The idea of forming a freelancer union, or freelancer agency isn't new. I have heard the suggestion bandied about by several freelancers over the years, but I have never been able to grasp exactly how it would work. More importantly, I'm not sure that I even grasp exactly how it would benefit the individual freelancer or the freelance community. I'd like to take the time now and look at the pros and cons of the idea.
Fellow freelancer Joe Criscuolo has been the most vocal about this, so let's start with his viewpoint...
"What we really need to do to salvage freelance as an entity is package it and sell it. Period.
What do I mean about this? Simple. We control the supply. Tricky, but there you have it. What I've been saying for over a year now. WE are the supply and the agency need for us is the demand. Currently, the agency controls both aspects of the market.
If we don't unite to form an agency of our own with our OWN interests at the heart of it, we will never see freelance as it was ever again."
OK, let me see if I have this right. We all join together and create a freelance agency. I'm assuming that the primary goal here would be to gain some sort of leverage against the promo agencies in order to prevent them from taking unfair advantage of individual freelancers? Perhaps we try and create a fixed and standardized hourly rate for everyone who works for the freelance agency? In addition to establishing a level playing field, we would benefit from group heath and life insurance. Alright, what else? Some sort of retirement plan or package perhaps? Maybe group training seminars in the latest software? I'm not sure I know of any other "perks" or benefits here.
Cons:
It seems to me that the only way something like this could even begin to work would be if every freelancer in the industry joined up. Obviously, this is an impossibility. There will always be some freelancer who either won't join, or who just doesn't know about the agency. A fixed and standardized hourly rate? Never gonna happen. There will always be "scabs" who will work for less, and there will always be agencies who simply can't afford to pay whatever hourly rate we establish. Using benefits as the incentive to join? That would have to be one phenomenal benefit package. I'd say that most freelancers already have benefits through their spouse, or have private insurance that offers somewhat competitive rates.
A freelance placement agency would require a great deal of time, money and effort to establish. We would have to register it as a business, get a tax I.D. number, register it as an L.L.C., get a business bank account, phone numbers, fax numbers, P.O. box, buy office equipment, create letterhead, generate invoices, get an accountant, etc, etc, etc. Who, exactly, is going to do all that? And whose names are going to be listed as the owner? Who is going to come up with all the capital needed to run the operation? We would need to either charge freelancers dues, or mark up their hourly rate to the client, or maybe do both in order to cover costs. File that under the "lose-lose" category.
Running an agency is a full-time job, and which of us is qualified to do that? One or two people will get stuck doing all the work while all the other freelancers reap the benefits? Never gonna happen. And once the agency is set up, then it would have to conform to both state and federal tax guidelines which would mean issuing W-2s just like all the other placement agencies do. Being classified as a "temp employee" and being issued W-2s is the single biggest problem that we as freelancers face. Just being issued W-2s should be a deal breaker for every freelancer out there.
Look, I became a freelancer so I could be independent. If I was going to join an agency then why wouldn't I just get a staff position at a promo agency? At least then I would have steady work. Either way I'd be giving up all the freedom and benefits of being self-employed. No more deductions for a home office, computer, milage, etc. And more importantly, no more SEP IRA contributions which offer not only a huge tax shelter, but money for my retirement.
I'm a pragmatist as well, and right now I can't see how any freelance placement agency/union will solve the primary issues that the freelancers in our industry face today.
Will a freelancer placement agency ensure that we be:
• classified as freelancers instead of "temp employees"?
• issued 1099s?
• paid within 30 days?
• paid at a standard hourly rate?
Answer: no, no, no and no.
So if unifying the freelance community won't provide us with our most basic and critical needs, then what's the point? Discuss...
It's about leverage, really. How would it work? Tough one to answer in one go. But the fact is, we are 'creatives' and it's our skill to be able to create something viable.
