The Darkest Day Of The Year

Happy Income Tax Day everyone! After 8 years of filing as a sole proprietorship, two accountants and a bit of my own research I've learned a lot about income taxes. Of course there were a few missteps along the way, but I think I'm finally at a point where April 15th isn't the yearly nightmare it once was. I mean it's never a good day, but at least now I've learned to manage my estimations, deductions and earnings much better. 

My new accountant has many creative freelancers as clients, and even works with a few promotional agencies in the area. The accountant I had previously wasn't as versed with deductions and classifications which cost me a lot of money over the years. Taking full advantage of your available deductions is critical, and having an accountant who knows exactly what those deductions are is even more so.

For instance, what are the pros and cons of writing off a home office? Which is better, writing off your milage, or your vehicle and it's maintenance? Is it better to amortize computer hardware, or write it off for the current year? Lot's of complicated questions that need accurate answers. Hopefully your accountant knows his/her stuff. If not, send me an email and I'll hook you up with one who does.

Slim

Don't Mourn, Organize!

I saw a bumper sticker today that said "Don't Mourn, Organize!". Usually I don't even look at bumper stickers let alone give them any credence, but this one struck a chord. 

Over the past several months I've been wringing my hands over the current economic situation just like everyone else. And for good reason. But at what point do you stop wringing your hands and decide that enough is enough? For me that point came last week. Concern had turned to fear, and fear had turned into paralysis. Paralysis is failure and failure, my friends, is not an option. So, I organized my thoughts, organized my home office and have been working overtime to organize my portfolio. My goal is simple. Find new clients and new opportunities both in and outside of the promotional marketing industry.

Apparently, I'm not the only person out there who is organizing. I have have heard rumblings that the clients are starting to loosen their purse strings, and I know several agencies that are pitching new business like there's no tomorrow. Let's hope the trend continues, but there is no reason it wouldn't. I think it's safe to say that both brands and consumers are beginning to relate to the "paralysis = failure" philosophy, and are changing gears to create success. While it may take some time to see things really pick up I'm becoming more and more optimistic.

Wait a minute, did I just say that I was optimistic? Wow. Things must be turning around for me to say something so un-Slim-like!

Photoshop World 2009

Did you know that Photoshop isn't just for Photographers? It's for designers and illustrators, too! This was a shocking little fact found in my workbook when I attended last week's annual Photoshop World Conference in Boston. I was very surprised to find that most of the attendees were photographers of varying disciplines. As a designer, I was among a severe minority. To make matters weirder, not only did I not meet any other designers during my three days, but most people I did meet started off conversations assuming that I, too, was a photographer. Then when I explained what I did for a living, a lot of them were puzzled. It wasn't til I started name dropping well known brands that they understood more. I guess I've just been spoiled by the agency world, in which most photographers I've worked with, knew little about Photoshop, nor cared to know.

To be fair, representation from the designer community could have been low due to budget cuts now facing most companies, thereby not making it easier for their employees to expense continuing education and travel. A few people even admitted to me that while the 3,000 some odd attendance was a good showing, it was certainly down from previous years that saw numbers closer to 7,000.

Overview:
3 Days in Boston's Hines Convention Center with over 80 classes in various tracks from Photoshop basics, design, productivity, printing, Photoshop for photographers and Adobe Lightroom. The event also including a daily EXPO show, featuring latest software, hardware and camera equipment.

Favorite Classes:
Mastering Curves!: Now I finally know how to properly use that panel. Plus, the instructor was awesome and didn't try to push CS4 too much. Textures and Special Effects classes were also pretty cool.

Favorite Instructor:
Bert Monroy is an amazing photo-realist painter who uses Photoshop to construct his incredibly detailed compositions. Even though I know I'll never have the talent or the patience to create something close to his masterpieces, I really enjoyed his seminars. He's currently working on a panorama of Times Square that, when finished, will be about 20 feet wide and over 750,000 layers! www.bertmonroy.com

Turn-ons:
Each attendee receives a humongous workbook that has all the instructor's notes for every class. So if there were two classes you were interested in, taking place at the same time, you could still go through the tutorials for the classes you missed on your own time at home.

