higher
than the cost of doing things internally or
| | 02:39 | with another freelancer or not doing
them at all, then you're out of a job.
| | 02:44 | If you've gone through this whole
process, you now have a reasonable sense of
| | 02:48 | what the market will bear.
| | 02:50 | But there's one other factor;
| | 02:52 | you have to make enough money
to keep your business healthy.
| | 02:56 | As with many other parts of freelancing, setting
rates requires an understanding of your own value.
| | 03:03 | It involves research and a certain
amount of difficult soul-searching, but
| | 03:07 | it can lead you to being able to
charge your true value confidently and
| | 03:11 | successfully.
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| Establishing payment systems| 00:01 | A big distinction between amateurs and
professionals is that professionals get
| | 00:05 | paid for what they do.
| | 00:08 | The first thing you'll need is a
bank account for your business.
| | 00:11 | I recommend you get one that's
separate from your personal account.
| | 00:14 | That makes bookkeeping easier and keeps
you from having to give personal banking
| | 00:18 | information to clients.
| | 00:20 | I found the simplest way to receive
payments in the United States is to simply
| | 00:24 | ask clients to send you a paper check,
then deposit that in the normal way.
| | 00:29 | However, you should also be prepared
for electronic payments, particularly if
| | 00:33 | you have clients outside your home country.
| | 00:36 | Beyond traditional banks, you can
also get paid through online payment
| | 00:40 | systems such as PayPal.
| | 00:42 | I found it to be great for smaller
clients, but because it's not a real bank I
| | 00:47 | do recommend that you sweep money from
your PayPal account into your business
| | 00:50 | bank account as soon as
the money becomes available.
| | 00:54 | Although PayPal gives people a way to
pay you with credit cards it's not as
| | 00:57 | robust or as cheap as Merchant Card Systems.
| | 01:01 | Those let you accept credit cards
directly without PayPal as a mediator.
| | 01:05 | Again, your bank can probably offer
you such services or can refer you
| | 01:09 | to somebody who can.
| | 01:10 | Whatever payment option you use, I
recommend that you write it into your contract.
| | 01:16 | For example, I might say, "Payment by
check drawn on a United States Bank must
| | 01:21 | be received by such and such
date, payable to Tom Geller."
| | 01:26 | But it's also wise to ask the client
how they prefer to pay and then make
| | 01:30 | sure it's possible.
| | 01:31 | After all, the more ways they can
pay, the faster you'll get paid.
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| Invoicing and getting paid| 00:01 | Every experienced freelancer has a
story about a client who doesn't pay or
| | 00:05 | who is slow to pay.
| | 00:06 | It's going to happen to you too,
but there are a few ways to make such
| | 00:11 | experiences less frequent.
| | 00:13 | Your first line of defense is your contract.
| | 00:15 | As I said in the earlier video about
creating contracts, you should include
| | 00:19 | clauses that specify not only the amount the
client will pay you, but also how and when.
| | 00:26 | Along with the payment clause, have
clauses that spell out precisely what the
| | 00:29 | client is getting from you.
| | 00:31 | That lays out your argument before it
happens by saying, "I did A, B, and C as
| | 00:36 | the contract specified."
| | 00:37 | Now it's time to hold up
your end of the bargain.
| | 00:41 | But clauses are only as good as their
enforcement, so it's important you have
| | 00:45 | text in the contract that explains
what will happen if you're not paid.
| | 00:49 | It needs to be realistic, actionable and legal;
| | 00:53 | and you have to be
prepared to go through with it.
| | 00:55 | For example, a common clause in the
United States says that both parties
| | 00:59 | will seek mediation or arbitration before
going to court and it spells out the conditions.
| | 01:05 | You might ultimately decide it's not
the worth the trouble to follow through,
| | 01:08 | but again, someone is eventually going to
try to get away without paying, so be prepared.
| | 01:14 | Finally, don't start the work until the
contract is signed or until you have other
| | 01:19 | legal proof of agreement.
| | 01:21 | This is the part that can be hardest
because you'll be eager to get going.
| | 01:25 | But it's important psychologically
that the client acknowledge that the
| | 01:28 | project is actually going to happen and
that they will have to go through with
| | 01:32 | their responsibilities.
| | 01:33 | There is another way to make sure you
get paid, and that's to take payment in
| | 01:37 | advance, either partially or in full.
| | 01:40 | I'm of two minds about this.
| | 01:42 | On the one hand, requiring advance
payment could hinder the sales process.
| | 01:47 | You're essentially demanding that
they trust you more than you trust them.
| | 01:51 | On the other hand, they are going to have to
pay you sometime, why not at the beginning.
| | 01:56 | There is one situation where you
should probably get payment upfront.
| | 02:00 | If the job requires you to buy
materials that are specific to the project
| | 02:04 | or spend your own money to get it
started, make sure the client covers
| | 02:07 | those expenses first.
| | 02:10 | In this area, you're just going to have
to develop your own judgement and listen
| | 02:13 | to the experiences of your colleagues.
| | 02:16 | So you have finished the work
and now it's time to collect.
| | 02:20 | As a reminder, you should
present your client with an invoice.
| | 02:23 | I've included a simple
invoice in the exercise files.
| | 02:26 | By the way, some accounting
programs have their own invoicing function,
| | 02:30 | including the popular QuickBooks.
| | 02:32 | In any event, an invoice should
include at least the following elements.
| | 02:37 | Start with your contact information,
then put the word INVOICE in big letters at
| | 02:42 | the top of the page.
| | 02:44 | That will help prevent it from being buried.
| | 02:47 | Include a statement that you expect
that you expect to be paid, how you should
| | 02:51 | be paid and when the deadline for payment is.
| | 02:54 | By the way, I'll often say something like, "In
45 days, but then I'll include the actual date."
| | 03:00 | Then give a brief
description of why you're getting paid.
| | 03:02 | Here I'll often reference the
agreement saying for example, In accordance with
| | 03:07 | our contract of February the 15th.
| | 03:10 | And of course, specify the
amount you expect to be paid.
| | 03:14 | Some clients also like you to include an
Invoice Number to help them track it in their records.
| | 03:18 | And if it's for hourly work I'll paste
my time sheet at the bottom of the page.
| | 03:23 | Finally, send it off, make a note of
the due date in your calendar and try to
| | 03:28 | put it out of your mind.
| | 03:29 | You can drive yourself crazy worrying
whether someone is going to pay you, but
| | 03:33 | remember until the deadline is
passed there's nothing to be done.
| | 03:37 | I found that most clients are pretty
good about paying on time, especially after
| | 03:41 | your first project together.
| | 03:44 | Give them the benefit of the doubt,
but then be prepared to act once
| | 03:48 | the deadline is passed.
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| Keeping the books| 00:00 | Accounting is a huge field in itself.
| | 00:03 | Some people study it their whole lives.
| | 00:05 | In this video, we'll only scratch the
surface both in terms of its concepts and
| | 00:09 | the tools available, but
let's start with some basics.
| | 00:13 | First, accounting is just numbers.
| | 00:16 | Although money has a big effect on how you
live, you can use math to stay in control of it.
| | 00:21 | That ties in with the second
point. You can't beat math.
| | 00:25 | If you have a $1000 and you need to
pay $1500, you'll have to find that other
| | 00:29 | $500 somewhere or make some other arrangement.
| | 00:33 | Let's move on to the
tools you'll use to do that math.
| | 00:36 | First, I assume that you already have a
bank account as I discussed earlier.
| | 00:40 | You'll probably have other accounts
such as credit cards, a savings account
| | 00:44 | and perhaps a loan.
| | 00:46 | Because a lot of these account
records will be on paper, you should have a
| | 00:49 | paper filing system.
| | 00:51 | But the paper is mostly just for your archives.
| | 00:54 | In day-to-day use you're
going to use accounting software.
| | 00:58 | All the systems I'll mention here
can handle multiple accounts just fine.
| | 01:02 | In truth, you could do what
you need on a simple spreadsheet.
| | 01:06 | But there are some really good
programs out there that are worth considering.
| | 01:09 | The big one is QuickBooks, which is
designed for small businesses and it costs a
| | 01:13 | few hundred dollars.
| | 01:15 | I actually get by with the same
company's personal finance software Quicken,
| | 01:19 | although it doesn't have all the
business functions of QuickBooks.
| | 01:22 | lynda.com has great videos about both programs.
| | 01:26 | There are also free accounting programs.
| | 01:28 | The best known of which
is GnuCash at gnucash.org.
| | 01:32 | Wikipedia has a long list of
such programs under the rubric Free
| | 01:36 | Accounting Software.
| | 01:38 | Once you have an accounting system,
the basic procedure is simple.
| | 01:42 | You record income as it comes
in and expenses as they go out.
| | 01:46 | If all goes well, your accounting
system will tell you exactly how much money
| | 01:49 | you have at your disposal at any given time.
| | 01:52 | The proof comes when you check your
own accounting against statements from
| | 01:55 | your bank and lenders.
| | 01:56 | Then you have an
opportunity to correct any errors.
| | 02:00 | After you've been running your
business for a while, you'll have created a
| | 02:04 | record of actual income and expenses and
can start making budgets and plans for growth.
| | 02:09 | No amount of accounting will
solve the puzzle of getting enough money in
| | 02:13 | the door, but when you have a good
handle on your finances you discover how
| | 02:18 | many problems that you thought were caused by a
lack of money are solved by good bookkeeping.
| | 02:24 | It prevents you from making ill-advised
purchases, it helps you work with your
| | 02:27 | bookkeeper, and it relieves the
pressure that comes from uncertainty.
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| Managing taxes| 00:01 | No matter where you are and what you do,
you're going to have to pay taxes or
| | 00:05 | at least you're going to have to account
for them even if your payment amount is zero.
| | 00:10 | As with so many things, tax laws and
practices vary tremendously from place to place.
| | 00:15 | But here are some rules of
thumb based on my own experiences.
| | 00:19 | First, you'll have to continue to file
personal taxes just you like you did as an employee.
| | 00:24 | However, you'll probably also have
to file business taxes based on the
| | 00:28 | company's receipts.
| | 00:30 | That doesn't necessarily mean that
you'll end up paying more and in fact you
| | 00:33 | might pay less, but it
does mean more paper work.
| | 00:37 | Second, you'll probably have to change
how you file and pay your personal taxes.
| | 00:43 | Third, keep track of your
business expenses for tax purposes.
| | 00:47 | A lot of them will probably be tax
deductible--that is, you won't have to pay
| | 00:52 | taxes on the money you've used for them.
| | 00:54 | Depending on your situation, that can make an
enormous difference on your year end tax bill.
| | 00:59 | There are two parts to
keeping track of such expenses.
| | 01:02 | First, note that they were for
business purposes in your accounting software.
| | 01:07 | Second, save the receipts in an
envelope until you do your taxes.
| | 01:12 | Finally, file and pay your
taxes as early as possible.
| | 01:17 | Believe me they will pile up if you
don't and this is something that no
| | 01:20 | government is willing to forgive.
| | 01:22 | On that note, I urge you to get
professional help for taxes, at least the first
| | 01:27 | time you file them as a freelancer.
| | 01:29 | There are bound to be local
peculiarities you didn't consider and you want to
| | 01:33 | get started on the right foot.
| | 01:35 | Having said that, anybody can
eventually do their own taxes; it just takes
| | 01:40 | thought, experience, and planning.
