Dealing Outside The Industry

I'll bet you have multiple horror stories about doing business outside our industry. I sure do.

As if our industry doesn't give us enough agita, a friend, family member or neighbor always seems to have some sort of ridiculous request that needs to be turned around in a day. So you whip up a slick brochure, and your friend (coworker, uncle, neighbor, etc.) loves it - after 12 rounds of copy edits that is. You then send it off to the printer they are using and think "Thank God that's over!" But it's not over because the printer your friend (coworker, uncle, neighbor, etc.) picked out isn't really a printer at all. They're a sign company that bought a used wide-format printer, and are now accepting all sorts of print jobs. Of course they don't know what a Macintosh computer is, and they print everything via a PC-based CAD program. "Yeah, can you save that as a Corel Draw file?" Yeah, why don't I just get out my set of sharpened reeds and clay tablets while I'm at it?

"Hey Gutenberg, why don't you splurge on updating to an out-dated thermal-wax printer? Ya' damn luddite!"

And you thought you were so smart creating a "fool-proof" high-res PDF that almost every printer on the planet could print from.

After spending 7 hours designing and revising the brochure, and another 3 hours on the phone explaing what a UV-Lam is to the "printer" you end up loosing money on a job that was supposed to be a freebie. And every time this scenario plays out you inwardly scream "DAMNIT ALL! I"M NEVER DOING BUSINESS OUTSIDE THE INDUSTRY EVER AGAIN!!!"

Somehow when you end up revising legal copy on a 3-fold coupon booklet for 3 weeks straight for a big, name-brand client, it's just not as bad as dealing with a pretend printer who doesn't know the difference between CMYK and CBGBs.

Go figure.

________

One moment while I connect your call...

Since work has been pretty dead I haven't been that diligent about posting any updates to the blog. After all, why post anything if there is nothing new to report. I've been getting lax in other areas as well. Like keeping my phone on all the time. Too bad for me since this new-found complacency just cost me several thousand dollars. Yes, I got a call last week to work on-site for several days. Unfortunately, when I didn't promptly return the call, the gig went to another freelancer who did answer their phone. Now that was an expensive lesson.

Speaking of expensive and phones... as you can see from the photo, I need a new phone. I'd like to get an iPhone, but both the phone and data plan make my wallet itch. Yes, I know. It's all a tax write-off, but it's hard to put out that kind of dough when the cash flow is low - yo. So, what's a poor freelancer to do? I'll probably just go for it. You can't hope to successfully run a business by just eking by on antiquated equipment. And since a cell phone is the life-blood of a freelancer I should probably get a good one.

The fact that the iPhone is cool as hell doesn't hurt either.

Summer Doldrums

Well, it's June and there isn't much to report on the freelance front. Back in April I got the sense that maybe the economy was starting to turn around. Mortgage rates were at an all-time low, housing sales were up, banks seemed somewhat stable and there was talk that agencies were beating the street for new business. Now, two months later the mortgage rates are going up, housing sales are down, unemployment is growing and the economy is still shitty. I hear tell that agencies are still pitching new business, but clients don't seem to be in a big hurry to make any new moves one way or the other. I know of a few freelancers that have been getting a little work. Overall it's still pretty dead out there. 

I've been considering hosting a freelancer summit where fellow freelancers are welcome to come and discuss their thoughts on the current market, as well as their ideas to keep freelancing a viable option. Perhaps next month. I'll keep you posted.

- Slim

Negotiating the Freelance Economy

This article is from the May 6th edition of the Wall Street Journal (Careers section), and I thought it would make for some interesting reading here at The Daily Freelancer...

By SARAH E. NEEDLEMAN

In April 2008, Rebecca Haden lost her job when the small store she managed went out of business. A year later, she's working as many as 40 hours a week and earning much more than she did before -- even though she still doesn't have a job. Her formula? Freelancing her Web skills.

Ms. Haden, of Fayetteville, Ark., is among a growing number of professionals who are making ends meet by working on a project-by-project contract basis. Even as permanent- and temp-job opportunities are shrinking, the amount of contract work to be found on freelance-jobs sites is expanding. What's more, it's moving beyond computer-programming and graphic-design gigs for small employers to include listings from larger companies and assignments in fields such as accounting, law, engineering and sales.

