A Freelancer PSA

Several weeks ago I was asked by a fellow freelancer if the agency we were working at paid overtime. I said "Of course, why?". He said that the freelance coordinator told him that this agency did NOT pay overtime. I explained that since we were classified as "Temporary Employees" who receive W-2 wages, it is a Federal law that once you work 40 hours in one week, anything over is considered overtime (and pays time and a half). Click HERE for more info.

It made me pretty mad that freelancers are being lied to about this. Not only are agencies still strong-arming freelancers over their rates, but now this? Of course agencies will do anything they can to limit a freelancer's hours to under 40 a week. Paying freelancers cuts into the agency's profit margin, and limiting their hours is simply cost control. But straight-out lying about overtime? This is complete bullshit.

Do your homework people. If you are serious about being a freelancer then you need to educate yourself. There is a lot to know about being self-employed. Don't take anyone's word for anything. Research, read, double-check and verify everything in order to protect yourself and stay profitable.

The first thing you need to know is that you aren't as profitable making W-2 wages as you are making 1099 wages. Don't take my word for it. Look it up. Compare the profitability of being taxed on 100% of your income (W-2 wages) as opposed to being taxed on a smaller percentage of your income (1099 wages with deductions). You'll see that W-2 wage earners make far less than 1099 earners. If you can find a nice balance of the two it isn't bad either. However these days that isn't so easy as more and more agencies are complying with IRS mandates regarding employee classification.

The following is a list (in no particular order) of some of the agencies in the area, and what type of wages they pay. Please note that this information may, or may not be 100% accurate as agencies change policies quickly. I'm basing this info off my own experience, and from info I have received from other freelancers. As I feel this is extremely important information I will do my best to keep it updated and accurate.

(*updated 4/17/11)

The bigger agencies:
Alcone Marketing Group (Omicom), W-2
Colangelo Synergy Marketing (Omnicom), W-2
Tracy Locke (Omnicom), W-2
Marketing Drive, W-2
Catapult Marketing, W-2 (via placement agency)
Ryan Partnership, (unknown)

The medium-sized agencies:
Source Marketing, (unknown)
Circle One, 1099
Concept One, (unknown)
Integrated Marketing, 1099
Amplitude Marketing, 1099 (allegedly you need an LLC to work here)

All of the small shops still issue 1099s which, depending on their staff, could be compliant with the IRS guidelines. Obviously these smaller shops won't give you the same hours or even rate as the bigger shops, but it's still 1099 income.

As I mentioned, I will make every effort to update this list, and verify what type of earnings are paid out. Feel free to post info about other big agencies that I haven't listed, or don't have current info for.

- Slim

Learn Web Design! Or Don't. It Doesn't Matter.

After letting this blog wither on the vine this year, I felt compelled to post another entry (or two).

Following my last post I made an attempt at learning web design. I became a member on Lynda.com, ordered up a few books on HTML/XHTML/CSS, dabbled in Dreamweaver and spent hours researching info online. Then I got a call from a new client who wanted a few web pages revised. I told them that I could design for the web, but didn't know how to code. "No problem" they said. All I had to do was revise a few Photoshop files, and their "development team" would handle the coding. Long story short, I was revising these PSDs for use in a Wordpress theme.

I didn't know what Wordpress was so I looked it up. Apparently, it's an extremely popular, open-source code that uses customizable templates, or "themes" to instantly build fully-functional web sites. This is the part where I looked into my crystal ball, and didn't see too many reasons to continue learning web design. After all, who the hell is going to pay me thousands of dollars to build a web site when they can just buy a customizable template for $40 and be done with it?

So the whole "learning web design to save my freelance career" thing didn't work out like I thought it would. I'm hoping my "Plan C" will be more viable. Stay tuned...

Happy Holidays From The Daily Freelancer

The holidays are upon us once again, and I'd like to take a moment to wish all my fellow freelancers a safe and happy holiday, as well as a fruitful new year.

This April will mark my tenth year of freelancing. During the past ten years, I've gotten to know quite a few other freelancers, and have enjoyed bonding over our common profession. I'm very thankful that freelancing hasn't been a cut-throat struggle with other freelancers for work. In fact, I have only experienced freelancers helping other freelancers when it comes to getting more work. And that type of good will is something the world could use a lot more of in my book.