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|
|
5. Getting ClientsAnnouncing your availability| 00:01 | Let's say you're all set up and ready to go.
| | 00:03 | You know where you'll be working, your
office systems are in place and you're
| | 00:07 | ready to show your
portfolio to prospective clients.
| | 00:10 | Now it's time to find those prospective
clients, and more importantly, to let them find you.
| | 00:15 | In another video I talked about
building your professional network but
| | 00:19 | cautioned at that stage
not to hit them up for work.
| | 00:23 | Now it's time to get a bit more aggressive.
| | 00:25 | First, follow up on all past leads.
| | 00:29 | Always keep track of who you talk to,
when, and why as you go. Make that a habit.
| | 00:35 | That's how you build your
professional network over time.
| | 00:39 | Once that's done, here are some
things you can do to make yourself more
| | 00:42 | accessible and attractive
to clients going forward.
| | 00:46 | The first is to beef up your website.
| | 00:48 | In an earlier video, we talked about
preparing your portfolio and, of course,
| | 00:51 | that's going to become a
substantial part of your site.
| | 00:54 | But there are a few other
elements it needs as well.
| | 00:57 | First, a description of what you do.
| | 01:01 | Put it front and center,
preferably, on the homepage.
| | 01:04 | This is where you express all the
soul-searching you did earlier while
| | 01:07 | sharpening your market focus.
| | 01:09 | It should define your business in
terms of the skill you're selling, the
| | 01:13 | industry you'll target and the
type of customer you'll sell to.
| | 01:18 | Other elements include
information about your credentials.
| | 01:21 | That is, why people should
trust you with their projects.
| | 01:25 | Finally, make sure it's easy to find
a way to contact you and that's it.
| | 01:30 | You can also add other elements and I
recommend you start paying close attention
| | 01:34 | to other freelancers' sites for ideas.
| | 01:37 | But your website is not done yet.
| | 01:39 | You'll also need a domain name
and a place to host the site.
| | 01:43 | Your site will also need occasional maintenance.
| | 01:45 | A website isn't just a set it and
forget it kind of thing that won't take a
| | 01:50 | lot of time. But you'll either need to get the
necessary skills or hire someone who has them.
| | 01:56 | In either case realize that the
benefits you get from your site are directly
| | 02:00 | proportional to the attention you give
to its planning, creation, and promotion.
| | 02:06 | Your website is only one way to
announce your availability online.
| | 02:10 | You'll also want to have presences
on the big social networks, such as
| | 02:13 | Twitter and Facebook.
| | 02:15 | I recommend that you do a land grab on
those services for a name that reflects
| | 02:19 | your business, even if you're
not ready to add any content yet.
| | 02:23 | And don't forget to add yourself to
professional directories related to
| | 02:26 | your skill and location.
| | 02:29 | But eventually you will start
building out your social media homes.
| | 02:33 | Twitter of course, is only as good as
the regular post you make to it, but there
| | 02:37 | is a little space for self-description.
| | 02:40 | And on Facebook it's possible to
display quite a lot about yourself.
| | 02:44 | On both systems, as on other social
sites, there are opportunities for
| | 02:48 | responsible promotion.
| | 02:50 | A final way you can get the word out is
by using standard advertising techniques
| | 02:54 | and I talk more about those later.
| | 02:57 | But really, the two most important
parts when you get started are that first,
| | 03:01 | you have information that's clear
and easy to access. And second, that you
| | 03:05 | started taking advantage of the
connections in your professional network, while
| | 03:09 | at the same time growing it.
| | 03:12 | If you follow the tips in this
video, you're well on your way.
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| Finding work through agencies| 00:01 | I think that placement agencies are
tremendously undervalued by freelancers,
| | 00:05 | especially when starting out, and I recommend
you create a relationship with at least one.
| | 00:10 | Traditional placement agencies hire
local talent to work in offices within a
| | 00:15 | geographic area, some offer general
office help, while other specialize in
| | 00:20 | specific talents and industries.
| | 00:22 | Such specializing agencies tend to pay better.
| | 00:25 | So it's great if you can
hook up with one of them.
| | 00:28 | The advertising industry is one area of note.
| | 00:31 | They often turn to such agencies and
they require highly skilled workers for
| | 00:35 | short periods of time.
| | 00:37 | Some contracts you get through
placement agencies are actually for very
| | 00:41 | long term projects.
| | 00:43 | The upside for a freelancer is that such
jobs tend to be steady and well paying,
| | 00:48 | often lasting for months at a time.
| | 00:50 | The downside is, well, they
can last for months at a time.
| | 00:54 | If you turn to freelancing for mobility and
variety, this probably won't be a fit for you.
| | 00:59 | Otherwise, talk to local
agencies about long term placements.
| | 01:04 | Competing with, and complementing these
traditional agencies are the online ones
| | 01:08 | such as Elance, Guru, and dozens of others.
| | 01:12 | They typically require
less involvement to set up.
| | 01:15 | Rather than filling out forms and
taking tests in an office, you simply post
| | 01:19 | your qualifications online.
| | 01:21 | Then employers say what they are
looking for and ideally, the two sides
| | 01:25 | snatch each other up.
| | 01:27 | Online agencies have varying
amount of involvement with the jobs.
| | 01:30 | Some sites are simple job listings,
while others provide online collaboration
| | 01:34 | services, payroll services, and so on.
| | 01:37 | Whether you sign up for online agencies,
offline agencies, or both, be sure you
| | 01:42 | have all your marketing tools in place:
| | 01:44 | your portfolio, resume, and so on.
| | 01:47 | An agency is a client.
| | 01:49 | But unlike an individual client, it's one
that leads to work from multiple sources.
| | 01:54 | You can continue to find other clients
on your own, but having an agency pulling
| | 01:58 | for you, gives you stability during slow times.
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| Onboarding clients| 00:01 | Let's say a client has shown
interest in your services. Congratulations!
| | 00:05 | I'd like to take you from their
expression of interest until your first day
| | 00:09 | of working for them;
| | 00:10 | a period of time called "Onboarding."
| | 00:13 | I'll break the process into
four parts or the four Es.
| | 00:17 | They are Expectations of you,
Expectations of them, Execution of the agreement,
| | 00:23 | and Establishment of procedures.
| | 00:25 | The first two, the expectations you
should have of each other should be spelled
| | 00:30 | out in the agreement.
| | 00:31 | But there are matters that go beyond
the agreement to day-to-day management
| | 00:35 | of the relationship.
| | 00:37 | They strongly affect how well a
project goes because, ultimately, its success
| | 00:41 | depends a lot on what the client does.
| | 00:44 | Here are some things you should require of them.
| | 00:47 | First, the name of one single person
who will be responsible for interacting
| | 00:51 | with you, make sure you get that
person's email address, and phone number.
| | 00:56 | If they insist on having multiple
people responsible, make them explicitly
| | 01:00 | divide those contacts and areas of
responsibility. Otherwise, you'll be drawn into
| | 01:05 | internal battles or find that nobody
answers your questions because they each
| | 01:09 | expect the other person to do it.
| | 01:11 | Second, spell out the materials
and input that you expect from them.
| | 01:15 | A lot of my own work is interview-based.
| | 01:17 | I'll study a company's technology,
then I'll talk to the technologist
| | 01:22 | responsible for it for half-an-hour.
| | 01:24 | If that person refuses to do
the interview, I can't do my work.
| | 01:29 | So, the project relies on
that person's involvement.
| | 01:33 | Lastly, get a promise of responsiveness.
| | 01:36 | It does no good to know that
they'll deliver certain materials if those
| | 01:39 | materials show up too close to
your deadline or even after it.
| | 01:43 | The third part of the Onboarding
process is signing the agreement or in legal
| | 01:47 | terms, executing it.
| | 01:48 | This sounds obvious, but it's
amazing how often freelancers and clients
| | 01:53 | will sort of ooze into work without
having an explicit and written down
| | 01:57 | meeting of the minds.
| | 01:59 | The signed agreement cements the relationship.
| | 02:03 | Finally, we come to the last part:
| | 02:05 | establishment of procedures.
| | 02:07 | This is what actually happens to get
the job started, where the rubber meets
| | 02:11 | the road so to speak.
| | 02:12 | It's important to transition your
relationship from one of seller and buyer to
| | 02:17 | one of colleague and colleague
working together toward a goal.
| | 02:20 | I find this psychologically tough, especially
if it's taken a while to reach an agreement.
| | 02:25 | A good way to ease this transition
is to set deadlines, and schedule
| | 02:29 | collaborative work right away:
| | 02:30 | meetings, interviews, draft reviews, and so on.
| | 02:33 | That makes it clear that the fun part has begun.
| | 02:37 | It's worth mentioning that these
procedures will vary a lot from one situation
| | 02:40 | to another, especially
depending on company size.
| | 02:44 | Onboarding with big companies might involve
multiple levels of bureaucracy, for example.
| | 02:48 | While making such arrangements
with a small company might be
| | 02:52 | more straightforward.
| | 02:53 | But the basic steps remain the same
regardless of size or type of company.
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| Avoiding scams| 00:01 | Sad to say, some freelancing
opportunities won't be opportunities at all.
| | 00:05 | They'll be scams designed to
steal your time, money, or reputation.
| | 00:10 | I can't give a canonical list of scams
floating around out there because the
| | 00:14 | criminal nature is to develop new
techniques as people get wise to the old ones.
| | 00:18 | But here are some warning signs the
prospective job just isn't worth taking.
| | 00:24 | The first kind of scam is one
that makes the rounds a lot.
| | 00:27 | You get offered a job but with
a non-specific amount of pay.
| | 00:30 | For example, let's say they
offer you a share of profits.
| | 00:34 | Well, how will you know
how much their profits are?
| | 00:36 | Are their books publically audited?
| | 00:38 | Probably not, which means they could
offer you any amount or nothing at all, and
| | 00:43 | you'd have no real recourse.
| | 00:45 | Tied to that one, is the offer to pay
you in something other than money, most
| | 00:49 | often in the company's products.
| | 00:51 | Now that's great if you really want
their products and they're being offered to
| | 00:54 | you at a higher rate than
cash would otherwise buy.
| | 00:57 | But here again, the
control is mostly in their hands.
| | 01:01 | What if they stop offering the
product you want, what if they go out of
| | 01:05 | business, do the products even
exist yet, what's the mechanism for
| | 01:08 | delivering them to you?
| | 01:10 | A variation on this is the promise that
you'll get exposure or a great portfolio
| | 01:15 | piece in exchange for your work.
| | 01:16 | This isn't a scam per se.
| | 01:18 | It's just that in my experience, jobs that
pay well make much better portfolio pieces.
| | 01:24 | Having said that, you might
actually decide to take such work when you're
| | 01:28 | first building your portfolio.
| | 01:30 | Just be sure to appropriately
value what they're offering.
| | 01:34 | Now personally, I can't remember ever
finding the value of such exposure to be
| | 01:38 | high enough for the work required.
| | 01:40 | The third warning sign arises if your client
asks you to do something illegal or immoral.
| | 01:46 | As a writer, a client will sometimes
try to accompany my work with videos or
| | 01:50 | graphics that they snagged online,
and that they don't have the rights to.
| | 01:54 | They've already shown
they're dishonest or immoral.
| | 01:56 | What makes you think they'll
be honest and moral with you?
| | 02:00 | Another warning sign crops up when
you get an offer out of the blue, but
| | 02:03 | you can't really determine the name,
location, or contact information for the source.
| | 02:09 | The issue here is one of enforcement.
| | 02:12 | If they mistreat you, you'll
have no way to go after them.
| | 02:16 | Finally, we get to the classic work-at-
home scam, where you're required to put
| | 02:20 | in some amount of money to make the deal happen.
| | 02:22 | Let's get something straight.
| | 02:24 | You're going to have
business expenses as a freelancer.
| | 02:28 | But none of that money, and I mean
zero dollars and zero pennies should go
| | 02:32 | towards someone who is allegedly
offering you work or to any other source
| | 02:36 | that you don't choose.
| | 02:37 | This can be tricky.
| | 02:39 | Maybe the client requires that you get
some sort of special kind of equipment, or
| | 02:43 | certification, but that it's only
available from one source. Check it out.
| | 02:47 | There's a chance that, the source is
connected to your so-called employer and
| | 02:52 | that you'll never see a penny of work in return.
| | 02:56 | It is possible that you'll take a
job that has one or more of these warning
| | 02:59 | signs, and it will turn out just fine.
| | 03:01 | For example, start-ups sometimes
offer equity or stock instead of payment.
| | 03:06 | That stock sometimes ends up being valuable.
| | 03:09 | But this list is based on the
likelihood that something is a scam.
| | 03:12 | These warnings aren't absolutes.
| | 03:15 | When you're deciding which jobs to
take, you'll be playing the percentages.
| | 03:19 | Just realize that jobs that have
these warning signs carry a higher risk
| | 03:23 | than those that don't.
