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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