On a discussion list I belong to, I was reading through a debate over rates.
Yea, that one again.
One more time (does it ever change?), freelancers were debating why a writer working in a rural area should charge differently than a writer in an urban area. The debate was pretty lively, just slightly heated. Strong opinions are tough to let go of, but the ones who think writers in rural areas should charge less very much need to let go of that opinion.
Because it’s kind of crap.
Where are your clients right now? Do you know? I have about six clients I work with regularly. I know where two of them are. The other four — good question. And it doesn’t matter. In fact, one client runs an entirely remote operation (sound familiar, freelancer?). The staff is working from all sorts of locations. Guess what? They don’t charge differently for their services based on their location(s).
And all those clients? They don’t take an apologist’s approach to pricing, either. They charge what their research has determined is the best price for them to make a profit.
That’s the first business mistake freelancers make. The second one? It’s probably the most important one, and freelancers, particularly newer ones, may not know about it:
Failing to treat your freelance writing as a business.
Oh yes, you did. I know. I did once, too. And part of running that business is setting rates, but we’ll get to that.
We get into this freelancing thing because we love to create. We have some skill at it, and we want to make money doing what we love, preferably from home. But we don’t sign up for running a business. It never enters our minds. Well, until someone points it out to us.
If you’ve not had that revelation, let me be that someone.
Here are the things you’ll be doing as an owner of a writing business:
- Setting rates
- Marketing and advertising
- Finding clients
- Building name recognition (hopefully among people you hope will hire you)
- Invoicing/debt collection
- Paying taxes
- Paying overhead (thankfully, there isn’t much)
- Buying supplies
- Paying for your own healthcare, vacation, sick days, etc.
At some point in there, you’re going to write. But if you think the writing is the only part of the job, you’re mistaken.
Why you need to know this:
[bctt tweet=”Knowing that you’re running a business, not just #freelancing, changes your attitude.” username=”LoriWidmer”]
More importantly, that knowledge changes your actions. If a client rejects your proposal, it’s not a personal failing. It’s a business not able to fit with another business’ services. If a client stiffs you, it’s a customer not paying a bill owed to the business. If they want edits, it’s not about your ego anymore. It’s about fulfilling a business promise (though I grant you that this one is a bit tougher to adjust to at first).
It matters in how you perceive what you do. And how you perceive what you do matters because … you’re going to place a value on what you do. Your rate. And setting a solid rate is part of that business confidence you didn’t know you needed.
So when you set your rates at $150 an hour and some prospective client calls you crazy, it’s not about the guilt you feel charging what you know you want to charge. It’s about owning that rate and knowing that is not a client you’ll work with. Ever. (And you’ll never lower your rate to someone who uses guilt to negotiate, right?)
If you can’t square with being a business and a freelancer, stop calling yourself a freelance writer. Start calling yourself a writing and editing firm. A contract writer. A writing specialist. A consultant. Ramp up your own opinion of yourself from the title on down to your dealings with clients.
Then watch how your own attitude shifts.
Writers, when did you realize you were a business? What did that lightbulb moment look like?
Any advice for new writers on how to shift from freelancer to business owner?
When speaking with new freelance writers, I like to point out that most freelance writers probably spend less than half of their billable hours on writing.
Identifying potential clients, marketing, research, interviews, transcribing (or cleaning up automated transcripts), copy editing, invoicing, chasing payments, networking, ordering supplies, and a hundred other little things take up at least half of your time. Phone calls and meetings are huge time sucks.
Not sure about the rest of you, but I relish it when I get to sit down and to the actual writing!
Excellent, excellent comment, Paula. These past two weeks being the exception, I spend half my time on these very things. The rest might be writing. Or cleaning my desk. Or social media.
So true, Paula. There are so many other tasks involved with running a freelance business.