I have been reading some articles about career progression for a freelancer. There are several definitions and several milestones that one can define as reference points when you are freelancing. I just thought of recording my point of view. Also, I hope this post will serve as a milestone plan for my freelancing career.
First thing we need to do is to determine our goal of freelancing. Different people get into freelancing at different stages in their careers for different reasons. Some people get into freelancing after their retirement to keep them selves occupied. Some get into freelancing to earn an additional income, but it is never their main career. Some get into freelancing as a stop gap, in between jobs or during a recession. Personally, for me, it is an alternative to working at a 9 to 5 job. I walked out of a well paying job to carve my own destiny and to be fully in charge of it.
Freelancing for me is also the path to financial freedom. I could not fathom achieving financial freedom by being someone’s employee. By being an employee, I would have managed to create financial freedom for the owners of the company I would have worked for. But not for my self as an employee. I did not trust leaving my destiny in someone else’s mercy by depending on the salary increments and bonuses decided by another.
So for me freelancing is the means to achieve my own financial freedom. How can I get there by being a freelancer. One may argue, that freelancing is the riskiest path to achieve my goal, but least I am in control 100%.
In my definition, these are the milestones that I can define as progression for me as a freelancer:
Matching my regular job salary
This was my first goal. Since I happened to step out at a time when the world economy was spiraling into a recession and more are more white collar workers were getting into freelancing as a means of surviving the lay offs, it was pretty cut throat to land a gig at a decent rate. I had buyers telling me that the only reason they would not hire me is due to my rate being higher than similar providers in India. I was competing with kids just out of college as well as people with years of experience, all of whom were willing to work for mere pennies.
I was determined to work for a rate that I was happy with. I managed to land a few jobs at that rate, which was a very competitive rate given what I was bringing into the table, but the challenge was sustaining the work. It seems that it is easier for novice freelancers to land short projects and testing the waters type of projects. Landing a sufficiently large project is another matter all together.
I did not have enough work for the first two months to earn the salary I was earning in my regular job, but I managed to do enough work in the third month, that matched my salary.
Raising my rates:
This is a natural progression. This means that you are getting established as a freelancer and that you no longer need to work at minimum rates. This also means that you have built your reputation and relationships with your clients and that you have proven your worth to them. So now you are in a position to ask for more for the same tasks.
Of course, sometimes you cannot just raise your rates without bringing more value to your work or your clients. Sometimes it maybe that you are now shouldering more responsibility in the projects and hence have moved up the value chain.
There are two ways you can get a raise. First is to negotiate a raise with your current clients. This is a more of a fine line that you need to tread. You need to be able to do this without affecting the relationship that you have with the client. Maybe the client is paying you what he considers the absolute maximum he thinks appropriate. Then in that case if the client turns down your request you should be able to continue without being rejected or if you absolutely need the raise, need to look for work elsewhere at a higher rate. The client may even start to look for a replacement after you have asked for a raise as they might feel that the fact they turned you down will affect your work done for them.
The second path is to look for new projects at a higher rate, maybe with new clients. Or you can talk to your client to see if they are willing to hire you for new projects at a higher rate. You should set this expectation with your clients, if you work on an ongoing basis for a client and find a way to move up the value chain. If a client has always hired you at a particular rate, and if they have built their business around the fact that they can get this work done at that rate, they may not like their costs going up and may look for ways to keep the costs the same or to lower them. I think the main thing in trying to get a raise as a freelancer is to make sure the process does not cut you off from what you are getting now. In case if your request does not work out, you should still be able to earn what you are currently earning.
I think a safer approach maybe to look for new projects at a higher rate and then if you do manage to land new projects at higher rate then you should try to increase the portion of those high value projects and gradually decrease the low paying projects. That is a no brainer heh?
Build an affiliate team:
To get to this point the client has to start seeing your value as absolutely necessary and should be in a place to trust your management skills as well. In this case, you can take up more than you as an individual can do, and hire a team of affiliates under you. That way, you are essentially increasing your capacity of your output and now growing to become a team (or a mini company). The thing to be careful is to make sure the affiliates that you hire can provide the same quality that the client is expecting from you. So you may have to spend your time in managing and vetting their work. In return you will earn a profit from the payout you get for your affiliates.
You can do this without the overheads that traditional companies incur when hiring employees by turning to fellow freelancers. I have written about this in my previous posts as well.
Become a fully fledged company:
I think this is the ultimate step for a freelancer. Being the head of your own company. But if you ran away from corporate world because you despised it, then this may not be for you.
But I think the trick is to maintain the same agility and edge that you offered as a freelancer also through your company. You should be careful not to have bloated overheads and lose the competitiveness you offered as a freelancer or an affiliate.
I have a dream about the kind of company that I want to build someday, a company based on the hacking business model, a company that is fully virtual. That will be a post of its own.