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How to Maximize your Return on Freelance Work

How to Maximize your Return on Freelance Work

Freelance work may be one of the more difficult ways to make a living out there. Between tax headaches, feast-and-famine cycles, and sometimes having to undertake tasks that either don’t pay well enough or are just plain uninteresting, freelancing can often seem like an unnecessarily tough way to make a living. However, there are some measures you can take to be successful and still work on the schedule that suits your lifestyle and income needs.

1. Know the value of your work.

This crucial first step is where many freelancers make a mistake that can haunt them for months or even years. Sit down and make an honest evaluation of your skills and what you bring that makes you different, better, or more capable than others. Once you have done this, look into what others are charging for comparable services. If you can do better than they can for less, this will give you a good starting point to set your rates. Your clients will want to negotiate, and if the level of work makes it worthwhile, then by all means, do so. Otherwise, don’t be afraid to stick to your guns. Remember, you’re trying to create a mutually beneficial situation. That won’t happen if the client has final control of your payout.

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2. Treat your job like a job.

Freelancing seems like a fun way to make money in the short term. The problem is, especially if you are working on the Internet, you will have to structure your time so you can best serve your clients. When your clients are largely in the same country as you, this is one thing. However, especially when you are working from a different continent, you may need to be willing to make some concessions in your schedule. This will make it more likely you will get more work, because your clients will appreciate the extra effort you put in to accommodate them.

3. Manage your time wisely.

Procrastination is the enemy when it comes to working as a freelancer. Many clients schedule tasks for the quickest possible turnaround. Do not be afraid to tell a client you need more time to complete a project if the restrictions are unreasonable or you’ve run into a snag, but it is vitally important that you don’t abuse this. Most clients are willing to be understanding if they ask for something that is simply impossible, but if you blow off work for the beach, word will get around.

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4. Be clear on the requirements.

If there are any vagaries in the client’s requirements, don’t be afraid to seek clarification. For example, a client who agrees to pay $30 per 1,500-word article and orders a 15,000-word article but keeps the price the same was either not paying attention or hoping to get the maximum work for minimum payout. If possible, have a contract in place with the client specifying your rates for different lengths or types of work. Remember to allow a little wiggle room for extra research, time, or effort on your part.

5. Don’t forget about taxes.

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13 Freelancers, Good and Bad, Which Are You?

    Tax laws and requirements vary from jurisdiction to jurisdiction, but one thing that’s universal: You will have to pay them. Be sure to set aside an appropriate percentage of your income monthly, quarterly, or annually. It is generally better to pay monthly and overpay, at least under the US tax code, to avoid having to pay a larger lump sum at the end of the fiscal year. Independent contractors usually start at 30% for taxes, so being able to set aside 40-50% per pay period is ideal to avoid penalties and ensure a return at the end of the year.

    6. Sell yourself.

    Think of taking on new clients as a job interview and emphasize the talents you have that make you a better fit for a client’s needs. You are trying to market yourself to the client as the solution to their problems. At the same time, you need to make sure the people you are working for are going to be a good fit for you as well. This will help avoid friction and create a more harmonious working relationship. Be confident and clear about what you can deliver, as well as what client support you will need to be as productive as possible. By setting clear expectations, you can avoid a lot of problems before they ever have the chance to become problems.

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    7. Network, network, network.

    Being a freelancer can be hard work. Bearing this in mind, networking is critical to your success. Seek out new opportunities and ask current clients for references. Sites such as LinkedIn and Google+ are good for making connections. Also, don’t be afraid to ask for referrals or to renew a contract when the work is done. This may sound gauche, but there’s nothing wrong with “overhearing” someone at a restaurant, bar, or on the street mentioning they need exactly what you do…and stepping in to offer your services! The worst they can say is no, and you’ve just gained a new opportunity to prove yourself.

    8. Be a pack rat.

    Always hold on to copies of anything you do for a client, invoices you generate, payment records, contracts, receipts, and communications. Not only are these helpful for generating a profile of your capabilities, but it also makes tax and other record-keeping simple and efficient. Having a good organizational system that allows for at-a-glance order tracking and monitoring is imperative to keeping appropriate records. It’s also great for task management! Hold onto these for no less than three years after the contract is terminated, just so you can reference them if necessary. And ALWAYS keep a hard copy, because one virus and your great organization is trashed. At a minimum, you should keep copies of your records on your hard drive, in a filing cabinet, on a detachable stick or other drive, and it’s never a bad idea to email yourself copies of everything at least monthly. This ensures you have the information in a number of areas at the same time, so a catastrophic loss here won’t affect your data there.

    By following these 8 simple steps, you can maximize your freelance work return in no time!

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    Last Updated on January 21, 2020

    How to Develop a Millionaire Mindset in 6 Simple Steps

    How to Develop a Millionaire Mindset in 6 Simple Steps

    We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

    It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

    How do you go about developing that millionaire mindset? By following these simple steps:

    1. Focus On What You Want – And Take It!

    So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

    Millionaires play to win, not to avoid defeat.

    This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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    2. Become Goal-Orientated

    It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

    Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

    Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

    Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

    You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

    If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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    If you are to become a millionaire, you need to start accumulating money.

    Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

    3. Don’t Spend Your Money – Invest It

    The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

    Stop working for your money and make your money work for you.

    Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

    There’s not just the stock market — there’s also property, and your own education.

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    4. Never Stop Learning

    The best thing you can invest in is yourself.

    Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

    Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

    Learn everything you can about how economics works, how the stocks markets work, how they trend.

    Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

    Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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    5. Think Big

    While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

    There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

    Aim for the stars, if you fail you’ll still be over the moon.

    6. Enjoy the Attention

    To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

    Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

    If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

    Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

    More About Thinking Smart

    Featured photo credit: Austin Distel via unsplash.com

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