Here’s another article from Lee Bob Black ofSkilledUp. In his first article he explored 30 digital skills to take your talent over the tipping point. In this post he discusses leveraging and advancing your skillset to earn the rate you’re worth.
But what if you’re the bargain? What if someone’s buying your services at a steal?
If you’re a freelancer who exchanges your time and intelligence for money, and you think it’s time to earn more, then keep reading. In this article, we’ll explore some advice for raising your rates to what you’re worth.
To help you wrap your head around this daunting task, we’ve put together two hypothetical case studies. One is a U.S.-based freelancer who charges per hour. The other is an India-based freelancer who charges per project.
U.S.-based freelancer Jane Smith.
Elance jobs completed: 51.
Reviews received: 33.
Average rating: 4.8 out of 5 stars.
Clients who recommend Jane: 80%.
Communication with clients: 40% phone; 60% email.
Jane thinks she’s worth more than $27 per hour, the average Elance rate for U.S. freelancers in December 2013. How should Jane go about having phone conversations with her three main clients about wanting to charge $32 per hour (i.e., a $5 raise)?
India-based freelancer Raj Patel.
Elance jobs completed: 111.
Reviews received: 70.
Average rating: 4.7 out of 5 stars.
Clients who recommend Raj: 72%.
Communication with clients: 100% email.
Raj thinks he’s worth more than the $200 per project that he has charged in the past. What should he do to prepare for emailing his main clients about charging $240 per project (i.e., a $40 raise)?
Viewing your money situation in a new light.
How do the above case studies compare to you? Have you done more or fewer projects in your freelance career? How are your average ratings on Elance? Keep all this in mind when considering the following:
An important update from Fabio Rosati, CEO of Elance and oDesk, about the company vision and what it means for our community in 2015 and beyond.
Dear Elance Community,
Since the merger last year, I’ve spent every moment thinking about our amazing professional communities and the future of online work. Advancements in technology and data science are transforming how we connect, share, collaborate and learn. The freelance economy is growing exponentially — each year more businesses hire freelance professionals and more people choose freelancing as a career. We are heading towards a new online meritocracy, a connected workplace where everyone can access economic and professional opportunities.
While we already are the largest online workplace, there is a great deal more for us to do to become the world’s premier online workplace for professionals.
The work we do daily to meet the rapidly evolving needs of our community — upgrades to our platform as new technologies become available, scaled operations to better serve everyone as our community grows, and continued investments to engage more clients and top talent — is not enough. To realize our vision of becoming the premier online workplace for professionals we need to innovate at an even faster pace.
Over the next several months you will begin to see many new initiatives:
· Improvements to how clients and freelance professionals meet each other, including better matching and
· New collaboration and productivity tools for both desktop and mobile devices
· More resources to measure quality, screen jobs and help our community succeed
· Expanded customer service to provide fast, friendly and reliable support
· And so much more based on your input and a large number of R&D efforts
We are eager to bring these improvements to you. To accelerate innovation we will focus the majority of these initiatives on one of our platforms, oDesk. Members of the Elance community will be able to experience the improvements via a bridge we are developing between the two online workplaces. Within a year or two we will have a new platform where everyone will access the latest innovations at the same time.
I’ll continue to share our progress towards our vision over the coming months. In the meantime, you can find answers to many of your questions here.
My daily thoughts remain focused on building the best possible online workplace for high quality clients and top freelance professionals. On behalf of the 300 employees and over 500 freelancers who make up the Elance-oDesk team, thank you for being our inspiration.
It’s been a journey since you registered with Elance, hasn’t it? You opened your Elance profile; you uploaded a photo and agonized over what to write in your profile. You added some portfolio samples and took some tests. You bid on and won several jobs, and I’ll bet it’s been more exhilarating than the first time Mom let you drive her car.