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| Choosing assignments| 00:01 | Even after you've started to make it
as a freelancer, you'll have some choice
| | 00:04 | over which jobs to take.
| | 00:06 | I see such choices as a battle to
balance three qualities in my life:
| | 00:10 | security, variety, and success.
| | 00:13 | Each job will have some quantity of each.
| | 00:16 | Let's look at how to measure one
against another. First is security.
| | 00:20 | Jobs that score high on this quality
are those that offer full-time work, are
| | 00:24 | with established clients, involve work
that you've done before, or that you know
| | 00:29 | will pay reliably and well.
| | 00:31 | Moving on, some jobs offer variety.
| | 00:34 | These include those with new clients
so you can expand your base in case
| | 00:38 | another client falls away.
| | 00:40 | You might be using new skills to do
things you haven't done before, or you might
| | 00:44 | find yourself in a new environment,
for example, using unfamiliar software or
| | 00:48 | working in a new and interesting location.
| | 00:52 | I value variety because it keeps my
skills and outlook fresh, which in turn
| | 00:56 | helps me stay motivated, and marketable.
| | 00:59 | Finally, we have that
nebulous criterion: success.
| | 01:04 | Jobs that fulfill your hunger for
success might change your business in a
| | 01:07 | positive way, or give you more of what you want.
| | 01:10 | But the first and foremost measure of
success is whether an opportunity helps
| | 01:15 | you reach your long-term goals.
| | 01:18 | To measure that, let's go back to a
list from earlier in the course where we
| | 01:21 | defined career goals.
| | 01:22 | Here I listed some common reasons
that people freelance, and then you
| | 01:26 | added your own, and went through an
exercise to pick out the ones that were
| | 01:30 | most important to you.
| | 01:32 | When you're faced with conflicting
opportunities, revisit that list.
| | 01:36 | It will lift you above the immediate
question and carry you back to your
| | 01:39 | inner needs and desires.
| | 01:40 | For example, let's say a client
wants to fly you into their office for an
| | 01:47 | intense two-week job
preparing for a product launch.
| | 01:50 | It's in a city you always wanted to
visit, they'll pay for your flight and
| | 01:54 | hotel, and you'll have a few
hours every evening to wander around.
| | 01:59 | On the other hand that two-week
project will prevent you from taking a
| | 02:02 | lucrative contract with a local
client who has always been good to you.
| | 02:07 | So, do you take the job?
| | 02:09 | The answer depends on a lot of factors
including your relationship with both
| | 02:12 | clients, how they will be affected if
you say no, whether you expect more work
| | 02:17 | from them in the future, and so on.
| | 02:19 | But ultimately, you're going to
have to answer to your own goals.
| | 02:23 | If one of your goals was to travel and work
remotely, then you will be biased to say yes.
| | 02:28 | If on the other hand, your original goal
was to have good pay and more time with
| | 02:32 | your family, you're more likely to say no.
| | 02:35 | Of course your goals will
change over time, but I think your original
| | 02:39 | statement of intent is a good
touchstone when faced with such choices.
| | 02:44 | And really, my overriding point is
to remind you to take the long view,
| | 02:48 | especially because such dilemmas can
cause anxiety whenever they crop up.
| | 02:52 | Remind yourself why you're doing what
you're doing, and you'll find that such
| | 02:56 | questions answer themselves.
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|
|
6. Doing the WorkInteracting with clients| 00:01 | As a service-centered freelancer, your
work is judged by how well it fits the
| | 00:05 | client's needs, so you have to know
what those needs are. First, prepare.
| | 00:11 | Know your client's business before your
first meeting, and learn more based on
| | 00:15 | everything they say.
| | 00:16 | You'll probably get a lot of
information just from their website.
| | 00:20 | Spending half an hour studying it
ahead of time will put you ahead of most
| | 00:25 | other service providers.
| | 00:26 | Second, listen more than you talk.
| | 00:30 | As the saying goes, that's why you
have two ears but only one mouth.
| | 00:34 | Talking too much is a common flaw of
insecure freelancers and job seekers, and
| | 00:38 | it's understandable.
| | 00:40 | You want to show how much you know.
| | 00:42 | But as I said before, you have to fit
this specific project, and you'll only
| | 00:46 | know how that's true or even if it's
true by hearing and understanding what the
| | 00:50 | project is all about.
| | 00:53 | Third, once you get the message,
mirror it back to the client.
| | 00:57 | That shows that you're listening,
and it gives them a chance to correct
| | 01:01 | any misunderstandings.
| | 01:03 | So, those are the methods.
| | 01:04 | But most importantly, act
appropriately to the situation and to the client's
| | 01:08 | culture at all times.
| | 01:10 | Now that's tough, because there
are so many ways to be inappropriate.
| | 01:15 | You might be too familiar or too
formal, maybe you accidentally go over
| | 01:20 | someone's head or too harshly
criticized the work of a staff member. Or, maybe
| | 01:24 | you're too careful and fail to
provide criticism where it's expected.
| | 01:29 | The fact is that behavior varies not
only from country to country, but from
| | 01:33 | company to company, and even from
department to department within a company.
| | 01:38 | The good news is that experience will
make you better at feeling these things
| | 01:41 | out, and knowing when to
ask the client for guidance.
| | 01:45 | In the meantime, you can ask around to
see if you know people who have worked
| | 01:48 | there. Or you can often get clues
about a company's business culture from its
| | 01:52 | website and corporate materials.
| | 01:56 | But assuming you can negotiate the
tricky parts of client communication, your
| | 02:00 | value comes down to the
quality of the work itself.
| | 02:03 | Just as a skillful expert is incomplete
without good client skills, clients have
| | 02:07 | no use for good communicators
who can't do the work.
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| Delivering quality work| 00:01 | There's no such thing as objectively good work.
| | 00:03 | It's only good according
to how well it fills a need.
| | 00:07 | That theme permeates your drive to
deliver quality work and it's your client who
| | 00:11 | determines that your work is quality.
| | 00:13 | Here are some ways to not only do the
work well, but to help them see that
| | 00:17 | the work was done well.
| | 00:19 | I take steps that follow the old saying,
tell them what you're going to do, then
| | 00:24 | do it, then tell them what you just did.
Or, in other words, confirm the task,
| | 00:28 | deliver the goods, and review what happened.
| | 00:32 | Let's start with confirmation.
| | 00:34 | It's not just a one time thing.
| | 00:36 | You'll have to keep asserting your
understanding throughout the project.
| | 00:40 | Whenever you get new information from
the client, confirm not only what it
| | 00:44 | is, but how it will be incorporated into the
project, and when they will see the results.
| | 00:49 | Then comes the second step which
is the biggest: deliver the work.
| | 00:54 | But there's more to it than that.
| | 00:55 | The delivery has to fit their
expectations according to the six
| | 00:59 | traditional questions:
| | 01:00 | who, what, why, when, where,
and how? First is who.
| | 01:06 | Are you delivering the work to the right person?
| | 01:09 | If you're not sure, confirm it. Next is what.
| | 01:12 | Are you delivering what they asked for?
| | 01:15 | This should be spelled out in
your agreement. Then is why.
| | 01:19 | Aside form what's in the agreement, does
the product satisfy the reason you were
| | 01:22 | hired in the first place?
| | 01:24 | Is anything else needed to make the
product of your work truly useful?
| | 01:29 | The questions of where, how, and when
should also be answered in the agreement.
| | 01:33 | Do they want a printed copy, a
digital version, both, or something else?
| | 01:37 | Does a physical object need to be delivered?
| | 01:40 | The more your delivery matches their
expectations, the more likely they will
| | 01:45 | be satisfied and that they will
look forward to hiring you again.
| | 01:49 | So that takes us through
the confirm and deliver phases.
| | 01:53 | Now for the review.
| | 01:55 | Even if you think all the work is done, you
need to make sure that the client is satisfied.
| | 02:01 | If they are, then give them the satisfaction
of closure by letting them declare it done.
| | 02:07 | If they're not satisfied, sincerely
listen to their concerns and review
| | 02:10 | the project's details.
| | 02:12 | But let's assume that everything went well.
| | 02:14 | While there's good feeling between
you, take this moment to ask them to
| | 02:18 | memorialize that with an endorsement.
| | 02:21 | That reminds them of how satisfied
they were while also giving you a powerful
| | 02:25 | tool for marketing your services to others.
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| Getting referrals and recommendations| 00:01 | If there is one message I hope you get
from this course, it's that people are
| | 00:05 | what count, and your professional
relationships will ultimately be a big part of
| | 00:10 | how you grow your business.
| | 00:12 | People you know can help you land
other work through two mechanisms:
| | 00:16 | referrals and recommendations.
| | 00:18 | We'll start with recommendations.
| | 00:20 | There are a few kinds available.
| | 00:22 | The weakest is the Unsourced quote.
| | 00:25 | This is where someone says something
good about your work but doesn't give
| | 00:28 | permission to include their identity.
| | 00:31 | The better kind is the Sourced quote
where the person cited has confirmed
| | 00:35 | that it's okay to give his or her
name, position, and organization.
| | 00:40 | Between these two is what we
can call a semi-sourced quote.
| | 00:43 | I found you get those when it's okay to
use the person's name, but the company
| | 00:48 | doesn't want their name used.
| | 00:50 | In that case, you can substitute the
company name with a descriptor such as "a
| | 00:54 | large telecommunications company."
| | 00:57 | Best of all though is the active reference.
| | 01:00 | This is when someone agrees to not
only provide a sourced quote, but also to
| | 01:05 | talk with your prospective clients one on one.
| | 01:08 | In practice it's fairly rare that
you'll need that service, but it's good to
| | 01:11 | know that you have
someone to turn to when you do.
| | 01:14 | If you do get someone who is
willing to do this, don't ever send a
| | 01:18 | prospective client to them until you've
contacted the reference to give them a heads-up.
| | 01:23 | That will give you a chance to
brief your reference about this prospective
| | 01:27 | client, so they'll know
exactly what they should talk about.
| | 01:31 | You might also have recommendations on a
social media site such as LinkedIn.com.
| | 01:35 | If you do, ask the person who wrote it if
you're allowed to copy it over to your own site.
| | 01:41 | That brings us to referrals.
| | 01:43 | A referral is sort of like a
recommendation except it's written by someone who
| | 01:47 | connects you directly with a prospective client.
| | 01:51 | The best kind is where they offer to
introduce you to each other, usually by
| | 01:54 | sending an email to both of you.
| | 01:57 | If they're not willing to do that, it's
still valuable to ask them whether they
| | 02:00 | know of other people who
could use your services.
| | 02:03 | Then you can follow up on
those referrals yourself.
| | 02:07 | The easiest time to ask for a
referral is when you've had a good
| | 02:10 | relationship with someone.
| | 02:11 | But now for some reason it has to end.
