Scrooge Strategy
32

The Freelance Diaries: The laid-off marketing consultant whose income has skyrocketed

We’re in the final week of a 3-week course on earning more money (see all posts on earning more money).

Today, a Freelance Diaries by a former technology employee in San Francisco who was laid off a year ago, and is now a full-time freelance marketing consultant. Below, you’ll notice:

  • Her work/life balance is blurred: She works out every day and takes a 2-hour lunch with no worries, but also works past 10pm many nights
  • How there’s lots of “meta-work,” including administrative work, billing clients, and keeping them updated with her work
  • She earns a $6,000 check — which is a 300% freelancer raise in less than 3 months (and a 30% raise from her former full-time job)

Once you’re done, take 5 seconds to sign up to learn specific strategies and tactics to earn more money at Earn1k.com.

* * *

Day 1 (a Monday)

9 a.m. Wake up and open my laptop. A year ago, I’d be rushing to my desk at this time, probably with some free breakfast in hand. Ah, the good days of free breakfasts… as a freelancer working from home, I don’t get that benefit anymore, nor do I get to chitchat with my coworkers every morning. Work pretty much starts as soon as I let it, but not having to rush off, commute or deal with a ‘manager’ makes it worth it.

10 a.m. Monday mornings I send a weekly update to a major client. I spend a full hour working on this single email because it’s where I talk about what I’ve done and why they should keep paying my fee.

Lesson Learned: Spending an hour on what seems like an administrative email seems long, but it’s turned out to be one of the most important ways to keep my client happy. My client gets almost no face-to-face time with me, so this is my way of showing up. I recap everything I accomplished in the previous week in terms of the objectives we set at the beginning of our relationship, and I outline my plans for the coming week. I make sure to emphasize results, not just tasks. I’ll use this email later when it’s time to raise my rates (“Last month, I accomplished XYZ. This month will be even bigger….”) This is the longest email I send to anybody all week.

11 a.m. Daily workout session. It’s so great to have the freedom to go to the 11:00 session — I don’t have to get up early and it’s never crowded. My friends think it’s weird / sketchy that I can go to work out in the middle of the day for 2 hours, especially since they’re not sure how I actually make money to afford stuff like this. I love perpetuating the mystery for them.

1 p.m. Time to get back to work.

4 p.m.: I’m feeling a little distracted, or maybe just tired from an intense afternoon of writing, so I decide to take a short walk. Not having in-person coworkers or a watercooler to distract me means that work can get surprisingly intense.

Lesson Learned: Giving myself intentional breaks away from the screen – and not just mindlessly surfing Facebook – are really helpful in restoring my mental energy, but don’t make me feel like I’ve been wasting time.

7 p.m. Dinner out with my boyfriend. Saves time on cooking / cleaning that I’ll use to do some work for a third client I’ve recently brought in.

9 p.m. Back in front of the screen, I switch to client #2. I always get a ton done between 9 p.m. and midnight, most people’s t.v. time. It can be annoying to work late, or to have stuff to do when everyone else is having fun, but then I remind myself that I already had my fun time – in the middle of the day while everyone else was at their cubicles.

Day 2

9 a.m. Sometimes I check my email on my phone from bed. I know everyone says this is bad, no boundaries, blahblah, etc. I tend to agree, but for some reason I always get a ton of emails from one client between 2 a.m. and 7 a.m., so I’m a bit anxious to see what’s up.

My client appreciated the weekly update, but didn’t respond specifically to any of the questions / requests I put in it. Still no answer on the website budget from this client, but the deadline hasn’t changed. I usually like emails because they’re safe and allow me time to craft my communication, but some in some situations a phone call works best. I hate phone calls, but in this case I call my client to get a final answer on this so I can move on.

Lesson Learned: Because I get almost no face-time with clients, the immediacy of a phone call can be just as important as the long, detailed weekly emails I put together.

11 a.m. Work out again. It’s daily!