Everyone is very friendly and if you have the extra dough to spend, the conference offers some interesting after hours activities. (I was penny-pinching, so maybe I'll catch them some other time.) It was kinda like camp for Photoshop nerds. A little weird, but still pretty cool to be around so many people jazzed about their craft.

Turn-offs:
Some class instructors had a tendency to "oversell" the features of the brand new CS4. It's great that Photoshop CS4 Extended has neat-o 3D features, but as a self-employed designer, I can't say when I'll be able to afford the upgrade. CS3 works just fine, thank you very much. How about showing me some cool tricks in that version that I never knew before?

All in all, I don't regret going. Back when I was still in the office, management would always encourage you to go a conference. Then you'd find a class just to be told that there was too much work to afford losing you for a couple of days. So even though, I had to pay for everything myself, it's a business expense and I'm glad I finally got to attend one of these events. However, next year, I think I'll save my pennies for the HOW Design Conference. Maybe there will be some more designers there.

Tuning to Change: Compromises & Rate Negotiation

It's true that the freelance market has changed drastically over the past year or so, forcing some freelancers to consider lowering their rates. I, too, would never say that someone should never do this. No matter what anyone's opinion is on the subject, in the end, it is a very personal financial decision that you have to be comfortable with. There's always the fear that if you resist the rate change, then the client will just move on down their phone list, conveniently losing your number for good. But before we panic and take the first offer thrown out there, perhaps some compromises can be made.

Recently I read a great book entitled, My So-Called Freelance Life: How to Survive And Thrive As A Creative Professional For Hire by Michelle Goodman. It has some great tips for all types of creative freelancers, whether you've just left the cube or could use some fresh ideas after working it solo for awhile. When I initially read her chapter on rates and negotiating, I thought much of the information did not apply to me. Having just left the agency side, I hired freelancers to help with heavy workloads all the time, but I seldom cared (or even knew) their rate. The attitude was to just get someone in as fast as I could. While there is certainly more room for discussion when estimating an independent project, when freelancing on-site, we’ve been used to the idea that the rate is the rate. But times are changing and unfortunately we will be forced to evolve with them.

We have entered a time when everything is negotiable. Here are some compromise options (some I have personally used with success) which might make it easier to get what you’re worth for the job.

Take A Moment To Think It Over. Don’t feel like you have to accept an offer right off the bat. If you’re feeling uneasy, ask to touch base in a few hours or even the next day. Give yourself some breathing time to think about how to react and whether or not you might need to form compromise plan.

Can You Work From Home? Invest in Apple’s iDisk, or an easy file transfer server. The client can upload the files you need and you re-upload them when you’re done. In doing this, you promise them a lower cost because you will only charge them for the amount of time it takes to do the work, instead of a full day of sitting in an office.

On-Site Fixed Schedule. Sometimes help is only required for a short burst of time, before something has to be released or go to a client. Other times, a freelancer may arrive at 9AM, but it might take an hour or so for the staff to focus on what they should work on. Agreeing on a shorter day like, 10AM-4PM, will enable you to keep your rate while your client stays budget conscious.

Consider A Day Rate. Offer incentive by creating a lower day rate, if the client can book you for 3 or more days. Securing a longer booking affords you a small hit on the cost. But if the booking is only for one day, work the math with them so they can see that their savings is not significant by lowering your rate.

Reflect A Discount. If compromise still cannot be reached, come to a reasonable reduction, but reflect the price in your invoice as a discounted rate. Consider adding some language that this rate is a limited time agreement or needs to be re-negotiated with each booking.

The bottom line is when a client needs to save money; they see no harm in asking you to lower your rate. By the same token, there isn’t always harm in you saying no. But if there’s something I’ve learned about dealing with clients, it’s never to give a flat out “no” without offering an alternative solution.

“They may say, ‘Sorry, I can’t go higher.’ But unless you behave like a total ass, they’ll still hire you. After all, a talented freelancer in the hand is worth two hundred unread resumes in the bush.” – Goodman p.109

(Note: For those interested in this book, please note that the writing is primarily geared to women, as it is written by a woman and women are often more reserved when it comes to negotiation.)

