Email Writing Perfected

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Every day, the typical professionally employed adult sends and receives an avalanche of emails. In response, dozens of articles that address the challenge of email management have appeared in business targeted media outlets. Those articles are all somewhat helpful but my feeling is, when emails are effectively written fewer of them are written, because writers express themselves clearly and recipients understand how to respond.

As luck would have it, an amazing and highly organized polymath named Kabir Seghal, who is a U.S. Navy veteran, former Vice President at J.P. Morgan, Grammy Award-winning producer (Afro-Latin Jazz) and author of seven books in both the children and adult genres including Coined: The Rich Life of Money and How its History Has Shaped Us (2015) has stepped up to guide mere mortals in the fine art of email writing. Seghal applies lessons he learned while in the military when advising us on how to write the ideal email communication.

Subject line

Subject lines are crucial. They can determine when or even if your email is opened. The wrong subject line can result in your email being ignored or deleted. A powerful subject line communicates the purpose of the email and the action the writer would like the recipient to take. A sampling of subject line verbs include:

Action                                 Meet

Decision                             Request

FYI                                      Sign

ACTION:  The recipient must do something, usually within a certain time frame.                                                                                                                                                                                                                                                                                                         frame.

DECISION: A decision must be made by the recipient, or a decision that impacts the recipient has been made.

FYI: For Your Information messages keep the recipient in the loop. Action is not required (choice of the recipient).

MEET: Consult your calendar and reserve time.

REQUEST: The writer seeks approval or permission from the recipient.

SIGN: The recipient must read and sign a document and return it with a certain time frame.

Bottom line up front (BLUF)

Begin the body of the email with a short statement that concisely answers Who, What, When, Where and Why to explain the purpose of your email and what you’d like the recipient to do. The BLUF distills the message and allows the recipient to easily digest the information you share and how s/he will be impacted. Seghal suggests that the writer lead with the heading Bottom Line to call attention to your email’s core messages.

Active voice

Seghal recommends that we use the active, rather than passive, voice when composing emails. It’s important to be clear about who has or is taking action, or who will be required to take action (and when) and the impact of that action.

Cut to the chase

Short emails are preferred by military personnel, but sometimes longer communications are unavoidable. Should your email exceed three paragraphs, follow-up your Bottom Line (BLUF) statement with bullet points, so the recipient can quickly focus on critical information.  Rather than adding files as attachments to the email, embed hyperlinks to the files and enable faster access.

Thanks for reading,

Kim

Photograph: Typist, circa 1930s.

 

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Dates to Keep You Straight

Every year, Freelancers have an important list of dates to remember and act on, primarily those related to tax filings, retirement account management and health insurance plan enrollment. To help you stay organized, I’ve compiled this date planner that brings together all deadlines into one document that you can bookmark, copy into your calendar or even print out and post on your refrigerator.

TAXES

January 31, 2019: 1099-MISC due to contractors
Those who hired Freelancers (independent contractors) to whom they paid $600 or more in the previous year must send 1099-MISC forms by January 31, 2019.  If a client paid you less than $600, then you probably will not be mailed a 1099-MISC, although the IRS nevertheless requires you to report all income.

Do keep scrupulous records of who owes you a 1099-MISC so that you can accurately report your income on your tax return.  Your clients will also send 1099-MISC data re: you to the IRS and any differences between your numbers and the clients’ could trigger an audit.  If you haven’t received a 1099-MISC from a client by January 31, contact your client ASAP and request a re-send.

If you used any subcontractors to whom you paid at least $600 last year, you must likewise send them a 1099-MISC by January 31.

April 15, 2019: Individual income tax filing deadline
You have until April 15, 2019 to file your Form 1040 individual income tax return for 2018. Be aware that April 15 isn’t the deadline to pay your taxes — tax payments for Freelancers are due on a quarterly schedule (see 2019 quarterly estimated tax deadlines, below). If you wait until the tax filing deadline to pay your taxes, the IRS may charge you penalties and interest on top of the tax you owe.

If you’re still waiting for information, or you’re too busy to file a return by April 15, you may apply for a six-month extension that gives you until October 15, 2019 to file. The extension application needs to be filed by April 15, 2019. Remember again that the extension is for filing, not paying your taxes.  Payments are still due on the quarterly schedule no matter when you file and penalties and interest can accumulate if you wait to pay.

QUARTERLY TAX FILING DATES

The IRS requires business owners to pay income taxes on a quarterly schedule. This may seem like a hassle, but it’s easier to pay in four installments than to try and come up with a whole year’s worth of income taxes all at once.

Here are the 2019 deadlines for quarterly estimated tax payments. Note that the four quarters are not of equal lengths: the 2nd Quarter covers only April and May, while the 4th Quarter covers the last four months of the year.