2 p.m. Today I have an in-person meeting with a potential client. I don’t like commuting around to in-person meetings, but sometimes these are the best way to pitch yourself. I know I’m much better in-person than on the phone, so if there’s a new client I really want to work with, I always try to get an in-person with them.

5 p.m. I’m back at home and doing some publicity work for a client. This means researching past news on competitors, writing stories, and calling up journalists to pitch them.

Day 3

9 a.m. Work, work, work. People tend to think freelancers can do whatever we want, whenever we want. It’s pretty much true – I could do that, but I actually need structure in order to get stuff done. When I first started freelancing, I loved the flexibility, but sort of lost sight of structure. I didn’t get a whole lot done each day, and I would always wonder why. Getting up and starting work at the same time every day gives my whole day structure so I can be productive.

11 a.m. You-know-what.

1 p.m. My client is sponsoring a big conference this week, so I spend the rest of the afternoon running around and making sure everything is in place.

Day 4

1 a.m. I am falling asleep when I hear a “bzzz. bzzz. bzzz.” Oh no… a series of text messages. No one ever texts me at this time of night just for fun. I wish I could just pretend I hadn’t heard it, but I drag myself out of bed to see what’s up.

My client has a public image emergency. Business journalists and bloggers rarely work on a 9 to 5 schedule, so that means I don’t either. I’m told that a huge last-minute story about my client’s company is going to break in less than an hour. They need me to produce a public statement and letter to my client’s customers. I am on Skype with the co-founder and corporate counsel well into the wee hours of the morning.

Here’s where being a freelance consultant hurts me: I’ve done a good job, so I’m close with the company. But, I am still a freelancer, so I’m not that close from a legal and business perspective. For legal reasons, it’s common for me not to hear about developments like this until they’re already happening. Like at 1 a.m.

10 a.m. I am tired. This would never have happened at my old job, which, despite its many shortcomings, always ended with the regular workday.

11 a.m. Somehow I still manage to go to work out. Maybe this freelancing deal is not so bad after all — I’d be stuck at my desk looking at a spreadsheet if it were my old job.

1 p.m. Lunch with a friend who’s also a freelance consultant. It feels great to be sitting around at this restaurant in the middle of the day. Neither of us looks at our watches.

3 p.m. This week has been heavy for one client, so I devote the remainder of my afternoon to monitoring press reactions and preparing for their conference.

7 p.m. All I want to do is stare at the ceiling, but I need to spend some time tending to my other clients. It’ll be a working dinner tonight.

Day 5

7 a.m. Ah, Friday. Friday still feels like Friday to me, even as a freelancer making my own schedule. I’m helping my client at their big conference today so I’m up early.

2 p.m. I’ve spent all morning running my client’s booth, making sure speaking spots have gone well, and meeting new people. Here’s my thinking: my contract with my current client will inevitably end, so attending industry events like this one makes sure that I get visibility with other potential clients. It can be exhausting, but it works better than sending ‘cold’ emails to people I don’t know very well–emails are pretty easy to ignore, while face-to-face conversations are hard to forget.

An extra note: I do marketing, so one way I get through these conferences is by thinking of them in terms of audiences. Here, my primary audience is my client. For me right now, that’s the person I need to impress most. But actually, it doesn’t stop at that person. I have a secondary audience: my client’s peers and/or competitors. These people might turn into clients if they see and like the results of my work. In my view, I even a tertiary audience – people who will never become my clients, but who might talk about me to potential clients if they’re impressed with what they see.

These are some of the things going through my head as I walk around and talk to people at this conference. I actually get really nervous talking to people I don’t know well, but I know I have to do it if I want to make my freelance consulting thrive. I pretend that I’m somebody gregarious – and I make sure I have a set of things to talk about that I can fall back on.

By the end of the day, I’m all talked-out and just want to go home and stare at the wall. The good thing is, I did have a couple of decent conversations and people that I’ll follow up with via email (I never use business cards – remind me too much of a used car salesman, but that’s just my take on it).