Since creating The Daily Freelancer just over two years ago, I've had a few folks mention to me their dislike for the negative tone of some of my posts. Yes, I am a "glass is half empty" kinda guy. And yes, I can understand not wanting to dwell upon the negative when it comes to any issue. As frustrating as freelancing can be at times, my intention in creating this blog wasn't to turn it into a personal rail against the nature of freelancing. I simply wanted to create an open forum for freelancers to discuss their thoughts regarding all aspects of our lot, and believe that was achieved to some degree. Any perceived negativity was meant to be more concern on my part than grumpiness.

Not to be a Negative Nelly (again), but at this point though I think freelance in general has run it's course for me. My very first post here was titled "The Death Of Freelance", and discussed how the IRS-mandated rule of reclassifying freelancers as "Temporary employees" would end freelancing as we know it. It's now two years later, and I think it's fair to say freelance is on it's death bed. You can call yourself a "Freelancer" lf you want, but as long as you're receiving a W-2 instead of a 1099, you ain't no freelancer in the eyes of the IRS. (Note that I'm speaking specifically in terms of working on-site within the Promotional Marketing industry.)

Last year my 1099 earnings were about a quarter of the previous year which resulted in me taking a loss on my business for the first time ever. This year I haven't made one dime in 1099 earnings. Sure I've worked, but it's all been W-2 earnings. Obviously, W-2 earnings are not business related, and according to the IRS I can only claim a loss on my business for 5 years. After that point, I won't have a business as far as they're concerned.

What do I do now? Well, back in early May of 2009 I also posted a topic titled "Evolution". Basically I echoed what I wrote about in my very first post, and state that the only way to survive as a freelancer is to evolve and adapt to the ever-changing world of freelance. So that's what I'm a-gonna do... evolve. I've decided to take some classes, and learn me some of that thar web design stuff. The demand for good web designers is as high as it's ever been, and they're still getting top dollar. It will be a challenge to say the least, but at this point it seems to be the best option out there. I'll give it a shot so we'll see how it goes. As far as this blog goes I'm going to put it on the back burner as I focus on learning web design.

Anyhow, thanks for following along, and stay tuned for further freelance developments...

Regards,
Slim

Worst Logos Ever

I was talking with fellow Freelancer Matt Pisani the other day about really bad logo designs that we've seen. It's a subject that I'm sure any freelancer could talk about for hours. The logo above is one of the worst I've ever seen. I was forced to place this horrific abomination in a layout back in March for a big name brand (which I won't mention here), and my mind is still reeling from having done so.

Matt directed me towards a web site called "YourLogoMakesMeBarf.com" which I found to be greatly amusing. I also did a Google search for "worst logo ever" and came up with even more design atrocities. Check out this beaut...


These next two have made their way around the web for some time now, and there are a ton of similar ones out there - if you know what I mean. Just timeless examples of "epic design failure" through and through...





Here is a local one I spotted while driving down the Berlin Turnpike this weekend. To me this reads as "Drave Auto Group", and even more so at a distance.


Obviously, none of these wretched blights were produced by a real designer. I think this highlights the fact that there are a multitude of local businesses out there who are just too cheap, or too lazy to find a real graphic designer who can make them look professional. Well, at least their folly gives me something to laugh at. Thanks cheapskates!

Never Say Never

I could have used any number of trite images for this post. A revolving door, musical chairs, etc. The "grass is always greener on the other side" image works too I guess. Maybe it's just that I really like goats.

Anyhow, seems like another "Career Freelancer" has left the fold to take a staff position. Yes, Daily Freelancer contributor Joe Criscoulo is now on staff at TracyLocke. Ironically enough Joe was the first person I heard use the term "Career Freelancer", so I credit him as coining the phrase. In the past year folks like Brant Johnson and John Whitmer (both long-time freelancers) also left freelancing for staff positions. Of all the freelancers I know, I would have never thought any of these guys would go back on staff. I'm commenting on all this because I believe this observation epitomizes just how difficult freelancing can be even for those of us who have become well established.

At the same time, folks like Steve Kelly, Ludwig Gayanillo and our friend Kathy Vass (all long-time staffers) have all chosen freelancing over working on staff. Hmmmmm. So which side has the greener grass? Answer: neither. The decision to go staff or freelance isn't made on a whim, it's made as a last resort. Staffers go freelance out of frustration. Freelancers go back on staff out of desperation. Unfortunately, these aren't positions you want to be in, but you've gotta do what you've gotta do. In addition to ensuring your bills are getting paid, a fresh start can certainly invigorate creativity, and open up new opportunities. In the end, all the experience gained as a freelancer will make you a better staffer, and all the time spent on staff will make you a better freelancer.