For example, if the person is getting a
| | 02:15 | new job or the company decides
not to use freelancers anymore.
| | 02:20 | Then your contact will
usually be happy to help you out.
| | 02:23 | After all, they might need your help some time.
| | 02:26 | If you have good relationships,
recommendations and referrals will come
| | 02:30 | naturally, and you'll be
happy to give them out as well.
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| Losing and firing clients| 00:01 | Into each life, a little rain must fall,
and every freelancer eventually has to
| | 00:06 | deal with a bad client.
| | 00:08 | Sometimes, they're unhappy with you, in
which case the burden is on them to end
| | 00:12 | the relationship, but there are also
situations where you decide that things are
| | 00:16 | wrong and not worth fixing.
| | 00:17 | These are the clients you fire.
| | 00:20 | Here are some tips to make both
kinds of parting a little easier.
| | 00:25 | First, let's talk about when you lose a client.
| | 00:28 | You'll probably have several concerns,
high among them, "Will they hurt my
| | 00:31 | reputation by saying bad things about me?"
| | 00:34 | "Did I deserve to lose the job?"
| | 00:36 | And the big one, "Will they still pay me?"
| | 00:40 | The spectre of your ex-client
badmouthing you can really loom large,
| | 00:43 | particularly if they're
important in your field or industry.
| | 00:47 | In my experience it doesn't
happen as much as people fear.
| | 00:51 | Professionals try to avoid negative
talk because they know it muddies them as
| | 00:54 | much as their target.
| | 00:57 | In any case, it's a matter that's
pretty much out of your control.
| | 01:00 | The best you can do is to handle the
split calmly and professionally which will
| | 01:05 | encourage them to do the same.
| | 01:06 | The second question, "Was it
my fault?" bears examination.
| | 01:11 | If it was, take responsibility, and figure
out how you can learn from your mistakes.
| | 01:16 | If it wasn't, don't obsess with trying to
convince them that it wasn't your fault.
| | 01:21 | Even if you win at that game, you lose.
| | 01:23 | Would you really want to go back to a
place where you were wrongly accused?
| | 01:28 | The third question, "Will they pay me?"
| | 01:30 | is the one that truly deserves your attention.
| | 01:33 | Absolutely, you should invoice them as
is appropriate to your agreement and to
| | 01:37 | the work you've done.
| | 01:38 | Then you should follow your usual
collection procedures if they don't pay.
| | 01:42 | I talked about those in an earlier video.
| | 01:45 | But throughout all of this, remain
above the name calling and accusations that
| | 01:50 | turbulent emotions tempt you toward.
| | 01:52 | Learn from the experience and
move on to greater successes in your
| | 01:56 | freelance practice.
| | 01:59 | That leads us to the second scenario, where
you decide that it's time to fire a client.
| | 02:03 | I used the word "fire" because you
hired them just as much as they hired you.
| | 02:08 | Firing a client is a big decision,
but it's one you'll sometimes have
| | 02:12 | to make because a bad client can harm the
health of both yourself and your business.
| | 02:17 | Just as they can get rid of
you, you can get rid of them.
| | 02:20 | The power goes both ways.
| | 02:23 | Now, with that power, comes responsibility.
| | 02:25 | First and foremost, you have the
responsibility to honor your agreement with the client.
| | 02:30 | Do as much as you reasonably can
before leaving and don't expect full pay if
| | 02:34 | you've only partially completed the job.
| | 02:37 | This is where a well-written agreement
becomes especially important because it
| | 02:41 | can help determine how much you
should get paid for a partial job.
| | 02:45 | Second, figure out what went wrong.
| | 02:47 | Then make the tough decisions
of whether to tell them and how.
| | 02:51 | For example, it could be that the project
was torpedoed by an incompetent staff member.
| | 02:56 | Should you tell that person's boss?
| | 02:59 | That depends on a lot of factors, and you're
the only person who can make that decision.
| | 03:04 | The boss might appreciate it and send
you future work that doesn't involve the
| | 03:07 | problematic staff member, or the
boss might resent it, and tell you off.
| | 03:12 | But in any case, figure out
the issues for your own education.
| | 03:17 | Third, even though you might be leaving under
bad terms, try not to leave them in the lurch.
| | 03:22 | Help them solve their problems, perhaps
with recommendations for finishing the
| | 03:26 | project without you or by
referring them to another freelancer.
| | 03:30 | Of course, you should only make
that referral if you believe the other
| | 03:33 | freelancer won't have the
same problems as you had.
| | 03:36 | And you should be upfront with the
other freelancer about those issues.
| | 03:41 | Continuing on that theme, make
the parting as friendly as possible.
| | 03:46 | Give them ways to feel good about it,
encourage them to remember you as someone
| | 03:50 | who helped the company even though
that one specific project didn't work out.
| | 03:55 | I also recommend that you make
it as clean a break as possible.
| | 03:59 | Don't linger, and don't
take side jobs with them.
| | 04:03 | When a client relationship ends,
it's hard not to imagine the worst.
| | 04:07 | But believe it or not, sometimes
those bad experiences lead to good
| | 04:11 | recommendations, referrals,
and future relationships.
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|
|
7. Managing TimeDeconstructing big jobs| 00:01 | As a freelancer, time is your stock-in-trade.
| | 00:04 | Whether you're billed by the hour or
by the job, you always have to know how
| | 00:08 | much time you have
available and how it will be used.
| | 00:11 | One thing that throws a monkey-wrench
into those calculations is when you're
| | 00:14 | facing a big overwhelming job.
| | 00:18 | It's easy to panic, but individual
freelancers can and do finish such jobs all the time.
| | 00:25 | The secret is to break down your project
into smaller tasks, set a schedule, and
| | 00:29 | then do those tasks.
| | 00:32 | First, get a thorough
understanding of what the client wants the
| | 00:35 | finished product to be.
| | 00:37 | The bigger the job, the more
you need advanced planning.
| | 00:41 | Second, deconstruct the job into its
component parts and make a list of them.
| | 00:46 | This requires experience in doing such work.
| | 00:48 | Like let's say that you have to design and
lay out a 40-page catalogue by March 3rd.
| | 00:53 | If you've done such a job before,
you'll have a sense of how many product
| | 00:57 | photos will be needed, when to call in the
photographer, and how much time that person will need.
| | 01:01 | You'll also need knowledge of your own
work habits, of how much you can do in a
| | 01:06 | day, and when you like to take break.
| | 01:08 | Arranging work so it fits your
time will help keep you motivated.
| | 01:14 | Once you have a list of what needs
doing it's time to schedule it all.
| | 01:18 | Start with the deadline, and then count
the number of workdays between then and now.
| | 01:23 | If we know the catalogue is due on
March 3rd and it is January 20th today,
| | 01:27 | then we see that we have six weeks to finish it.
| | 01:31 | Next, divide the time available by the tasks.
| | 01:35 | We might take the first week for
design and approval, the second for
| | 01:38 | creating the template, and the third
for photography, and then the rest for
| | 01:42 | completing the catalogue.
| | 01:44 | Finally, write specific tasks
into each workday on the calendar.
| | 01:49 | Take weekends and holidays into account
and build in a little free time if you
| | 01:53 | can in case anything goes wrong.
| | 01:55 | Now you know exactly what
you'll be doing on every day.
| | 02:00 | I have to tell you, I recommend
that you do the deconstruct and schedule
| | 02:04 | parts of the job before
you even write the agreement.
| | 02:07 | When you present your proposal, you'll
need to know how many hours the whole
| | 02:10 | project will take, so
you'll know how much to charge.
| | 02:13 | It's all part of the sales process.
| | 02:15 | Now you're ready to work.
| | 02:18 | Each day, you'll simply perform the
tasks you've set out for yourself.
| | 02:22 | Knowing what you'll do and how it
will add up to a finished project is
| | 02:25 | an enormous comfort.
| | 02:27 | You are in essence going back and
forth between being your own boss and
| | 02:31 | being that boss' worker.
| | 02:34 | There are two things you need
to do at the end of every day.
| | 02:37 | First, check and adjust the schedule.
| | 02:39 | If you've got more done than expected,
decide whether to move everything up,
| | 02:43 | take the time off, or give it to
another client, or whatever you choose.
| | 02:47 | If you're falling behind,
you'll have similar choices.
| | 02:51 | Finally, look over the next couple of
days work to prepare yourself mentally and
| | 02:55 | make sure you have everything that you need.
| | 02:58 | It's also a good idea to check in with
the client once in a while to give them a
| | 03:03 | progress report, check any assumptions
you've made, and help them relax in the
| | 03:06 | knowledge that the job is being done.
| | 03:08 | Set these many deadlines in your
agreement so the client knows what to expect.
| | 03:13 | Then before you know it, you're done.
| | 03:15 | The project is over, the client is happy,
and you have something big to be proud of.
| | 03:19 | Now that might seem like an inordinate
amount of planning before you feel like
| | 03:24 | you've actually started to work.
| | 03:26 | But the planning is the work.
| | 03:28 | And in the end it all adds up to
successful completion of a project.
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| Adopting time-management tools| 00:01 | You need to quantify how you're
spending your time, because time is what you're
| | 00:04 | selling and you only have so much of it.
| | 00:07 | Doing so helps you measure your
efficiency and it shows your clients where
| | 00:11 | their money is going.
| | 00:12 | I'll often track time for myself when
I'm doing something unfamiliar so that
| | 00:16 | I'll be able to estimate
work based on that new skill.
| | 00:19 | I'll track time for clients
when they've hired me by the hour.
| | 00:23 | Even if they're paying me by the
project though, I'll sometimes track my hours
| | 00:27 | for a while, just to be sure that
the project will finish on time.
| | 00:31 | The main tool for tracking
time is of course a timer.
| | 00:35 | You don't need anything fancy, and in
fact I usually measure my time simply by
| | 00:39 | glancing up at my computer's
clock when I start and stop work.
| | 00:42 | I do use a timer for some things though;
| | 00:45 | for example, to see exactly how long
it will take me to walkthrough a presentation.
| | 00:50 | It's worth learning to use the
timer that's probably already in your phone.
| | 00:55 | The important thing is that you're
absolutely religious about using your timer device;
| | 00:59 | whatever it is when you need to keep
track of time, just as important is the act
| | 01:04 | of writing your times down.
| | 01:07 | Again, it doesn't matter where you
do it as long as you're consistent
| | 01:10 | and reliable about it.
| | 01:13 | Depending on how I've set up my records
for a particular client, I'll keep track
| | 01:17 | of time details in a plain txt
document or a spreadsheet, but often I'll just
| | 01:23 | type them directly into the Invoice.
| | 01:25 | My preferred format is fairly simple:
| | 01:28 | Just the Date, an outline of what
happened and the amount of Time.
| | 01:33 | I personally bill in 15-minute
increments, but you or your client might
| | 01:36 | prefer something else;
| | 01:37 | increments of 60, 30, 10 and
even six or five minutes are common.
| | 01:43 | You'll ultimately use this
information when you bill the client.
| | 01:47 | There are fancy time-tracking
programs out there including some that
| | 01:51 | actively watch what you're doing
on your computer and then fill out a
| | 01:54 | timesheet with the results.
| | 01:56 | Learning those can be somewhat
involved and you probably won't need
| | 01:59 | anything that detailed.
| | 02:01 | But if you're curious, Wikipedia has a
comparison of time tracking software page
| | 02:05 | that's worth looking at.
| | 02:07 | And of course and online search
for time tracking leads you to
| | 02:10 | further information.
| | 02:11 | So that is time-tracking as it relates
to client work, but it's actually quite a
| | 02:18 | big subject and lynda.com has
courses on both time management and project
| | 02:22 | management that will lead you further.
| | 02:25 | Taking the time to get these
skills is truly worthwhile.
| | 02:28 | They improve your life overall by
lowering your stress level and giving you more
| | 02:32 | time to do what you want.
