HELP YOURSELF ALERT
How do you give great service to each client when you get really busy (and you will get busy)? In this chapter we’ll look at how to give clients what they want without losing sight of what you want—from your day-today interactions and best practices to some important legal issues freelancers need to know about.
Do these three things most of the time, and most clients will show amazing tolerance if (OK, when) you mess up sometimes:
1 Be there.
2 Prepare.
3 Care.
Being there means looking out for your clients’ interests—often just requiring garden-variety best practices:
Turn in your best work, on time. It’s the ultimate be-there.
Say what you can do, not what you can’t.
Be on time for meetings and calls. People might not comment on it, but lateness is noticed. Even a few minutes rankles some closet control freaks.
Don’t multitask on calls. Think clients won’t hear your computer’s cheery “Hello, I’m turning on!” song? Keys clicking? Email-distracted pauses? Don’t you?
Unless you’re butt-deep in a crisis, don’t take calls during calls or meetings with clients. It’s like dating: Clients know you see other people, but they don’t want to think about it.
Be helpful, even when it’s not your job. Your clients should be in your Love Bank. Drop off a package to save them sending a courier. Bring an extra copy to the meeting. Don’t charge for the first time they cancel a session (with a friendly warning: “Normally, I charge for a cancelled session, but you get a free pass the first time.”).
Stay in touch. Not just when you’re paid to be.
“Hi, Dave. I saw a Gizmofest ad today and thought of you. You’re probably getting ready to go. Have a great show.”
“Hi, Daria, Happy New Year! I wondered how things were going with your script submissions.”
“Hey, Devon. Great blog post yesterday! I shared the link.”
It’s not that you always have to be there. But when you’re there, you’re there. “A client once told me, ‘You had a hundred deadlines, but I never felt you didn’t have time for me. If I called when you were busy, you’d say, “I’d love to talk about that; let’s set up a time. How about tomorrow morning?” You always made me feel important, you knew how to manage your time, and you found time for me somehow.’”
| “I CAN’T” STATEMENT | “I CAN” STATEMENT |
|---|---|
| “I can’t do a call until three p.m.” | “I’m here from three p.m. until five p.m. When would be a good time?” |
| “That deadline’s too tight.” | “I can deliver it by _____.” |
| “I can’t start for three months.” | “I’d love to work with you, if we can start in June.” |
| “I can’t start until I receive the initial payment.” | “I look forward to starting work after receipt of the initial payment.” |
Preparation tells clients they’re important. Keeping your office and yourself organized will help. For strategies on that, see Chapters 2, 13, and 14. Meanwhile, some tips:
Let them know you prepared: “I looked at your website . . .” “I did some preliminary research . . .” “I was reviewing my notes . . .” “I read your latest book . . .”
Get up to speed: “Let me call you when I have the document onscreen.” “I’ll touch base after I’ve read your memo.”
Respect their time: “You said you had another call at eleven. I’ve got a couple more questions and then we’ll wrap up.”
Caring takes surprisingly little effort and builds shining palaces of goodwill. Transparency shows caring and builds trust—especially important with new clients, since people are generally most vigilant at the start of a relationship: “When I start editing a client’s manuscript, I give a reason for every suggestion,” Luke says. “Once they trust me, we can communicate in shorthand. Ultimately, things move faster, they get a better book, and I get really happy clients.”
Personal caring counts hugely: “Years ago, I was scheduled to meet a prospect who was coming into town for a lot of meetings. The day before, he left a voicemail cancelling his trip because his wife had a health emergency. I left him a message saying I hoped his wife was OK. That was years ago. He’s never forgotten that I was the only one who called to express concern for his wife.”
Company workers handling a tough client can hide behind company policy, bring in reinforcements (the boss), or even heavy artillery (the legal department).
You, freelancer, are infantry, general, and artillery rolled into one. You have to establish your policies, communicate them, and enforce them. Thus the funky whiplash feeling you get playing good cop/bad cop—seeing as how you’re the only cop in the room: “We’re on track for the deadline. But we need to discuss the payment that was due last month.”