I wish everyone well in their new endeavors. Just remember, if you're not a freelancer anymore you can't read this blog!

Apple's Next "Big Thing"

Apple just announced their latest batch of upgraded equipment, and among the mix is a "new" Mac Pro which is slated to ship in August. Apple is still trying to recover from the new iPhone4 debacle so the news about the Mac Pro release isn't on the forefront yet. After reading the specs for the new machines I'm not sure any of this even qualifies as news. As usual, Apple has only made a few very minor increases in speed and performance (i.e even more processors). The most significant increase comes in the form of solid state hard drives which deliver "2X the speed of a regular 7200rpm hard drive", and a 1GB video card.

The bottom line is if you already have a Mac Pro, the cost to upgrade to one of these newer machines won't justify the marginal increase in performance. For anyone out there who has to have a speed bump, the new video card(s) and solid state hard drives can be used in older Mac Pros to maximize their performance.

While I like the sheer power and expandability of the Mac Pro, the new iMacs have enough power to easily handle day-to-day design work. The fact that they cost a lot less than a Mac Pro is a nice plus as well.

Thanks For The Layout, Now Where's My Gift?

Here's a little topic that we haven't covered yet... client gift giving. For as long as I've been in this business I have always been aware of the practice of client gift giving. When I was the client hiring freelancers, I did enjoy the few gifts I received. In all honesty, it felt a little weird receiving a gift knowing that I wasn't obligated to give a gift in return. It felt... wrong somehow.

Sure, I understand that certain freelancers may want to express gratitude to a client for giving them business. That's all well and fine. However, over the years I think this has set an unhealthy precedent because now we have clients who actually EXPECT gifts from freelancers. Now this is something I know is wrong.

I have a very close friend who is one of these clients who expects gifts from freelancers at the end of the year. This has always shocked me because I would have never pegged him to be so... shallow. I mean why on earth should I feel obligated to give a gift to a client just because they called me to work? I'd like to think they called me because I have a reputation for being reliable, dedicated, detail-oriented, blah, blah, blah. Not because I give really great gifts at the end of the year. Well, after several years of freelance work my friend came right out and told me that he expected a gift at the end of the year. And he was dead serious. Brothers and sisters, you could have knocked me over with a feather.

And all this time I thought a gift should be given because you want to give it, not because you feel you have to. Wow, what an idiot I am!

During the holidays I used to bring in food and snacks for the whole agency, and a few personalized gifts for the folks I worked with directly. I only did this because I saw other freelancers doing it, and thought it was just the thing to do. Now, years later, I don't bring in anything. I think this is in large due to the comment my friend made. The way I look at it is that I'm being paid to provide a service. If I provide that service in a professional and competent manner then I get paid. I know that my work is making my client money, and even more money for my client's client so any gift giving would be extraneous. If a freelancer is being hired based on the quality of their gifts instead of the quality of their work then the system is truly buggered beyond repair.

Freelancers Union

I've known about the Freelancers Union for quite a few years now. (Technically, since "freelancers" is possessive, it should probably be the "Freelancer's Union" with an apostrophe, but whatever.) Anyhoo, I'm not sure why I never joined, or took advantage of the multitude of resources offered. Probably because I'm not a "joiner", but that's just me being stupid/stubborn. Over the years it has become quite a large organization and offers assistance and advice in many areas of operating a freelance business. Looks like a great aid for any freelancer out there so I thought I'd mention it here.

Here is the link...
Freelancers Union

Enjoy,
Slim

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Freelancer Etiquette

The Top 10 Rules of Freelance Etiquette:

1) PARK IN THE VISITOR SPACES. Why park behind the dumpster when you've got a spot reserved for you right up front? Everyone knows that visitors are greeted with a smile and given the respect they so richly deserve. They are shown around the office, introduced to everyone and treated to an expansive buffet lunch. And since you're not on staff, so you must be a.... "visitor", right?

2) SLOWLY MAKE YOUR WAY AROUND THE WHOLE OFFICE TO CATCH UP WITH OLD FRIENDS. It's important to take a few hours to reminisce about the good old days with old co-workers. That way they won't forget who you are, and you'll be "top-of-mind" when they need freelance help in the future.

3) SWAP OUT YOUR NON-FUNCTIONAL MOUSE WITH THE FUNCTIONAL MOUSE OF THE NEAREST ACCOUNT EXECUTIVE WHEN THEY'RE NOT AROUND. This will demonstrate to your Art Director that you're willing to do anything to get the job done. Everyone knows that real "go-getter" freelancers are hard to come by. Besides, what's an Account Exec need a mouse for?

