2010 - Is The Slump Over?

Given how 2009 went I've been shocked that 2010 has started off like gangbusters. Kinda weird how as soon as the ball dropped in Times Square that my phone hasn't stopped ringing. I've been booked almost every day since Jan 1st (at my normal rate), and not by the little guys either. This past week I turned down 2 jobs in one day because I was already booked up, and I'm also getting booked for a couple weeks at a time instead of a day here and there. This hasn't happened to me for over a year and a half. Apparently, a lot of agencies have been winning pitches and the work is pouring in. Even though there are plenty of folks waiting to be hired, freelancers are still needed to fill in the holes until those hires can be made. In addition to the new business coming in, it seems that existing clients are really starting to open their purse strings as well, which translates into even more freelance work.

I know that it hasn't even been 2 months yet, but from what I'm seeing the industry looks like it's starting to turn around. Here's to hoping that 2010 will quickly erase the memory of 2009 from our collective memories.
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Freelancer Party On Hold!

As mentioned previously, I had every intention of hosting a holiday freelancer party. Over the past 5 or 6 weeks I have found out that quite a few fellow freelancers have taken full-time staff jobs, and know of a couple who have left the biz entirely. I'm now trying to find out who is still a "Career Feelancer" and who isn't. Once we iron that out then it'll be time to celebrate the fact that we're still alive and kicking. After all, it won't be much of a party with half a dozen people standing around wondering where everyone is! Stay tuned...

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2009 In Review - Part 2

In addition to the changes that the bad economy brought to the overall freelance industry in 2009, I also wanted to mention several things I did to help keep my lights on. To compensate for the lack of income, I found myself trying to save money in every way possible. Downgrading phone and cable services, refinancing our mortgage, keeping the heat turned down and using coupons at the grocery store were only a few ways to save a buck. These savings made a huge difference and allowed me to upgrade both my computer and phone - both of which were totally out-dated. I do my own bookkeeping, but I've found that a good accountant can result in more cash back at tax time. I also found a mortgage broker that I trust, and refinancing has saved us hundreds of dollars each month. Note: I've listed the contact info of both my accountant and mortgage broker to the column on the right under "FREELANCER FINANCIAL RESOURCES". And no, I don't receive a commission.

Shopping around to find the best insurance, as well as not letting credit card companies bully you will also save quite a bit of money. I recently received a letter from CITIBANK stating that they plan on charging an annual fee of $60 a month to "maintain quality service". This is the second or third notice I've received from a bank/credit card company trying to squeeze me for a few extra bucks, and it's total bullshit! The way I see it is if I have to cut my hourly rate in order to stay in business then a bank who has received a Federal bailout can eat any extra operating costs. There are plenty of other credit card companies out there competing for my dollars, and I'm sure I can find one who won't try to screw me out of my hard-earned cash as badly as CITIBANK is!
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2009 In Review

I've been meaning to update The Daily Freelancer for quite some time, but unfortunately I've let this blog "wither on the vine". As fellow blogger Kathy can attest, it's hard to find the energy to post comments to a blog that has little to no following. But, as I'm still freelancing I guess I'll try and keep posting whenever I can.

Regarding '09...
Looking back, I think most of America would rather forget 2009 from an economic/business stand point. The Career Freelancers working in the promotional industry certainly weren't alone. Talk to anyone and they'll all say the same thing... 2009 was the shittiest year they've ever had. Last year the theme of my posts all revolved around how the poor economy was affecting our industry; lowering your hourly rate, creating a freelance union, competing with freshly laid off Art Directors, doing pro-bono work, etc. These posts highlighted just how grim the situation was. So why bother recapping such a shitty year? Because the landscape of the freelance market changed dramatically in 2009, and those changes have carried over to this year. As a Career Freelancer I think it's important to monitor and adapt to these changes in order to remain a viable resource.

What was the biggest change? In my mind, the fact that a lot of agencies used the poor economy to strong-arm freelancers into lowering their rates. The bottom line here was that everyone from Toyota to Disney to the local bakery slashed their prices to stay afloat. Any freelancer that thought they could maintain their established hourly rate in the face of this economy was delusional (myself included). Four out of the six agencies I worked at last year beat me up on my rate. And when I say "beat up" I mean a $15 to $20 hourly rate cut (sometimes at agencies that were over an hour drive away). You'd expect this from the smaller "Mom & Pop shops", and I guess I wasn't that surprised when one of the Promo Top 10 agencies pulled the same shit. Fortunately, I was in demand at the time (blind luck), and was able to push back and get my normal rate. As predicted, lowering rates has unfortunately set a precedent where the new lower hourly rate is now the standard. The only thing that will reverse this is an upswing in the economy.

Another big change was the massive influx of out-of-work staffers who jumped right into the freelance market, and fell in love with freelancing. Overall, this was a huge hit to the established Career Freelancers, and the impact is still lingering. As a result, quite a few Career Freelancers have taken staff positions, or left the field entirely. It may seem that this doesn't equate to anything more than the promotional industry version of musical chairs. However, the market is still saturated with "fake freelancers" who are competing with Career Freelancers until they find a staff position.

Unfortunately these newly-minted career freelancers have no point of reference regarding income earned as a "temp employee" (W-2) versus as an independent contractor (1099). To them it's all work, and at this point any work is better than no work. In a slow economy this is a valid point. However, when the economy turns, it would be in their best interest to fully understand the economic disadvantages of working as a temp employee.

The only real positive note I saw in 2009 was that a lot of smaller shops were getting a lot of new business, and they didn't hesitate to call in help. Obviously a smaller shop is going to offer their services for a lot cheaper than the big guys, and it paid off for them. As stated above, these small shops want you to lower your rate so they can stay competitive and maximize their profit. It's not easy for a freelancer to make these kinds of concessions, but it's necessary to keep the lights on.

In a nutshell, I'm glad 2010 is here.
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