Day 6

11 a.m. I get up late! Unlike some freelancers and consultants I know, I don’t do any official work on Saturdays or Sundays. I do, however, work on experimental projects that often end up netting me more income. I also catch up on stuff that supports my business, but isn’t directly income-generating. Stuff like reading industry blogs, reading people’s Twitter feeds, maybe writing a blog post.

1 p.m. A fat check arrives in the mail. It’s for over $6k– more than 3 times fatter than the checks I used to get as a freelancer 3 months ago.

7 p.m. I go to a dinner party with a client who’s now also become a friend. Lots of people in my industry are at this party, so there’s plenty to talk about and ideas to throw around. I’ve developed social relationships with a lot of the people I work with, and have found it be a big source of new projects. All else being equal, most people would rather work with friends than with random strangers.

Day 7

11 a.m. Catching up on administrative stuff. Working for myself means that I spend my own time to take care of business essentials like billing, accounting, marketing and sales. That’s all stuff I don’t get to invoice somebody for, so it often ends up getting done in my ‘off’ time, on the weekends.

6 p.m. The workweek for me really starts on Sunday evening. It’s my time to ready myself for the coming week and queue up stuff to launch on Monday morning.

8 p.m. Dinner with friends from my old corporate job. They complain about their jobs and their executives and tell me how lucky I am not to work there anymore. Nobody really gets what I do all week, and they’re continually confused as to how/why I have money. I don’t tell them that I actually make 30% more as a freelancer than I did when I was working next to them. I tell them they could be freelancers too, or at least start it on the side, but their eyes just glaze over. Shrug. I guess that means less competition for me, but fewer 3-hour lunch buddies.

* * *

Earn1k: Includes detailed case studies, advanced tactics on earning more, and first access to a full course I’m launching. If after 3 weeks of great original content on earning more money, you have not spent 5 seconds signing up for this, you really can’t complain about not earning money. Free signup.

21

I’m giving a talk at Google tomorrow & I need your help


One of my dreams has been to give an Authors@Google talk because they have the perfect audience of smart, ambitious people that I want on this site.

Tomorrow, finally, I’ll be giving an Authors@Google talk!

And now I want to ask for your help.

Come to video office hours tonight and let me know what the 1-2 best techniques you’ve learned on iwillteachyoutoberich are. Is it automation? Conscious spending? Barriers? The A La Carte Method?

I’ll incorporate your feedback into my Google talk.

Come to video office hours tonight (Wednesday, 1/20):

P.S. If you’re at Google, come see me from Thursday, January 21st at 12pm (Building 42, Room: Paramaribo Tech Talk).

31

Case study: From $17/hour to $65/hour. How did she do it?

We’re in the final week of my 3-week course on earning more money. After this week, I’ll be releasing an additional week of private content on earning more.

And then I’ll be releasing a step-by-step program to help you earn your first $1,000 on the side.

Sign up for free.

* * *

Today, a case study to show you how even the weirdest skills can be very, very profitable.

This is one of my favorite case studies because you’ll learn how to take your skills — even if they’re unusual or seemingly not in demand — and turn them into significant income.

Cassie Phillipps realized that she was working too hard for too little money .She was a theatre stage manager, and as you know, I usually make fun of weirdo drama/artsy types because they revel in their poor financial skills and complain that the world is against them.

But Cassie realized how to carve out a specialized niche using her existing skills. Now, she produces exclusive events for the tech industry. She went from $17/hour to $75/hour and works fewer hours than her old job. What if you could do the same?

