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BOOK REVIEW: The wealthy freelancer

The Wealthy Freelancer: 12 Secrets to a Great Income and an Enviable Lifestyle, by Pete Savage and Steve Slaunwhite

THIS book has a very specific audience: people working as freelancers, or people who are considering working as freelancers. Freelancers are the self-employed who are hired to work for different companies on particular assignments.

Into this category fit the stay-at-home parent, the retired, the laid-off, and those considering leaving full-time employment to work on their own.

The “wealthy freelancer” of the book’s title is someone who consistently gets the projects, clients, income, and lifestyle he or she wants. The first step to getting into this category is to be sure what this would mean to you.

It is highly unlikely that you will get the projects, clients, income and lifestyle you want at first, but “it’s crucial for every aspiring wealthy freelancer to get comfortable with the idea - and the feeling - of being in control. Most freelancers are completely out of control,” the authors explain.

It’s one thing to choose to accept work that falls below your standards as a stop-gap measure, and another thing to be completely oblivious to the notion of standards in the first place.

A rewarding freelance career requires that you choose your clients well. Having clients you really enjoy working with can make each day seem like a vacation. Your goal should be to consistently attract the right type of clients.

To get clients, the authors suggest that you compile a list of 150 to 200 high-probability prospects. This list comprises organisations and industries where you would have the highest probability of success. It should focus on the specific people or positions who will benefit from your service, and therefore be good targets for your marketing efforts. You probably need multiple marketing efforts over a year or two, not only one or two contacts.

Lucrative and enjoyable work

Through your marketing efforts you will find “leads”, prospects who indicate a level of interest in your work. This will offer you opportunities to present your services to these leads with a high probability of getting lucrative and enjoyable work.

Of course, you will find that many prospects have interest, but “not today”.

These need to be nurtured because a lead is four times more likely to become an opportunity if you follow up effectively. The freelancer who stays in touch is often the first person the client thinks of, when they are ready to purchase the service.

The authors’ experience has led them to believe that a freelancer with solid training and experience can and should be earning at least as much - and even more - than their employed counterparts. As with the projects, you will need to set your standards with this in mind.

An example of such standards could be: I do not provide free or “spec” work for any reason. I charge a 25% premium for all “rush” jobs. I do not begin work without 50% of the project fees paid up front. I do not do work that requires me to sacrifice my weekends. I only accept projects where my average hourly earnings will equate to R1 500 an hour or higher.

To be successful you need to know that your lead has a budget set aside for the project, and what that budget might be. This can be determined by asking appropriately: “Has a budget already been set aside for this project and if so, what is the budget range?”

Or “my fee for this type of work is between R2 000 and R3 500. Is that within your budget?” Knowing that the lead is simply shopping around will save you the effort of working on a proposal, and allow you to move on to another lead.

Pricing is a common problem among freelancers. Pricing yourself too low often results in being stuck at that low price level for any future projects the client may have for you. It also flags you as an amateur. The authors have found that competent freelancers can quote top rates and still win the work.

Set your price little higher

“Be daring and set your price a little higher than you think clients would be willing to pay,” they suggest.

Part of the success of wealthy freelancers is attributable to quoting, wherever possible, on a fixed project price, rather than an hourly rate. Charging by the hour is fraught with problems and severely limits one’s income potential if for no other reason than that you get paid less the faster and better you get.

The authors have observed that the most compelling reason to be a “project pricer” is that clients prefer it. It provides the comfort of knowing how much the project will actually cost in advance.

This will require the effort of compiling the fee range for your services. To determine your fee range you need to know the going professional rates for the services you offer. The fee range, rather than a fee, is necessary because no two freelance projects are exactly the same.

A critical question for every assignment is the “expected results” question. When you ask a contractor for a price to install new floor tiles in your bathroom, what are you really asking for? The cost to glue 78 tiles in place, or the price of a beautiful new floor? A quote is always more compelling when you incorporate the client’s answer to the expected results question.

“I find that clients often have more respect for me when I stand up for my rates - and respect, of course, leads to more work from that client. I doubt that would happen if I dropped my price for no reason,” explains one of the authors.

Enjoying the lifestyle of your choice is the most important marker of a successfully self-employed professional. However, this is often the first thing freelancers put on the back burner, when business is difficult or scarce. Having a clear idea of your ideal project, client and income will keep your standards in mind as the aspiration, as will having a clear idea of the lifestyle you wish to enjoy.

It may involve scheduling lunch with friends once a week, taking walks along the beachfront on Thursday afternoons, or spending quality time with the children every day of the week. “Make those things as integral to your business as clients, projects, and money,” say the authors.

The book has 12 topics that form the basis of a “wealthy freelancer” career, and more than 50 superb ideas to make that possible.

If freelancing is on your agenda, this book is the best source of quality, practical information I have come across.

Readability:    Light -+--- Serious
Insights:        High -+--- Low
Practical:        High +---- Low

*Ian Mann of Gateways consults internationally on leadership and strategy and is the author of Strategy that Works. Views expressed are his own.

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