Sign On The Dotted Line

I started freelancing at an agency that I haven't been to in quite a while. Of course there is the usual stack of papers that needed to be signed first, like the standard confidentiality agreement, W-4 forms, etc. However, there was one multiple-page document that really caught my eye. A non-competition agreement.

The first two paragraphs of the agreement specifically state that you, as an independent contractor, will not engage in any type of activity that represents a conflict of interest to the agency, including employment or freelancing for any other agency or client. The term of this agreement (get this part) is for two years after the agreement has been signed.

I'll now wait until you all stop laughing.

The contract goes on to specifically forbid all sorts of things that are, for all intents and purposes, the life blood of working as a freelancer. Did I mention the 60-day terms on payment? Right. Suffice it to say that I refused to sign this nonsense.

I'm sure there are many folks out there who just may sign an agreement such as this and think to themselves, "So what? I'll just sign it, and do what ever I want to. No one will ever know the difference! After all, if I don't sign it then I won't be able to work here, right?" Wrong. Don't fool yourself into believing this is just another piece of paper. You'll be signing a legal and binding contract that a bunch of high-paid attorneys spent hours writing up and revising. And as we all know this is a really small industry and everyone knows EVERYTHING.

No freelancer or staffer should ever sign one of these, no matter how much pressure there is to sign it. Once you sign it you immediately forfeit your legal right to effectively operate your freelance business, or find another staff job while under the 2 year term limit. It's pure horse shit, but that won't stop certain agencies from browbeating you into signing something that will be in your worst interest. This isn't the first time I've rejected this type of agreement, and I doubt it will be my last. And even though I have always refused to sign it, I have never been refused work because I didn't sign it.

Comments and Contributions

Just a quick note...

Anyone who is interested in contributing to this blog (either by writing articles or simply by suggesting topics) please send me an email with your thoughts and ideas. Your input is most welcome. I know we have a few "lurkers" out there, and I'd like to invite them to post comments or suggestions as well.

As far as posting comments goes, you can either post anonymously, or by leaving your name. You do NOT need to create an account to comment on this blog. Obviously I would prefer if you would leave your name when posting comments just as a courtesy so I know who is saying what.

Thanks and I hope to hear from you soon!
Slim

The Evils Of "Promospeak"

I know that speaking and, more importantly, understanding industry lingo is an important and inevitable aspect of doing business... to a point. Unfortunately, some folks take speaking in industry terms a bit too far. What really gets me is how many people will hear a word or phrase and over use it without bothering to consider it's meaning. It's painful to listen to someone wearing out the latest buzzword when I know they have no idea what the hell they're talking about. Before you know it, everyone is inserting this incorrect and out-of-context nonsense into every other sentence. I call this phenomena "Promospeak" and liken it to other embarrassing fads like popped collars, pointy-toed shoes, Karaoke and mullets.

Here is an example of a fictional conversation between a Group Account Director, Account Executive and a Creative Director based on buzzwords and trendy phrases that I've heard bandied about while working in this industry...

GAD: "Hey, can you reach out to the client and set up a top-to-top? We really need to gain alignment on how quickly he wants us to flush out this UTC promotion. I know this is red hot, but the earliest I'll be able to get some face time is tomorrow AM."

AE: "No worries. He's out of pocket 'till 4 today anyways."

CD: "I just need some insight on whether he wants us to leverage the equity of last quarter's advertising, or lift the DNA from the new BOGO promotion. You know I have a lot of heart for the overall look and feel of that creative."

(Note that I've only included a mere fraction of buzzwords in the above dialogue, but it's enough to make my point.)

Now, let's take a look at a few of these trendy buzzword/phrases and substitute plain English in their place. Hopefully, if you've been infected with "Promospeak" we'll have you speaking like a sane and rational human being in no time at all!

"Reach out" - In plain English this means "to contact". Unless you're Sgt. Sipowicz from NYPD Blue, you've got no business "reaching out" to anyone! Just say "call".

"Gain alignment" (a.k.a. "Get all our ducks in a row", "Get on the same page", etc.) - In plain English this means "to come to an agreement or understanding". Gain alignment? I want to meet the pretentious ass who stole this off his "word of the day" calendar, and punch him in the esophagus. Just say "understand".

"Flush out" - First of all, it's "Flesh out", not "Flush out". In plain English "flesh out" means "to build upon", or "to finish". If you're saying "flush out" then you want to discard or dispose of whatever you are referring to. I'm always shocked at how many people screw this one up. Just say "finish".

"Face time" - In plain English this means "meeting in person". Thankfully I don't hear this one too much anymore. I guess the memo must have gotten out that says "uttering the words 'face time' means you're a putz of the first order". Just say "meet".

"No worries" - In plain English this means "OK". Listen, stop telling me that there is nothing to worry about, and just say "OK"! OK?

"Out of pocket" - In plain English this means "requiring an outlay of cash". It DOES NOT MEAN "being unavailable". I hear this trendy, yet erroneous phrase daily, and cringe every time. I guess all the cool kids are using the Urban Dictionary instead of Merriam-Webster these days. Insert dejected eye-roll here. Just say "unavailable" if that's what you mean.

