I recently received a question from a reader named Briana, who asks:
“Paula your story is definitely inspiring. I’m having a bit of trouble though.
Since being laid off in January, I’ve been pursuing a “career” as a freelance writer, and while things are steadily looking up, the fact of the matter is I’m still not making enough for a full time income. 11 months later and the stress of getting a “real job” is even greater than before.
Our lease will be up in February; we have debt to pay down. It’s tough to see the light at the end of the tunnel. What do you suggest?
I had stopped putting in applications and told myself I’d really take freelancing seriously, but I recently started putting in applications again. It’s truly the last thing I want to do.
I would love to travel, and work from home, or anywhere with WiFi for that matter. I just feel like it’s not realistic for me. Any thoughts/tips?”
Briana –
This is going to be an epic post, because I want to help you avoid succumbing to “last thing (you) want to do.” People thrive in work they love. People stink at jobs they hate.
I’ve broken this post down into 6 categories:
- Finding Work
- The Real Question You Should Be Asking
- Pricing Your Work
- How Most People Fail
- Versace vs. Pepsi
- Resources
The tips I’m going to share will apply to people in almost any industry, not just writing.
#1: Finding Work
Finding work is easy – there’s tons of it out there. I’ve created a list of websites that offer freelance work, which is at the bottom of this post. But before you scroll down to that list, ask yourself: Do you view the world as having a scarcity of available work, or do you view it as having an abundance of work?
Step one to finding work is to start a self-fulfilling prophecy. When you view the world as a place of abundance, you start to SEE that abundance everywhere.
I’m sure you’re familiar with “hand-eye coordination.” Our bodies are hardwired to travel in the direction that our eyes view – whether we want to or not. That’s why good drivers look directly ahead, while distracted drivers are likely to steer their car into the shoulder.
That’s also why many drivers collide with bright orange construction equipment. Drivers start looking at these eye-catching objects, and – boom! – their eye-hand coordination steers their car into it.
In other words, our brains unconsciously steer us toward whatever we’re looking at. On a mindfulness level, the same thing happens. See the world as brimming with opportunity – and your brain will unconsciously steer you toward this opportunity.
I know that sounds vague and esoteric, but seeing the world as a place of abundance is a critical first step that can’t be ignored. (And for concrete job-finding guidance, I’ve included a long list of resources at the bottom of this post.)
#2: The Real Question You Should Be Asking
The real question is not “where can I find work?” The real question is: “What work is worthwhile? What work is a waste of time?”
There are two ways to price your work:
The Pepsi Method
High volume, low prices.
Pepsi is burdened with huge overhead – lawyers, advertising, highly-paid executives. But you’d never guess it by the $1.30 two-liter bottles at the store. Pepsi’s sales strategy is “high volume, low prices” – they make their product cheap so that they can sell as many bottles as possible.
It’s easy to do that when you’re selling a mass-produced product. There’s no limit to the number of Pepsi bottles in this world. It’s much tougher to use this strategy when you’re trading your limited time for money.
But – yes, there’s a “but” –
The Pepsi Method – if you’ll let me mix metaphors – is the “low-hanging fruit.” It’s easier to find people who are willing to low-ball the amount that they pay you.
That’s because, frankly, the less they pay you, the less of a risk they take. If your work sucks it won’t bother them as much, because they haven’t invested much into you.
If I pay someone $10 to perform a task, and he totally flops, all I’ve lost is $10. If I hire someone for $10,000 to perform a task, I’m taking a huge leap of faith.
The people who will pay you top-dollar are the people who believe in you. That’s a win-win for you both, but it takes time to build that kind of trust and reputation.
The Versace Method
Low volume, high prices.
Suits and dresses by the Versace label aren’t flying off the shelves like 20-oz. bottles of Pepsi. The company sells a smaller batch of items (they call it “exclusive”) but commands a hefty premium.
When you’re selling your time, you’re selling a genuinely exclusive product. Your time can’t be mass-produced. Supplies are limited.
Your time is worth more than a Versace fragrance. It ought to command a premium.
The problem is, your reputation needs to precede you. I can’t just stitch together some pants and sell them on eBay for $4,000. I don’t have a famous designer label (imagine: “Pants by Paula Pant” – or simply, “Paula’s Pants.”)
Versace can charge those rates, because it trades on its name. It’s not selling pants, it’s selling its reputation. This takes time to develop.
#3: Pricing Your Work
Trying to build a business when your financial footing is shaky is like trying to hang beautiful wallpaper in a house with a rotting foundation.
First you need to pour a solid foundation. Then you can take on the higher-level, long-term projects.