DEADLINE                                                         PERIOD COVERED

April 15, 2019                                                     January 1 – March 31, 2019

June 17, 2019                                                      April 1 – May 31, 2019

September 16, 2019                                           June 1 – August 31, 2019

January 15, 2020                                                September 1 – December 31, 2019

 

RETIREMENT ACCOUNTS

April 15, 2019: Deadline to set up and contribute to an IRA for 2018
Even if you made no contributions to your retirement savings account in 2018, you can still make a 2018 contribution to an IRA up until April 15, 2019. This includes traditional, Roth and SEP IRAs. You can also make 2019 contributions to these plans from now up until next year’s tax filing deadline of April 15, 2020.

December 31, 2019: Deadline to set up an individual 401(K) 
An individual 401(K) is another type of plan that Freelancers can use to save for retirement. One important detail is that an individual 401(K) must be established by December 31st of the first plan year (as opposed to an IRA, which can be opened up until April 15 of the following year). That means it’s too late to set up an individual 401(K) for 2018, but you may set one up for 2019.

Contribution limits 2019 update:

Solo 401(K)                                                                                                                            Employer: 20% of net self-employment income                                                            Employee: 100 % of earned income up to $19,000 (for age 50 years +, up to $25,000)   Total combined contribution: $56,000

Traditional or Roth 401(K)                                                                                                     $6000 annually $7000 if age 50 years +

SEP IRA                                                                                                                                               The lesser of 20% of net self-employment income, or $56,000 annually

 

HEALTH INSURANCE

The open enrollment dates to purchase health insurance for 2020 on the Affordable Care Act exchange will be November 1 – December 15, 2019.  Open enrollment for 2020 through the national health insurance exchange will also be run from November 1 – December 15, 2019.

 

Thanks for reading,

Kim

 

 

Time-Tracking Options for Freelancers

We’re back with a review of more time-tracking services that are especially useful for Freelance consultants. Accurately documenting the time spent on project assignments is important in many ways, primarily to ensure that billable hours charged to clients are correct.  Plus, most time-tracking services will generate an invoice that you can click and send and some will also allow you to accept online payments with bank-level security.

In addition, time-tracking services generate useful reports that show the number of hours you spend on certain types of assignments, information that is useful when creating proposals for projects that you’d like to take on, since it will be necessary to predict the time you expect to spend on the proposed project, which will impact your pricing and determine whether it will be most advantageous for you and the client to choose an hourly rate or project fee payment arrangement.

Harvest

Track time spent on projects easily and efficiently with Harvest, even when you need to follow several projects that contain different tasks that are priced differently. Furthermore, when coordinating a team project, you’re able to assign and time-track various tasks within a project for specific team members.

Reporting is a strength: raw time sheet data will be presented in a visual summary that depicts how your time or the team’s time has been utilized, with key project metrics collated into intuitive reports. The service also generates professional-looking invoices based on your project fee or hourly rate, as determined by the time you’ve logged.  Click and send invoices to clients and receive online payment, confident that site security is bank-level.

Harvest is free for one person to track maximum two projects/month and $12 for one person to track an unlimited number of projects/month.  Harvest

RescueTime

Freelancers who’d like to document how they’re spending time when working on a project and who are not kept on a short leash by a manager will appreciate RescueTime.  It’s not possible to send reports to your client, but you can nevertheless track your time and obtain an accurate picture of your productivity.  You will also receive detailed reports that show you the apps and websites you visited.

As well, RescueTime will record time spent on email and the amount of time you linger on any website. If you’d like to limit the time spent on non-work related websites, then ask the system to block your browsing on any chosen site after a certain amount of time.  Further, you can set goals to inspire yourself to stay on schedule with your project. The premium service plan also allows tracking of off-line time for activities such as telephone calls and meetings. RescueTime Lite is free and RescueTime Premium costs $9.00/month, or $72.00/year.   RescueTime

Tick

Each time you submit a time entry, Tick updates your project and task budgets in real time and reports back to you.  If you regularly track time against an hourly rate determined budget, or a project fee that involves an important deadline or penalties for late completion, then Tick may be your ideal time-tracking solution. It’s also possible to track time on multiple projects simultaneously.  While the service can be used by a solo Freelancer, it is especially suited for a team.

Tick is free if a single user employs the service for one project per month, $19.00/month for an unlimited number of users who’ll track a maximum of 10 projects/month and up to $149.00 /month for an unlimited number of workers to time track an unlimited number of projects.   Tick

Toggl

If you neglect to click the session start button, the service will allow you to enter your working time after the fact, which is helpful for those who are very busy and prone to forget. The service is structured with a team in mind, but it works well for solo professionals.