New Omnicom Policy

"Omnicom Enforces Production Contracts" is the title of the article found in the March 9th AdWeek. I won't bore you with the entire story (which you can read for yourself at adweek.com) but suffice it to say that Omnicom has added yet another corporate mandate to their ever-growing list of policies regarding vendors.

The bottom line is that Omnicom has announced that it is now enforcing a strict policy of not paying their vendors until their clients pay them. Does this policy affect "temporary employees" who receive payroll checks? I don't know, but I wouldn't be surprised to find out it does considering the current economic situation. This policy looks like it will certainly affect freelance illustrators, photographers, conceptors, printers, premiums vendors and anyone else submitting an invoice/PO.

As you may, or may not know, Omnicom owns Colangelo Synergy Marketing, Alcone Marketing Group and Tracy Locke.

Changing My Tune?

As you know, I've spent a lot of time writing about how freelancers shouldn't consider lowering their rates. After all, it would be a lose-lose scenario in the short and long run. And not just for the freelancer who lowers their rates, but for the entire freelancer market. Many of you have agreed.

However, I'm now changing my tune. Given recent developments (global and personal), I can no longer support the position of never lowering freelance rates, nor can I chastise any freelancer who works at a lower rate.

Since the beginning of last November I've worked a total of 13 days. 11 of those days I have driven 106 miles a day (just over 2 hours round trip), to work for a tiny agency doing mechanicals at a reduced "production rate". So why on earth would I agree to drive half way across the state to do limited production work at a reduced rate? Because I have no choice, that's why. It's amazing how fast your funds will evaporate after 4 and a half months with no work. Of course, our new baby has compounded the issue ten fold.

With my back against the wall I'm doing whatever it takes to keep my family fed. If that makes me a hypocrite, or means that I've ruined the market for myself and fellow freelancers than so be it. All I know is that my baby has diapers, and the mortgage company hasn't taken my house. And I know for a fact that I'm not the only freelancer in this position. I also know for a fact that quite a few freelancers are taking whatever work they can get at whatever rate they can get. Desperate times call for desperate measures, and in case anyone hasn't been paying attention, these are some desperate times.

Never mind the freelance market, you simply have never seen an economy this bad. Neither have your parents. Your grandparents might have seen worse if they lived through the market crash of 1929 and subsequent depression of the thirties. I'm hoping things don't get as bad as that, but at this rate I don't know. All I know is that some clients are conducting layoffs and forcing agencies to lower their rates. In turn, some agencies are conducting layoffs and forcing vendors to lower their rates. The automotive industry, the airlines, the housing market and everyone else are cutting their rates. Given these facts, how could we think we would be able to successfully maintain our rates?

Note that I'm not advocating that anyone voluntarily lower their rates. Obviously, it's a last resort, and I'm sure some freelancers haven't had to worry about it. Everyone needs to strike their own deal and be OK with whatever deal they make. Now, for those of us who have to accept work at a lower rate, what are some tactics we can employ to keep us from being completely taken advantage of? (cue Kathy...)

Welcome Kathy!

As I've had my hands full lately (not with work), I've asked some fellow freelancers to join the writing staff here at The Daily Freelancer. The newest contributor is Kathy. She has worked as a staff Creative for quite a few years, and made the decision to become a "Real Freelancer®" last year. 

I'm looking forward to adding Kathy's and several other freelancer's contributions to this blog in the near future. Hopefully this will become a true community effort. If you have any freelance-related topics that you would like to see discussed, or would like to contribute something yourself, feel free to shoot me an email.

Thanks,

Slim

Apple Releases New Mac Pro Today

Back in January I went on a rant about the 2009 MacWorld convention and how upset I was that Apple hadn't released a new Mac Pro in over a year. Well, Apple has finally announced a new Mac Pro...

http://www.apple.com/macpro/

Other than their typical, wild claims of being a million times faster that the previous generation, there are no major upgrades or modifications. And for the price this is ridiculous because we all know Apple's performance benchmark claims are as accurate as the local weatherman.