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| Creating schedules| 00:01 | So far, we've looked time as it
relates to individual jobs and individual
| | 00:05 | clients, but as soon as you have two
clients, the whole picture changes, because
| | 00:09 | you need to figure out when
you to give each your attention.
| | 00:13 | In any case, you're going to have to
keep a calendar in order to meet deadlines,
| | 00:17 | have meetings, and make long-term plans.
| | 00:19 | Here are some tricks I've picked up.
| | 00:21 | The main tool you'll need is a calendar.
| | 00:24 | It doesn't matter what kind you use,
as long as you use it consistently.
| | 00:28 | You can even use a standard paper
planner and I know lots of people who do that
| | 00:32 | even though they're computer professionals.
| | 00:35 | I personally use iCal on my Mac, and
I keep it synched to my pocket device.
| | 00:40 | But a lot of people, like online systems,
such as Google Calendar which has the
| | 00:44 | advantage of letting multiple
people plan their time together.
| | 00:48 | But whatever system you use, keep
track of at least the following:
| | 00:53 | First are the time-specific
items, such as appointments.
| | 00:57 | Obviously, these have to take priority.
| | 00:59 | I've set my own calendar to sound an
alarm a half hour before every appointment.
| | 01:05 | The next items to put in
your calendar are the deadlines.
| | 01:08 | If I'm working on a big project, I'll
often include several calendar items.
| | 01:12 | One for the project's ultimate
deadline and then I'll have many deadlines
| | 01:16 | leading up to it, to make
sure that I'm on schedule.
| | 01:19 | That's easier to figure if you've already
broken up the project into manageable tasks.
| | 01:24 | I also include other kinds of
reminders and warnings in my calendar.
| | 01:29 | Finally, during very busy periods I'll
sometimes plan out my entire day, hour by
| | 01:33 | hour, in the calendar.
| | 01:35 | Some people find this
helpful even during slow times.
| | 01:39 | One question you'll probably ask
yourself as you start out is "Should I
| | 01:42 | keep separate calendars for business
and personal stuff or should I just
| | 01:45 | put everything in one?"
| | 01:47 | That answer depends at
least partly on how you work.
| | 01:50 | If you keep your work hours completely
separate from your personal hours, you'll
| | 01:54 | be able to keep two calendars.
| | 01:56 | My own approach doesn't allow that.
| | 01:58 | One of the benefits I get from
freelancing is that I can schedule personal time
| | 02:02 | in the middle of the day and I need to
make sure that my shopping trip doesn't
| | 02:06 | conflict with the client meeting.
| | 02:07 | So for me, one calendar works best.
| | 02:10 | I use a simple calendaring
system for everything, but there are other
| | 02:15 | tools out there for organizing and
prioritizing projects and some of them
| | 02:18 | aren't date-based at all.
| | 02:20 | Certainly, try out different ones from time to
time and adapt according to your preferences.
| | 02:25 | Ultimately, you'll find the
combination of tools that's right for you.
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| Turning off the clock for "me time"| 00:01 | One way that freelancing differs
from most traditional jobs is that you
| | 00:05 | have more on your mind.
| | 00:06 | There are lots of moving parts,
all battling for your attention.
| | 00:10 | It can be hard to push all that aside to
enjoy the time when you're not working.
| | 00:15 | Modern devices make things worse,
because as the saying goes, the person who can
| | 00:19 | work anywhere ends up working everywhere.
| | 00:22 | So, how do you live the good
life you promised yourself when you
| | 00:24 | started freelancing?
| | 00:25 | I've given a few tips already and some
of the practices you've learned so far
| | 00:30 | will benefit your personal life as well.
| | 00:33 | The most important one is to
know what your work is everyday.
| | 00:37 | People--and I include myself in this--
very often stress out because they have
| | 00:41 | that nagging feeling that there's
something important they have forgotten to do.
| | 00:45 | That's why I'm so demanding with
myself when it comes to planning and writing
| | 00:48 | down my plans. Because it pays of when
I can say, "Everything is done and now
| | 00:55 | I'm worthy of rest."
| | 00:57 | Another tip and one that works well
if you're as obsessive of I am is to
| | 01:01 | consider your personal life as if it's a client.
| | 01:04 | Just as you'd schedule a dentist
appointment, try scheduling say four hours in
| | 01:08 | the evening that are only for you.
| | 01:10 | You might want to specify what
you're going to do in that time or maybe
| | 01:14 | specify what you won't do.
| | 01:16 | No email, no phone, no whatever it is that
keeps you wrapped up during the work day.
| | 01:21 | Related to that, put away your tools.
| | 01:24 | I do everything on my laptop computer
and I usually carry it with me everywhere.
| | 01:29 | When I leave it in the office I'm
making a statement to myself that the time
| | 01:32 | I'm about to pass will have no work in it.
| | 01:36 | Even consider leaving your cellphone at home if
you might get client calls on it while relaxing.
| | 01:41 | When I do take time off I have a mantra
to repeat if I start to feel guilty for
| | 01:46 | all that work I'm not doing.
| | 01:47 | It's, "This is what I'm suppose to
be doing right now." You know what?
| | 01:53 | That so called dead time ends up
making you more productive overall.
| | 01:57 | I gain perspective, which my
subconscious uses to solve problems I can't
| | 02:01 | solve in any other way.
| | 02:03 | The time you spend supposedly
not doing anything can be the most
| | 02:07 | productive time of all.
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|
|
8. Keeping the Business HealthyStaying motivated| 00:01 | Once your business has been going for
a while, you're likely to find yourself
| | 00:04 | feeling like you're getting in a rut.
| | 00:06 | Those feelings are completely normal,
but they are also dangerous because they
| | 00:10 | can make you question your path
and distract you from your goals.
| | 00:14 | They can show up regardless of whether
your freelance business is successful or
| | 00:17 | struggling and they can sap your motivation.
| | 00:21 | You might not be able to
avoid these feelings entirely.
| | 00:24 | But when you start to have them, here
are some ways of using them, rather than
| | 00:28 | letting them use you.
| | 00:30 | The good news is that if you've been
following this course from the beginning,
| | 00:32 | you already have weapons
to fight that urge to quit.
| | 00:36 | They're in the form of the
questionnaires you filled out earlier to prepare your
| | 00:39 | mindset and to define your career goals.
| | 00:41 | If you didn't fill these out yet,
stop the video and do it now.
| | 00:46 | The questionnaire where you define
career goals is especially useful because you
| | 00:50 | recorded what you wanted to accomplish
within the first six months, the first
| | 00:54 | year and the first two years.
| | 00:56 | You're probably just around one of those
points when your motivation starts to slow down.
| | 01:01 | When you're feeling the rut, reread
your answers on these questionnaires and
| | 01:06 | then ask yourself a few questions.
| | 01:08 | First, how are you doing in
relation to what you wanted?
| | 01:12 | Review your accomplishments and celebrate them.
| | 01:15 | In the day-to-day grind, you spend so
much attention just putting one foot
| | 01:18 | in front of the other that often you
don't realize just how much road has
| | 01:22 | passed under your feet.
| | 01:24 | Second, how have your goals changed as a
result of your freelancing experiences?
| | 01:29 | Maybe a goal turned out to be
unrealistic or maybe it wasn't as hard as you
| | 01:34 | thought, and so you accomplished it immediately.
| | 01:36 | In either case, use your real
world guidance to set new goals.
| | 01:40 | Third, how have your goals changed as the
result of feelings you've had while freelancing?
| | 01:46 | It's very common to realize that the
things you imagine for yourself aren't
| | 01:50 | really what you want.
| | 01:52 | If a goal you had doesn't feel right
anymore, just cross it off the list or
| | 01:56 | change it to set a new goal.
| | 01:58 | On the other hand, you may need to
rededicate yourself to some of your goals.
| | 02:02 | For example, one of the most common
problems at the six-month point is that
| | 02:06 | you're starting to get work, but you're
still not making as much money as you want.
| | 02:11 | If that's you, reiterate and
strengthen that goal, but keep in mind that
| | 02:15 | you have limited resources, so a different
goal might have to be put off for the moment.
| | 02:21 | Reiterating your goals will also help
you determine whether you need to change
| | 02:25 | your focus, increase marketing, or add
more human resources to your business.
| | 02:29 | I'll talk about all those
options in upcoming videos.
| | 02:33 | It can be tempting to
think of such changes as failures.
| | 02:37 | After all you set a goal and
then you didn't accomplish it.
| | 02:41 | But I hope you don't think that way,
because recognizing that a goal needs to
| | 02:45 | change and adapting to those changes is
in itself a productive accomplishment.
| | 02:50 | Finally, consider taking a break to
gain perspective, especially if you've been
| | 02:55 | plugging away non-stop for a while.
| | 02:58 | Take some "Me Time" to understand
yourself better, and the answers will come.
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| Increasing your rates| 00:01 | There are only so many hours
that one person can work every week.
| | 00:04 | So, once those hours are spoken for, the
only way you can increase the financial
| | 00:08 | yield on your time is by raising your rate.
| | 00:11 | To explore ways to do so, let's
revisit the psychology of how people buy
| | 00:15 | freelancer services.
| | 00:18 | As mentioned earlier in this course,
buyers have to justify your price by
| | 00:21 | measuring it against other considerations.
| | 00:25 | They ask themselves, "What's the
overall value of doing this project?"
| | 00:29 | "Can I do it myself, if so,
with what costs and risks?"
| | 00:33 | "What are the costs and
risks of assigning it out?"
| | 00:36 | And finally, "To whom can I assign it to
keep the costs and risks at their lowest?"
| | 00:41 | It then comes down to a cost
benefit analysis for the buyer.
| | 00:45 | The values are pretty
subjective and not always easy to measure.
| | 00:49 | You can sway some of the points
your way, but not all of them.
| | 00:52 | Let's look at each of them.
| | 00:54 | First, what's the value to the
buyer of having the project done at all?
| | 00:58 | You might not have a say in this,
although some sales processes include helping
| | 01:02 | the client to recognize the value they'll get.
| | 01:05 | For example, if you know about studies
showing that online stores increase their
| | 01:10 | revenue after adding a certain
widget to their site that helps justify an
| | 01:14 | increased fee for adding that widget.
| | 01:16 | Let's go to the second question that
clients ask themselves, "Can I do it myself
| | 01:21 | and how much will that cost?"
| | 01:23 | I'm afraid you won't have any input there.
| | 01:25 | But then we come to a factor you can influence.
| | 01:28 | What are the costs and
risks for assigning it out?
| | 01:32 | If the risks for hiring you are
low, you can increase your rate.
| | 01:36 | So, your challenge is to demonstrate
that hiring you is a low risk proposition.
| | 01:41 | You do that by having a strong
portfolio, good referrals and
| | 01:44 | demonstrated experience.
| | 01:46 | That's why experienced freelancers and those
whom the client already trusts get the best pay.
| | 01:52 | The last part is that you're not
just competing with the client's staff;
| | 01:56 | you're also competing with all the
other solution providers, including
| | 02:00 | freelancers and agencies.
| | 02:02 | So, your cost, and again, the dollars per
hour you receive, has to be competitive.
| | 02:08 | Keep in mind that many clients prefer
prices to be quoted per project, not per hour.
| | 02:13 | So, you'll have to do that calculation.
| | 02:15 | But that actually points to another
way you'll effectively raise your rates.
| | 02:19 | The longer you're in the business, the
more efficiently you'll complete jobs.
| | 02:23 | So when you give that project price,
the total will be divided by fewer hours,
| | 02:27 | giving you a better dollar per hour rate.
| | 02:30 | In any case, just thinking about how to
raise your rates forces you to examine
| | 02:34 | the value that you give to clients.
| | 02:36 | As I said earlier in the course,
freelancers often fall into the trap of
| | 02:40 | charging too little, because they
don't recognize their own value.
| | 02:44 | But your experience will show just how
valuable you are, how to demonstrate that
| | 02:48 | value to clients, and how to
get better rates as a result.