The best way to have great client relationships is to map out the strategy, tell your client what to expect, and then keep the campaign on track. After all, who knows more about getting your job done than you?
It starts with your first conversation, where you explain what you provide for your price, how you’ll meet your obligations, and what you’ll need from your client in order to do so. In psychobabble, you’re setting boundaries. In business, you’re managing expectations.
Boundaries are best set before they’re violated. Just be collaborative yet confident: “I’ve found this works [describe]. I think it’ll work here. What do you think?” You’re building trust and setting the project up for success and so it works for you.
Use or adapt this checklist to set your boundaries with clients. Be willing to give a little, and they should, too. One person getting everything their way usually signals a dangerous imbalance in the relationship (more on that in Chapter 7).
1 Anything else we need to discuss? Presumably you nailed down project specs and scope in your agreement, but if there are any loose ends, handle them now: “I’m all set to start, as soon as we work out a few final details.” If necessary, do a contract amendment or send a confirming email or letter: “Here’s what we agreed on today. I look forward to working with you.”
2 My communication practices: Some freelancers check email and phone messages at specific times. If you do, say so. Try not to make exceptions at the start.
3 My weekend availability: Some freelancers work on weekends just like weekdays. Some work but don’t answer emails or calls. Some take weekends completely off. Some (like party planners or musicians) may be busiest on weekends and take time off during the week. Explain your policy. Any later exceptions are nice Love Bank things to do.
4 My availability during the workday: If all hell breaks loose when your kids get home from school, you might say, “I don’t take phone calls after four p.m. because of family obligations. I’ve worked this way with all my clients [social validation] and it’s never caused problems.” You don’t have to explain. Maybe Wednesday afternoons are for sports, yoga, personal writing, museum visits, recipe testing, bookkeeping, visiting a relative, volunteering, writing your blog or newsletter, or working on Level 4 projects. Just make an “I can” statement: “On Wednesdays, I’m available until two p.m.”
5 How we’ll do check-ins: Will you email weekly progress reports? Say so. Hate to be interrupted? Flag it: “When I’m writing, calls go to voicemail. But you can always leave me a message. I’ll get back to you in twenty-four hours.”
6 How we’ll structure feedback and approvals: Try to suss out the decision tree: Who makes the decisions? Are there layers of approval? Ideally, put specifics in the deal (see Chapter 5). Be clear that you’re a team, with shared accountability: “Let’s set up a feedback system so delays don’t jeopardize the schedule.” Then make sure it happens.
7 What’s the best way for me to work with you? “A client mentioned he’s a morning person, so I try to schedule our calls then.” “I noticed a client was emailing me on Sundays—obviously when she was carving out time for our project. I try to set up my workflow so I can send her material on Fridays.”
8 Do you have any policies or procedures I should know about? Do they need layouts by three p.m. Monday for their ten a.m. Tuesday marketing meetings? Do they cut checks on Thursdays and need three weeks to process invoices?
The clients you want to work with—the grown-ups of the business world—notice good communication: “I’m a great communicator and rarely let things fall through the cracks. On the rare times that it seems I’m going to miss a deadline, I’m in communication, and my clients appreciate that.”
Employees work in a living laboratory for communication, but freelancers have to learn on their own. Read up on communication and study people who do it well. Here are some ground rules:
Even if your client has worked with freelancers before, everyone’s different. Put a page on your website about how you work. Tell your client how you operate. Use the Setting Boundaries checklist. Explain your next steps on their project.
That means helping clients figure out what they want; then tactfully escorting them toward decisions:
“How do you envision the event?”
“Why do you think the competition is outselling you?”
“What do you think isn’t working in the ad campaign?”
Unlike bosses, clients can’t see how hard you’re working. So tell ’em:
“I’m starting the next section today.”
“The mock-up will be ready next week.”
“I fixed the coding glitches.”
If problems arise, they’ll know you were on top of things. You’re also giving them an opening to give you information:
“I have new data for that section.”