With a few jobs under your belt, most, if not all with excellent feedback, it feels pretty damn good, doesn’t it? Riding that wave over the last few weeks or months, you may not have been able to stop and think about the business side of things for too long. If you are anything like me, you were probably too busy working and meeting deadlines. You admit to your partner/spouse that you're in love with Elance. Forget grateful; you’re in love!
Then one day you rediscover the transactions section. Yeah, you may have seen it early on, but in the beginning there wasn’t much to fixate on: One $50 job and a few $100 jobs didn't look like much compared to the vast white space below them.
Now that you’re hitting “next page” a few times to see all the transactions, it dawns on you that you’ve made a few thousand dollars. Predictably you have two reactions: “Where’s my ‘you’re number 1’ foam finger? I am one truly awesome human being!”
This is immediately followed by, “Holy crap, I made how much money and Elance took how much in service fees?”
Occasionally we ask Elance clients and freelancers to discuss their experiences working online. Here’s a quick case study from the team at Yalantis.
The Yalantis Story – A Study In Determination.
Our mobile app development company has been existing since 2008. A lot has changed since then. From two people working from home on Elance, the company grew to about 70 specialists sitting in a spacious office in the city center. In 2013 we became among the top Elance company. The staffing platform for freelancers let us find our best customers, most of whom are still loyal to us. But most importantly, it gave us invaluable experience which made us what we are.
Seven years ago mobile app development business was just emerging, following a dazzling appearance of the first iPhone in 2007. “The phone that has changed phones forever,” was the reaction of Time magazine.
Apple’s creation became the cradle for Yalantis, as developing apps for iPhone was our first professional strategy. The reason for that was not an omnipresent love for Apple, but a corny market research. Alexander Kholodov, one of Yalantis co-founders and a developer himself in the past, discovered that the demand for iPhone apps on Elance exceeds the offer by miles.
“We started with an aim to fill the empty niche existing in the iPhone apps development,” he said. “After a while we began to engage with Android and other platforms.”
Kholodov together with Yuriy Kotov, an excellent programmer, got together and set up a mobile app development company. Initially they worked from home picking up interesting projects from Elance. About six months later, Sergey Fesenko, who was also a programmer before, joined the team of co-founders.
“When I got into, we moved in an apartment, which became our first office,” said Fesenko. “We bought a couple of arm chairs and started off as a real team.”
Kholodov called the company Yalantis -- a strange word that doesn’t exist in any dictionary. It was created with the help of a random words generator from the word Yalta -- the name of a sunny resort city in Crimea (a peninsula in the south of Ukraine). As a boat called so it will float. According to phonosemantic analysis of the word Yalantis, it induces positive subliminal associations, like good, beautiful, strong, light, simple, safe, etc. This is also a unique name. You can’t explain it, it but it has look and feel, just like all our products do.
The first staff members hired by Yalantis were young specialist with little to no experience in developing mobile apps. Their knowledge of technology and level of professionalism grew considerably owing to supportive attitude of the company leaders and their own aspiration to self-development. The majority of these guys are still in the company occupying senior developer positions.
With increasing number of mobile app development projects the perspective of becoming a bigger company with different specialists, not only iOS developers, began brightening up. Here is when the team got completed with a larger administrative board, Android developers, project managers, quality assurance specialists, designers and account managers.
Now we only employ experienced team players highly enthusiastic about what they do. Our people are just as important for us as our clients and we care much about making them feel at home in Yalantis.
At some point, Kotov, one of the co-founders, understood that managing the company wasn’t for him. He left Yalantis but came back in a few years in the role of a senior iOS developer. He chose to do what he likes most -- developing great products.
When Yalantis grew larger, Kholodov and Fesenko divided their responsibilities in management. Kholodov is the CEO of the company leading sales and marketing. He also manages our own product development initiatives. Fesenko is a financial director and manages the department of human resources. He is in charge of our internal processes as well as employment and partnerships.
