Freelancing: Working Out of the Box, with Help from the Web
Maybe you're just making the leap from a steady, 9-to-5 job to the sometimes unpredictable lifestyle of an independent contractor, or maybe you've been freelancing for years. Either way, managing your current work and looking for your next gig can be a daunting endeavor. Online you'll find freelancing advice, tax information, tracking and organization tools, and much more to help you find success in the freelancing world.
Expand All Guide SectionsGetting Started in Freelance
You should make sure that you know what you are getting into before you take the leap into the ... read more »
Finding Freelance Jobs
But most freelancers are constantly working to make sure they have enough projects lined up to pay ... read more »
Freelance Pay, Contracts, and Benefits
If freelancing is your only source of income, you are going to have to be very careful. Some online tools help you calculate appropriate pay rates, other sites help you research potential healthcare options for yourself and your family, while others help you put together a contract to ensure that you are paid.
Dulcinea's Insight
- Professional associations' Web sites sometimes provide pay-rate suggestions for freelancers. If you're trying to set rates, try asking friends who freelance what they charge or what clients might typically pay for the type of work you do. You want to make sure that you are charging enough to make a living, but not so much that you aren't getting any job offers.
- Always work out pricing before you begin a project. Determine what will happen if the client is not satisfied with your work (Will you get full pay? Partial pay? No pay?) and what exactly is required of you to ensure satisfaction. Sign a contract that explicitly lays out the terms of the project.
- Most freelance contracts are relatively short and simple, but it never hurts to have a lawyer look over any contract before you sign it.
- Some unions allow their members the option of buying into a health insurance plan for less than you might pay on your own. Check the Freelancers Union as well as unions that are specific to your profession for details about rates and coverage.
- For more extensive information about health insurance, see our findingDulcinea Health Guide.
Dulcinea's Picks
To help you determine freelance rates ...
FreelanceSwitch
has an Hourly Rate Calculator that asks you to enter all of your business, personal, and other expenses in some detail. The calculator then prompts you to figure out how many days and hours you'll be working over the course of a year. It then gives you an estimate of what you'd need to charge per hour to break even, and what you'd need to make per hour to achieve a profit margin of your choosing. This calculator won't accurately give you an exact per-hour rate (as you may encounter more or less financial need during a particular year, or pay more or less in taxes than anticipated) but it does give you a good starting point. These calculated expenses may help you think about how much your actual expenses are so that you are charging a fair rate for your service.
Blue Flavor
has an article that tries to take the mystery out of pricing a project for both client and vendor. Although the actual pricing model has more to do with pricing for an agency than for a freelance worker, there are some fundamental tips here that are helpful to anyone setting their own price. These tips include: "You can't negotiate up," things to consider when setting an hourly rate, and complications that may increase the cost of a project.
To help you write contracts for freelance work ...
Elance
provides some sample documents including nondisclosure agreements, buyer/service provider agreements, and an engagement letter to assist you in developing contracts and agreements with your clients.
For freelance health insurance information ...
eHealthInsurance
covers the basics of different types of insurance and health savings accounts. Take a look at the "Help Center" (located at the top of the homepage) to find answers to some frequently asked questions about health insurance. You can compare plans, get quotes, and apply for insurance here.
HealthDecisions
is one of the Web's premier portals for health insurance information. Users not familiar with how insurance works, or what their options are, should start by visiting the "Learning Center." It's here that you'll find definitions to acronyms like HMO, PPO, HSA, and HDHP, a beginner's guide to insurance, and a useful FAQ section. The "Insurance Locater" can help you find insurance in your area.
The U.S. Department of the Treasury
has information about health savings accounts (HSAs). On this page you'll find links to PDF documents, downloadable brochures, and a link to frequently asked questions about HSAs that should help you understand what HSAs are, how they work, and whether one is right for you.
To help you save for retirement with freelance work ...
SmartMoney
has a "Tax-Free Retirement Accounts for the Self-Employed" article that provides a chart of the different types of retirement accounts you can set up as a self-employed individual and the yearly contribution limits of each. Not sure what the difference is between a Roth IRA and a SEP? No problem, this page also explains in further detail what each account is and how it might benefit you.
Keeping Track of Freelance Projects
If you're going to work on several projects at a time, or even one project, organization will play ... read more »
Paying Taxes as a Freelancer
Taxes can be more complicated for freelancers than for an average employee in a large company; in ... read more »
Connecting With the Freelance Community
The life of a freelancer, while often exciting, can also be lonely. There are many places online ... read more »
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