“I’m on jury duty next week, so take more time if you want.”
And it keeps everyone on point about his or her responsibilities:
You: “The photo research is almost done and ready for you to start clearing the permissions.”
Client: “I thought you were doing that.”
You: “Actually, our contract says I’m doing the photo research and you’re clearing the permissions.”
Ask which versions . . . colors . . . desserts . . . formats . . . they’d like. Narrow the options to a few you recommend, and say why. Asking for too much input makes you look indecisive, and your clients will expect unlimited input on everything.
When you reach agreement on a key issue, send a quick email recap or do a contract amendment if it’s major. It’s good protection for everyone. Suppose your contact or the person who green-lighted the project leaves or is laid off, or the boss hates the campaign. You need paperwork to confirm that yes, the budget was authorized, the deadline was extended, and the colors were approved.
Even if it’s just: “I got your email and will proceed as instructed. Thanks.” When you don’t respond—especially about a problem—you’re putting your reputation into someone else’s hands. Get in there and manage perceptions. Even just saying, “I need to look into your questions. I’ll get back to you by [date or time frame]” lets them know you’re on the case.
Whether it’s face-to-face, phone, texting, email, fax, or snail-mail depends on your purpose and planned impact.
Email is fine much of the time. Just choose it; don’t default to it. A client who emails you may be assuming you’ll respond in kind (same goes for the phone). But if you think the conversation can be more productive in another mode, you can, for example, decide to call to discuss their email. Consider the client’s comfort level and what will move things forward.
Don’t assume people will read long emails, especially since so many read messages on their smartphone. Get to the point, list your questions or options, and when appropriate suggest a date to finalize a plan.
When you’re angry, step away from the keyboard! Angry written words last forever. A phone call or meeting could be a smarter choice.
The phone is great for getting a quick decision, brainstorming, and persuading, and it gives you valuable clues from the person’s tone. It’s powerful for subtle or sensitive communication, from negotiations to troubleshooting.
Snail mail is high-impact because it’s increasingly rare: usually reserved for “official” communications such as formal proposals, contracts, and legal correspondence. You can email the doc as an attachment for quick receipt and follow it with a snail-mailed hard copy.
Then there’s the handwritten note: warm, rare, high-impact. A typewritten thank-you note is impressive; a handwritten one is exceptional.
Choose your words. Proofread, proofread.
If you’ve got something tough to write, draft it in chunks. Start with the sections where ideas and words are flowing, or sections you can adapt from other material. That way you make progress and get inspiration for the harder parts. Or try drawing a flowchart or diagram to map out your ideas.
Proofread more than once; don’t trust your computer spelling and grammar check to catch everything. If it’s really important, ask your mate or a Brain Trust buddy to proofread and give feedback. Doublecheck to make sure people you want cc’d on an email (or not) are included (or aren’t).
With international clients, avoid slang, metaphors, or abbreviations that could be misunderstood.
Be sensitive to intergenerational issues. If a client is older or younger than you, there might be differences in communication style and understanding of technology.
A freelancer told me this story: “I took riding lessons as a kid, and one horse was really nasty and liked to kick people. The safest way to walk behind him was to approach where he could see you, get up close, and then slide around his rump, keeping in contact. If he tried to kick, you were too close for him to do real damage.”
Bad news can put distance between you and your client, so stay close. Instead of writing an email, maybe pick up the phone, or meet.
Stay close while you’re fixing it, too. Let them know you’re working on it. Ask how they’d like to receive your progress report: “Would you like me to call or send you an email?” Staying close helps you manage perceptions. Allow too much time and distance, and they might wind up for a kick.
Feedback means everything to a freelancer. And it’s one of the hardest things to control. When you send off a project and hear nothing for days or even weeks, as one freelancer said, “You assume ‘they hated it,’ when in fact often they’re so busy they haven’t even looked at it.”
Then you either get too much feedback (groupthink) or not enough: “I busted my rear for nine months on a project and the feedback basically consisted of two sentences! Good thing the first two words were ‘great job.’”