In this 35-minute interview you’ll learn:

  • How Cassie managed to turn specialized skills from her stage manager job into a profitable and high-profile freelance business
  • Where she chose to invest in her business, and where she’s chosen to save (if you’re wary about spending money to make money, listen to this section)
  • Her marketing strategy, where every engagement is a secondary marketing channel
  • How she’s developed multiple pricing plans to fit an unusual niche
  • How she cultivates repeat business, even with big-budget, infrequent conferences

Listen to the interview here:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

* * *

Introduction

  • 0:24 How do you earn money on the side?
  • 1:05 Why Cassie’s unusual skills turned out to be perfect for freelancing
  • 2:40 Cassie’s old job as a stage manager — lots of hours, little pay
  • 3:45 A friend sees her transferable skills, and asks for her help with events
  • 4:35 Getting started working a little on the side, and realizing she’s already making more money

Psychology

  • 5:01 It’s not about the technical specifics. It’s about what the client wants.
  • 7:59 “We have $5,000 for you, can you make it happen?” Cassie is offered money for something she can do in less than 10 hours
  • 8:06 Getting over fears: “What if I’m not the right person?”
  • 9:45 Cassie goes from $200 a WEEK to $100 an HOUR
  • 15:02 Addressing startup costs and getting over initial barriers
  • 16:33 How she spends for value, and invests in her own business
  • 16:41 “If you don’t have the confidence to invest $2000-$4000 in something you’re going to be doing for the next 5 years, then you’re not ready to do it yet”

Tactics

  • 11:16 Understanding her clients’ worst fears
  • 11:24 How Cassie negotiates rates with vendors, and pays for herself
  • 12:35 Specific phrases to communicate her unique value proposition
  • 13:35 Cassie cuts her hours, and triples her income

Marketing her niche business

  • 19:17 How Cassie gets new clients, and attracts only big names
  • 20:41 Cassie’s marketing strategy: work with influencers, and don’t hide in the background
  • 22:08 “Niche it down!!” What this means for freelance event production
  • 23:57 “By specializing in the startup industry, I can pretty much beat out any other events person”
  • 27:15 How Cassie screens clients, diagnoses her client’s real problems and needs, and eliminates the need for hard sells
  • 29:38 Creative rate plans
  • 31:35 How Cassie guarantees repeat business
  • 34:47 Her work does its own marketing

* * *

Get advanced strategies to earn more: You’ll find more case studies — including someone who turned down over $100,000 of side income — plus an MP3 download of this interview with Cassie. And lots more unannounced techniques to help you earn more.

Here’s the link: http://www.earn1k.com

21

Psychological tactics to earn more (video)

All right, it’s been increasingly obvious that I’m getting close to launching something.

Starting today, I’m releasing a sneak preview of a new project that’s going live soon. Code name Earn1k.

This is some of the psychology material you’ll see in Earn1k — specifically on not devaluing yourself as a freelancer.

Towards the end of the video, you’ll also see that the Earn1k course includes 8 weeks of structured, week-by-week material to earn your first $1,000, case studies, email scripts, worksheets, and more.

Get the first look at the Earn1k Course: For free signup, a 1-week advanced course on earning more money, and first access to the course when it launches, click: Earn1k.com

1

I’m hiring an iwillteachyoutoberich sysadmin

[Edit]: I’ve received tons of applications. Thanks! This is now closed.

On the subject of earning more money on the side, I’m hiring a contract sysadmin for iwillteachyoutoberich.

You must:

  • Have experience with high-traffic sites and *nix systems
  • Be reliable and available to help when stuff breaks

I need someone who can:

  • Ensure blog is optimized, sustaining heavy traffic from sites like Yahoo/Digg and handling thousands of concurrent viewers to my Ustream video show (embedded on the blog)
  • Migrate all static media (images, videos, etc) to Amazon S3
  • Do advanced caching/asset packaging if necessary
  • Streamline the blog backup process
  • Create, change, and delete user accounts per request
  • Perform regular security monitoring to identify any possible intrusions.
  • Understands asset packaging and can help recommend ways to improve the code of the site

Please do NOT apply if:

  • You’ve only managed your mom’s blog or a site with only 500-1,000 visitors/day
  • You are a programmer pretending to be a sysadmin

Details

  • This is a paid contract position
  • Time requirement: Initial work, plus ~5 hours/week ongoing

If you’re qualified, please fill this out:

[EDIT]: NOW CLOSED

38

The Freelance Diaries: The Caffeinated Project Manager

As part of the series on earning more money, today’s Money Diaries — actually, today’s Freelance Diaries — is from a project manager who left his fulltime job to work as a freelancer.