Step 1: If you’re not earning enough to pay the bills, use the Pepsi Method. Grab as many projects as you can, even though they don’t pay you what you’re worth.
Step 2: Do this until you’re earning enough to meet your minimum monthly bills.
Step 3: Switch to the Versace Method for all your additional work.
Step 4: With each Versace-level project you start, fire at least one Pepsi-level client.
These days I spend a ton of time working on long-term projects that might not pay a dime for 2-3 years. I can afford to do this is because I’ve laid a foundation of “baseline” income.
I use the “Pepsi Method” to hustle for just enough projects to prevent me from needing a day job. Then I switch to Versace-level projects.
With every new Versace-level client I find, I “fire” at least one Pepsi-level client.
(Side note: Don’t necessarily fire your lowest-paying client. Fire the client that drains your energy the most. There are many poorly-paying clients that are a joy to work for – perhaps because they teach you something valuable, or provide you with great connections, or serve a great cause. Conversely, there are plenty of clients that pay handsomely but they’re a “PITA” – a pain-in-the-bleep.)
#4: How Most People Fail
Here’s where many people fail: they give into the temptation to pick the low-hanging fruit, even after their minimum monthly bills are met.
Here’s an example:
Let’s assume you live frugally: you cook at home, rent movies instead of going to a theater, and explain to your mom that instead of buying her a Christmas present this year, you’ll write her a heartfelt letter telling her how much you appreciate her. (She’ll like that more, anyway.)
Thanks to frugal living, you can shave your household expenses down to $2,000 per month.
You go to the resources section at the bottom of this post and find a bunch of Pepsi-level projects, which earn you $3,000 per month. You set aside $1,000 for taxes; the rest pays your bills.
In theory, this is the point where you should switch to higher-level projects. Your foundation is solid. Now it’s time to build.
But the low-hanging fruit tempts people. They see the chance to take on one or two more low-level projects for an extra $800 per month.
With an extra $800 per month, you could dine out every Friday night, get an occasional manicure, and pick up a nice jacket for the winter. Surely one or two more low-level projects won’t hurt, right? Riiiigghhhht?
Don’t get stuck picking the low-hanging fruit. It’s a necessary evil, but don’t do this any longer than necessary. People are their own barriers to high-level success.
#5: Versace vs. Pepsi
How can you tell the difference between low-level and high-level projects? Here’s a rule of thumb: if you have to trade your time for money, it’s low-level. If it establishes a long-term path that (eventually) might allow you to own an income-producing asset, it’s high-level.
Building a website, for example, is a Versace-level activity. It requires a ton of upfront work, and it almost certainly won’t pay much the first year. It might only pay a pittance the second or third year. It might become the next mega-website, or it may never amount to anything. It’s a risk.
You MUST take risks in order to succeed, and you have to accept that some of them might not work out. The key is to keep your cost-of-living to a bare-bones minimum, maintain cash reserves, and avoid debt.
(Read more: How to Bootstrap a Business.)
Buying rental properties, building businesses and investing in index funds are Versace-level activities. The freelance work -– trading time for money -– happens in the meantime.
#6: Resources for Finding Freelance Work
Here’s my standard disclaimer: I’m not necessarily vouching for any of these jobs or resources. It’s up to you to decide if it’s a good fit. Use common sense.
Freelance Switch – Jobs — a job board for freelancers in a wide array of fields
Writer’s Digest – One of the oldest and largest listing of freelance writing jobs.
Media Bistro Freelance Marketplace – A forum for freelancers to showcase their work.
Society of Professional Journalists — A hub of about 20 freelance job sites. Poke around on this site for awhile. It includes the “Independent Journalist” blog, which holds advice for freelancers.
Writing Coach – The woman who runs this site, Maya, is a Harvard grad who left her investment banking job to start a business that helps freelancer writers succeed. Her blog is great, and her free online seminars ROCK.
Media Kitty – Great resource for freelancers in the media.
Freelancer Directory – Post your portfolio on this website.
Journalism Jobs – A website where writers, editors, and designers can look for freelance (and staff) gigs.
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This is a little off topic but if you run a business, it pays to keep your eye out for people who are doing “Pepsi priced” work to pay the bills – but have the potential of doing Versace level work.
The way I see it, it’s a win/win. You get their expertise at a discount while helping them get their name out there and build up enough of an income to eventually move on the higher level work.
Hey Paula!
First off I have to say that hand-eye coordination image is absolutely terrifying. It reminds me of this monster from Pan’s Labyrinth ( http://www.sgnewwave.com/main/wp-content/uploads/2008/07/pan-2.jpg ).