Or it’s totally contradictory: “Sometimes—OK, often—clients don’t quite know what they want, and a project can go merrily in one direction and then suddenly shift. I’m currently working on a project using a particular piece of music. When the company heard the demo they thought it sounded stuffy and boring even though they’d approved it. Back to Square One.”
Here are six ways to make getting feedback easier:
1 Prep your client. Tell them changes, revisions, and corrections are part of the process. A sketch, mock-up, or sample is just that. You’ll work with them to shape it.
2 Prep yourself. It’s hard to be detached, but listening to your client is part of your work, too: “I need time to think over feedback. So I say, ‘I’m just going to listen and take notes right now.’ That way they don’t expect me to respond immediately.”
3 If the feedback’s negative, could communication be better? Are there key questions you should have asked? Were wrong assumptions made? Suggest ways to avoid future problems: more check-ins? showing material in earlier stages?
4 Stay cool (even if they aren’t). “I knew an executive who used to call composers he’d hired and leave a message, ‘Got the song. We have a lot of problems. Call me,’ and slam down the receiver. Years later, I met one of the composers, who told me when she got those calls it took her all day to get up the courage to call back. But when she did, she would ask, ‘Do you like the melody?’ ‘The melody’s fine.’ ‘The tempo?’ ‘That’s fine.’ ‘Um . . . , the guitar?’ ‘I like the guitar.’ This would go on until she went through the entire arrangement and would finally say, ‘Is it the tuba?’ and the exec would say, ‘Ugh, I hate the tuba!” She’d take out the tuba—and all would be well. So if you hear some version of ‘We hate it,’ don’t panic. Peel the layers of the onion to figure out what they hate. It isn’t easy—but it’s part of freelance life.”
For serious problems, have the conversation face-to-face if you can, in person or by video call.
5 Agree on how you’ll proceed together from here. How far are things from where they need to be? What’s a reasonable time frame for fixing the problems?
6 Send a confirming email. And give yourself props for coming up with a masterful plan.
What if what the client wants falls outside the project’s scope? Be quick, be calm: Flag what’s out of scope and talk terms and logistics (for more on handling this and other problems, see Chapter 7).
It may seem surprising, but part of your job is actually to give your client criticism—in the form of constructive suggestions about what you need in order to do your job well. Here are six strategies to try:
1 Stay project-focused. “I frame it in terms of what will help the project,” Tom says. “It keeps things objective. Even if they disagree, they can’t argue with my wanting to do right by the work.”
2 Collect your thoughts. Jot down your points if necessary: “I’ve been doing some thinking, and . . .”
3 Be honest yet respectful, and expect the same. “Next time, just tell me if you don’t like the design concepts. I’d rather spend time finding new ideas than developing ones you don’t like.”
4 Suggest solutions. “I have some ideas for next steps. . . .”
5 Cite positives. “I think your idea is great. The thing is, it would make a big dent in the budget, and you’d have to let go of some other features you want.” “We covered a lot of ground today.” “I’m glad we’ve got a plan.” “I’m glad we had this conversation.”
6 Follow up in writing and get buy-in. “Thanks for our conversation today. I just wanted to recap the main points and the plan we worked out. . . . Is this your understanding?”
Reputation is the respect you’re accorded in your profession. Although it’s fundamentally about you, you build it by being fundamentally about others: client by client, project by project, extra mile by extra mile. It’s about putting excellence above personal agendas. A good reputation gives you the power to pursue the highest-level work and relationships.
The respect you get is only as great as the respect you give, in these fundamental ways:
1 Apply your skills honestly. We all know talented people who leave messes for others to clean up. When you work with integrity, you do a good job regardless of the project’s prestige or pay scale. You market yourself truthfully.
2 Respect your clients’ time. Meeting deadlines is the obvious example. “The worst mistake I ever made was overestimating how much I could do as a working mother/freelancer. I accepted a job that paid a lot of money, but I couldn’t finish all of it. I was distressed, humiliated, embarrassed. I had to do less work and accept less money, and I damaged my reputation.”
