INDEX

A

accounting basics, 348–350, 358–367

additional help. See staffing

additional revenue streams through passive income, 258, 275–280, 419

advocacy for independent workers, 7, 12, 14, 317–320, 415

arbitration of disputes, 197, 201, 292

attorneys, advice of, 127–128, 138, 175, 194, 199–201, 292–293

B

bad news, how to deliver, 156, 177, 371

bartering, 94, 284–286, 309, 422, 475

beehive metaphor, 11, 13, 14, 234, 256, 294, 319

bereavement time, 408

Bill of Rights for freelancers, 473–474

billable time, 37, 39

invoicing, 197, 198

blogging, 241–247, 280

Blue Chip clients in freelancer’s portfolio, 79–81

bookkeeping basics, 348–350, 358–367

borrowing. See debt

bottom-feeder jobs, 34, 86, 87, 144

boundaries in relationships, 15, 151–153, 181–182, 401

breaktime, 69, 333, 339, 423

budgets, 40–44, 445

client relationships, reporting, 160

subcontracting, budgeting for, 293

troubleshooting budget problems, solutions for, 186–187

vacation, budgeting for, 409

building community. See community and New Mutualism

building teams. See subcontracting and teamwork

burnout, 396–407

business cards, 48–49, 107, 163, 223, 224

business expenses, 385–387 see also income tax

business growth. See growing business

business loans, 271–275

business name, 32

business structures, 45, 262–268, 304, 371

C

cancelled projects, kill fees for, 135, 184, 186, 189, 408

cash flow, 9, 10, 77–80, 130, 140, 141, 143, 194–197, 274, 472

cell phones. See mobile phones

chairs and sitting posture, 61–62, 68–69

children. See families

client mix. See freelance portfolio

client relationships, 147–172

actual needs of clients, discerning, 31

boundary setting, 151–153

communicating. See communication essentials

crises and damage control, 190, 191

see also troubleshooting problems

negotiation of fees with clients, 138–144

on-site projects, 161–162

trust, 150, 151

warnings from other freelancers, 320

Client Scorecard, 14, 131, 195–197, 316, 319, 471

closing the deal, 123–146

clothing, appropriateness of, 424

CO-OPs (consumer operated and oriented plans), 14, 426, 441

coaching and mentoring, 46, 57, 80, 94, 146, 171, 191, 221, 226, 275, 285, 289, 293, 297, 308, 310, 312, 402, 461