The service works on all devices, desktop and mobile. Helpful analytic reports will be generated, so you’ll get the big picture of where your time is spent, depending on your assigned tasks.  There is a free version, plus Starter and Premium.  The $9.00 /month Starter package appears to give the best value to Freelancers.   Toggl

Klok

Most helpfully, the service lets users recall and analyze data from previous projects, information that enables you to develop proposals for future projects that will more accurately reflect the time needed to reach key milestones and achieve deadlines. The historical time-tracking data will also help you to price at a level that is fair to both you and the client.

The basic package includes a visual display of your time as you work, plus screenshots, exporting of time sheets, dashboard reporting and invoicing all for a one-time purchase price of $20.00 for up to three users.  Klok Cloud Sync, Klonk Pro and Klokwork Team Console are also available.   Klok

Happy Thanksgiving and thanks for reading,

Kim

Photograph: Orloj, the famous 15th century astrological clock in Prague, Czech Republic

Time-Tracking Freelance Work

How many of you use time-tracking so that you can accurately count your billable hours when on assignment? I still count hours the old-fashioned way and I know that I cheat myself out of no less than an hour or so every week. My bad! I’ve occasionally thought about time-tracking assistance, but I never knew where to begin. A new year will soon welcome us and that’s a traditional motivator to set goals and improve work habits.

As I suspected, time-tracking systems have their differences. Some are designed with remote teams in mind; others make a department manager’s life easier. Certain time-tracking systems have been created to address the needs of Freelancers and we’ll sort through a sampling here:

Due Time Tracking

Due Time is free and easy to use—just create a task, start the timer and launch your session. You can click and add notes to detail the project you’re working on. Due Time also includes an automatic idle time detection feature, so you’re able to make allowances for stepping away from your project now and again and still remain accurate in tracking your work hours.

You’ll be pleased to find that Due Time will generate hourly rate or project fee invoices when you enter the rate. Due Time makes it easy to organize client information by name, address, or even payment currency.  Due Time

TopTracker

Along with tracking the number of hours you spend on project tasks, Top Tracker offers screen shots and webcam shots that document your work. Screen shot pages can be deleted or configured to automatically blur before uploading, so that the image is recognizable to you but all text is obscured. The service works with nearly every freelancing platform and will produce a detailed project activity report to document your performance. The service is free.  TopTracker

Sighted Time Tracking and Invoicing

Sighted Time Tracking seamlessly integrates the functions of time-tracking and invoicing, packaged in either the free Basic Service plan or the Premium Plan at $4.00 /month. You can make detailed project notes for every session and also automatically send invoices for hours worked that are customized for billable hours or project fee.

Furthermore, users can send out quotes to prospects when invited to bid on a project and accept credit or debit card payments online and issue a receipt to the client. Plus, you can do it all on your desktop or mobile device.  Sighted

Tick

Each time you submit a time entry, Tick updates your project and task budgets in real time and reports it back to you.  If you regularly track your time against an hourly rate budget of project fee that involves an important deadline or penalties for late completion, then Tick may be your ideal time-tracking solution. It’s even possible to track time on multiple projects simultaneously.  While the service can be used by a solo Freelancer, it is especially suited for a team.

Tick is free if a single user employs the service for one project per month, $19.00/month for an unlimited number of users who’ll track a maximum of 10 projects/month and up to $149.00 /month for an unlimited number of workers to time track an unlimited number of projects.  Tick

Four more time-tracking options will be examined in the next post. Have a good week!

Thanks for reading,

Kim

Photograph: Sundial at the Gate of Honour at Gonville and Caius College in Cambridgeshire, England

Who Gets the 1099?

The year is drawing to a close and we’re crossing into the 11th month. Before you become enmeshed in the celebrations and obligations that the holidays demand of us, do yourself a favor and commence your tax planning. Create an accounts receivable and  invoicing strategy once you’ve decided when it would be most advantageous to receive payment for services rendered in this calendar/ tax year or the next. IRS Form 1099-MISC will be at the center of the action; understanding when you’ll need it and when you might avoid it is your goal.

The payment in question is $600, whether it was paid or received by your organization. Review the accounts receivable history of clients for whom you performed small jobs earlier in the year.  If a client paid you less than $600 in this calendar year, you will not receive or need to file a Form 1099-MISC for the money earned on that assignment.

Start with the easy stuff.  If you find yourself in mid-contract with a client as December approaches and the project isn’t urgent, might it be possible to work until just before Christmas and then resume work in the first week of January, if it appears that will allow you to cap your billable amount at less than $600 for the client in this calendar/ tax year?  That can be one less 1099-MISC to file and a little more money added to your P & L.