Below, you’ll notice:

  • He now makes 3 times what he made at his fulltime job — but he still nets less overall
  • His tactics for managing his clients
  • Weaving lifestyle (video games from 3:30pm – 6:00pm) with work

Be sure to sign up at Earn1k to get specific scripts on increasing your rates, managing clients, and using psychology against yourself to keep motivated.

* * *

coffee

“I’m a freelance project manager. Which I know sounds weird. Project management, I always thought, was one of those made-up corporate jobs, kind of like that one guy from Office Space who deals with people so the engineers don’t have to. You’ve seen it, right? Of course you have.

In reality, project management basically just means I get paid to make sure things get done. It’s incredibly valuable to companies that are disorganized or run tight deadlines. The hard part is packaging it because it’s not often perceived as high-value (kind of like how most people think they know how to write well).

The trick for me is, I never position myself as a project manager when first pitching to a client. I’m usually brought on to do something small, like a writing project or a PR project. At some point, the client realizes their organization/communication flow used to suck and I’m making it better. So after that I usually just end up being a project manager. That’s the classic “sell them what they want, give them what they need” technique, I guess.

Anyways, here’s my Diary.”

Day 1

6 am: Wake up. Yeahhh, freelancing doesn’t always mean you get to sleep all day. Although sometimes it does!

7am: Drive over to a coffee shop to start working. I have noticed that good, work-friendly coffee shops (meaning they don’t have screaming children or broken tables) are rare. The only one in town worth going to costs $5 a cup, and parking there sucks. But it’s worth it. My time is important, so I try to save it any way I can.

8am: I spend a few hours at the coffee shop doing some work, following up on deadlines, shooting emails. No interruptions or random requests from clients, which is nice. I know you’re not supposed to leave your email open all day (the 4-Hour Workweek people tell me so) but whatever. I like to be responsive to clients, and I have a good process for handling email already.

2pm: My productivity level is dropping off. I guess that’s why I get up at 6 to work. Once I hit that “I don’t feel like working anymore” zone, I usually stop and pick it back up in the evening. So I drive home.

3:30pm – 6pm: Playing video games… nothing to see here. Man, I don’t miss my old job.

12 am: I catch up on some work. I’ve figured out that I do my best creative work at night, and like to power through stuff (menial work, invoicing, etc.) in the mornings. I’m a big believer in finding out what times you do your best work, then sticking to that.

Day 2

8am: I check my messages and see that I have one from my client (I turn off my phone at night. Boundaries, you know?). Apparently, he got his laptop stolen. Oh, and he wasn’t backing his stuff up, despite my recommendations to do so, so we’ll fall behind on one of our projects. Great.

Sometimes, clients will simply not do what you recommend – EVEN WHEN THEY AGREE WITH IT. They just ignore stuff. You have to live with that, I guess. Sometimes it’s not just about telling your clients what they should do, or lecturing them – it’s also being realistic about what they WILL do and working around that.

9am: At the coffee shop again. I work best in 4-hour bursts.

6pm: And yet, I’m still here… so I go home after sending a weekly email update to my clients. They don’t ask for it, but they always respond well and seem to like knowing what I’m doing. I guess it’s better than them wondering what I’m up to.

Day 3

10 am: Irritating. I like my client, but he absolutely doesn’t take ANY time to spell check his emails. I get something like this:

“cn weht \ time tmr?

Or what si itcan you telme minalkj

Otahnxk”

WHAT??? I’m not sure what to do with this. Usually I reply to confirm what I think he’s saying. I can’t really think of a nice way to say “Hey, it would really make me less irritated all the time if you spell-checked your emails.”