4) BE FIRST IN LINE WHEN THE LEFTOVER LUNCH FROM THE CLIENT MEETING IS BROUGHT OUT. Some staffers would have you believe that they should be first, then their dog, then the receptionist, then the mail room guy, then the janitor, and THEN the freelancers. This is untrue. Since freelancers get paid by the hour they should be first instead of waiting around in a line wasting time. After all, time is money!

5) FOLLOW CREATIVE REQUEST FORMS TO THE LETTER! This one is pretty obvious, but I thought I'd list it anyhow. We all know that Creative Request Forms (a.k.a. Creative Service Requests, etc.) always contain all of the information you will ever need to begin and complete a project. All of the exact specifications, communication priorities and client-based mandatories are always spelled out in great detail which eliminates the need to ask stupid questions. Thank God for these things, or we'd all be banging our heads against the wall in utter frustration!

6) SEXUALLY HARASS ANYONE YOU WANT TO. It's not widely known, but sexual harassment laws only apply to full-time employees, not freelancers. I'd recommend doing this sooner than later as this little legal loophole won't stay open forever.

7) DON'T BOTHER THE IT DEPARTMENT WITH STUPID REQUESTS. Listen, the IT department has it's hands full trying to thwart the evil Zerg from invading sector 42-B. They simply don't have time to let a lowly freelancer know what the password is to log on to the server! And they certainly don't have time to upgrade your creative software so it will be compatible with the rest of the creative department! What do think this is? A multi-million dollar creative agency?!

8) FILL OUT YOUR TIME SHEETS IN FARSI. Just to see if anyone in accounting is paying attention.

9) MAKE YOURSELF AT HOME. Independent studies have shown that a comfortable freelancer is a productive freelancer. Create your own desktop pattern, hang up large photos of your children, proudly proclaim your controversial political beliefs and feel free to use the mailroom as your own personal UPS Store. Even if you are only on-site for a day or two your fellow co-workers will appreciate your efforts to feel at home in their shop.

10) INVITE YOURSELF ALONG TO THE OFFICE HAPPY HOUR. Hey, you worked just as hard as they did on that last project so why not have 9 or 10 pops on the company tab? After all, what better way is there to bond with the creative team then over shots of mescal and Jager? You don't have to worry about them not thinking you're a "professional" since no one will remember this tomorrow anyhow.

The Daily Freelancer Gets A Facelift

Not that dramatic of a change, but then again I'm not big on drama. I saw that Blogspot was offering up some new template designs and this new one was the least horrific of the lot.
Enjoy,
Slim

The Freelancer Crossroads

As a professional freelancer I believe it's important to always conduct myself in a professional manner. Unfortunately for me, I don't always pull that off 100% of the time. In this business it's easy to become frustrated at a myriad of things that would make Job himself lose his cool. Things like endless, subjective revisions dictated by clueless AEs before a layout is even shown to the client. Or receiving incomplete creative requests with contradictory direction that are due yesterday. Or being told to put a glow AND a shadow on an object by an AD who graduated college 2 years ago. Or being told to "just do it" after trying to point out that "just doing it" will result in making both the agency and client look bad. Yeah, welcome to the wonderful world of freelancing.

After a while you have to make a choice. If you refuse to compromise on the quality of your work, and question clearly bad direction then you risk being labeled as a freelancer that's "difficult to work with". If you capitulate and decide to produce something you know is wrong (won't print correctly, spelled wrong, poorly designed, etc.), as well as never question anything then you risk being labeled as a freelancer who "just isn't that good", or who "just doesn't care". I've heard the comments by ADs and CDs first hand, and I've never heard anyone referred to as "the perfect freelancer" because we're locked into a no-win situation.

Over the years I've met both types of freelancers. And being labeled one way or the other isn't a reflection on anyone's true ability, nor is it meant to be an insult in any way. Some people, like me, just can't resign themselves to doing something they know is obviously wrong. Others simply don't want to waste the time and effort railing against an industry that seemingly doesn't care what's right or wrong. I've had more than one fellow freelancer tell me to stop bothering to give a shit when clearly the agency or client doesn't, but I just... can't... do... it.

I've always wondered why there aren't more freelancers out there. I also wonder if the frustration of having to choose which negative perception you'll be labeled with has anything to do with why our numbers are so low.