Secondly, regardless of the image, your first point is absolutely spot on and incredibly important.
Finding anything you want – work, money, fun, friends, pictures of cats, any random thing – is just a matter of getting your subconscious mind on the lookout for it. It takes a bit of mental reprogramming, but it’s the biggest step anyone can take on the road to success.
Many similar posts overlook this and simply start by saying something like “check out these sites and look for work, see, there’s plenty there!” which is not quite the same thing, so thanks for including it!
Also, another resource I’ve heard good things about but have yet to try (it’s a bit more of a hassle if you’re not in the US) is http://www.odesk.com.
I’m looking forward to reading more from you!
Addendum: the “writing your mom a heartfelt letter for Christmas” idea is amazing. I’m definitely going to do that (possibly on top of buying a present anyway) and I think other people should, too. The significant people in our lives are so often unaware of how much they mean to us. We should put ourselves out there more even though it’s scary, and let them know. I think it’ll definitely make their Christmas. 🙂
@Mel — That’s fantastic! I’m glad you’re going to write this letter. Many people — myself included — can feel shy about telling someone how much you care about them, but it really is the greatest thing you can do for a person you love.
This is great advice Paula. I’ve been working as a freelance writer for close to 8 years now and I can tell you that you sometimes have to take a lot of Pepsi level jobs at first.
There are a couple more sites that post good jobs:
http://jobs.problogger.net/
http://write-jobs.blogspot.com/
http://www.bloggingpro.com/jobs/
and on Facebook:
http://www.facebook.com/pages/Facebook4Freelancerscom-Freelance-Writing-Jobs-Freelancing-Group/106581329394324
Like you said, there are loads of jobs out there. But there is also loads of competition.
@Danielle — Thank you for the additional sites!! I forgot about ProBlogger; they have great information. And yes, I also took a lot of Pepsi-level jobs in the beginning, including some “content farm” jobs that I’m embarrassed to admit. Those were definitely the first jobs I dropped when I started getting more lucrative work!
“People stink at jobs they hate.” So true!
I really like your approach to meeting the bare minimum with “Pepsi method” stuff and then using the rest of the Versace. I’m not a full-time freelancer yet, but it seems a lot of people get hung up on just bringing in money short-term. With that there seems to be little opportunity for big improvements in income for the future.
@Jeffrey — When I started freelancing, I thought, “Cool, I’m working for myself!” But later I realized that if I’m not building a mechanism to OWN the income-producing assets, then I’m basically the same thing as an employee. Someone else is the producer/publisher. I’m just the worker.
Once I realized that, I switched my focus away from making money in the short-term. I pledged to sacrifice short-term income for the risk (and possible failure) of greater long-term income. And I think it’s once I made this mental shift that I truly stopped being in an “employee” mentality.
Thank you so much for answering my question Paula and for providing so many resources! It gave me a lot to think about it, and I’m a lot more pumped about making this work. I’m going to make 2012 my year. Time to look for some Pepsi work, and make plans to become the freelance Versace 🙂
Thanks for including the internal wealth proponent. It’s often missed, yet it is so important. You are right: opportunities are abundant if we’re willing to make our ways.
Great list – even though I fall in the ‘other’ category… working a Day Job that I enjoy. It does afford ample opportunity to travel (conferences and customer sites) and vacation (like your last article points out, that’s built into my salary, however). Still, I suppose that there isn’t enough freedom in what I do to make it a good fit for everyone.
Freelancing does seem like a ‘chase everything’ or ‘choose wisely’ type of deal, and getting your reputation is the hardest part. What you do now may pay dividends in the future – just like unpaid internships can lead to lucrative “9-5s” in the future.
Thanks for the question and the answer – the psychology and economics of freelancing are new to me so I greatly appreciate this Q&A. Thanks for making a day jobber think!
@PKamp3 — It’s funny; when I started freelancing, no one ever explained to me the difference between the “chase everything” vs “choose wisely” strategies. I’d go onto freelancer forums and read that I should “charge what I’m worth,” but in the back of my mind, I’d be thinking — “er, I’ve made less than $100 all week. How do you really expect me to turn down $15-an-hour work?” I had to figure out the Pepsi vs. Versace strategies on my own. I hope this post spares other people from that!
This is where, I think, journos turned freelance often have the edge on non-journos who want to start out in the field. I would definitely recommend newbies read Make a Living Writing and Dollars and Deadlines – two blogs full of practical advice and in the latter case, templates for pitches and other important correspondence.