1pm: Write a pitch to a new prospect. Let’s see if it works out. I don’t pitch that often (I’m pretty happy with my current clients) but you never know what will be the next big thing, I guess. I keep the door open for stuff like that.

2pm: I have a tip – always, always keep track of what you spend your hours on, even if you think your client doesn’t care about the little details. My client never asked me before, then he suddenly calls me and is like “Hey these 20 hours – what are they for?”

It wasn’t a big deal, and of course I figured it out eventually but for a few seconds I was like “UHHHH… hm…” Lesson learned.

4pm: Here’s another tip: don’t drink and work.

Day 4

10 am: Spend 2 hours on a conference call with clients. They’re always traveling and in different time zones, so finding time to chat is difficult. Plus the calls themselves are pretty useless. I’ve realized that sometimes, clients just want someone to talk to and explain every little detail of what they’re doing. I’m like their therapist.

1pm: Finished writing a ridiculously long email with detailed notes from our call. Send it off to the clients, because they’re horribly unorganized (still). I can tell it helps them think about things more clearly, and they appreciate it a LOT.

These guys are really gushy too. They reply back with things like:

“Thank you SO SO SOOOO much for this.”

“thanks… you are incredibly professional and thoughtful and I am deeply grateful for your hard work and dedication.”

Good. I keep all this stuff in mind when it comes time to raise my rates.

9pm: My parents, both engineers, don’t really get what I do. I just tell them I do business stuff. They always ask me if I need money.

I guess it’s nice to know I have a safety net. I’m not opposed to the idea of asking for help if I need it – I’m just not that prideful I guess.

Day 5

11 am: Some days I just don’t feel like working. So I won’t today. It’s Friday, which is practically Saturday anyways. Ah, freelancing is nice after all.

People always go “wahh lucky” when I tell them stuff like this and I’m like hey screw you. I don’t get paid vacation and sick days, you ass. And it wasn’t just luck (although I admit luck helps).

1pm: As I write this, I’m thinking: It’s good to have flexibility. It’s good for my motivation. Now, when I take a day off, I usually charge into the next day with a roar and get really pumped up about knocking out work tasks. It was the opposite when I used to work as a management consultant at a top-tier firm. I dreaded Monday mornings.

I haven’t done a detailed analysis of the numbers, but I estimate that back then, I worked 60 hours a week (I worked from home all the time) for 50 weeks = 3000 hours. Let’s take my salary, around 60K, that makes my time roughly worth $20/hr.

Now I work fewer hours (about 40), and I charge $60/hr. And while you might think, Wow! $60/hour, that’s like $120,000 a year! You’re way richer now! No, because less than half of those hours are chargeable. Plus, I haven’t factored in benefits, 401(k) matching and the biggie: paid health insurance. All things factored in, I’m still making less than before.

Yeah, sorry to be a downer. But hey, new businesses take time to grow and things are looking positive so far. And I’m increasing my rates this year.

Day 6

11 am: It’s Saturday now, which basically means nothing to me. Back to the coffee shop. Most of the time, I work 7 days a week.

3pm: That’s as good a time as any to call it a day, at least for the client work.

4pm: One thing I like about my work is I can spend more free time on other, “riskier” business ventures. Right now a partner and I are working on a new product together, so I do some of the market research work at home for a few hours.

Day 7

1pm: On Sundays, I like to spend some time learning new things. Right now I’m watching a training program on product development. Very interesting stuff.

It’s hard to get over the fact that I’d be paid to watch this if I had a real job – instead I’m paying for it myself. But I really believe in consistently gaining new skills in order to grow.

4pm: Writing a Craigslist post for some help the clients want to hire. Not really what I was hired to do, but if they’re paying, I won’t complain. Yet another reason why I like charging by the hour – too many variables in project pricing.

5pm: I invoice one client, clean up my notes, and get ready for tomorrow.

* * *

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