The world loves words, begs for fresh new words, and businesses fervently hire freelancers to write those beautifully crafted words. In fact writing is one of the most popular skill categories on Elance. Our friends at Essay Tigers are hip to this and have created an eye-catching infographic on how to make sure your successful freelancing on Elance:
How to become a successful freelance writer [Infographic] by the team at EssayTigers
Many people know me as the owner of Coquí Prose Content Marketing, but I am also a prolific client who exclusively uses Elance to hire freelancers.
Although many Elancers have hired a few other Elancers to fill the occasional needs of a client or to assist with specific projects, I work day in and day out with a team of freelancers who help meet the goals of our long-term clients.
There’s a big difference …
For every job I have with a client, I may hire five or more team members to fill the needs for that client.
With more than 1000 jobs awarded since I started hiring on Elance about four years ago (both one-off jobs and ones lasting six months or longer), I see the business of freelancing from a very unique perspective.
Okay, Let’s Get Down to Business.
Let’s start by debunking three common myths that frequently lead to lots of chest pounding, self-aggrandizing and pontification ad nauseam. These are myths I have read in online forums again and again and, sadly, a-gain.
“You shouldn’t start out with low rates because you’ll forever be branded a low-baller and no serious client will take a second look at you.”
“Competition is stiff on Elance. You need to sell yourself in your proposal.”
“Keep your earnings private until you reach $10k.”
Rates: What Matters? Your Past, Present or Future?
I’ll take you through a typical job posting of mine to give you the “bird’s eye view” of things.
I’m pretty methodical when I post jobs on Elance. I have a formula for my job descriptions. I always include the following in my descriptions, especially if I am posting a public job (which I only do if my exhaustive search for an Elancer doesn't jibe with Elance’s sometimes-interesting ranking of expertise):
Successful freelancers focus on their projects and on marketing and improving their services. Given that focus, few give much thought to government affairs.
But just as you use Google Maps or a similar app on your mobile device to guide you past highway congestion, so too should freelancers pay close attention to government obstacles that impede the rapid growth of online freelance contracting.
Last year on the Elance-oDesk blog I mentioned that 16 states and the federal government had formed a task force to make it harder for individuals to freelance doing the kind of work you find and sell on Elance-oDesk.
Those 16 states – California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New York, Utah, and Washington – are home to 39 percent of the US population, so any progress these states make will slow the expansion of freelancing. Since other states and countries are watching carefully, this may affect you wherever you live.
As an independent contractor, you have a unique opportunity to educate your representatives in state government about the booming field in which you make a living.
Most legislators know little about online-freelancing and will listen with interest to how this new work style is more advantageous for you than regular employment.
Looking through the fascinating 2014 Elance-oDesk Annual Impact Report, available here, one chart shows clearly why a single visit to meet a state legislator, either in their district office near you or in their office in the state capital, can make a big difference.
The Impact Report shows that 74 percent of freelancers are under 35 years of age – individuals who rarely talk with legislators. Since lawmakers seldom see young people, talking about freelancing opens your legislators’ eyes to voters unfamiliar to them.
Here are five secrets for representing freelancers.
Secret #1:Make it clear that you represent more than yourself. Scale is vital for effective government relations.
Describe what you do for clients, adding a fact about how many people in your district, state or occupation also freelance online. The Elance-oDesk impact report has many helpful statistics you can use.
One tradeoff in working with online freelancers is that some “teamwork” benefits can become compromised. For example, when working remotely it can become challenging to establish rapport or build a more enriching relationship among team members. Here’s a quick video, and be sure to read more below.
Ironically, being connected online can make clients and freelancers feel more disconnected – especially on a social level. To make things easier, here are three tips to help you manage freelancers online:
Tip #1: Set up a reporting system.
At 24 Slides we use a tool called 15five. It’s basically a questionnaire containing 3-4 questions sent out bi-weekly to all employees. Each team member responds and sends back their reply.