"Leverage the equity" - In plain English this means "use what has become publicly recognizable". Equity isn't a bad term to use. At least when it's not inserted into every sentence. In some cases I've heard people say equity when they are talking about what was created last quarter. In that case just say "use last quarter's shit".

"Lift the DNA" - Used primarily in the Creative Department, in plain English this means "utilize existing elements". Another example of creative folks getting a little too creative! Just say "use the existing look".

"Have heart for... " - In plain English this means "I (really) like it". I almost vomited in my mouth when I first heard this posturing drivel. I was in a meeting where no less than three people where using it to punctuate their every thought. Sad but true. Obviously, if you like something, just say "I like it".

Now let's try that conversation again, but this time in plain English...

GAD: "Hey, can you call the client and schedule a meeting? We need to understand exactly what they want regarding the UTC promotion. I know it's past due, but I'm unavailable to meet until tomorrow morning."

AE: "OK."

CD: "I also need to know if the client wants us to use last quarter's advertising shit, or use existing elements from the new BOGO promotion. I like the new promotional artwork."

While not as flashy and exciting as using new (and sometimes nonsensical) words, plain English is both to the point and easily understandable. As I stated before, using and understanding a few industry terms is one thing. Overusing trendy buzzwords for the sake of trying to sound hip is just irritating.

That Fresh Freelance Smell!

Work seems to have been picking up lately. Not just for me, but for several other freelancers as well. I have no idea if this trend will continue, but it seemed like a positive sign when I had to turn down two jobs over the course of two weeks. That hasn't happened in quite some time for me.

Last week I was working on-site with fellow freelancer Joe Criscuolo. Now Joe calls himself a "Career Freelancer", and he makes this distinction to differentiate himself from the other freelancers who are just freelancing until they can find a staff position (remember the "Fake Freelancer" vs. the "Real Freelancer" post I made a while back?). Well, Joe eschews these fake freelancers as they are competing for the same work he is, and obviously the market is saturated with them. But here is the real rub... many of these "fake freelancers" have now breathed in the freedom of freelance life, and they freakin' LOVE IT!

Two days ago I was part of a conversation where three recently unemployed staffers were discussing how great freelancing was. "You don't get caught up in office politics, or have to go to stupid meetings, or deal with stupid clients... FREELANCE IS GREAT!!!" I then mentioned a few aspects of freelancing that weren't so great like having to wait 3 months to get paid, but my comments fell on deaf ears. Too late. These one-time staffers had just smelled the fresh scent of freelance, and they were all in agreement... there would be no looking back.

I have to wonder how many other recently unemployed staffers there are who are experiencing the joys of freelancing, and coming to the same conclusion.

It's all part of the cycle of the freelance industry I guess. Here we have a fresh batch of Career Freelancers entering the fold, and competing for the limited work available. In turn, I'm quite sure that there will be more than a few Career Freelancers who will be edged out of the market, and make the determination to change career paths. It's a vicious cycle my friends, and it will be quite interesting to see how the next 6 to 12 months develop with this new wave of Career Freelancers entering into the marketplace.

EDIT:
Looking back over previous blog entries, I came across one I wrote on Monday, January 5th of 2009 entitled "How Freelance Works - Or, In This Case, Doesn't Work". I found this snippet to be unfortunately prophetic...

"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."

Here's to hoping that the economy will rebound, agencies will start winning pitches, clients will loosen their purse-strings and there will be more than enough freelance work for everyone. What? I can dream, can't I?

Ivan Sutherland's Sketchpad

Thanks to Luis Benetiz for passing this along.

I saw this and was blown away. 1963?! It makes me wonder what exists right now that the public won't find out about for another 20 years (or almost 45 years in the case of the Wacom Cintiq monitor/tablet that I'm using now).



More videos regarding Sketchpad...





A shot of the Wacom Cintiq 20swx in action...


Enjoy,
Slim

Pro Bo-No-Way

From Wikipedia...

"Pro bono publico (usually shortened to pro bono) is a phrase derived from the Latin language meaning "for the public good". The term is generally used to describe professional work undertaken voluntarily and without payment as a public service. It is common in the legal profession and is increasingly seen in marketing, technology, and strategy consulting firms. Pro bono service, unlike traditional volunteerism, uses the specific skills of professionals to provide services to those who are unable to afford them."

When I was first starting out after college I accepted several pro bono jobs. Every single one turned into a nightmare that wouldn't have been worth the aggravation even if I was getting paid. These experiences stuck with me, and I have since adopted a strict "no pro bono work" policy.

Now, as if things weren't bad enough, I've had several clients (outside of the industry) asking me to take on pro bono projects. The standard sales pitch for pro bono work is always the old "This project could lead to a lot of paying work down the road." Of course it never does. Looks like some clients have gone from lowering their freelance rates to now trying to get work for free. An insult to say the least. Would you ask a plumber, teacher or mechanic to perform pro bono work? Of course not. But I guess it's OK to ask artists that create artwork that's used to promote or advertise a business to work for free.