If the client has a deadline don’t even think of such a thing but if there is no urgency, why not ask the client if s/he might find it more convenient to take a “holiday break” starting in mid or late December? Many employees take vacation days at the end of the year in a “use it or lose it” strategy and offices can be short-handed just before Christmas and through the end of the year.  I suggest that you refrain from mentioning the tax implications.  Frame your suggestion as a way of being sensitive to what may be going on in the client’s office, i.e., customer service.

Similarly, might you be able to defer until the New Year certain invoices, as a way to keep a lid on this year’s income and taxes and wait until the first week of January to send accounts receivable for work that was performed in December? Let a couple of hours work spill over into January and make your New Year invoice legal.

Now let’s consider the 1099-MISC forms that you will generate and send.  Did you hire any sub-contractors to help you fulfill the terms of a project? Have you hired a part-time bookkeeper or social media expert or editor for your newsletter? If you paid $600 or more to anyone for business services or rents in this calendar/ tax year, then you must send that individual/ company a Form 1099-MISC no later than January 31 of the upcoming year.

So that you will have the information to complete the Form 1099-MISC, it will be necessary to request that all of your vendors and other business services providers complete a Form W-9, ideally before the work they perform commences.  Download Form W-9

Among the important pieces of information that the W-9 will surface is if your service provider’s business is incorporated as a chapter C or S entity, or an LLC or partnership that is taxed as a C or S corporation.  Along with commercial rent paid to or through a property management company (instead of the property owner), a 1099-MISC will not be required for those types of entities when payments for services rendered meet or surpass $600.

Payments for services rendered made by gift card, debit, or credit card are not to be included in the 1099-MISC tally.  Instead, the card issuers will send a Form 1099-K to your subcontractors, vendors, or you when the amount paid for business services rendered meets or surpasses $600.

Obtaining the 1099-MISC is an adventure. You must order forms from the IRS, or visit an IRS service center and pick up a few. The form is not available for downloading.  Click here to order Form 1099-MISC.

Thanks for reading,

Kim

Image: The Tax Collector, 1542   Marinus van Reymerswaele (1490 – 1546)                  Courtesy of Alte Pinakothek Museum in Munich, Germany

Freelance Projects: Cover Legal Bases and Manage Expectations

The number of Freelance professionals working in the U.S. continues to increase. According to a 2017 survey jointly conducted by Upwork, the online marketplace that connects prospective employers with Freelance professionals in search of project work and The Freelancers Union, a not-for-profit organization that provides advocacy and health insurance to Freelance workers, 36% of the U.S. labor force derives at least some portion of annual income from Freelance work assignments.  The survey authors predict that by 2024, the percentage of Freelance workers in the U.S. will grow to include 50% of adults employed full-time.

1099 or W2?

If your organization plans to increase staffing, make it a priority to understand worker classification rules.  The Internal Revenue Service and state Departments of Revenue are watching and you don’t want to run afoul of the law.  There are three factors that help employers determine whether their staffing plan points to hiring a Freelance contract worker who will receive a 1099 form in January, or a part-time or full-time employee who will receive a W2 form in January.  If the answer to one or more of the questions below is yes, your new hire would be classified as a Freelance contractor.

1. Is there an expectation that the worker has the right to simultaneously provide  similar services for other organizations?

  • Does the worker have a business website and/or social media accounts
  • Does the worker have a business bank account
  • Does the worker have his/her own business cards and other marketing materials
  • Did the worker form a legal entity for his/her business (LLC or corporation)
  • Can the worker choose when and where the work is performed

2. Does the worker use his/her own equipment and office supplies when at work?

3. Must the worker invoice your organization to receive payment for services rendered?

Project specs in writing

Whether expressed in a formal contract or in an email, a smart Freelancer will commit to writing all duties that a client requests.  The project deadline, milestones and total fee should also be included.

Copyright exception

According to the U.S. Copyright Office, the general rule is that the person who creates a work is its legal author and owner.  The exception to that rule is “work made for hire,” i.e., a creative project or work assignment that is specially commissioned by the hiring company and produced by a non-employee.  When project work qualifies as a work made for hire the commissioning party, i.e. the company, is considered to be the work’s author and legal owner.

It’s worthwhile to include in any Freelance work contract a clause that describes the work produced for the company by the Freelancer as work made for hire, to make clear the ownership of any text, body of work, or images produced by the Freelancer.

Project payment schedule

The client and the Freelancer will discuss and agree to the project fee and its format, whether flat fee or hourly rate.  Especially in a flat fee agreement, clients are often asked to pay the Freelancer some portion of the fee in advance of beginning the project work.  When that advance is paid, it is expected that the Freelancer will immediately begin the project work.

Interim payments may be tied to the achievement of agreed-upon project milestones, or to an agreed-upon timetable.  Final payment is made at the conclusion of the project, typically within 30 days of completion.

The Freelancer should specify if credit card payments are accepted, or if checks are preferred.  How the check should be made out must be specified and tax ID information must be provided when the amount of the project will reach or exceed $600, per IRS rules.