It’s also about not wasting people’s time with substandard or disappointing work—far better to underpromise and overdeliver. And it’s about returning the favor when people take time to help you professionally, and being concise and punctual.
3 Be responsible about money. Stick to the budget, report spending and earnings honestly, communicate clearly about money, and keep your financial commitments.
4 Be honorable. Word gets out about the bad apples who sour relationships and don’t help their businesses or the industry. Eventually, they become isolated.
Reputation comes from putting Love Theory into action: “The morning after my father died, I had to have some dental work done. The dentist greeted me, asked how I was—and I started crying! We then had an amazing conversation about parents before he got down to work. The next day, a fruit basket arrived with a note. He was a healer that day in every sense. I’ll be his client forever.”
HELP YOURSELF ALERT
THE BEST CLIENT IS A HAPPY CLIENT
You delivered the job, and it’s awesome. Take pride. Your client’s praise is well deserved.
Now is the moment when they’re most willing to reciprocate.
No, you won’t suck up for favors. But you’ll send your invoice promptly, while the memory of your awesomeness is fresh. You’ll tie up loose ends, such as expense reimbursements. And not too long from now, you’ll ask if they’re willing to provide a testimonial, or whether you could use a short clip, or some images, or their name as a reference, or whether they could make an introduction to someone they know, to help you grow your business.
If you’re working on a project at a client’s office, your main concerns are making a good impression, advocating tactfully for yourself, and fitting in as someone who’s on the team, though not part of the gang.
Strategy 1: Ask the Project Supervisor for Guidelines.
Your contract should spell out your responsibilities and project and payment schedule, but ask about the day-to-day:
• How often should you report on progress?
• Is there anyone else you should loop in?
• If there are project meetings, should you attend?
• Who should you talk to if you have questions?
Strategy 2: Be Friendly and Respect Their Sandbox.
Introduce yourself and offer to do something: “Hi, I’m John Smith. I’m here for a few weeks working on the website update. I’m going to get some coffee. Can I get you anything?”
Mirror office norms. If no one wears headphones, you’ll look antisocial if you do. If others don’t eat at their desks, don’t. But some things the staff gets away with will be noticed if you do them, so make like a good houseguest: Wash your coffee mug and tidy up after yourself.
Some staffers might not bother to make friends since there’s nothing in it for them. Or they might see you as competition. Take a project-focused, how-can-we-get-this-done approach. If an employee is rude or undermining you, talk to the project supervisor about what you need in order to do your work, and what you’ve done to try to improve things.
Strategy 3: Roll with Things, but Ask for What You Need.
Maybe you’ll suddenly have to share a workspace or move. Talk with the project supervisor about what you require to work well: “There are a couple of things I need for my workspace.” “I have some questions about the project. When would be a good time to talk?”
Strategy 4: Contribute, Diplomatically.
Fresh ideas are why they hired you for this project, so put yours in the mix, tactfully. It’s all in the delivery: “I noticed . . . Have you ever tried . . . ?” “I’ve found this sometimes works: . . .”
Strategy 5: Ask Before You Eat the Pizza.
Offices are deeply social places. There are holiday parties, birthday parties, baby showers, and TGIF pizza. You don’t want to be a crasher, but hunkering in your cube while revels unfold around you might make you look like a drudge or an apple-polisher. When in doubt, ask the project supervisor: “I’d love to come, if that’s appropriate.”
Strategy 6: Be Alert to Misclassification.
For that, read on.
When I was about thirty, I was a labor lawyer looking for a job in a tough market. Eventually, I heard the magic words: “We’d love to hire you.” I was hired as an independent contractor, receiving tax Form 1099 instead of the Form W-2 received by employees. I upped my hourly pay by five dollars to cover buying my own benefits and was grateful to have a job.
Eventually, though, I discovered I was an employee in every practical sense—other than the small matters of salary and benefits. I worked on the premises, had the same client work and schedule as the W-2’d lawyers, was listed in the company directory, had business cards sporting the firm’s name, and was referred to as a lawyer for the firm. And yet no salary, raises, bonus, health benefits, paid vacation, or unemployment insurance. Several of us were in this boat.
