How Free of a Freelancer Are You?
Contrary to what one might conclude from the glut of freelance job postings out there, the "free" in freelancer equates to freedom, not price. Unfortuately, it appears as though "the seemingly simple process of getting paid has emerged as the No. 1 problem facing self-employed workers" according to this Crain's New York Business article: Ugh: the 'free' in freelance.
Let's discuss. If you're a freelancer, how much money have you lost over the years from non-paying clients? My figures are surprisingly low, but my Screw You! mentality greatly contributes to that track record. I can say that last year I had zero non-paying clients (although one or two were VERY late).
And the average owed of $12,000? That's absolutely unthinkable to me. I do take some solace in this sentence from the article, though: "More than 400 freelancers have electronically 'outed' clients they say have not paid them--ranging from political candidates to banks to media companies--via a website set up by the Freelancers Union." I know Writer's Weekly has something similar, but this if the first I'm hearing of the Freelancers Union forum.
Labels: news
posted by Irreverent Freelancer @ 8:34 AM
13 comments
13 Comments:
My figures are (thankfully) pretty low as well. I've certainly had to endure the frustration of hounding clients for payment though. I've set up my payment terms so that I'm getting something (e.g. downpayment, scheduled payments on long-term projects, etc.), and I really try to put time into prequalifying clients which hopefully helps. Still, I realize that the possibility of getting stiffed on a project is a very real risk for freelancers.
Thankfully, I only had one instance where a client refused to pay me (I made sure he removed my copy from his website) and one instance where an editor refused to pay the full fee (I negotiated 2/3 of the agreed upon fee since there was no kill fee and he originally didn't want to pay a cent). Both were in 2008, my first year of full-time freelancing.
For me, the issue is not "will I get paid?" but "when will I get paid?" Not getting paid is bad but having clients string you along for months is also pretty darn frustrating. In those instances, I've found that a strongly worded registered letter often does the trick, but it's easy to get wrapped up in collections issues and that takes the focus away from writing. I've used Writer's Weekly's Whispers & Warnings service to pressure delinquent payers, and ASJA's Grievance Committee offers a similar service to its members.
Yeah--slow pays. Not that THEY have to wait weeks and months for their paycheck. Speaking of--the "Paycheck" column in the ASJA newsletter is gold!
In more than 4 years I've been stiffed $250. That's not counting a couple free samples I stupidly did when I didn't know better.
I agree with what others are saying though -- I have had payments that were so late it was actually a surprise when they arrived.
I have come across people where I smelled a rat and looked them up at Google with names and emails and got wise:).
When a client gives you loads of work with research and is not following you up properly then you should check him/her out
I've been stiffed for a total of $300 in the last 4 years. All one guy, and it was within the last 6 months. I sent collection letters - no luck; the guy has disappeared.
I do sometimes have trouble with late payments - but when I point out the verbiage in the contract that says a 25% late fee will be assessed every five days until payment in full is received, they generally start coughing it up.
Same here, Kathy. I can count about $4K in the last 15 years.
It pays to be aggressive with invoicing.
LOL, Lori. I once was talking to a writer who remarked that she "should probably" send some invoices. I can conceive of an infinite universe before I can imagine not invoicing.
Amen, Star! Why would she even have to "think" about it? Jeez.
So far I haven't been stiffed, but I figure it's only a matter of time. I do have one client that is paying slowly, but I hold the ace: she wants me to do more work for her, and her second project doesn't start until her first project is paid for!
After two years of freelancing, I haven't been stiffed. Like some of the rest of you, I've had very late payments. I guess it's easy for some clients to think of a freelancer as a “small fish” and thus someone who gets paid only when no other more pressing invoices are due. Now I always ask for half the total amount as a deposit. Once my clients have already “bought in,” quite literally, they've not only amortized their payments, which makes it easier to pay the final installment, but they have also come to see me as a professional and thus a business person who deserves respect—and prompt payment. I also choose clients more carefully than I used to. Shoot, “choosing” clients would have seen like an incredible luxury in May 2009.
Nearly five years in, I haven't had a nonpayer. I did have one that looked at first like it would be a slow-pay situation but turned out not that way at all--long-term client now, in fact, and one of my favorite recurring projects.
Sometimes I think I'm going a little overboard to require a 50% retainer upfront, but threads like this convince me that backing off is NOT something I can afford to do.
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