I think I said it best when I said "I'll probably end up with some half-ass, stop-gap system whose overall performance is marginally better than what they put out over a year ago." Man, I hate being right all the time. Maybe it's a good thing that I can't afford a new computer.

And did I mention what the price is? For the two 2.93GHz quad core Intel Xeon with the new ATI Radeon card the price tag is a whopping $6,100! This is, by far, the most expensive computer that Apple has ever produced (sans any optional RAM and hard drive upgrades). While I do some freelance work from home, it would take years before this system could pay for itself. Don't forget about all the new software and all the other expenses that come along with purchasing a new system. While switching to a PC will never be an option, many folks who would normally purchase (and need) a Mac Pro desktop will be forced to settle for an iMac, MacBook Pro or even a Mac Mini.

I'm no economist, but I fail to see the logic of even a niche company like Apple charging these outrageous prices in this economy. You can put the needs of the shareholders before the needs of your loyal customers for only so long. I won't be surprised to see Apple clones that are priced to sell making an appearance in the near future. Apple... dropping the ball yet again.

No New Posts?

Well, it's been a few weeks since I last posted, but then again I've had a lot going on. Becoming a new parent being just one of the things that have kept me pretty busy. I've also been trying to finish off a couple of portfolio pieces that I started a while back and never finished.

I have a couple of topics that I want to put up, but that will take more time than I have right now. Hopefully I'll be able to get to them in a few days. Stay tuned...

Can Freelancers Collect Unemployment?

Drastic times call for drastic measures. I don't know about you, but in my book, collecting unemployment qualifies as a drastic measure. To date I have been asked by four freelancers whether or not we can collect unemployment benefits from agencies that have issued us W-2s (technically it would only be the last agency that issued you a W-2). The contention being that because we are classified as "temporary employees" who receive W-2s (and not freelancers who receive 1099s) we are legally entitled to receive unemployment compensation. To be honest with you, I have no idea. So I asked around and did some reading.

Want to know more about basic eligibility requirements in the State of Connecticut? Click here to access the CT Department of Labor website.

There is a lot of information there - too much to repeat here, and a lot of the info is based on individual situations. Note that you must attend a hearing at your local unemployment office to determine your eligibility for benefits. This hearing is very informal, usually held at the desk of an unemployment coordinator, where both the person filing for unemployment and a representative from the company they are claiming benefits from must be present. Mmmmmm, cozy.

Maybe the question isn't "can freelancers collect unemployment?" Maybe it's "SHOULD freelancers collect unemployment?" Personally, I wouldn't do it even if I were legally able to do so. My fear is that the agency bean counters would hold a grudge, and my name would end up on a "blacklist" - forever banned from that agency. Yes, I know that isn't fair play on the agencies part, but life ain't fair brothers and sisters. Note that this is my suspicion. I AM NOT STATING FACT. However, I have heard rumors of freelancers being blackballed in the past for trying to claim benefits from agencies. Also, given the current economic situation, it wouldn't surprise me in the least to see a bean counter fight tooth and nail to hold on to every last penny an agency has. Again, I'm not stating facts, just my take on things. In the end, ya gotta do what ya gotta do.

So my advise to all you freelancers is to definitely file for unemployment! That way, if you get banned forever it will mean more potential work for me. If you do receive benefits and don't get banned then that means I can get unemployment too. See? It's a win-win situation for "The Slim One". Ahhhh, freelancers helping freelancers. Just the way it ought to be!

In all seriousness, if you have filed a claim, or are thinking about filing a claim please post a comment and let us know the details of the outcome. It will be most helpful to read about other freelancers experiences with this issue.
Thanks,
Slim

Liar, Liar...

In the past few weeks I've been visiting quite a few illustration and design websites. When I find an especially talented or successful artist, I like to check out their profiles to see where they went to school, and what clients they have worked for. LinkedIn is another site I have been exploring. As you probably already know, LinkedIn is a professional networking website where you can post your resume, and keep connected with your coworkers, both past and present.

