Resources

Should I take the plunge?

Working as a freelancer

Originally appeared in the June/July 1998 issue of Carolina Communique, the newsletter of the STC Carolina Chapter.

Sooner or later, most technical communicators face the Big Question: Should I take the plunge into freelance work? When evaluating this important career move, there are several issues that you should consider.

Networking

The most important and useful asset that you have is not your experience—it's your network. Although experience and skills are necessary to complete a freelance assignment, you first need a network so you can find work.

Ask yourself: Can you think of 10 people who are in a position to hire freelancers? Can you think of 20 people who would recommend you to others? Do you know decision-makers at many different companies (potential clients)? Do you have a well-developed "grapevine" where you hear about what's going on in different companies? Does the thought of spending up to 20 hours per week on sales, marketing, and networking fill you with glee or horror?

Finances

There's good news and bad news in the financial area. The good news? Successful freelancers make a lot more money than their employed counterparts. The bad news? Most freelancers are not highly successful.

Deciding to become a freelancer is a risky move. It means giving up a steady paycheck and being at the mercy of your clients who pay after 30 days, after 60 days, and sometimes not at all.

Ask yourself: Can you (and your family) manage without your steady paycheck? Can you afford to work without any pay for at least the first three months of life as a freelancer? Can you manage your personal finances with an unpredictable income?

Personal characteristics

As a freelancer, you will probably work in a home office some of the time and at client sites some of the time. This means you need to be highly motivated and self-sufficient. You will no longer have access to support personnel, such as help desk staffers and network administrators. You need to keep your computer up and running with minimal assistance.

Another important characteristic is your attitude toward new projects and new challenges. Do you like variety? Do you like being thrown into new projects with little or no information? This is how things work for a freelancer.

You'll need to be a perfectionist, but at the same time, you need to go along with your client's decisions—even when you don't agree. Of course, you can explain your point of view, but your client has the final say, not you. If the idea that someone will change your prose after you finish it makes you queasy, freelancing is probably not for you.

The expression "feast or famine" is particularly applicable to life as a freelancer. You'll panic because there's no work in the pipeline, and then suddenly you will be inundated with projects. As a result, flexibility and the willingness to work very long hours one week and no hours at all the next week are critical.

Ask yourself: Are you a risk-taker? Do you like new challenges? Are you easily bored? Do you work well with others? Can you juggle different projects? Can you handle an unpredictable, erratic work schedule?

Running a business

Working as a freelancer means that you are running a small business. You need to become familiar with tax regulations, business licensing requirements, accounting and bookkeeping, contract law, and more. Of course, you can hire professionals to help you with these issues, but you should understand the basics so that you can make informed decisions.

Ask yourself: Are you willing to learn mind-numbing details about sole proprietorships, corporations, and other legal entities? Can you keep good records to ensure your eligibility for important business-related tax deductions?

Agencies vs. independents vs. staff employment

"Should I go independent or work through an agency?"

"Should I give up my staff position and become a contractor?"

There is no simple answer to these often asked questions. Each approach has advantages and disadvantages. Consider the following:

Agency

You work on contracts that vary in length but generally run six months to one year.

Advantages: Agency works with its clients to find work for you. Your workload is usually steady, which means you have a high number of total hours for a year. Agency often (but not always) provides benefits. Agency puts you on payroll, so you don't have tax headaches from self-employment.

Some companies prefer to hire through agencies to avoid the infamous "independent contractor" designation from the IRS.

Disadvantages: Your hourly rate is generally lower than it would be as a freelancer. Because you're an employee of the agency, you lose business-related tax deductions. In some client companies, contractors are viewed as second-class citizens.

Independent

You work as a freelancer. Your contracts vary, but they're likely to run three to six months or shorter.

Advantages: You're the boss!

Disadvantages: Taxes for a freelancer are complicated (and high). You have to market your service and find work. Work tends to be cyclic—you're overworked one week and bored the next. You'll have no benefits, so you'll need to acquire those elsewhere.

Staff position

You are an employee of a company and work there permanently.

Advantages: In theory, you have job security. Your employer likely offers benefits (don't overlook the importance of paid vacation). You can take on long-term, strategic projects, which are usually not offered to contractors.

Disadvantages: You may get stuck in a rut, working on the same projects over and over again.

The bottom line

Freelancing can be highly rewarding, both financially and professionally. But it's a high-risk endeavor, and it's not for everyone. Before you take that leap, talk to colleagues who have "been there." Former freelancers can be especially helpful. Don't forget to discuss this idea with your spouse or significant other; freelancing is a major lifestyle change.