I understand the economic reasons why businesses misclassify workers (a savings of 30 percent or more on payroll costs, just for starters). But while you’re performing the same work as your coworkers, they’re getting the full package of New Deal safeguards—unemployment protection, race/gender/age bias protection, and benefits, all overseen by the Department of Labor—and you’re not.
There’s an emotional cost to misclassification, too. I worked really hard, but that didn’t seem to merit the same treatment as my peers. It wore on me.
Being misclassified got me interested in the needs of the growing independent workforce. Eventually, I left to continue that inquiry in grad school, and then to found Freelancers Union. It seems prophetic that at my going-away party, the junior lawyers unveiled stationery for a mock organization we’d formed called The Transient Workers Union. Its motto? “The Union Makes Us . . . Not So Weak.” Its president? Me.
Misclassification is generally defined as hiring a person as a self-employed independent contractor or paying them off the books, when they’re doing the work of a full-time employee and should be entitled to:
The legal protections of employment: including wage and hour protections and overtime, and protection against discrimination due to race, age, gender, and in some municipalities sexual orientation.
Public benefits: such as workers’ compensation, unemployment insurance, Social Security, and Medicare.
Employer-sponsored benefits: such as health insurance, retirement programs, family leave, and medical leave.
Intentional or not, misclassification:
1 Violates labor and tax laws.
2 Exploits workers.
3 Robs the country of unemployment funds and workers’ comp premiums.
4 Puts the burden on workers to calculate, report, and pay taxes which, if incorrectly calculated, diminish state and federal revenue and Social Security.
5 Gives misclassifying businesses an unfair advantage over those that properly hire and compensate their employees (one study estimates that misclassifying employees can cut a company’s labor costs by 20 to 40 percent).
| WHAT YOU GET | WHAT THEY GET |
|---|---|
| A fixed pay rate. | Raises and bonuses that boost career earning and saving power. |
| No pay for days you don’t work. | Paid vacation, sick days, and parental leave. |
| 100 percent responsibility for buying your health insurance. | Employer-sponsored plans (leaving more money to save, invest, and spend), and employer payments into Medicare. |
| 100 percent responsibility for retirement saving. | Employer-sponsored retirement instruments (which can include matching contributions), and payments into Social Security. |
| No unemployment benefits if you’re laid off. | Financial cushion of collecting unemployment while looking for a new job. |
The exact scope and cost of misclassification aren’t clear. But in a 2000 study, 10 to 30 percent of employers audited had misclassified some employees. A 2009 report attributed an estimated $54 billion in underreported employment tax.
Misclassified workers may not realize they’ve been misclassified until they seek a protection reserved for employees—like filing a wage complaint for failure to pay overtime—and find they’re not entitled to it.
Fortunately, we have two 800-pound gorillas battling alongside us:
Quick Fact 1: The more employees a company has, the higher its employment taxes. Which is why the IRS is very interested in rooting out and punishing misclassification as the independent workforce has grown—and especially since the Great Recession’s assault on state and federal budgets. Employers who misclassify workers may have to pay their unpaid unemployment insurance premiums, and state court rulings are on the books requiring employers to pay millions in back unemployment taxes.
Quick Fact 2: Unions are on the alert to misclassification within their professions.
Classification boils down to control versus independence. An employee grants an employer the right to control specific aspects of the relationship in return for specific guarantees of economic security. Although there’s no set formula and factors and practices differ across industries, the IRS evaluates three areas:
1 Behavioral control: Does the business have the right to control or direct what you do, where you do it, and how?
2 Financial control: Does the business have the right to control the business facets of your work, such as whether you can market and offer your services to other clients?
3 The type of relationship: The actual working relationship between you and the business also counts in the equation, regardless of what may be stated in a contract. For example, is this an ongoing relationship, not tied to specific project or time frame?
There are multiple factors in these categories to evaluate, and in the end it’s a matter of looking at the whole relationship for its balance of control and independence.