collections, 199–201

commitment, sustained, 228, 255

communal office space, 57, 66, 144, 310–313, 319, 327, 470, 479

communication essentials, 152–156, 177–181

bad news, how to deliver, 156, 177, 371

decision to become a freelancer, how to tell people, 47–48

helping clients figure out what they want, 153

initial marketing, 47–48

proofreading, 156, 181

troubleshooting problems, 177–181

community and New Mutualism, 299–320, 466

definition of New Mutualism, 301

Love Bank, explained, 109–110

competence and key strengths, 25–31, 94, 95

competition, noncompete requirements, 131, 132, 244, 292

computer issues. See technology

consultants, defined, 6

contingent workers, 7–9, 170, 469

contract employees, defined, 7

contracts. See negotiations and contracts

copyrights and intellectual property, 136–138

corporations

business structures, 45, 264–266

see also mega-corporations

costs and expenses, 37, 39, 43, 44, 75, 131, 443, 447

documenting business expenses, 348–349, 358, 361–363, 375

vs. “fees,” 143

coworking spaces, 57, 66, 144, 310–313, 319, 327, 470, 479

credit. See debt

creepy networking, 102, 107, 111–112, 114

crisis management. See troubleshooting problems

D

damages for breach of contract, 131–133, 201

data protection, 56

day laborer, defined, 8

day rate as fee structure, 34

deadbeat clients, 193–202

arbitration and mediation, 197

warnings of, 303

deal, closing of. See negotiations and contracts

debt

borrowing for business growth, 271–275

collections, 199–201

credit reports, 451–452

Fair Credit Reporting Act (FCRA), 451

paying down credit card debt, 449–452

tax deductions, 385

depreciation, 363–365, 377, 380, 381

depression, 426

disaster plan, 56

discontinued projects, kill fees for, 135, 184, 186, 189, 408

discounted fees, 42, 131, 422

dispute resolution, 197, 201, 292

distractions and interruptions, 340–343

domain names, 235

dress code, 424

dry time, 90–97

E

email and text messages

automated filtering and segregating, 336

cc’d recipients, 156

as distractions, 341, 402

email marketing, 238–241

invoicing via, 198

troubleshooting problems, appropriate media for, 178

education and tuition, 281, 463–466

tax issues, 385, 465

elevator speech, 32, 261

employees vs. independent contractors, 162–168

ergonomics, 60–62, 66–70

estimated taxes, 385–387

etymology of term “freelance,” 8

expenses. See costs and expenses

F

Facebook. See social media

fair employment law compliance, 298

families

child care expenses, tax benefits, 381–382

family leave benefits, 164

flexibility of freelance schedules, 5

networking with family and friends, 420–422

paid vs. unpaid parental leave, 164

fee structures, 25, 33–44, 119, 141

benchmarks for rates in industry, 41

bottom-feeder jobs, 34, 86, 87

discounted fees, 42, 131, 422

equation for calculating hourly rate, 35

family/friends projects, 422

kill fees, 135, 184, 186, 189, 408

minimum amount, 34

negotiating fees, 142–144

negotiation of fees with clients, 138–144

“one price fits all,” 41

unpaid. See free, working for

feedback

client relationships, 152, 157–159

on-site projects, 161

financial safety net, 440–452

fire protection for home and home office, 56

fixing problems. See troubleshooting problems

401(k) plans, 458–459

free, working for, 96, 97, 145

free-to-paid conversion rate, 278

freemiums, 89

volunteer and pro bono work, 94, 97, 309, 420

“freelance,” history of term, 8

freelance portfolio, 75–98

balance in, 77–79, 125, 260–261

Blue Chips, 79–81

explained, 76, 77

growth investments, 81–83

long shots and one-shots, 84–88

new ventures and growth, 89, 90

Freelance Switch Hourly Rate Calculator, 38

Freelancer Bill of Rights, 473–474

Freelancers Insurance Company, 302, 441

Freelancers Retirement Plan, 460

Freelancers Union, 1, 14, 16, 17, 47, 84, 168, 170

Freelancers Union Contract Creator, 472