Between January and March, employers posted 70,500 of these work-for-hire positions onElance.com and 43,000 on Odesk.com, which represents increases of 35% and 105%, respectively, from the same period in 2008. Sologig.com, which lists remote and on-site freelance jobs, says its average monthly postings have more than doubled to around 13,500 per month in the past year. In March, there were 750 jobs listed on VirtualAssistants.com, versus 400 in March 2008.

View Full Image

Spencer Tirey for The Wall Street Journal

Rebecca Haden has landed a steady supply of project-based work, in part by using freelance-job site Odesk.

At the same time, the number of U.S. workers employed by temporary-help-services firms in March fell 27% to 1.8 million from the same month in 2008, according to the Labor Department.

As the recession takes hold, more employers are using freelance workers to avoid the expenses associated with hiring permanent staff, says Fabio Rosati, chief executive officer of Mountain View, Calif.-based Elance. "The power of online work is that it's immediate, cost-effective and flexible," he says.

Indeed, freelance workers are often cheaper and more flexible than temp workers, whose jobs, though short-term, tend to be full-time, subject to temp-agency fees, and bound by agency restrictions, such as limits on the permanent hiring of temps.

Mr-SEO.com, an online marketing firm with eight employees, began using freelance help a year ago to handle tasks in Web-site development, administrative services and copywriting. The five-year-old Seattle-based company hired 17 freelancers through Odesk.com for projects that lasted as little as a few days or as long as eight months and counting. "It gives us the flexibility to expand our work force depending on client demand," says Greg Gaskill, the company's president.

Like many workers who turn to freelance positions, Ms. Haden, a 51-year-old mother of four, didn't plan to take on piecemeal work after her layoff. At first, she approached a local Internet company about a permanent job doing Web optimization -- a technique for boosting a site's search-engine rankings. It was a skill she had learned while overseeing her former employer's online store and blog. The firm wasn't hiring, but it offered her a short freelance assignment. She accepted.

Ms. Haden, who holds a master's degree in linguistics, wrote about the experience for a popular blog on Web optimization. "People started approaching me with work pretty soon after that," she says.

'I Just Do the Fun Stuff'

One gig she landed introduced her to Odesk, which, like some other contract-job sites, can monitor freelancers' work. Since then, Ms. Haden says she's landed a steady supply of Web-optimization assignments through Odesk, as well as through her personal Web site and blog. Most months, she earns more than double her previous income. Ms. Haden says the work has been fulfilling, and she has put her permanent-job search on hold indefinitely. "I get to pick and choose what I do now," she says. "And I just do the fun stuff."

Many other laid-off professionals appear to be taking up freelancing, either as a new career or as a way to weather the downturn. Freelance-job sites say membership among individuals, which is free in many cases, has risen sharply. For example, Guru.com has nearly 878,000 freelance members today, up from around 760,000 a year ago.

Freelance-job sites also say they're seeing more midsize and large employers posting assignments, and the jobs have expanded into more business functions, such as finance, manufacturing and law. For example, roughly 1,700 new jobs were added to the sales and marketing category on Elance in March, a 50% increase from a year ago. That's led to new types of contract workers, too.

Last month, Lynn Welch became one of those new freelancers when she began a 96-hour home-based consulting stint for Axsys Technologies Inc., a large, publicly traded manufacturer of infrared technologies based in Rocky Hill, Conn. She was laid off in March from a senior marketing position at a midsize technology firm and says her Axsys contract is one of four freelance assignments she's landed either through networking or Guru. She's so far earned roughly $10,000 from freelance gigs in online marketing.

Pitfalls of Contract Work

Despite her successes, Ms. Welch, who is 40 and lives in a Washington, D.C., suburb, says she still deals with some of the pitfalls that come with contract work. For example, she says she once spent several hours researching and explaining how she'd handle a potential project, but didn't get the gig. "Some [employers] want to pick your brain and have no intention of paying you," she says. Now Ms. Welch is more cautious about sharing information with employers before a contract is signed. "If they're asking for a lot of details, that's a warning sign," she says.

Sites like Odesk, Guru and Elance guarantee payment after jobs are completed in return for commissions of about 6% to 10% of freelancers' fees. But many other sites hold individuals fully responsible for billing clients and collecting payments.

There are other downsides to freelancing, from the lack of health coverage and paid time off to the need to make your own retirement contributions. Striking out on your own also requires regularly searching for and vetting potential new assignments, while ensuring that you complete on time the ones you've already secured. Furthermore, you may need to invest in equipment such as computer software and a business phone line.