Assessing for misclassification is more complex than we can cover here, but if you think you may be owed health insurance and retirement because your wage isn’t covering these costs, one option is to file a complaint through your state department of labor or contact the U.S. Department of Labor’s Wage and Hour Division (dol.gov) or call toll-free 866-4USWAGE (866-487-9243).
As for prevention, a good first step is knowing misclassification exists and being on the lookout for it. Having a contract also can carry weight because it spells out both parties’ intentions.
Check out the U.S. Government Accountability Office (GAO) Report to Congressional Requesters: Employee Misclassification: Improved Coordination, Outreach, and Targeting Could Better Ensure Detection and Prevention (August 2009) [GAO-09-717] (gao.gov).
ASK SARA
Q Dear Sara, Over the past year, I worked a total of thirty-eight weeks for a media company. Am I being misclassified?
A Freelancers ask me this all the time. Actually, the number of weeks they work differs, but the question doesn’t. Which is exactly the problem. Many workers think a rule exists about how much time constitutes full-time employment—and thus entitlement to benefits. But there’s no clear actual rule. It depends on all the factors we’ve outlined in this chapter.
I have a theory that all the corporate lawyers convene annually at a top-secret luxury location where they eat, drink, enjoy sporting games, and devise that year’s new mythical “rule” about the work schedule, designed to keep full-time employment just out of reach. They might like us to believe this decree came from Mount Olympus. I suspect it was jotted down on a scorecard somewhere on the back nine. No one really knows. Least of all freelancers.
There’s a more insidious type of misclassification, less on the radar but equally toxic for freelancers. Ironically, it’s a reaction to the government’s crackdown on the type of misclassification just described. Here’s how it typically works.
Hypothetical Mega-Company wants to avoid tangling with the aforementioned 800-pound gorillas over misclassification. It puts its best minds on the case, and . . . voilà! Introducing XYZ Temp Agency (which may be located—surprise, surprise—on Mega-Company premises).
Now when you, freelancer, get hired, it’s not by Mega-Company, but by XYZ Temp Agency, who hires you out to Mega-Company. You may be called a permatemp. You get a W-2 from XYZ Temp Agency. IRS gets its due. Unions can’t cry foul. Nice and tidy.
Here’s how it (still) rips you off:
For the period covered by the W-2, you can’t take tax deductions as an independent contractor. So, for example, if that period covered 50 percent of your total work time, you’d lose 50 percent of your deductions. There’s also a big murky gray area as to who’s your real employer if any kind of legal issues come up. And you still might end up having to buy your own benefits.
The companies that do this tend to be fairly large, with the kind of long-term, regular work many freelancers want, and with money to pay. So a gig that normally would be a cause for celebration (“a Blue Chip—great!”) becomes a weird changeup: “For every day of steady work, I lose my freelance tax breaks.”
Yes, it’s a very special no-win just for freelancers:
Either you’re really an employee but you’re misclassified as a freelancer.
Or you’re really a freelancer but are misclassified as a permatemp.
In the first case, the IRS cares because they want the taxes that proper classification would bring. In the second case, no one seems to care, except those whose boat is tied to yours (like your family) . . . and Freelancers Union.
What do you do when, like the freelancer at the beginning of this chapter, you start wondering how you’ll get it all done?
In the short term, you may have to turn down some work. If so, leave a positive vibe by recommending another freelancer who might be a good match (and while that good vibe’s happening, build your Level 4 by asking if they’d like to be included on your mailing list for your email newsletter or periodic updates from you).
Then let that freelancer know you recommended them. Referrals add to your Love Bank and forge relationships you might later build into teams for tackling big projects together.
In the longer term, realize that landing big projects is the reward you’ve been working so hard for. If you’re turning down good gigs, consider whether it’s time to weed out smaller, lower-paying gigs (raising your rates can help) and open up time for bigger projects. Also, you may need to work out a strategy for subcontracting work and project-managing the job, as liaison with the client.