ReplyDeleteI guess what I'm saying is that in order for us to have any power over our side of the industry, namely freelance, we need to protect it and harness it. Right now, we are all pirates. Our freelance credo is an unspoken, 'there's no honor amongst pirates' kind of thing. What this translates to is a few of us lowering our rates to out-sell the other freelancers.
We excellent freelancers know that we have intrinsic value beyond our rate. This is to say that we are worth what we charge, and then some. what we provide for our services necessitates our rate. If we meddle with those numbers, we decrease our staying power.
As Johnny so adeptly pointed out, 'it's the economy, stupid!' But it goes beyond that. Slim made the right point that we are now being handed W2's instead of 1099's. Agencies are beginning to fall in line with Sarbanes/Oxley to the letter. We are alotted 1000 hours or six months. These rules are here to stay for the foreseeable future. So, even when the economy recovers, and it will, it will still carry the legacy of Sarbanes/Oxley. So, as I have said many times, freelance will be different. Not terrible, per se, but different for sure.
Only time will tell if it will be a plausible solution for the independent minded creative. As Slim points out, we are freelancers so we can be 'free' of corporate tyranny. The irony is that we are still victims of it, not matter how much we want o fool ourselves otherwise.
Maybe we unite for the simple purpose of creating a "Freelancer's Bill of Rights."
I actually spoke with a colleague of mine at an agency who is a full timer. She is dying there. Because they have axed freelance, all hands on deck have to pull outrageous hours. Sadly, there are tons of fresh 'mac monkeys' (sorry Slim) fresh out of school aching for work who will fill the gap once the beleaguered full timers burn out.
She tells me the same story I've heard for years, and have experienced personally, how she is at the shop for an unGodly period of time. Pulls ridiculous hours, gets no thank yous, and the powers that be enjoy symposiums at the Greenwich Hyatt at their expense. How is this fair? They are told, "be lucky you have a job." As true as it is, there are codes of office ethics that somehow seem to elude the graphic designer. For some reason, we accept this abuse as par for course. We have no recourse.
I say, we are creative. Let's adapt together. Let's 'design' a future for freelance that IS different, but benefits US! Let's try and 'game out' some ideas both for freelancers and full timers. Maybe we need to adapt to the times but also use these times as a diving board into a new future for designers. Maybe now is the time for change.
I say this both as a dreamer and a pragmatist. I know there are real limitations, but there are also real potentials we can achieve if we band together and discard ancient pirates credo of the '90s freelancer, "Me, me, me... Not YOU!"
If we think about ways we can have a controlled collective, maybe we can make this work.
Look Slim, I know you may have wanted less work and freedom, but maybe greatness begs for a deeper commitment. Maybe there is something for us to do beyond crappy POP and coupons! Maybe we can use this frustration as an impetus for something greater. It might not take shape, but if it does, we can look back and say how great it was to revolutionize and industry.
The fact is our control has be taken away. You (Slim) said it best. You went into freelance not only to escape corporate bureaucracy but to have freedom. The fact is that our freedoms have been slowly whittled away buy our own complacency. If we control the supply (freelancers) then WE make the rules. Maybe this requires a deeper involvement and commitment, but maybe this could be what saves the freelance way.
I don't have the answers (yet) but the journey will be a tough one for us all if we don't act to do something. Just waiting around for things to change isn't the answer. Like I said a million times, things will get better. There might always be a need for freelance. But it will be different. Perhaps we can make it better for ourselves when it finally turns around.
JC - first, thanks for the well thought out reply. I'm glad the freelance community has this forum to discuss important matters that concern us all. You've obviously given this a lot of thought and I'm thankful that you've taken the time to share your ideas. It's good to get as many viewpoints regarding this subject as possible.
ReplyDeleteWith that said, let's continue the discussion!
I respectfully disagree with your ideas about the "lack of freedom" that we are now seeing. Any lack of freedom was not brought about by the economy, complacency, a mercenary attitude, or lack of a deep commitment on anyones part. It was brought about by the IRS.