“freemiums,” 89

G

getting clients, 101–202, 238–239

informational interview, successful prospecting as, 113

keeping clients. See client relationships

prequalified prospects, 113

scripts to use with prospective clients, 117–118

social validation, 104–105

X-factor, explained, 102

see also networking and self-marketing

getting started. See start-up

goods in lieu of payment, 97

growing business, 203–320, 334

borrowing for business growth, 271–275

freelance portfolio, growth investments, 81–83

helping other freelancers succeed. See community and New Mutualism

marketing. See marketing

passive income (things bringing in extra income), 275–280

plan for, 261–262, 281–282

rental space, sufficiency, 57

subcontracting. See subcontracting and teamwork

H

handshake agreements, 126–127

harassment of deadbeat clients, 199

health care and health insurance, 433–440

CO-OPs (consumer operated and oriented plans), 14, 426, 441

Freelancer Bill of Rights, 473–474

Freelancers Union, 14

health savings accounts (HSAs), 438–439

helpful resources, 477

medical records, 437

misclassification of employment status, 164, 166

tax deductions, 384–385

hiring, 296–298

contract clarifying relationship, 293

website professionals, 237

see also subcontracting and teamwork

home offices, 51–56

tax deductions, 55, 377–379

homeowners’ insurance, 56

hourly fee structures, 33

I

income

irregularity of, 43, 75

see also fee structures

income tax, 44, 262–268, 369–391, 468, 480

accountants for, 373–375

deductions, 376–385

depreciation, 363–365, 377, 380, 381

direct and indirect business expenses, 385–387

estimated taxes, 385–387

Freelancer Bill of Rights, 473–474

health savings accounts (HSAs), 438–439

home office tax deductions, 55, 377–379

passive income (things bringing in extra income), 258, 275–280, 419

recordkeeping, 380–387

resources provided by IRS, 366, 390–391

saving for, 447

subcontracting and hiring, 297, 389–390

tax code, simplifying, 314–315

incorporation, 45, 264–266

independent contractor, defined, 6

influence and persuasion in getting clients, 102–106

information technology. See technology

insurance, 56, 268–271, 477

see also health care and health insurance

intellectual property and ownership, 131, 136–138, 292, 297

international clients, communicating with, 156

Internet

office setup, 64, 381

see also online; websites

interns, hiring, 297

investing in growth. See growing business

invoicing, 197, 198

IRS (Internal Revenue Service). See income tax

J

job descriptions, 419

judgments (litigation), 130, 194, 197, 201

K

Keogh plans, 459–461

key strengths and skills, 25–31, 94, 95

keywords for online marketing, 231, 233

kill fees, 135, 184, 186, 189, 408

L

late payments and nonpayment, 193–202, 316

leased employees, defined, 7

liability insurance, 190, 191

life insurance, 271

LinkedIn. See social media

litigation

damages for breach of contract, 131–133

deadbeat clients, 199–202

small claims courts, 200–201

LLCs (limited liability companies) and LLPs (limited liability partnerships), 45, 266–268

loans

Small Business Administration lending programs, 315–316

see also debt

Love Bank

explained, 109–110

see also community and New Mutualism

M

marketing, 205–256

business cards, 48–49, 107, 163, 223, 224

creepy networking, 102, 107, 111–112, 114

helpful resources, 479

online marketing. See online marketing

see also networking and self-marketing

mediation of disputes, 197, 201, 292

medical matters. See health care and health insurance

mega-corporations

employment of permatemps, 167–168

nonpayment by, 196

mentoring and coaching, 46, 57, 80, 94, 146, 171, 191, 221, 226, 275, 285, 289, 293, 297, 308, 310, 312, 402, 461

microentrepreneurship, 285

misclassification of employees as independent contractors, 12, 13, 162–168, 170, 316