The latest insult came the other week in the form of a complicated vehicle wrap for a large bus. I responded by saying that I would try to work within a limited budget, but a job this size was way beyond the scope of pro bono work. The client didn't even have the courtesy to respond.

No matter how bad the economy gets I'll never work for free - even with the promise that it could lead to paying jobs in the future. Pro bono work is for suckers and my mama didn't raise no sucker!

After doing a bit of reserch on pro bono or "spec work" I found that I'm not the only one crying foul. Check out http://www.no-spec.com/ for more info on the subject.

The Vendor/Client Relationship

Classic...

Freelancers Feel the Squeeze, Too

Thanks to Rose for letting us know about this article regarding freelancers in AdWeek Magazine...

Aug 3, 2009

- Noreen O'Leary

NEW YORK Consider the current work situations of two creative freelancers who made their names with high-profile, award-winning advertising: One, a writer based in New York, agreed to chop his day rate by one-third for a miserable assignment and 12-hour workdays. He didn't have much choice, having worked only four other days this year. Another, a West Coast art director who previously enjoyed a day rate of between $1,500 and $2,500, is close to giving up on freelancing and will relocate, if necessary, for a staff job.

Over the past nine months, as layoffs and hiring freezes became the norm, freelancers might have expected to see their part of the business hold up in an otherwise bleak employment picture. But even established freelancers say there's less agency work these days and what was once a lucrative lifestyle is coming under the same budgetary pressures as everything else in the industry.

"It's brutal out there. People are cutting fees," says Liz Gumbinner, a former Deutsch cd who runs a Web site, CoolMomPicks.com, and consults on social media and online strategies to offset the decline. "It's certainly different than when I started freelancing eight years ago, [when] I could have double- and triple-booked jobs. If you worked more than 12 hours, you would get paid 50-100 percent more for the day. Now, agencies are cutting fees, taking 90 days to pay. You work a five-day week for a three-day rate."

Lots of freelancers are nervous, many for the first time in their careers, Gumbinner adds. "They may have been freelancing for 10 years, but they're panicking now and thinking of taking staff jobs," she says.

Many agencies, already in cutback mode, now include the cost of freelancers in comparative ratios that monitor expenditures by measuring salaries to revenue. In the past, many agencies could spend on freelancers without impacting those comparisons, but it now affects them and raises red flags.

Richard Pels, a cd who has worked at Saatchi & Saatchi and BBDO and has been freelancing for about 10 years, says he knows one creative manager who asked her agency to increase her freelancer budget from $2 million to $2.5 million. Instead, it was cut by $1.5 million to $500,000. "People are making you a temporary staffer rather than a freelancer because they have no freelance budget," Pels says. "It's catch as catch can, but even more so because there's more competition and less freelance work available."

Amy Hoover, evp at recruitment agency The Talent Zoo, says talent supply is making for a tough market. "On the traditional side -- and I don't want to insult anyone -- the fact is, talent is a dime a dozen," she says. "There are so many people on the street because of layoffs. Historically, there were freelance jobs in other downturns, like the early '90s and in early 2000, and work picked up for them because there were so many cuts at agencies. There's no 'normal' these days, and there's [no] money."

Adds another observer: "People who are used to getting $3,500 a day are now getting $1,500. Even heavy-hitting teams are not getting work."

Many freelancers say it's fairly standard now to settle for two-thirds of what one might have commanded two years ago. One industry veteran, used to a day rate of $1,500-2,500, is now settling for $500-600. Pels, who also teaches at the School of Visual Arts in New York, says young freelancers will take as little as $100 to $300 a day. "It's a buyer's market," he says.

A creative manager at a large New York agency confirms: "There's big-name talent available, and they're negotiable."

This executive adds, "In some cases, a day rate of $2,000 goes down to $1,000, but it depends on the size of the project and the kind of talent. There's a whole range: It could be $200 a day or $2,000. ... It depends on what they're doing, their skill set and role on the project. For a month-plus, say 38 days, it could be $45,000. For new business, it could be $30,000 and a bonus."

One freelancer says some agencies are using project fees rather than day rates to "get as many nights and weekends as possible."

Indeed, the fundamental nature of the freelance business may be changing. "The gang bangs where agencies put 20 people in a hotel room -- I don't see that kind of effort or money being spent," says one recruiter.

A journeyman freelancer concurs: "There's more pressure on agencies to come and do it with existing staff."

Expenses have come under the knife as well. "Agencies are cutting down on out-of-town per diems," says Gumbinner. "They've gone from putting you up at the Sunset Marquis to the $89 place by the airport."

Dany Lennon, president at the Creative Register, doesn't include freelance placement in her business, but will do it as a favor to clients. "It's all about repeat business," she says. "Anyone with established relationships is working. Agencies aren't going to take a risk with someone unknown to them. Those who are new or less than famous will find it hard."

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?