To sum up, the Freelancer will draw up a contract that will include all important points of the work agreement. Ideally, the contract that will be signed by employer and Freelancer and each will retain a copy (but an email will suffice in most cases). 

  • Duties for which the Freelancer will be responsible
  • Project milestones
  • Project deadline
  • Work made for hire agreement
  • Project fee total amount and the payment schedule

The employer will send to the Freelancer a W9 form, which will provide the information necessary to create the 1099–MISC form that is required when payments to the Freelancer will reach or exceed $600 in a given year.

Thanks for reading,

Kim

Photograph: Perry Mason (CBS-TV Season 1, Episode 9, November 16, 1957) l-r Raymond Burr (Attorney Perry Mason), Pierre Watkin (Judge Keetley), Carol Leigh (Veronica Dale)

Figuring Out How to Take a Vacation

Summer is here at last and for many, thoughts turn to taking time off to relax and have fun.  Vacations make us feel good but they’re slipping from the grasp of an increasing number of workers, most notably the country’s 57.3 million Freelancers (2017 data), who receive no paid vacation benefit.  In fact, we pay twice for our vacations.  The first hit happens because we stand to lose money when we don’t work. The second hit occurs when paying for the vacation itself, if we choose to travel. Vacations are an expensive proposition for us.  Yet, they are an investment in our well-being and they are worthwhile.

Numerous studies show that we become psychologically healthier, we have a more positive outlook on life and we’re more resilient when we regularly take vacations. We’re also more productive, better problem solvers and more inclined to create and achieve business and personal goals.  It’s been amply documented that uber analyst Sigmund Freud was especially fond of vacations and he took great pleasure in personally planning his family’s annual summer get aways.

I’ll take my usual mini-vacation this summer and with some advance planning, I’ll bet you can, too.  No matter when you’re able to get away for a few days, or even if you opt for a “stay-cation” and take local day trips or just unplug from the daily grind, planning will be the key.

Step One of your vacation planning is to consider your business cycle so you can arrange to slip in a vacation during the usual slow periods.  In most industries, the Christmas to New Year’s Day period is very slow and the final week or two in August is almost as dormant.  However, for wedding planners and those who participate in that industry, summer vacations are out of the question because it’s your busiest season.  If you’re an accountant, celebrating Valentine’s Day at Punta Cana is something you’ll never do, because it’s tax season from January – April.  If you are in certain retail businesses, then traveling is out of the question between October 1 and Christmas Eve.

When you see a gap in your schedule of projects, pounce. “Stay-cations” are of course a lot easier to fit in.  You just have to do it.  Maybe you can schedule a spa “stay-cation” that’s spread out over three or four days, when you’ll schedule a massage one day, a mani /pedi the next, a facial the day after and so on?  You might also visit a museum or find a free outdoor music performance nearby.

Step Two entails your vacation budget.  Wherever you’d like to go, you probably already have an idea of the cost.  Research the price of air fare if you must fly and compare traditional B & B, airbnb and small hotel room rates.  Start setting aside funds that will get you to your preferred destination several months in advance.

Step Three will find you plotting out your work load, to ensure that all projects are completed by their deadlines and all milestones reached as promised.  In some instances it will be necessary to inform certain clients (a month in advance) that you’ll be away for a few days but ideally, you’ll schedule the vacation when you know you’ll be between projects.

Create a spreadsheet with all project tasks listed, with milestone and deadline dates noted, so you can plan and pace your work load 4 – 6 weeks in advance of your vacation date.  Do you publish a blog or newsletter that would appear while you’re on vacation? Add your content marketing to the spreadsheet as well, so you’ll have time to write posts and schedule them for automatic publishing on the desired dates.  You may need to work a few nights and weekends to ensure that all work is completed, but you’ll have something to look forward to, right?  While you’re at it, make a post vacation to-do list that will be ready for you when you return, to give yourself a stress-free re-entry.

Finally, take care of your accounts receivable so that cash-flow will not be interrupted, a very important matter when paying for a vacation.  Ready all invoices, attach to the appropriate emails and save as drafts.  On invoicing days, go into your phone and send from anywhere in the world.

So get away from it all and enjoy yourself! Even if your schedule and budget won’t allow you to spend two weeks in Buenos Aires or Marrakesh, taking one or more short vacations throughout the year is also beneficial, according to a 2010 study published in the Journal of Applied Research in Quality of Life.  The study researchers queried 974 Dutch vacationers and found that the excitement and anticipation associated with vacation planning delivers more of the psychological and physical benefits than the vacation itself and those benefits are multiplied when vacations of any length are taken throughout the year.