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| Marketing beyond your professional network| 00:01 | I've emphasized how essential
people are to your freelance career.
| | 00:05 | They give you guidance, expand your
capabilities, and help you get clients; but
| | 00:09 | your professional network does have
its limits, especially if you're moving
| | 00:12 | into an unfamiliar area.
| | 00:14 | Let's talk about how to reach
an audience if you don't already have
| | 00:17 | contacts within it.
| | 00:19 | You'll have to get inside this new group,
first by identifying it and then by
| | 00:24 | gaining allies there.
| | 00:25 | Here are three ways to do this:
| | 00:28 | The first has the lowest barrier to entry.
| | 00:30 | Get to know the unfamiliar field as
well as you can through online research.
| | 00:35 | Find out who is important in it,
where its practitioners hangout, what is
| | 00:38 | important to them and the terms
they use to describe themselves.
| | 00:43 | You need to know both the subject
and the culture surrounding it to get
| | 00:46 | your foot in the door.
| | 00:47 | Then find and read active online
discussions in that community and contribute
| | 00:52 | when you feel ready.
| | 00:53 | Relationships naturally form this way, as
you get to know them and they get to know you.
| | 00:59 | The second method is to research the new
field, then approach someone for what is
| | 01:03 | called an informational interview.
| | 01:05 | Make it as low commitment as possible
and make it absolutely clear that you're
| | 01:09 | looking only for advice, not a job.
| | 01:12 | I know it sounds unlikely, but think of it.
| | 01:15 | If you got an email from someone nicely
asking you for a little advice in your
| | 01:19 | area of expertise, wouldn't you provide it?
| | 01:22 | And if they were local and offered to
buy you lunch, wouldn't you take it?
| | 01:26 | The third method is to research the
area then get to know the people involved
| | 01:30 | through real world group meetings.
| | 01:32 | I found the trade shows are great for
this because the mix of exhibitors tells
| | 01:37 | you exactly what's important in a given area.
| | 01:40 | But user groups, trade association meetings,
parties, and lunches are all good as well.
| | 01:45 | Again, you're not there to sell. Rather
you're there to figure out who wants to
| | 01:50 | buy what you're offering or
how to change it, so they will.
| | 01:55 | So, you found your new
audience, how do you reach them?
| | 01:59 | Here are a few ways:
| | 02:01 | If all is gone well with your research
and interactions, you'll have gained new
| | 02:05 | contacts and the field is no longer
outside your professional network, so you
| | 02:09 | can just market your services as usual.
| | 02:12 | But if you haven't gained that foothold,
you'll want to use online methods to
| | 02:16 | drive this new audience to your website.
| | 02:18 | There are free ways to do that along with
paid advertising such as Google AdWords.
| | 02:23 | lynda.com has courses for
both types of marketing.
| | 02:27 | Then there's the whole world
of traditional advertising:
| | 02:30 | radio, TV, prints, billboards,
direct mail, you name it.
| | 02:34 | These are the marketing methods
most people think of first, but I would
| | 02:38 | encourage you think of them last.
| | 02:39 | They are usually the most
expensive and least target specific.
| | 02:44 | We started out with the idea that you would
go outside your network, but in reality,
| | 02:48 | you're pulling new targets into it.
| | 02:51 | The results are the same though:
| | 02:52 | you gain access to new
audiences for your services.
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| Growing through hires and partnerships| 00:01 | One problem with
freelancing is that it doesn't scale.
| | 00:04 | You have a limited inventory of
hours for the week and when they're
| | 00:07 | gone, they're gone.
| | 00:09 | There are a few ways you can
increase your available hours.
| | 00:12 | Hire an assistant, someone who works
for you; hire an associate, someone who
| | 00:16 | works with you; or team up with a
partner, another company or person to better
| | 00:21 | both of your business.
| | 00:23 | These are the terms we'll be using to
describe the ways you can increase your hours.
| | 00:27 | Let's look at each of them.
| | 00:29 | First, the assistant.
| | 00:31 | The point here is to offload the stuff
that someone else can do and pay that
| | 00:35 | person the less than you'll make in the
time it would have taken you to do it.
| | 00:40 | The problem is that there's a big gap
between needing that person and getting
| | 00:43 | benefits from their work.
| | 00:45 | There's a time investment to onboard
and manage that person, but you can figure
| | 00:49 | out whether it's worth it.
| | 00:50 | I've included an Exercise
File with this video to help you.
| | 00:54 | You will enter the amount you bill
per hour along with what you'll pay
| | 00:58 | the assistant per hour.
| | 00:59 | Then for each week you enter the
number hours you'll pay the assistant along
| | 01:04 | with the number of billable hours
you'll gain because of their help.
| | 01:07 | You'll find yourself losing money in the
first few weeks while you train that person.
| | 01:12 | But eventually, the benefits of
having an assistant should outweigh that
| | 01:16 | investment and ultimately it
should be good for your business.
| | 01:20 | Hiring an associate requires a
similar cost to benefit calculation.
| | 01:25 | So rather than repeat that exercise let's
talk generally about the benefits and detriments.
| | 01:30 | The big benefit is that in an associate
who produces billable work increases the
| | 01:36 | amount of money you can make and
the increase is effectively unlimited.
| | 01:41 | When you have more work to
bill, you just add more people.
| | 01:43 | It's easy to forget about the other
advantages of taking on an associate though.
| | 01:49 | Namely that it's a different person
from you with different skills, giving the
| | 01:53 | two of you a range that neither possesses alone.
| | 01:55 | And that person can act as a reality
check whenever you make a decision.
| | 02:01 | Now on the downside you'll have to
oversee every person you add, both to manage
| | 02:06 | their work and to check their results.
| | 02:09 | You'll have to accept that you'll lose
control over the details as their work
| | 02:12 | style won't be the same as yours.
| | 02:14 | If they screw up, as the
boss, you'll bare the penalties.
| | 02:20 | That brings us to partnerships where
you and another business decide to team up
| | 02:24 | to expand your offerings, pool resources,
or otherwise improve your businesses.
| | 02:30 | You maintain your own business,
but collaborate where it make sense.
| | 02:34 | Like hiring an associate you gain added
skills and capabilities along with that
| | 02:39 | important reality check.
| | 02:41 | You'll probably also gain a structure
that's more like a corporation which can
| | 02:45 | give you economies of scale and make
you more attractive to large clients.
| | 02:49 | Now on the other hand partnerships
usually require unique specific agreements
| | 02:55 | that can be a real pain to draft.
| | 02:58 | Once signed you'll have to trust each
other to honor and understand all the clauses.
| | 03:03 | Having a more corporate
structure can introduce headaches.
| | 03:06 | In the end you might add a lot of overhead
without actually improving your businesses.
| | 03:12 | But I hope the spectre of such
detriments don't turn you off to the
| | 03:15 | possibilities of pairing up with
complementary businesses or taking on
| | 03:20 | assistants or associates.
| | 03:22 | As would everything else you just have
to balance the costs and the benefits and
| | 03:26 | then act according to
what's best for your situation.
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| Building passive income| 00:01 | You've probably heard the
phrase, make money in your sleep.
| | 00:05 | Doesn't it sound wonderful?
| | 00:06 | The idea behind it is that you can have an
income even when you're not actively working.
| | 00:12 | As a freelancer there are a few ways you
can develop such so-called passive income.
| | 00:17 | All require an initial investment
of time followed by slow earnings.
| | 00:21 | However, those earnings can go on for
years ultimately adding up to more than
| | 00:26 | you would have made by selling
those initial hours to a client.
| | 00:30 | The first type of income is one
I know and love well. Royalties.
| | 00:34 | These are most common among book authors
although actors and some other kinds of
| | 00:38 | creative artists also
have forms of royalty income.
| | 00:41 | Here is how they work.
| | 00:43 | The author agrees to write a book in
exchange for royalties rather than a set
| | 00:47 | payment of say, $10,000.
| | 00:50 | Let's say the author earns $2.00 per book sold.
| | 00:53 | The publisher usually provides an
advance payment against those royalties,
| | 00:57 | let's' say it's $4,000.
| | 01:00 | Then the book starts selling.
| | 01:02 | The author earns nothing for the first 2
,000 copy sold, because those royalties
| | 01:06 | are paying off that $4,000 advance payment.
| | 01:10 | But from then on the author
makes $2.00 for every book sold.
| | 01:14 | If 8,000 more copies fly off the shelves,
the author walks away with a total of
| | 01:19 | $20,000: twice as much as the
set payment would have been.
| | 01:24 | But if no more copy sell, the author walks
away with a mere $4,000. So it's a gamble.
| | 01:31 | But with that risk comes the
potential for much bigger earnings.
| | 01:35 | Another kind of passive income comes
from affiliate and resale programs.
| | 01:40 | In these, you're essentially becoming
a salesperson for other companies in
| | 01:44 | exchange for payments known as commissions.
| | 01:47 | The offline version is well-known
and includes sales of such things as
| | 01:50 | insurance and cosmetics.
| | 01:52 | Now the online version is similar
except that the sales take place on your
| | 01:56 | website rather than in your home or office.
| | 02:00 | For an online affiliate program, you
first sign up with a merchant then put
| | 02:04 | their specially coded
links and ads on your website.
| | 02:07 | If a visitor clicks on one of those
links and fulfills an action that's valuable
| | 02:11 | to the merchant, you get paid.
| | 02:14 | The desired action isn't always a sale.
| | 02:17 | Sometimes you get paid when your
visitor simply fills out a form or
| | 02:20 | merely clicks a link.
| | 02:21 | There are many ways to find affiliate programs.
| | 02:25 | Some sites run their own such as Amazon.com.
| | 02:28 | Do a search for the word affiliate on a
specific site to find out whether they
| | 02:32 | have such a program.
| | 02:34 | Smaller sites often run their
affiliate programs through a third party.
| | 02:38 | The biggest of these is
Commission Junction at CJ.com.
| | 02:42 | There are also a directories and
reviews of such programs, for example, at
| | 02:46 | AffiliatePrograms.com.
| | 02:49 | You'll quickly see that
program quality varies widely.
| | 02:52 | As with any other place where
promises of easy money abound, the affiliate
| | 02:57 | world attracts some pretty unsavory
characters making empty promises and
| | 03:00 | harming your reputation.
| | 03:03 | So do your research.
| | 03:04 | And beware of the temptation to stretch
yourself too thin with affiliate programs.
| | 03:09 | It's better to join one program that
you can promote well than to join a
| | 03:13 | thousand that just sit there and do nothing.
| | 03:16 | When done right, affiliate programs
complement and multiply your other online
| | 03:20 | efforts, but that only happens when
they're relevant to other areas of business.
| | 03:25 | My own recommendation is to build
your other business first and then seek
| | 03:29 | out passive income.
| | 03:31 | I make a decent living from royalties
and affiliate earnings, but that would
| | 03:34 | never have happened if I hadn't first
made a name for myself earning money
| | 03:38 | the old fashioned way.
| | 03:40 | Handled right though, passive income
can supplement and even surpass the money
| | 03:45 | you make by selling hourly services.