The bottom line here is that the term "Freelancer" is being replaced by the term "Temp Employee". When the transition is complete we will have lost all of the freedoms and benefits of being a freelancer. And no matter how much we don't like it, the law will not change.
By IRS definition we are "Temporary Employees" if we are performing the same tasks (are using the same skill sets) as staff employees, taking direction from staff employees, using the agencies equipment, hardware and software, and are working on-site for extended periods of time.
Let's say that we form a union, create leverage and "control the supply" by banding every freelancer in Connecticut together. Unfortunately, none of that will ever change how the IRS classifies us. Which means that we will never be in a position to make our own rules. The agencies aren't making their own rules either (though some do embellish upon the IRS mandates). The agencies are required by law to adhere to these IRS mandates, or they'll be penalized with heavy fines.
Since we are all at the mercy of the IRS (and by proxy the promotional agencies) then the only logical option at this point would be to fully understand the IRS laws, and then find ways to either work around them, or within them. I plan on doing both.
First off, great topic, guys! I've thought about this concept for many years myself and it's good to see some well thought out brainstorming about it.
ReplyDeleteJoe, I couldn't agree with you more. Things have changed, continue to evolve and will never be the same. I think we have to realize that the term "freelancer" has lost its original meaning. What we really are at this point are contract workers b/c in many cases our fees are being negotiated before hiring. The "free" aspect of our lives continues to be the fact that we have the ability to choose which jobs to take, that we're not tied down to any one company and the office politics that go along with it.
I am also friends with Joe's full-timer colleague he spoke of and while the my lack of work may be frustrating at times, all it takes is listening to her stories to know that at this time in my life, I better off "free". The mental health, alone is worth it.
While I do agree that it would be something to control the supply of independent creatives, I'm not sure a union or an agency is exactly the thing. Plus, I don't think that it would necessarily have to be a physical entity with a building, fax machines and letterhead.
We're living in a digital age. What about a virtual network of creatives? Sure, there are plenty of creative based job web sites to look for work, but they are overloaded with anonymous people and employees. No one is working for you. LinkedIn has been a great tool to find colleagues and get recos for work, but it too is still over saturated with people.
I had once wondered if there was a way to create a network where independent creatives can help each other get work. Really actively combining their knowledge and contacts, not just looking out for themselves.
Say you have a regular client that needs a web developer, but that's not your skill set, but there's someone in the network who is. If you already have a good relationship with your client, they might be more likely to hire a contact that you recommend. And vice versa when that web developer hears that someone needs a print designer. Now imagine that there is one resource where someone has access to many LOCAL independent creatives. One number to call, one web site to hit. Sure, promo agencies are using staffing companies that have access to many creatives, but they don't really KNOW you and your skills. They're not being a true advocate for your work.
Whether this network should include some kind of paid incentive to help each other's cash flow, I'm not sure. If you reco someone, should being in the network mean you have to pay your colleague a finder's fee? I don't know. That could get sticky real fast and easily leading back to the ME ME ME mentality.
Maybe this concept seems too simple, but when trying to form a new idea, you've got to start somewhere and simple is best. I do agree that it would be more powerful, the more creatives you can band together, but I don't think you necessarily need all of them for success. Shouldn't the power of many people united in a common goal be more so than that of an individual on their own? Part of the problem is we don't have a grasp on just how many of us our out there.
Maybe the goal is not to create a "freelancer" company and then worry about how we get paid and how the company makes money, but to create a active network where we all commit to helping each other get work.
What I am learning most of all from my new life in this "free" world is that any new idea takes time to develop and take shape. If we decide to take a stab at making this work, it will not solve all our problems tomorrow and there will be some concessions we'll have to make.
But I DEFINITELY think it's worth exploring and I'm sure there are other creatives who have ideas about this.