Some statistics say that over 50% of people take certain... "creative liberties" with their resume. But it's always amusing when you find someone getting a little too creative with their history and credentials - especially when "creativity" becomes blatant fiction. For example, I found a young lady (24 y.o.) residing in the great state of Texas who claims to be an "award-winning designer". Wow, I wonder what awards she has won? Come to find out it was an award she received in college for her year book, or a student art show, or some such nonsense. Hey, I won third place in the Pinewood Derby when I was in the Boy Scouts! Does that mean I'm an "award-winning designer" too?

Another favorite of mine is when I see employment dates that completely conflict, or huge career advancements that make no sense whatsoever. I read a resume of a SVP, Creative Director in Chicago who stated that his first job was an Associate Creative Director position which he held for 2 years. A position that he somehow landed 2 years before graduating with his BFA. Wow. That is soooo spooky. ME TOO!

The best is when folks fib about their technical abilities. I found an older gentleman (mid 50s) here in the Northeast who outlined in great detail how proficient he is with manipulating digital content. Photoshop, Illustrator, InDesign, Flash, Dreamweaver, Acrobat, Painter, Quark, and Corel Draw were all listed as "known applications". Then I saw his portfolio. Right. Hey, I'm no digital DiVinci, but I'm thinking that this guy has a hard time opening Photoshop, let alone color correcting an image. As chef Gordon Ramsey would say, "It's fucking dire mate".

I guess if public humiliation is your bag then you can make as many wild claims as you want. Now if you'll excuse me I'm off to the Oscars to accept my award. After that I'll head on over to my 75th high school reunion where I'll let all of my old classmates know that I've just accepted the appointment of Viceroy to the Republic of Rhodesia. Feel free to flood my inbox with all of the accolades and encomia which I so richly deserve!

The 2009 Macworld Convention

I know there are a lot of freelancers who don't care about the latest technological trends, or bother about the latest computer hardware or software. Not me. I'm a Mac geek. I don't put that on my resume, but it has helped me over the years on countless occasions. One thing I look forward to each year is the Macworld convention. Apple uses Macworld (and the Worldwide Developers Conference) as a platform to launch new products and tout how great they are. Now I'm in the market for a new computer so I have a keen interest in what's on deck. Since Apple introduced it's latest desktop model (the Mac Pro) one year ago, I figured that it's well past due for Apple to announce "the next big thing". Guess I figured wrong.

Well, the 2009 Macworld convention was a joke. This was Apples last appearance at a Macworld convention, and they certainly didn't go out with a bang (Steve Jobs didn't attend due to health reasons). Minor software upgrades and another laptop model was all that was announced. I fell asleep halfway through the keynote live feed.

Over the past 5 or 6 years I have been consistently underwhelmed with Apple's desktop offerings. Yes, the G5 and Mac Pro were a significant advancement over the G4, but these advances came at a snails pace compared to the PC platform. Steve Jobs made the claim that Apple would produce a G5 computer that would break the 3GHz barrier back during a keynote presentation in June 2003 at the Worldwide Developers Conference. That claim never came true for the Power Mac G5. The 3GHz barrier was finally surpassed on January 8th of 2008 (the last desktop release to date) in an Intel-based Mac Pro. It took Steve Jobs 5 years and 9 model releases to live up to his claim! And this is olny one of many examples which has earned Apple the reputation of overpromising and underdelivering.

So what does any of this have to do with freelancing? I'll answer my question with a question. Have you ever seen a progress bar, or a spinning beach ball on your computer screen? I have, and it bugs the shit out of me. While I have no control over what computer I work on at an agency, I can control what I work on at home. And for those times I'm working at home I want the fastest, most stable machine possible so I don't have to deal with progress bars and application crashes. Since Apple has the graphic design market cornered I'd really like for them to live up to all their wild claims of producing "the fastest", "the best", or even "the next big thing" when it comes to desktop computers.

Unfortunately, I'll probably end up with some half-ass, stop-gap system whose overall performance is marginally better than what they put out over a year ago. Thanks Steve! Keep up the mediocre work! You pompous hack!