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| Changing focus| 00:01 | It's rare that a freelance
career remains the same for long.
| | 00:04 | That's one of its great joys,
because you're always opening up new and
| | 00:07 | unexpected opportunities.
| | 00:10 | But it's also a burden because you have
to be ready to adapt to changes in the
| | 00:14 | market, your industry, and your own situation.
| | 00:17 | Some of these changes are minor such as
learning a new piece of technology, but
| | 00:21 | others require a deeper
examination of your core business.
| | 00:25 | Let's look at some of the
reasons you might change your focus.
| | 00:28 | First, events in the market might make
your current offerings less attractive.
| | 00:33 | That could be because of something
local like the appearance of a strong
| | 00:36 | competitor or it could be because of
something bigger like a depressed economy
| | 00:40 | that makes it hard for
prospective clients to afford you.
| | 00:43 | Related to that are changes in your industry.
| | 00:47 | A classic example comes from a century
ago when ice was harvested from lakes and
| | 00:51 | shipped to warmer climates.
| | 00:53 | But with the advent of affordable
electrical refrigeration around World War I,
| | 00:58 | that business pretty much disappeared.
| | 01:00 | Likewise, any layout artist who used
only 1990s era software and refused to
| | 01:05 | learn anything else probably
went out of business years ago.
| | 01:09 | But reasons for a change in
focus aren't always so negative.
| | 01:13 | You might uncover an opportunity
that's just too attractive to ignore even if
| | 01:17 | that means abandoning your old line of work.
| | 01:21 | Finally, you might have
personal reasons for changing focus.
| | 01:24 | Perhaps because doing so will be
better for your health or let you work more
| | 01:28 | closely with people you admire or
maybe just because it would be more fun.
| | 01:32 | Whatever the reasons for a change, a
main key to making the transition is to
| | 01:37 | figure out what you can use
from your current practice.
| | 01:40 | Even if the new focus is completely
unrelated to your current one, chances are
| | 01:45 | they'll have systems, procedures, and
even colleagues and clients in common.
| | 01:50 | Let's examine that by pretending
that we're switching between two
| | 01:52 | completely different freelance careers say
from magazine writing to horse riding instructor.
| | 01:59 | First let's get the obvious
differences out of the way.
| | 02:02 | Writing is done inside, it isn't very
physical, and it can be done anywhere.
| | 02:07 | Horse instruction is the opposite.
| | 02:09 | It takes place outside, it's
physical, and it's not portable at all.
| | 02:14 | Besides differences in the type of work
the business aspect also differ quite a bit.
| | 02:18 | While you'll tend to have corporate
clients as a writer who in turn will re-sell
| | 02:23 | your work to readers, you'll be dealing
directly with your service's consumers as
| | 02:27 | a horse instructor and the
expenses are very different.
| | 02:33 | However, there are similarities.
| | 02:36 | Both require that you take care of
business which means keeping client records,
| | 02:40 | making schedules, tracking
finances, and taxes and so forth.
| | 02:44 | You'll also need to make yourself easy to hire.
| | 02:47 | The actual methods will be different
between the two, but the fact that you need
| | 02:51 | a method of getting and
starting clients stays the same.
| | 02:53 | Of course, you need the same kind of work ethic.
| | 02:57 | One that treats your
freelance work as a business.
| | 03:00 | Now these are all things you can
use from your current line of work.
| | 03:04 | Finally, no matter what the transition
there's a good change you'll carry over
| | 03:08 | clients and colleagues from your old world.
| | 03:11 | People remember people.
| | 03:13 | A local client who remembers you as an
easy to work with writer might hear about
| | 03:17 | your new line of work and think, "You know what?
| | 03:19 | My kids would enjoy horse riding lessons."
| | 03:23 | Now obviously that was an extreme example.
| | 03:26 | Chances are your
transition won't be nearly as big.
| | 03:29 | But having said that in some ways
you should treat your new focus as a
| | 03:32 | completely new freelance practice.
| | 03:34 | Re-watch the videos that I list in the
exercise file accompanying this video.
| | 03:40 | Although it can be hard to change
gears once you get started, remember that a
| | 03:43 | change of focus can be a sign that
your goals are flexible and that you're
| | 03:47 | willing to meet new challenges.
| | 03:49 | Although haphazard changes in direction
can sap your strength, well-planned ones
| | 03:54 | can lead to greater success.
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|
|
ConclusionCase study: Publishing a book| 00:01 | While writing this course it occurred
to me that some of these lessons might
| | 00:04 | seem kind of theoretical.
| | 00:06 | So I thought back to my own freelance
career looking for ways that I actually
| | 00:11 | used these techniques and
remembering how I developed them.
| | 00:15 | In the end I realized that they're
evident in every project so I just picked one.
| | 00:20 | A book I wrote about the web
development software Drupal.
| | 00:24 | What you'll notice is that every step
along the way required preparation I might
| | 00:28 | have done years before, but
it all paid off in the end.
| | 00:33 | I got that job, because I knew I
wanted to write a book about the upcoming
| | 00:36 | release of Drupal's latest version.
| | 00:39 | But I didn't know what publisher would be right.
| | 00:41 | So I talked to a literary agent
who specialized in technical books.
| | 00:45 | Now I had met him years before
through an email discussion group for
| | 00:48 | computer book authors and publishers and in
fact we had already worked on another project.
| | 00:53 | He sent me up with a publisher Peachpit
Press, and helped me negotiate the contact.
| | 00:58 | As it happened I already knew my
editor at Peachpit, because we had worked
| | 01:02 | together at the same magazine
publisher ten years earlier.
| | 01:06 | We set up a schedule to deliver, review,
and revise the dozen chapters and other
| | 01:11 | elements that comprised the book.
| | 01:13 | We had regular meetings over the
next few months until finally the first
| | 01:17 | draft was nearly done.
| | 01:19 | Then tragedy struck.
| | 01:22 | We realized that the software had
changed substantially while I was writing the
| | 01:26 | book and that a lot of it
would simply have to be reworked.
| | 01:30 | We reset the schedule and got it done.
| | 01:32 | Then there were rounds of technical editing,
lay out, galley checking, and the like.
| | 01:37 | But to make a long story short, we
released the book on time just before the new
| | 01:41 | software version came out.
| | 01:43 | I made a website to support it and worked
with the publisher to promote in other ways.
| | 01:48 | So, what can we get from the story?
| | 01:53 | First, I wouldn't have found a publisher
so easily if I hadn't already developed
| | 01:57 | a relationship with my agent and I
wouldn't have met him if I hadn't started
| | 02:01 | actively taking part in this online
community of computer book authors.
| | 02:06 | When we started working on the book,
my editor and I broke down the daunting
| | 02:09 | task of producing a 264-page
book into manageable chunks.
| | 02:15 | Then I just plowed ahead and wrote the thing.
| | 02:18 | When we needed to change our course,
it was okay, because we'd planned for that
| | 02:22 | contingency and we'd stayed in
close contact the whole time.
| | 02:27 | But the job wasn't over when the book was done.
| | 02:29 | By creating a supporting site with
affiliate links I both gave myself passive
| | 02:34 | income and showed the publisher that
they got more than just a writer when they
| | 02:38 | signed me on the project.
| | 02:40 | This job is just one demonstration
of how diverse skills can add up to a
| | 02:45 | successful freelance project.
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| Next steps| 00:01 | Thanks for watching Freelance Fundamentals.
| | 00:03 | You've now seen how to establish,
run, and grow your business.
| | 00:08 | But of course, there is always more to learn.
| | 00:10 | Here are some of the lynda.com
courses that I've personally found helpful.
| | 00:15 | First are the ones that will help you
establish yourself as a professional.
| | 00:20 | You should already have a
listing on LinkedIn.com.
| | 00:23 | If you don't or you'd like to
better promote yourself there, LinkedIn
| | 00:26 | Essential Training will help.
| | 00:29 | Create an Online Portfolio with
WordPress will help you display your past work
| | 00:33 | in a way that's
attractive to prospective clients.
| | 00:36 | To run that site, you might find
managing a hosted website worthwhile.
| | 00:41 | Before you start selling your
services, you're going to need your
| | 00:44 | financial systems in place.
| | 00:47 | lynda.com has essential training
courses for two of the most popular accounting
| | 00:51 | programs, Quicken and QuickBooks Pro.
| | 00:55 | And for an easy way to accept
payments online there is PayPal
| | 00:58 | Essential Training.
| | 01:00 | Once you have your basic systems in
place, you'll want to improve your online
| | 01:05 | presence and explore various marketing methods.
| | 01:08 | Essential training courses in Twitter,
Facebook, and Google AdWords will guide
| | 01:13 | through each of those systems while
two courses in particular give you a
| | 01:17 | broader view, Social Media Marketing
with Facebook and Twitter and Online
| | 01:22 | Marketing Fundamentals.
| | 01:25 | Finally, lynda.com has lots
of great business courses.
| | 01:29 | Two that I found particularly
useful are Time Management Fundamentals and
| | 01:34 | Project Management Fundamentals.
| | 01:37 | If you get stuck figuring out which
direction you want your career to go in
| | 01:40 | next, see the Managing Your Career course.
| | 01:45 | There are also great
resources outside of lynda.com.
| | 01:49 | One in particular that I like is Phil
Gyford's article "A Beginner's Guide to
| | 01:52 | Freelancing" on gyford.com.
| | 01:55 | I certainly hope you found this course useful.
| | 01:58 | May you fulfill all your goals and I
look forward to seeing you and your work as
| | 02:03 | you build your freelance career.
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|
|
10. Bonus Chapter: Q&A on FreelancingFreelancing Q&A| 00:01 | My name is Tom Geller and I've come in
to answer some questions that members
| | 00:05 | have sent in in response to my
Freelancing Fundamentals course.
| | 00:08 | I've been a writer and editor for
about twenty years, off and on as a freelancer,
| | 00:12 | and here are some of those questions.
| | 00:20 | I think that there are two things
that you have to watch out for, especially
| | 00:22 | in your first year.
| | 00:24 | The first is that it's going to take
you awhile before you start making enough
| | 00:28 | money to support yourself.
| | 00:29 | So, be either well-funded enough or
have somebody who could support you or be
| | 00:34 | working another job or something like that.
| | 00:36 | I guess, don't expect that big break
immediately where everyone is going to
| | 00:39 | be flocking to you.
| | 00:41 | The other thing is I would say, sort
of along the same lines, start small.
| | 00:45 | Start getting used to
taking in small amounts of money.
| | 00:48 | Start used to doing the whole process,
getting the job, doing the job, getting the money.
| | 00:53 | I think a lot of people when they
start out really are thinking in terms of,
| | 00:57 | there's this big splash I want to make.
| | 00:58 | I'm going to be the biggest thing in town.
| | 01:01 | Well, that may eventually happen, but
you're going to have to first do it step by step.
| | 01:06 | So I would say, again, be realistic about
where you're going and how to get there.
| | 01:14 | I really like being able to
work whenever and wherever I want.
| | 01:22 | In fact, this time around,
starting in 2006, that was pretty much my
| | 01:27 | motivation for freelancing.
| | 01:29 | I had just come off of a contract where I
was traveling, and it was a great contract.
| | 01:32 | I'd been doing it for like a year and a half.
| | 01:35 | I said, you know what,
I never want to go into an office again.
| | 01:38 | So I started writing, and I started
traveling on my own dime this time, but I
| | 01:43 | started traveling and working from
libraries and cafes, wherever I was and so
| | 01:47 | on, and it's exactly what I want.
| | 01:49 | It really is the right lifestyle for me.
| | 01:51 | Now, quite honestly, it's not going
to be the lifestyle for everybody.
| | 01:55 | Some people start freelancing and then
realize, I need to have a set schedule.
| | 01:58 | I need to have a set office, and all
that sort of thing, but the good news is
| | 02:02 | you can do that if you want.
