Your Writing Revenue Sweet Spot

What’s on the iPod: This is London by The Airborne Toxic Event

The view from the kitchen door

It’s been a week of wheel-spinning. I spent Monday thinking I’d get so much done, but spending the majority of the day shoveling (and re-shoveling) the driveway. Ten inches later, I cried uncle and went inside. By then I had just enough time to look over some poems I’d written and put a few words down on an article.

Yesterday was a bit better, but still disjointed. I went off to attend a meeting I was invited to only to arrive at the address and see no one. I should have called — the snow affects people for days around here. I’m not used to that — I’m used to everything getting back to normal within a day. Oh well, my fault for not double checking. I’d failed to give anyone my phone number, so that’s what I get. It’s often the small details that trip us up. Still, I’d put on deodorant, you know? If you work from home, you know.

I receive emails from Ed Gandia over at the Freelancers Academy (I highly recommend anything Ed has to offer — he delivers what he promises). One of his more recent offerings is a Six-Figure Writer Mastermind course. I had to write to Ed because I’d been fussing for a while about people who tout the six-figure claims. Ed is not included in that dubious company. His course is designed for established writers. There are no pipe-dream promises that part beginners with their money. So if earning six figures is a goal of yours, go for it.

Still, what if that’s not your goal? What if your goals are a bit less ambitious? How do you find that earnings sweet spot that makes you feel you’ve accomplished your goals?

By planning for it.

Finding your sweet spot is, in my opinion, a combination of your goals, your hourly fee, and your client base. In order to get that sense of control over your earnings, all three should be defined, I think. So let’s start with the goals.

What you’d like to earn. That’s not what you need to earn, but what you want to earn. Is $70,000 a year a good number for you? Or will $40,000 be more than enough? Your goal should include your current expenses and your latest annual revenue. Compare how much you made versus how much you paid in taxes, retirement,health care, etc. Adjust where necessary, and don’t forget to factor in at least a 10-percent increase in your annual revenue moving forward.

What you’ll charge hourly. Some jobs and clients make this part easy. For example, magazines pay out a certain amount. If they don’t pay enough, you can move on. And some clients wouldn’t hire you if you charged $200 an hour, nor would those same clients take you seriously if you charged just $50 an hour. If you specialize, in most cases you should be over $100 an hour just to compete. There are exceptions, but specialized writing usually does demand higher rates.

The caliber and number of clients. I can have six clients and still do poorly on the revenue front. Why? Those six may not be willing to pay competitive rates. Imagine having six clients who agree to paying $50 for one blog post per month. Three hundred bucks isn’t going to get you to Tahiti, nor is it going to pay off your kid’s braces. Instead, look for quality clients who aren’t afraid to pay for good writing. I like a minimum of four clients in the mix, but know that clients and work can disappear overnight. Still, three quality clients paying you $200 a blog post gets you much closer to your goals than six low-paying ones.

Now that you know each of these areas, let’s maximize that revenue.

Actively seek clients. You may have had success at one point with job listings. You may argue that one job amounted to enough money to justify the time spent searching/competing with other writers on these job boards. I argue that there’s much less competition and much more potential in reaching out to the clients you want to work for, introducing yourself, and showing them how you can benefit them. Job listings are filled with people telling you what to charge. Instead, set your own rates and go find clients who deserve good writing.

Set monthly earnings goals. I like monthly because it’s less stressful and time-consuming than trying to track earnings per week or even per day. Take your annual figure, divide by 12, and start shooting for that monthly target.

Be accountable. You can tell a friend, tell your blog community, or start a thread on your forum about your to-do lists. Over on the 5 Buck Forum, we announce our intended to-do lists each Monday and check back in as we tick things off the list. It’s a huge motivator to know you’re answering to someone.

Move laterally. If you’re feeling like your area of concentration is drying up, try moving sideways. What other areas can you work that deal with the same types of projects you handle currently? For instance, if you write about diet and exercise for consumer blogs, what innovations in the industry can be told to a trade audience? If you write about fashion, why not write for retailers, manufacturers, distributors, etc? There are several directions you can take nearly any focus area.

If you’re working too hard, raise your rates. In 2012, I barely saw the outside of this study. I worked solidly through the usually lean summer months and right through December. When I couldn’t take a break even to take a vacation, I knew it was time the rates went up. This year, the work is steady and I’m hitting my monthly goals without killing myself.

Writers, how do you find your earnings sweet spot? How long did it take you to reach it? When did you know it was right for you?