contract clarifying relationship, 293

mobile phones, 63, 72

as distraction, 345, 411

syncing of files and information, 337

tax deduction, 380, 381

mutualist economy, 471–472

N

name of business, 32

napping, as technique for dealing with procrastination, 339

negotiations and contracts, 123–146

attorney advice regarding, 127–128, 138, 292–293

damages for breach of contract, 131–133, 201

delayed signatures on contracts, 144

dissatisfied clients, damage control, 191

Freelancers Union Contract Creator, 472

handshake agreements, 126–127

subcontracting, terms of agreements, 292–293

networking and self-marketing, 102–112, 205–228

creepy networking, 102, 107, 111–112, 114

family and friends, networking with, 420–422

isolation and alone time, combatting, 428

online. See online marketing

scripts to use with prospective clients, 117–118

selling vs. giving, 217–221

word of mouth, 82, 96, 102, 206, 247, 251

New Deal laws, 12, 163, 434, 468

new ideas, 89, 90

microplan for, 261–262

see also growing business

New Mutualism. See community and New Mutualism

no work (dry time), 90–97

noncompete requirements, 131, 132, 244, 292

nondisclosure issues when subcontracting, 292

nonpayment and late payments, 193–202, 316

O

office parties at on-site projects, 162

office setup, 51–72

communal office space, 57, 66, 144, 310–313, 319, 327, 470, 479

helpful resources, 479

tax benefits, 377–378, 381–382

on-call employees, defined, 7

on-site projects, 161–162

online advertising for additional revenue, 279

online calendars, 337

online collaboration and filesharing, 295

online information, updating, 93

online invoicing, 198

online management tools, 336–337

online marketing, 221, 229–256

search engines, optimizing for, 230–233

see also social media; websites

overtime, misclassified workers, 163, 165

overwork, 258, 259, 396–407

P

part-time employees, defined, 7

partnerships

formal business organizations, 263–264, 266, 304

informal work-sharing among freelancers, 293, 472

see also subcontracting and teamwork

passive income, 258, 275–280, 419

password protection, 56, 171, 443

past-due invoices. See deadbeat clients

payment

amount. See fee structures

late payments and nonpayment, 193–202, 316

per-diem employees, defined, 7

percentage of profits fee structure, 35

permatemps, 167–168

personal business, 334

phones, 62–63, 331

client relationships, phone call interruptions, 149

home lines, separate from business lines, 418

invoicing via, 198

tax issues, 381

see also mobile phones

place of work. See workspace

portfolio. See freelance portfolio

praise and testimonials, 160, 303

pricing. See fee structures

pro bono and volunteer work, 94, 97, 309, 420

procrastination, 337–346

nonpayment, old debts, 199

procrastination busters, 338–340

productivity, 324–346, 400

good days vs. bad and medium days, 403–407

profits, 29, 37, 39

link between profit and community, 300, 302

percentage of profits fee structure, 35

project fee pricing, 34

project management, online tools, 336–337

proofreading, essential, 156, 181

prospecting for clients. See getting clients

Q

Quick Response (QR) codes, 49

R

rates. See fee structures

receipts and records, 44, 55, 348–350, 358–367, 380–387

shredding documents, 56

rental space, 53, 57, 377

renters’ insurance for home and home office, 56

reputation, 28, 30, 159–161

retirement

saving for, 447, 453–462

misclassification of employees, 164, 166

revenue streams through passive income, 258, 275–280, 419

Roth IRAs, 457–458

S

S corporations, 265–266

safety nets, 433–466

sales

results, 28, 29

selling vs. giving, 217–221

see also marketing

sales tax, 372

savings safety nets, 440–452

schedules and scheduling, 333, 334, 427

advocacy for independent workers, time for, 415

home responsibilities, 417–420

troubleshooting schedule problems, 183–186

scripts to use with prospective clients, 117–118

search engine optimization (SEO), 231–233

self-marketing. See networking and self-marketing

self-publishing, for additional revenue, 279

SEP (Simplified Employee Pension Plan) IRA, 457

shredding documents, 56

sick time, 407, 408

SIMPLE (Savings Incentive Match Plan for Employees) IRA, 456

skill set, 25–31, 94, 95, 294

slacking, freelancing as, 13, 47, 429, 430

Small Business Administration (SBA), 315

small business owners, distinguished from freelancers, 285

small claims courts, 200–201

small employer group insurance, 439

smart phones. See mobile phones

snail mail, 155, 178, 198, 354

social media, 246–256

social media optimization (SMO), 232

social validation, explained, 104–105

sole proprietorships, 6, 45, 263

solopreneurs, 470

spending

debt, paying down, 449–452

tracking, 443–444

staffing, 296–298

contract clarifying relationship, 293

see also subcontracting and teamwork

staffing agencies, 84, 88

start-up, 21–50

actual needs of clients, discerning, 31

business name, 32

business structure options. See business structures

costs, 44

elevator speech, 32

goals, 22–23

initial marketing, 47–48

stress, 426–428

subcontracting and teamwork, 169, 283–298, 402

contract issues, 292–293

excellence in subcontractors, partners, and teammates, 253, 287, 291, 294

fair employment law compliance, 298

inadequate work from subcontractors, 291

tax issues, 297

work ethic and attitude in subcontractors, 291

syncing of files and information, 337

T

tax deductions, 376–385

see also income tax

teamwork. See subcontracting and teamwork

technology, 260, 335, 469–470

communal office spaces, 57

computer screens, 61, 65, 346

office setup, 64–66

password protection, 56, 171, 443

tax benefits, 381

tech support, 40, 57, 237, 304

wireless networks, 64, 332

see also email and text messages; websites

temporary employment, 84, 88, 95, 296–297, 469

defined, 6, 7

permatemps, 167, 168

testimonials, 160, 303

text messages. See email and text messages

time management, 324–346

trade secrets, 132, 138, 244

Transient Workers Union, 13, 163, 299

troubleshooting problems, 173–202

blame and responsibility, 179

computer problems, 64

late-paying clients. See deadbeat clients

written agreements, 174, 179

Twitter. See social media

U

UL (Underwriters’ Laboratory) safety requirements, 56

undercharging, 34, 40

see also fee structures

unemployment protection, 95, 164, 403, 449

unions

Freelancers Union, 1, 14, 16, 17, 47, 84, 168, 170

insurance through, 439

Transient Workers Union, 13, 163, 299

unpaid wages, 193–202, 316

V

vacation time, 408–412

virtual assistant (VA), 171

virtual business cards, 49

volunteer and pro bono work, 94, 97, 309, 420

W

W-2 form, Internal Revenue Service reporting, 162, 163, 168, 314, 370, 389–391

webinars for extra revenue, 277–278

websites, 233–238

affiliate marketing, 280

domain names, 235

included on business cards, 49

tax benefits, 381

see also online marketing

wireless networks, 64, 332

word of mouth networking, 82, 96, 102, 206, 247, 251

work habits, 324–346

workers’ compensation benefits, 164

works for hire, 131, 138

workspace

coffee shops and libraries, 54, 327, 332

coworking, 57, 66, 144, 310–313, 319, 327, 470, 479

home offices, 51–56

on-site projects, 162

see also office setup

X

X-factor, explained, 102