Carving Out a Niche

Should you decide to take up contract work, there are ways to help ensure the process goes smoothly. First, make sure to be very specific about your skills and expertise when you fill out a profile on a freelance job site, says Kate Lister, author of "Undress for Success: The Naked Truth About Making Money at Home." Doing so will help you stand out from the competition. "You want to carve out a niche," she says.

To figure out how much to charge for your work, research the rates that experienced freelancers demand for similar services, suggests Ms. Lister. The information can usually be found in members' profiles on freelance job sites. "Look at their portfolios and ask yourself, could I produce that level of work? Could I do much better than that?" she says. After settling on a figure, Ms. Lister suggests starting out at a slightly lower rate to build a track record.

Another option is to offer to work for just a few hours at first to prove yourself, suggests Gower Idrees, founder of RareBrain Capital LP, a consulting firm specializing in high-growth businesses in The Woodlands, Texas. Since early 2007, Mr. Idrees has hired about 1,500 freelancers from Guru -- including former big-company executives, many as consultants. "I've used them in every way possible," he says.

Mr. Idrees recommends discussing potential projects with hiring managers over the phone whenever possible, rather than using email, in order to build trust and negotiate a fair pay rate. That way, a potential freelancer "can educate [the company] on what the challenges really are," he explains. Sometimes, he says, employers aren't aware just how many hours a project will require.

Write to Sarah E. Needleman at sarah.needleman@wsj.com

Corrections & Amplifications 
Mr.-SEO.com, an online marketing firm based in Seattle, has hired 17 freelancers through Odesk.com in the past year. A previous version of this article incorrectly stated that the company hired freelancers through another job site.

Printed in The Wall Street Journal, page D1

FREELANCERS... Unite?

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."

Pros: 

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...

Evolution

I haven't been posting much because I haven't had anything new to comment on. The freelance situation here on the "Gold Coast" remains pretty much the same as it did in the beginning of the year. As we all know, when money is tight at an agency one of the first ways to cut spending is by eliminating, or cutting back on freelance help. The standard procedure implemented by the Bean Counters is to make the staff employees pick up any slack in the work flow. When that inevitably fails, the Bean Counters then create a sea of paperwork and red tape that needs to be navigated before a freelancer can even be called. The intention here is to make the bureaucratic process so difficult that the creative staff won't make the effort. They'll just work around the clock themselves rather than go through the hassle of bringing in a freelancer. After all, they're lucky to have a job in the first place.

After the creative staff proves they need help, and properly fills out all the paperwork, then it's time to beat up the freelancer on his/her hourly rate. After a few episodes of this nonsense it's no wonder the phone doesn't ring. I had to go through this when I was on staff, and have been put through it as a freelancer at several agencies to date. As one Creative Director recently said to me, "Long gone are the days of just picking up the phone, and calling in a freelancer to come in for however long." It's my understanding that this type of policy has been adopted by at least four of the bigger agencies in the area, if not more. The important thing to note here is that once an agency implements this type of policy for bringing in freelancers it rarely, if ever, changes.

The first post I made to this blog was titled "The Death Of Freelance As We Know It" where I outlined how freelancing at the larger agencies, who issue W-2s instead of 1099s, is not financially advantageous. Combine this with the implementation of strict policies regarding bringing in freelance help, forcing freelancers to lower their hourly rates, withholding payments until agencies get paid by clients, and the writing on the wall seems pretty clear - at least to me.

In a response to a previous post, fellow freelancer Joe Criscuolo said "Lowering rates, not getting calls, etc. is just the sign that this industry is changing and may never return to the way it used to be. Different, yes. But not the same." I agree. Yes, the way the entire promotional industry is doing business is changing on a large scale. Unfortunately, I feel that many of these changes will have a permanent and negative impact every freelancer in the business.  

So now what? I think the answer is pretty simple. Evolve. The industry is changing pretty quickly, and if you want to remain a profitable freelancer then you better start thinking about changing/evolving as well. I think how you evolve depends on the individual, but I believe they're are many ways to do this. Obviously having a skill set that is both unique and in demand is the best way to keep busy. Web designers have always been in higher demand than print designers so maybe learning Flash or Dreamweaver would be the way to go. Of course, working for agencies who haven't adopted strict freelance policies and who issue 1099s is key. And then there is finding work outside of the promotions industry. Capitalizing on the down economy by offering to promote and market small businesses who need help can be an option as well.

Our industry is changing, and it's not the first or last time this will happen. Evolution never comes easy, but we all know what happens to things that don't evolve on this planet now don't we?

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.