You can rent an office.
| | 02:05 | You can get up every
morning at 8 o'clock and so on. I like not doing that.
| | 02:13 | It's kind of an embarrassing story and
it was before I started writing and doing
| | 02:20 | all that sort of thing.
| | 02:22 | My degree is actually in music.
| | 02:23 | While I was at the conservatory, they
came in for auditions, as a lot of places
| | 02:28 | do, and this was for one
particular summer event.
| | 02:34 | I sang and they said,
well, it's not quite right.
| | 02:36 | We're really looking for operatic singers,
but we need a bassist for the jazz band.
| | 02:40 | Do you play bass?
| | 02:42 | I said, yeah, sort of,
because I could get around it.
| | 02:44 | I wasn't really a bass player, but I
said, yeah, sure and they said, great!
| | 02:47 | They didn't even listen
to me. They said, great! We need you. You're hired.
| | 02:50 | Come out and do it.
| | 02:51 | I got there and I discovered, I
couldn't keep up, and it was the most awkward
| | 02:57 | time in my entire life.
| | 02:59 | So I guess what I took away from that
is you should have confidence in yourself
| | 03:04 | as a person, but be realistic about
your abilities, and don't try to do
| | 03:08 | something that's really out of your league.
| | 03:10 | They'll remember you as someone who did
a bad job, and you'll just feel terrible.
| | 03:20 | The first thing I'd say is to expect it
to happen eventually, that somebody is
| | 03:24 | either going to not pay you or
try not to pay you or whatever.
| | 03:29 | Over the years, what I've found is
your best defense is a good offense.
| | 03:34 | Start from the beginning of the job,
making them know that they're going to be
| | 03:39 | paying you, with a letter of agreement,
a contract that spells out, not only how
| | 03:43 | much, but when and so on.
| | 03:46 | I usually say, payment is due for this
amount within thirty days of the completion
| | 03:51 | of the job, or however it's phrased.
| | 03:53 | Then make sure that you can say
when the completion of the job is.
| | 03:56 | Otherwise, it could just go on for a while.
| | 03:58 | Also, be prepared, if you have
to, to be aggressive with them.
| | 04:02 | Now, fortunately, I haven't had to do
that for years, and what you may find is
| | 04:07 | what I found, that the longer I'm in the
business, the less I have to deal with
| | 04:10 | such people. But when you get started
out, you're going to be dealing with
| | 04:14 | smaller clients who maybe aren't
used to dealing with a freelancer.
| | 04:19 | So having that contract is good, making it
clear is good, and also having an invoice.
| | 04:24 | Just by sending an invoice that's
saying, this is a real obligation; you
| | 04:28 | can't get away from it.
| | 04:29 |
| | 04:34 | Well, I can tell about my own freelance
writing experience, and I was a freelance
| | 04:39 | writer a few times before I sort
of took to it full time in 2006.
| | 04:44 | For the first couple of years, I sort
of did a lot of magazine writing, and I
| | 04:48 | found one magazine that was great that
gave me a lot of work, not enough to live
| | 04:52 | on, but a lot of work. Then I had to balance that out
with another one that wasn't so good.
| | 04:55 | I wrote few user manuals, that sort of thing.
| | 04:58 | So again, it was trying a lot
of things and then revving it.
| | 05:01 | What finally took for me was that I
built a site in Drupal, the web content
| | 05:06 | management system, and I got
involved in that community.
| | 05:09 | What I discovered was that the
community was big, it was growing, but it was
| | 05:13 | mostly technologists.
| | 05:14 | It was just starting to be
commercialized and marketed, and they needed writers.
| | 05:19 | So I knew about the technology and
I was already writing, so it was a really good fit for me.
| | 05:24 | But again, that didn't really
start happening until 2008/2009.
| | 05:26 | So it took a few years of
casting about before that happened.
| | 05:37 | Well, the difficulty in coming from a
fulltime career is of course managing your
| | 05:40 | time and also being able to make that
break from comfort to something that is
| | 05:46 | completely chaotic, that you're
going to be managing everything for.
| | 05:51 | I think that's the biggest change that
people have to face is realizing that
| | 05:55 | you're going to be doing everything.
| | 05:57 | There's not going to be somebody
buying the pens and making sure that
| | 06:00 | the kitchen is clean.
| | 06:01 | It's your kitchen and it's your pens and
it's your desk, and you have to clean it all.
| | 06:07 | You also have to get yourself up in the
morning and go to whatever you call an
| | 06:11 | office, whether it's a cafe or a
library or a desk next to your bed.
| | 06:16 | So I would say there are two things.
| | 06:17 | One is be prepared financially, as
anyone should be when they come to
| | 06:21 | freelancing, wherever they're coming
from, but also make that mental transition
| | 06:25 | to being your own boss and spending your
day doing what you want to do, but also
| | 06:30 | getting done the things that have to get done.
| | 06:32 | It's a tough thing,
but people do it all the time.
| | 06:35 | So, you can do it too.
| | 06:42 | Well, first realize that you
probably do have some assets.
| | 06:46 | You probably don't have as many as
somebody who has been working in the field
| | 06:50 | for then years, but you have been going
through college. You know your professors.
| | 06:54 | If you've majored in whatever it is you
want to freelance in, there's a chance
| | 06:58 | that you can talk to them and they'll
say, oh, yeah, you know, I know somebody
| | 07:00 | else who needs your skills and there you are.
That's how you get going.
| | 07:04 | But being a little bit more
realistic, you are going against more
| | 07:08 | experienced people.
| | 07:10 | I would suggest, take a look at some of
those entry-level jobs so you can build
| | 07:14 | up your portfolio and
you can get to know people.
| | 07:18 | I would also suggest,
interestingly, work in tangential areas.
| | 07:22 | If you're a writer, for example,
consider working in layout or graphic design if
| | 07:27 | you have those skills, because
you'll get to know other writers.
| | 07:30 | That's basically what I did.
| | 07:31 | Before I was a writer, I worked in
layout and graphic design, and I got to see
| | 07:36 | sort of the rhythm of the newsroom.
| | 07:38 | Eventually, I started
writing, and the rest is history.
| | 07:47 | One thing that I talk about a lot
during the Freelancing Fundamentals course is
| | 07:51 | to use what you already
have, and that's in a few ways.
| | 07:54 | One of them is to use the
skills you already have, obviously.
| | 07:57 | In other words, don't start freelancing
doing something completely new, but also,
| | 08:02 | use the contacts that you already have.
| | 08:05 | Let's say that you've been working
in graphic design, but now you want to
| | 08:07 | start working in film.
| | 08:09 | Well, there's a good chance that you
know some people from graphic design who
| | 08:12 | have also worked in film.
| | 08:14 | So start asking your friends.
| | 08:15 | Ask your colleagues, and ask the people
who know that you do good work, and say,
| | 08:20 | "How did you make the transition?
| | 08:21 | Do you know anybody who
might be able to help me?
| | 08:24 | Do you know anywhere I could go, where
I could get such work using the skills
| | 08:29 | that I already have?"
| | 08:31 | I guess what I'm saying is that you
have to focus on the transition when you're
| | 08:35 | first starting out, and realize that
you do have skills and knowledge and
| | 08:41 | contacts that you can use in
your future freelancing career.
| | 08:50 | Well, you're describing me.
| | 08:51 | So, I mean, being on camera is one
thing, but I'm happy to be all by myself
| | 08:57 | and a little awkward around people, really,
which is what's wonderful about the Internet.
| | 09:02 | A lot of what I do is through
email and the web and so on.
| | 09:06 | Now, it all depends on what
kind of work you're doing.
| | 09:09 | You might have that kind of high-touch service
where you go out and you sell it and so forth,
| | 09:14 | in which case you're
going to have to work on that.
| | 09:16 | But for a lot of jobs these days, especially
for creative professionals, you can do it online.
| | 09:22 | In fact, most of my
clients I've never met in person.
| | 09:31 | I think the important thing is that
you match the medium to the message.
| | 09:35 | Since you mentioned
craigslist, I'll start with that one.
| | 09:38 | Now, craigslist has three different areas
that are related to jobs and gigs and so forth.
| | 09:43 | There are jobs, gigs, and resumes.
| | 09:46 | The job section, people actually have
to pay to put their jobs into there, so
| | 09:50 | there's a sort of barrier to entry, if you will.
| | 09:53 | That means that the quality of things
you find there is going to be a lot higher
| | 09:56 | than in the gigs area.
| | 09:57 | However, of course, as a freelancer,
you probably won't want to take a fulltime
| | 10:01 | job, and that's mostly what you find there.
| | 10:03 | The gigs area is more of a free-for-
all, because as I say, anyone can post there and it's free.
| | 10:09 | So in my own experience, I haven't
found very high-quality jobs there, but it's
| | 10:13 | worth looking through once in a while.
| | 10:15 | Certainly, you should post your resume
in the resumes area, just in case someone
| | 10:19 | might be looking for what
you do. But there is a catch.
| | 10:22 | When you do that, you might start
getting a lot of junk mail from placement
| | 10:26 | agencies and so forth.
| | 10:27 | So, be careful about that.
| | 10:29 | Now, there are other jobs boards.
| | 10:31 | If you do a search for freelance jobs on
Google, you'll see all kinds of boards like that.
| | 10:38 | Then just decide which ones match what you
do and the kind of work that you want to get.
| | 10:47 | Well, the problem with bidding on some
of those job boards is that you might be
| | 10:51 | competing with people all over the world,
including places where they're going
| | 10:55 | to pay a very small amount per hour.
| | 10:57 | So again, I would try it out, but I
wouldn't invest too much time and effort,
| | 11:01 | and not too much hope into it as well.
| | 11:04 | But still, what I like to say is that
you should try a lot of things quickly and
| | 11:08 | see what works for you,
especially when you're starting out.
| | 11:16 | I think it depends a lot on the kind
of business that you're freelancing in.
| | 11:20 | If, for example, you're doing a lawn
mowing service, you have to get a lawn mower.
| | 11:24 | So there is some investment there.
| | 11:26 | If you're a photographer, you've
got a lot of money to put in upfront.
| | 11:30 | For someone like me, a writer or a
graphic designer, there's really not that much.
| | 11:33 | You need a little computer
equipment, a place to work, and so on.
| | 11:38 | Again, I would say, "Start small."
| | 11:39 | Actually, let's go back
to the photography example.
| | 11:42 | Now, a full professional photography
studio will have lots of cameras, lots of
| | 11:47 | lights, lots of props, and so forth,
but maybe you could start out smaller.
| | 11:52 | Just do portrait photography and a
specific kind of portrait photography.
| | 11:56 | Maybe you can do family photography.
Or if what interest you is landscapes, well,
| | 12:00 | landscapes of the state that you're in,
where you don't have to travel, you
| | 12:04 | don't have to pay for a lot
of equipment, and so forth.
| | 12:07 | Again, I think the theme is to start small,
get that first job, do it, and get paid for it.
| | 12:19 | I've really love doing this
Freelancing Fundamentals course, probably because
| | 12:23 | doing it has made me realize all of the
skills that you need as a freelancer and
| | 12:27 | that I've been able to gain over the years.
| | 12:29 | I really hope that by watching this
course, you are able to skip some of the
| | 12:33 | hard parts that I had to live through,
and that you'll be able to take off very
| | 12:38 | quickly and very easily
with a freelancing career.
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