I learned sooo much from this article ! I can’t believe how many mistake I am actually doing, and the versace vs. pepsi is such a good tip ! Thank you very much !
@Lisa — That’s fantastic!! I’m so glad that this article helps out … keep in touch!! Cheers!!
I’ve been working as a freelance writer, business editor, and researcher for 6 years. I’m very passionate about writing. For me, this is the best job I’ve ever had!
@Angel – That’s fantastic! I’m so glad you found what you love!
This is excellent and very timely. I’m at a point where I need clients and I know my worth, however, I have the Pepsi mentality. Luckily for me, I really haven’t had any clients because I would probably be stuck right now. Effective immediately, Versace it is.
@Marcie — Awesome! It’s great to be in a position where all your Pepsi contacts are aligned, and you can start looking for the Versace-level work. Often, that’s the more fun and fulfilling work, as well!
Check back here in a month or two and let me know how it’s going!
I have to say that this is a wonderful blog with a plethora of information. I just clicked on from another site to read one article, and I have been mesmerized by at least a dozen articles. In respect to this post, I think you hit the nail on the head. A lot of people don’t realize there is a lot of work that goes into freelancing, and there are a LOT of concessions and personal sacrifices that will need to be made early on, in order to have significant success in the future. I’ve recently written down my strategy and what I want to accomplish, so I have a clear line of sight of what it will take to get me from where I am today, to where I want to be in the future. The good thing is this type of living allows you a lot of self actualization, and if you mess up, it’s ok, you can get up and dust yourself off. In the Corporate world, when you mess up, you have a lot of people coming down on you (not pretty). I definitely prefer doing my own thing, and will continue to sacrifice certain (material) things in order to have this freedom!
I’m going to keep reading, and thanks for such a great blog!
That Chick Té
@Te — Thank you!! I’m glad you like this blog so much, and I think that writing down what you want to accomplish is a very powerful act. Keep that piece of paper somewhere where you can see it everyday. Keep your focus. Best of luck! And check back in here frequently to tell me updates on your progress.
Thanks Paula! I’ll definitely be coming on frequently, and I’ll keep you posted.
I’m still learning from you, while I’m improving myself. I definitely love reading all that is written on your blog.Keep the information coming. I enjoyed it
thanks , that is really inspiring for newbies looking for a job online
i am tired of trying. i spend $2000.00 on the enternet still got no money. tonight i feel sick in my stomch no money lot of debt no money.
@kees — Maybe this will help — http://bit.ly/wQbQ6N
Great article. I agree and have some of the same ideas on my blog as well. Freelance is hard work but can pay off if you do enough in order to get your name out there. Eventually if you do well enough people will search for you and that is when you know you made it as a freelance writer 🙂
Awesome article!! One quick question though.. Are writing careers the only ones that have this option? Are there freelance sites for other industries? I’m currently getting a certification in Interior Design and Staging, and would love to do SOMETHING on my computer in this field! Is that possible? My degree is, however, in Journalism and PR! but I haven’t worked in the industry for more than 8 years! 🙂
@Nichole — There are tons of industries in which you can freelance / consult / work for yourself! Odesk, Elance and other websites are good for pairing all types of contractors with clients, and I’m sure there are also industry-specific job boards in other industries, as well.
Thanks for the reply Paula! I am working on this! (and having fund learning as I go!) But I have a QUESTION! 🙂 I’ve noticed that competition is FIERCE from overseas. How do you deal with this? When I go to apply for a gig, I see 20 to 60 other applicants, most from overseas, for like.. $2 an hour! LOL! I’m not worried, but am curious as to whether you can shed some light on this, and how you have dealt with it?
@Nichole: I would say that you should not be competing with overseas freelancers! I’m a freelance writer and there are many better paying gigs out there that are not in the same league as most jobs you’ll find on freelance sites. I’ve found that you have to cultivate your own clients. So for the best freelance writer jobs, you’ll have to pitch article ideas to higher level publications and websites. Basically you have to work to get the job by coming up with creative article ideas, writing awesome pitch letters and following up until you land an assignment.
I don’t know anything about interior design, but perhaps you could market your writing to higher quality interiors magazines/websites.
Fantastic blog! Cool, witty and of course, not a bore. I wish I can blog like you. Keep up the good work. Can I suggest some websites that I found useful? There are numerous marketplaces like http://www.zopthemes.com, http://www.gicree.com, http://www.themeforest.com, http://www.odesk.com and many other wonderful sites. You can suggest it to your friends so that they can do all that freelancing stuff, that you are talking about over here. Get rocking!