Examples of questions you can ask include: “What have you been most proud of in the past week?” or “What challenges have you faced?” While the questions can vary, frame them in a way that they can engage your freelancer while giving you clearer insights on what’s happening on the ground.
Feel free to explore other tools like 15five, but what’s crucial is setting up a similar automated process. The goal is to gain a better and more accurate picture of what’s going on.
Moreover, establishing a similar reporting tool can help you effortlessly manage more people than you would if you were all working in the same office. For instance, it takes only five minutes to read through their responses and add comments. You can then quickly move on to the next submission. Yet the overall insights and feedback you get are tremendously valuable.
Tip #2: Set up a video conference call.
When you work with a team within the same office, it’s convenient to meet them over coffee or lunch. This allows you to engage in small talk. This kind of interaction, although described as “small”, can make a big difference in building relationships over time.
Caveat: There is no one single way to write a proposal. Proposal writing is a skill and one that can take weeks, months and even years to perfect. However, contrary to popular belief, it really is possible to fake it till you make it.
I am living proof!
What I am about to share is based on my experiences both as a freelancer who has written many, many proposals and as a client who has read hundreds more. I have reached a point where I can tell within the first line or two of someone’s proposal whether I want to read further or move on to the next Elancer.
My goal is obviously to help you keep your prospective clients interested long enough to get to the end of your proposal and to consider reaching out to you through the workroom.
The first step is to start looking for work, right?
You’re almost there, but first let’s go over a little housekeeping: before you take to the Elance marketplace, you need to read Elance's Terms of Service (ToS), which are their rules for conducting business on their site.
Unlike other websites’ Terms of Service (where you probably scroll to the bottom without reading them and then check the box to indicate you that did, just so you can purchase what they’re selling), if you are really serious about earning a living on Elance—and why else are you here? —You really need to read Elance’s ToS.
What could possibly happen if you just pretended to have read them?
By not following the rules of their site, you can have your account suspended and even terminated. If caught breaking any of the rules of their site, you can’t feign ignorance because in order to get to this stage, you had to indicate that you read the ToS.
Indeed I could give you the highlights, but what fun would that be? It’s not like I can also run your business for you as well, so you may as well get cracking and read those Terms of Service.
Now That We Have That Out of the Way…
At this point you’ve probably read my blog and followed my advice on how to create a winning Elance profile. You’ve got a professional photo in place and an overview you’ve rehearsed so many times you know it’s the bomb! You may have even taken a few tests and verified a few credentials. Nothing spells r-e-a-d-y like you are at this very moment. You’re jazzed and, moreover, you are unstoppable!
Elance is excited to introduce a new guest columnist to our blog: Lee Bob Black of SkilledUp. In his first article, he explores 30 digital skills to take your talent over the tipping point. In future articles, he’ll share insights about enhancing your expertise and income.
1. Advertising skills
If a client wanted to advertise a product or service online, would you be up for the challenge? Setting up Google and Facebook accounts to place ads is difficult. Managing advertising campaigns is even more difficult. That said, if you become proficient at managing a client’s online marketing, then could become invaluable to that client.
2. Email marketing skills
Email marketing services don’t just get customers to click and buy. They can also be used to motivate people to take social and political action. While learning how to use a service such as VerticalResponse or MailChimp, also learn the basics about writing e-newsletters, such as having a compelling subject line and giving people a reward for reading.
3. Personal branding skills
If you don’t already think of yourself as a brand, maybe today’s a great day to starting doing so. Your digital presence — or absence — can mean the difference between getting — or not getting — a job.
4. Digital publishing skills
Do you have a collection of essays or photos that you think would be better in a book than, say, a website or a blog? If so, consider looking into e-book self-publishing and distribution services.
5. User experience (UX) and user interface (UI) skills
If you can have a meaningful conversation with a UX or UI designer, you’ll be one step ahead of most of your colleagues and competitors. To start with, consider learning about the basics, such as general ways to improve the usability of a product.