Subcontracting works the other way around, too: If you’re in a dry spell, you can say to your freelance friends, “I see you’re really busy. I’m in a dry spell right now, so if you need an extra pair of hands, I would be more than happy to work out a subcontracting arrangement.” We’ll talk more about subcontracting in Chapter 11.
If it’s a gig you don’t want, you might decline as part of managing your Freelance Portfolio. Employees are often assigned work or clients they don’t like. You, freelancer, are not assigned anything and can always say no. But don’t toss sludge to your network.
Exactly what you say depends on why you’re bowing out and whether you want to leave the door open for future business. Here are some options (you can tack a referral onto the first three):
Another time, perhaps? “I’m working on some projects that will keep me busy for a while. But I’d really like to work with you, and I’d like to stay in touch. I’ll be available in [time frame]. I’ll touch base with you then.”
Sorry, but no. “Unfortunately, I’m booked solid/my plate is full/I’m not taking new clients at this time.”
It’s not you, it’s me. “I don’t think I’m a strong fit with the project, but thank you for thinking of me.”
I wouldn’t wish you on my worst enemy [if asked for referrals]. “Hm, I can’t think of anyone offhand, but if I do, I’ll let you know.”
ADVOCACY ALERT
By focusing on the first type of misclassification, the IRS can get the taxes they’re after and say they’re declaring war on misclassification. But they’re not addressing the second type, which allows companies to tap the ever-growing pool of independent talent in a way that remains unfair to workers. By some measures, it’s expected that by 2020, contingent workers will comprise more than 40 percent of U.S. workers. Misclassification won’t go away and will likely only become more entrenched. The government needs a comprehensive plan to address misclassification as it’s really happening in the workforce today. We need to change the laws so freelancing pays “a fair day’s wages for a fair day’s work.”
Freelancers Union is working to unite workers across professions to make things fair for freelancers.
We need to know exactly how many freelancers are being misclassified so we can calculate the financial losses to freelancers and the government and make the money case for policy change. It’s a huge reason why the government has to do a better, more consistent job categorizing and counting freelancers, as I mentioned in the Introduction.
Some changes Freelancers Union is working for:
• Streamline the misclassification claims filing process
• Increase misclassified workers’ knowledge about their rights
• Encourage better state-level tests for classification
• Change tax laws so independent contractors and employees have the same level economic playing field.
If you need to take jobs that misclassify you, try to find other work you can transition to that won’t penalize you for being a freelancer. Get a movement started in your professional group to raise awareness of misclassification. And join groups like Freelancers Union to share your experiences, add your voice to our phone campaigns, your feet to our marches, your ideas to our meetings with political candidates, and your contribution to our Political Action Committee (PAC) (freelancersunion.org). Your involvement can make change happen.
If you’re drowning in email, appointments, correspondence, billing, and filing, consider whether a virtual assistant (VA) could free you to do what only you, freelancer, can do: Get the projects in and get ’em done.
A virtual assistant interacts with you electronically and can live anywhere and help you with pretty much anything, only when you need it, working as an independent contractor. Some tasks include: typing correspondence, scheduling appointments, proofreading, filling orders, managing email, and setting up and maintaining online files. Or they can do bigger tasks such as research, writing, helping manage social networking, or handling your billing and collecting (you compose the letter; they send).
You can sign up for a virtual assistant service offering different levels of assistance. Read the terms of service to find out about their processes, including billing, quality control, complaints, and especially security (working with confidential material, having passwords or account numbers, and the like). Make sure you’re comfortable with the service, its policies, and the people you’re working with.
A private arrangement might involve working with a student who needs a side gig or an industry newbie you can mentor. Obviously, the same issues of procedure and duties, billing, quality control, and security have to be worked out.
As I finished this chapter, I could see that being a good freelancer is really about bringing your higher self to your work. You show it in the transparency, thoroughness, and fairness of your policies and practices. You show it in the empathy you bring to your client relationships. It’s present in all your dealings. When it’s there, clients know it. There’s no better way to serve them. Best of all, it serves you, too.