Slim - maybe this is a good reason to schedule one of your famous freelancer lunches or happy hours, so we can form a bigger brainstorm. Or maybe it would be easier to host it at someone's house so we can really capture everyone thoughts. I'd be happy to donate my apartment, as long as the group isn't over 15 or so. 600 square feet doesn't hold many, I'm afraid.
What do you think?
@ Kathy:
ReplyDeleteHere's the deal: I'm thinking that the 'entity' is more of a hub or conduit rather than a shell agency of some kind. There is a strong network component without finder's fees. The incentives to being part of the hub is that with true numbers behind us maybe we can sue for stabilized rates and so on.
@ Slim:
Regarding the IRS and how we are categorized, I agree with you 100%, but that does not preclude the fact that we can't do something about it.
What if - and believe me, this is a HUGS for instance - we package the idea as a cohesive gripe that we can bring to an elected official and use it as bait for a bigger issue. The bigger issue is the "Designer's Bill of Rights". What is this?
The Designer's Bill of Rights is a set of guidelines that agencies MUSt follow in dealing with it's employees. Period. Regardless of whether or not we are temps or perms. Lofty? Yes. Doable? Who the hell knows?
I need to ask other office employees whether or not they get time and a half. I need to ask if they have secured bonuses, etc. Let's face it, Slim, the industry has capitulated and allowed itself to be abused. Why do we lowly designers have to submit to 60 hour weeks and no year end bonuses? Because we HAVE to. Because we ALLOW it. How many other offices follow the rules of conduct that you so rightly point out?
Look, I'll play the Sarbanes/Oxley/IRS game. No problem. But where are the overtime checks? Where are the bonuses? Where are the other REQUIRED elements of office entitlement? What the f*&K!? That's what I'm talking about.
Where did all of that go?
When I used to work agency side, I dreaded the 'Lumberg' approach of, "Yeeaaahhh... could you go right ahead and work on Saturday? Aaaaaaaannnnnd, yeah, could you also go right ahead and stay until 10pm for a pitch... ? That'd be great. Thaaaaankkks."
I mean, I know office folks who get the hour lunch, sick days, overtime, etc. Why not designers? Because we allow it. Plain and simple. If the industry is, as you Slim say, under the yoke of the IRS, then they must also abide by ALL of the rules not just the ones that benefit themselves.
@ Slim and Kathy:
Now, onto the Freelance Union thing. I'm not necessarily suggesting a Union per se, but rather a conduit. Again, I'm not even fully sure I know what this means. I guess what I'm gaming out in my mind is a way to consolidate power in OUR hands rather than be at the whim of the fickle, self-indulgent design industry.
Who WOULDN'T want that as a freelancer? I admit, I like the freedom of freelance as well, which is why I've been doing freelance for 8 years. But the fact is, as Slim points out, rules and regs are effecting our role in the industry just as much as the economy. Worse, because the economy will recover, the rules will stay. I say this, if companies are sued to follow the rules - which they are happy to remind us of ALL the time - then they must follow them ALL.
This will require some research on our parts (and by our I mean MY) to really get to the bottom of what we are legally entitled to. I mean, I wouldn't dread full time were it not for the ubiquitous amounts of horror stories I hear daily. Now is worse because of the freelance freeze.
FACTS:
• TRUE Freelancers are a different animal than agency designers.
• TRUE Freelancers are independent minded
• TRUE Freelancers are entrepreneurial and business minded
• TRUE Freelancers love the rush of the deadline
• TRUE Freelancers are heroes and villains
• TRUE Freelancers despise authority and respect it simultaneously
• TRUE Freelancers are AWESOME designers :)
• TRUE Freelancers are mercenaries
• TRUE Freelancers are rare
• TRUE Freelancers crave new things daily
• TRUE Freelancers can make anything happen very quickly
• TRUE Freelancers are worth every dime we ask for
• TRUE Freelancers pick up the pieces
Yes, perhaps a "Freelancer Summit" is in order. I'll look into setting something up in the near future.
ReplyDelete