Heard It Through The Grapevine

Another day, another rumor heard through the grapevine. One of the more interesting aspects of freelancing is being one of the first to hear the latest gossip almost as soon as it happens. When bouncing from shop to shop you can't help but pick up on information that is definitely not for public consumption. Some people say gossip and rumors should be reserved for the 7th grade girl's locker room. I say different. I say that these rumors highlight why there will always be a need for freelancers.

Sure it seems like most of what is being passed along is just trivial fluff. Things like "Did you hear that so-in-so is sleeping with what's-her-face?", or "Guess who's pregnant?". On the other hand, some of the rumors will clearly affect the entire industry. Things like "Did you hear that a giant conglomerate just bought our agency?" But over the years I have come to the conclusion that almost every rumor can become a potential opportunity for a freelancer. Especially when 90% of the "rumors" turn out to be factual.

Allow me to explain. I'll list out a bunch of fictitious rumors, and translate them into what I perceive as a potential freelance opportunity.

1) "So-in-so is cheating on her husband with What's-his-face." translates into "Someone's about to get fired, shot or castrated so stand by for a phone call after the shit hits the fan."

2) "Guess who's pregnant?" translates into "If there is a God then I'll be able to wrangle a sweet 6 to 10 week gig - maybe more if "Preggers" decides to become a stay-at-home mom!"

3) "Can you believe how much money What's-her-face is spending on her destination wedding?" translates into "Hey, that 2 week wedding cruise might turn into a 3 week gig for me if the caterer leaves the chipotle mayo dip in the sun too long! Bon voyage!"

4) "Man you should see how drunk What's-her-name gets at all the company parties!" translates into "If she keeps that up I'll be looking at covering 3 to 7 days for detox and then another 6 weeks for rehab! I'll drink to that!"

5) "Did you hear that What's-his-nuts got stung by a bee, and ended up in the hospital for a week and a half!" translates into "Google search: African Killer Bee hive sales and service".

6) "We just lost a big client to Agency X?" translates into "I've never heard of Agency X, but I'll bet the farm that they underbid you and oversold themselves. They'll be looking for cut-rate freelancers, but will have to pay the going rate in this market. In the end they'll end up losing money on the deal, but I'll just keep that little tidbit to myself for the time being."

7) "We might be having a big meeting with the client on Wednesday afternoon." translates into "Plan on staying late Tuesday night, but don't bother making lunch on Wednesday."

8) "Did you hear that the Creative Director who was famous for treating others with contempt and disrespect was just fired?" translates into "As soon as that asshat realizes no one will hire him he'll resort to competing for freelance work. Not that it will be much of a competition given his reputation."

So you see, the grapevine can be a useful tool for a freelancer just as long as you're not the one being talked about.


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Tax Time

April 15th is only 2 weeks away. If you don't have a good accountant then I'd suggest contacting my friend Kevin whose contact info is listed on the right side of this blog as soon as possible. Don't forget you can always file for an extension.

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It's All About Leverage

Just over a year ago I announced that I had agreed (for the first time in my freelance career) to lower my hourly rate in order to stay afloat financially. In total I was asked by two tiny shops and one large agency to lower my rate. I agreed to the two tiny shops, but thankfully I managed to avoid lowering my rate with the large agency. The reason for this was because work had picked up, and I was able to use that fact as leverage. "If you don't want to pay me my normal hourly rate, then I'd be foolish not to go down the street and work for another shop who'll pay my rate." They really needed my help, so they agreed to pay my rate. Considering the shape of the economy at the time, I got lucky.

Leverage is a wonderful thing when it works in your favor. In 2009, a lot of shops used the poor economy as leverage to beat up freelancers on their hourly rate. And that leverage worked on the majority of freelancers that I talked with. But the new year has brought us new fortune, and now the freelancers have the leverage to demand their normal hourly rate again. From what I've seen there is far too much work out there, and simply not enough people to do it. I was at an agency several weeks ago and counted at least 10 freelancers of different capacities walking around. After talking with several of them, I found out that they were currently working at a reduced hourly rate. I was shocked given how much work there is, but after last year I guess it's not surprising to see folks just happy to be working at all.

I've been waiting for the second quarter of this year to arrive as the bean counters will be sharpening their pencils, and analyzing how well the first quarter went. I'm no economist, but judging from the amount of work now, there will be no slow down in the second quarter. Regardless of what the future holds, the market is tipped in the freelancer's favor right now.

Extended bookings aside, if you're currently working at a reduced hourly rate, then you really need to consider some quick renegotiation. It's simple economics. If you can't get the rate you want then just go down the street and get it. The work is out there, and that's all the leverage you need for a fair shake.

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