Thanks for reading,

Kim

Photograph: ©  Rachel Landau

Go with the Flow, a sand sculpture designed and built by Melineige Beauregard of Quebec, Canada for the 14th Annual Revere Beach International Sand Sculpting Festival (2017) in Revere, MA

Freelancing in America 2017 Report

I’m happy to share highlights from the 4th annual Freelancing in America report, produced jointly and published in October 2017 by the Freelancer’s Union and Upwork, the freelance job site.  The online survey queried 6002 U.S. adults who had performed full or part-time Freelance work between August 2016 – July 2017.  Freelancing was defined as temporary, project-based, or contract work performed at a for-profit or not-for-profit organization or government agency.  There are gradations of Freelancing, described as follows:

Independent Contractors          35%  exclusively Freelancing, f/t or p/t

Freelance Business Owners      7%    exclusive Freelancers who’ve hired employees

Diversified Workers                   28%   working a mix of p/t traditional jobs + Freelancing

Moonlighters                               25%   f/t or p/t traditional employees who take side projects

Temporary Workers                   7%

See the full report here  Freelancing in America 

There are now 57.3 million Freelance workers in the U.S., representing 36% of the nation’s workforce and a 30% increase over 2016, and we contributed about $1.4 trillion to the U.S. economy in 2017.  Since 2014, the Freelance workforce has grown three times faster than the traditional workforce. At that rate of growth, most U.S. workers will be Freelancers by 2027.  The Millennial generation is leading the way, with an astonishing 47% participation rate in the Freelance workforce.

Demographically, slightly more men (54%) than women (46%) are Freelancers.  There is great diversity in educational background, with 32% having earned a high school diploma or less; 24% have earned a bachelor’s degree; and 19% have an advanced degree (those statistics are nearly identical to members of traditional employees).  Most live in the South (40%) and in the suburbs (47%); 65% are white, 11% are black, 5% are Asian and those statistics also closely mirror the traditional workforce.

The majority of Freelancers report that they chose self-employment (63%) and 79% assert that Freelancing is preferable to traditional employment; 50% say they would not accept an offer of full-time traditional employment, at any salary.  Freelancers feel respected, empowered and engaged in their work, excited to start each day.

On average, the full-time Freelancer bills 36 work hours a week.  Freelancers seek to diversify the clients with whom they work and the services they provide; 63% feel that this strategy holds more advantages than working with one (presumably steady provider of adequate billable hours) client only.  In 2017, the average full-time Freelancer worked with 4.5 clients per month and repeat clients comprise 52% of their work. Economically, some Freelancers did rather well in 2017: 36% earned more than $75,000, with 19% who earned $75,000 – $99,999; 12% earned $100,000 – $149, 999; and 5% earned more than $150,000.

Presumably to enhance their value to prospective employers, Freelancers are noticeably more likely than their traditionally employed counterparts to upgrade their skills in response to an evolving job market, 65% to 45%.  Virtual-reality related skills, natural language processing and econometrics are among the fastest-growing skill sets for Freelancers.  More than 50% of Freelancers are concerned about the potential impact of Artificial Intelligence and automation on their future income, as compared to 19% of full-time traditional employees.

Cash-flow and getting paid weighs heavily on the minds of Freelancers.  Among those who participate full-time, being paid at what is perceived as fair value (52%), income unpredictability (46%) and debt (46%) are concerns. Among part-time Freelancers, difficulty in finding work (47%) and debt (56%) are primary concerns.  Sadly, 20% of full-time Freelancers lack health insurance; affordability is an issue for those with or without health coverage.

No doubt about it, there is greater economic instability in the life of a Freelancer as compared to the traditionally employed, the result of gaps in billable hours and checks that do not arrive within 30 (or even 45) days. 63% of full-time Freelancers report that they must tap into their savings one or more times a month, while only 20% of the traditional full-time employees feel the need to do so.  56% of Freelancers have less than $5000 in savings, compared to 49% of traditional employees who have such small savings. Perhaps in response to this harsh reality, 46% of full-time participants raised their hourly rates/project fees in 2017 and 54% plan to raise their rates in 2018.

Freelancing continues to have a significant impact on working and living in the U.S. and the expansion is expected to continue.  Those who Freelance full or part-time report that they’re quite satisfied with the arrangement and a chosen few are doing well financially, at least at this time.

But the spectre of debt and an inability to amass savings loom large.  The Freelancer Survey reported that in 2017, 20% of Freelancers lacked health insurance and as reported in Forbes Magazine in November 2017, 40% lack retirement savings.  Yet, traditional employment continues to hemorrhage advantages.  That promotion may come with a fancy title, but no raise to acknowledge the additional responsibilities.  The health insurance plan costs more and covers less.  Rumors of approaching lay-offs keep people awake at night.  Getting, or holding on to, your piece of the American Dream has become more difficult.