Posting comments...

I have had quite a few people tell me that they would like to post comments to my blog, but have been unable to do so.

This blog has been set up so ANYONE can post a comment. You don't need to join any group, or create any accounts. All you need to do is click on the "comment" button at the bottom of each blog entry, and type in your comment. After you have typed in what you have to say, you then need to select a profile (indicate who you are). In the pull down menu you can select "Name/URL" and just write your name, or select "Anonymous". After that you will be prompted to type in a provided code word, and then click "Finish". (Note that this seems to work better in Firefox than Safari.)

When you comment, please write in your name. We have a tight knit little community here, and for the most part we all know each other. I'd love to hear from freelancers from outside our community as well. Unfortunately, the anonymity of the internet can often lead some people to abandon common courtesy and common sense. Obviously, I will immediately delete any derogatory, inflammatory or off-topic comments, as well as any spam left by anonymous guests.

Thanks and I'm looking forward to hearing your comments.
Slim

How Freelance Works - Or, In This Case, Doesn't Work

The holidays are a great time for catching up with friends and family that you don't get to visit with often. Of course, one of the first questions that get asked is "So how's work going?". "Well, not too good" you respond. At that point you could elaborate and moan about the economy, and how the promotional marketing industry has been hit as hard as every other industry. It's a great way to bring the mood right down. Cheers!

At these family functions I'm often asked "What exactly do you do again?". I mention something about freelance graphic design, logos, illustration and promotional marketing. I've gotten used to the blank looks on peoples faces when I mention the words "promotional marketing". The very next sentence always seems to go something like this... "Hmmm, that's interesting. Hey, is that uncle Ebenezer in the corner?! I haven't seen him in a 'coons age'! Excuse me, I have to go say hello to him." And just like that, you're left standing alone staring at your egg nog.

On the rare instances when someone really wants to know about what I do, it always catches me off guard. Some people are interested in the whole freelance aspect and ask "So how does freelance work?". Trust me when I tell you that I don't let them know the real answer. The truth about how freelance works is about as boring as a dissertation on the chemical composition of lawn fertilizer. Probably more so. Instead I talk about other aspects of the work, and try to make it sound cool or at least interesting.

Now we all know how freelance really works. It's who you know, and it's how good you are. In that order. That's it. But isn't that how everything in this world works? Nepotism isn't a new concept, and obviously plays an integral role in our industry. The fact that the promotional marketing industry is so centralized (and comparatively small) here on the "gold coast" is the key factor.

These days "who you know" is a double-edged sword. With all of the recent layoffs, every Art Director around knows at least a half dozen "buddies" who are out looking for work. A lot of these "buddies" will be 7 months out of college with dubious design skills to say the least. They have no understanding of what ROI means, they can't tell you the difference between strategy and tactics, and they have no clue what the significance of Bentonville, Arkansas is. However, they'll probably be getting a phone call long before any seasoned freelancer does. But that's not the bad news. The bad news is Junior ADs aren't the only ones out on the street. A lot of senior-level creatives have been let go, and these folks know a lot of people. In the end, the people who were once your pipeline for freelance work are now competing with you for the little freelance work that's available. All-in-all it's a pretty grim situation.

So what's a poor freelancer to do? During your downtime update your portfolio and web site. Try and search out new agencies or design shops that you've never heard of before. Travel farther distances to find work - i.e. New York. Utilize LinkedIn, Monster.com and other web sites that offer job searches. As a last resort you can try a recruiter/placement agency, but just don't let them name your price. I have heard and seen how some of these shops will try and force you to work for $20 and $30 bucks an hour while billing the agency $80 an hour. DEMAND YOUR NORMAL HOURLY RATE! Don't worry about the placement agency. They'll still make a profit off of you even at your normal rate! Another last resort is taking on side jobs (...shudder!). I think I would rather let my family starve then take on work from the general public. Actually, I'd rather have my grandmother find me dead on the floor after I choked to death on a novelty sex toy then take on work from the general public. But I digress.

Good luck and here's to hoping the New Year brings us new fortune!