As ‘salary week’ fever comes to an end, you may be one of the many freelancers who really felt the strain of having an inconsistent income this month.
Unlike 9-5 employees who receive steady salaries, we often experience fluctuations in our earnings as freelancers. This unpredictability can be challenging, especially when you are faced with situations that leave you feeling vulnerable.
Let me share a story from a freelance writer that highlights this struggle.
I don’t care how old I get, I can never forget what happened to me in December 2019. I was broke and needed some cash. Daniel the Devil (that’s the name I gave him), reached out to me and said he needed an urgent article of 3,000 words delivered in 24 hours.
The first red flag I should have seen was the short timeline, but I didn’t notice. Also, I made the mistake of not signing a contract or at least collecting an advance or my full pay before starting work. I desperately needed the money.
Immediately, I looked through the brief he sent and began researching. Within 4-6 hours, I was done writing and editing. Again, I made another mistake - I sent him the full article without collecting any form of payment.
Guess what happened next? Don’t worry, I’ll tell you.
He looked through the article, texted me on WhatsApp that it looked good and blocked my number. I was so angry, completely vexed, and felt used and cheated. It was a harsh and bitter lesson but I learnt so many things from it. It was my first and last lesson in dealing with cheating clients.
This freelancer's experience clearly shows how important it is to have clear payment strategies in place. Which is why we will go over some key tips for securing your freelance income.
Have a plan for payment structures
Understanding the various payment structures available to you is important. Freelancers often have three primary options:
Per project: you charge a flat fee for a specific task or project. This is great for projects with clear outcomes and timelines.
Hourly: you bill clients based on the hours you work. This structure is useful for ongoing projects where the scope may change.
Retainer: you receive a set fee each month in exchange for a certain amount of work. This can provide stability to your income.
Now, think back to that freelance writer’s story. They were offered a rushed project, with a 24-hour turnaround for a 3,000-word article. That should’ve been a signal to request a defined payment structure, perhaps an hourly rate or an upfront payment before starting such a rushed task.
When dealing with urgent projects, never start without establishing a proper payment structure. Choose the payment structure that suits your workflow best, and don’t hesitate to switch things up if needed. This flexibility can help stabilise your income stream and ease your financial worries.
Establish clear payment terms
When you take on a new project, always state your payment terms in your contracts. Specify when and how you’ll be paid to avoid any confusion or late payments. Here are some things to consider:
Payment methods: will you accept bank transfers, Grey, or other methods?
Due dates: clearly state when payments are due, whether it’s before the project begins, upon project completion, or a specific date each month.
Having clear payment terms is essential for protecting your interests. It not only protects you but also helps set professional expectations with your clients.
Our freelancer learned the hard way when they handed over their article without securing payment first. The client simply acknowledged the work and then blocked their number.
Diversify your income sources
One of the best ways to create financial security is to have multiple income streams. Freelancers who rely solely on one client or one service are more vulnerable.
Consider expanding your offerings—whether it’s blogging, social media management, or copywriting. This not only provides financial security but keeps your workflow varied and exciting.
If our freelancer had diversified their portfolio, they might not have been so reliant on one project. Don’t put all your eggs in one basket, explore various avenues to create a more robust income.
Create a budget
Creating a budget is necessary for managing your finances as a freelancer. The freelance writer’s story shows just why budgeting matters. When the client refused to pay, it wasn’t just the missed project income that hurt, it was the financial hit during a time of need.
Having a budget and some savings can protect you from feeling as desperate as they did. Consider:
Writing down all your fixed and unexpected monthly expenses to get a clear picture of your financial commitments.
Estimating your income for the month based on your projects.
Planning your expenses around your expected income.
Setting aside a portion of your income for emergency bills and savings.
This approach will help you manage any inconsistency in your earnings and prepare you for any lean months ahead.
Getting freelance writing gigs can be unpredictable, but with the right strategies in place, you can build a more secure and stable income.
Do you have your own “Daniel the Devil” story or tips for securing your income? Reply to this newsletter and share your experience, we would love to hear from you.
I really liked this newsletter, so much to learn from.