How can you cope? Remember that the best defense is a good offense.  Identify skills that can be expected to bring value-added to you and do what you can to obtain, package, promote and leverage them, whether as a traditional employee or a Freelancer.

Thanks for reading,

Kim

Photograph: Lewis Hine (1908) courtesy of the National Archives                                     Girls at weaving machines in Evansville, IN

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Freelancers Hiring Freelancers

Are you preparing to submit a proposal for a big assignment you hope to win and know that the project specifications will cause you to subcontract some of the work? Congratulations! You will have the pleasure of hiring one or more of your Freelancer peers. Together, you will become a team whose mission will be to produce the client’s deliverables by achieving outcomes of the highest quality, on or in advance of the project deadline and on budget.

You, the external team leader, must understand the skills that the project requires, know how much it will cost to secure the services of your Freelancer team and write a winning proposal.  Project management is an everyday reality for Freelance consultants and the bigger the project, the more planning is involved. Your reputation is forever on the line and when subcontracted work is involved, you must be diligent in your search to identify the best talent to bring on board.  Read on and get some helpful advice on how to assemble a winning team that will enhance your brand and your billable hours, current and future.

Get budget estimate

Get a reliable project budget estimate from your client, if possible.  If the client prefers playing possum with that amount, then make sure you are able to accurately estimate both the quantity and quality of work the project requires so that you can first, calculate your own labor cost and target profit margin and next, understand what you must budget to pay your subcontractors.

Hire specialists

Directly ask candidates you interview and confirm that the skill you need is a competency in which that candidate excels and that s/he has performed often enough to claim deep experience.  You are in no position to train someone on the job.  You must guarantee superior results.

Pay well

Why not ask candidates what they want to make as a subcontractor on the project? Start by researching the going rate range for that specialty, so that you’ll know what to expect to pay and you can rule out those who attempt to take advantage of you.  People will do their best work when they feel valued. They’ll be happy to give extra to make you look good and make themselves shine along with you.  They’ll go above and beyond because they’ll want to be hired to work with you again since you value their capabilities.

If you encounter someone who seems a perfect fit for the project but his/her subcontracting fee is somewhat beyond what you planned to offer, then ask what perks might make that person happy, in addition to money.  You may be able to get who you want for a little less money if you give a little more in another area that demonstrates how you value the skill set.

Set clear expectations

If the project is on a tight time frame and in order to meet the deadline long hours and a seven-days-a-week schedule will be needed then you, the external team leader, must present this schedule information to your candidates in the interview.  You need team members who are able to block out the necessary time and are willing to work hard.  If time is an issue, expect to pay a premium to your subcontractors and add a premium to your own fee as well. Develop a contract for your subcontractors, so that all responsibilities, relevant milestones, the project deadline and the rate of pay are in writing.

Communicate often

Request weekly or bi-weekly written progress reports from your subcontractors and send similar updates to your client.  Announce to the client and your subcontractors whenever a project milestone has been met.  Interim victories will give you an opportunity to thank and congratulate your subcontractors and inspire them as you do.  Learning that you and your team have reached a milestone gives your client confidence in you.

View work samples

In the subcontractor interviews, be sure that work samples provided correspond with the project specs, to confirm that you are evaluating what is relevant.

Check references

Ask to speak with two of your candidate’s clients.  Confirm the type of work that the candidate has done for each reference.  Inquire about the quality of that work and the candidate’s willingness to do what was needed to get the job done.  Ask what it’s like to work with the candidate—is s/he positive and upbeat, or a constant complainer? Finally, ask if there’s anything else you should know about the experience of working with the candidate.

Paperwork

Once you understand the project specs, the role that your subcontractors will play and what you will pay for their services, you can then write a draft contract.  Also, download from the IRS website tax form W-9 for your subcontractors to complete and return to you. You’ll retain the W-9 and use it to prepare and mail to subcontractors IRS form 1099 before January 31 of the following year if payments to any subcontractor reach $600.

Finally, set up an accounting method that will allow you to easily and accurately calculate hours worked and dollars earned for each subcontractor.  If you’ve seldom worked with subcontractors, then speak with a bookkeeper or accountant for more information.

Thanks for reading,

Kim

Photograph: Seven Samurai (Japan, 1954) Directed by Akira Kurosawa and starring Toshiro Mifune (foreground)

 

Success Story: An Artist’s Collective Turns the Corner

The CLIENT

The arts economy in New England in general and Greater Boston in particular, is significant.  ArtsBoston, a 175-member not-for-profit arts service organization that researches  important statistics regarding the local arts community, found that more than 18 million visits are made to arts and cultural events every year, ticketed and free events, including dance, musical and theater performances; visits to museums and art galleries; and attendance at ethnic cultural festivals.

It has been my pleasure to work with two of the three most respected collectives of visual artists in Boston including the largest, whose membership exceeds 200.  Eighteen months ago,  the larger organization referred to me the smaller, 80-member, loosely  affiliated sister organization. The two have overlapping memberships, where nearly the entire membership of the smaller are also members of the larger group.  The membership of both collectives consists primarily of painters, sculptors and photographers, with a smattering of ceramacists and artisans such as bookbinders and calligraphers. Management for each group is separate and independent.

All artists in the collectives maintain studios in an art and design district consisting of several 19th century former warehouse buildings and the artists of the smaller collective are all located in one of those buildings.

Both collectives offer nearly identical special events programming as a method to reach out to potential art collectors.  Each holds an annual open studios art walk event, where member artists open their studios and invite the public in at no charge to see, discuss and when visitors choose, purchase artwork.  Since 1986, the larger group has held its signature open studios event in September and the smaller group holds its annual event in May.  Additionally, since about 1998, the smaller group has held the monthly open studios event branded as First Friday.

The CHALLENGE

The smaller arts collective was facing increasingly diminished audiences for First Fridays, which are held on the first Friday of every month from 5:00 – 9:00 PM January through December.  Attendance at its May open studios event was likewise softening. Artist membership in the group had stagnated.

Competition between the local artist collectives has in recent years become intense, the result of a proliferation of open studios events that has diluted the target audience of middle class to affluent collectors who reside in the tonier city and suburban enclaves.  Boston has 22 neighborhoods and 12 annual open studios events, with dates coordinated by the city and held from April to November each year.  Additionally, nearly every city or town contiguous to Boston, plus numerous outlying suburbs, have over the years launched open studios art walks.  In July and August the action moves to the historic summer artist colonies in MA, including Cape Ann, Provincetown and towns in the Berkshire mountains that beckon to vacationers from around the country.

The DECISION

The collective is managed by two member volunteers.  They reached out to their counterparts in the larger organization and asked how that group managed to maintain attendance for its annual open studios event, which has reversed previously declining numbers.

Within two weeks I met with the leaders of the smaller collective and after listening to their story,  recommended that an energized marketing plan would most likely provide the remedy.  Over the past three or four years,  a shortage of time and a dose of complacency had caused the managers to slack off on marketing their events to the target audience.  Recently, First Fridays had been listed in only one print and three online events listing services.

Member art sales were shrinking because fewer collectors or potential collectors visited studios.  Membership in the collective was dropping slowly, as artists re-examined the value of the collective at renewal time.  Operating income was negatively impacted. Artist participation in First Fridays waned, which could only cause the target audience attendance to wane.  It was an impending death spiral.

The SOLUTION

A comprehensive and consistently implemented marketing campaign was launched in an increased number of targeted print and online media outlets, which was the core of a strategy to greatly improve outreach to collectors and potential collectors.  More visits to studios would enhance the possibility of art sales and promote the conversion of aspiring collectors to collector status.  Over the subsequent months, additional media outlets were identified and included in the campaign.  Presently, 14 online media outlets and five print outlets now carry the First Friday listings each month and the listing for the annual open studios event in May.

A paid display ad (one-quarter page) will now appear annually in a free print publication that has high readership among tourists to Boston, since outreach to that group has become a priority.  To estimate the potential impact of tourist dollars on contemporary art sales in Boston, in 2016 the Institute of Contemporary Art/ Boston, which features 21st century art only, received 210,000 visitors, according to the Boston Business Journal (and the Museum of fine Arts, the New England Aquarium and the Museum of Science each received in excess of 1.1 million visitors).

Content marketing is also part of the campaign launch, designed to reach the collective’s members and non-members through the collective’s newsletter.  Membership retention and recruitment are in many ways the heart of the marketing campaign for without active and engaged members who believe in the mission and are happy to carry it out, the collective will cease to exist.

The monthly newsletter now includes a member artist spotlight that features an image of the artist’s work plus a brief artist bio.  The artists volunteer to participate and the response has been enthusiastic.  As a way to persuade the 10 -15 non-members in the building of the collectives’ benefits, an annual newsletter customized to provide an update of the work that the collective’s members find especially useful and making an appeal to join is now being sent.

The RESULT

The number of visitors to First Fridays has gradually climbed to about 500 on average each month.  As documented by the managers, historic lows occur in January and February, when attendance can dip as the temperature drops, the snow piles up and only 200 or so art aficionados will attend First Friday.  Months with the highest visitors are April through June and September through December, when up to 700 visitors may appear.

Membership in the collective has risen over the past 12 months from just over 70 to 80 members.  There remains 10 -15 artists in the building who are non-members.  The group hopes that one or two non-members will sign up each year.

I hope you enjoyed the case study.  Thanks for reading.

Kim