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Archive for the 'Business of Freelancing' Category

Buzz, viral, blog — whatever you want to call it — word of mouth marketing is big news, and for good reason. It’s cheap and it works. There’s even an association for it. The Word of Mouth Marketing Association has launched a new blog to share research on word of mouth marketing metrics and measurement. For example, the blog describes a study that found that word of mouth is more effective than advertising for spreading information about a product, even if the ties between participants are weak.

Rachel Oliver at JV Media Design offers several steps for accelerating your word of mouth referrals. But remember, honesty is paramount. Jay Lipe at Smart Marketing explains what happens when word of mouth marketing crosses the line. WordSpreadsQuickly.com explains how it used a word of mouth strategy to generate 10,000 downloads of a study in two weeks.

Word-of-mouth referrals are the best kind of marketing for freelance writers. It doesn’t cost you a penny and you don’t even have to do the work. Encourage others to become part of your “secret” sales force by making sure your friends, family, neighbors, spouse’s co-workers, and everyone else you can think of know that you provide writing services for nonprofits. Think about it . . . anyone can be involved with a nonprofit in their spare time, so you never know where that referral for writing and editing services might come from. Make sure your name comes up by letting the people in all the circles of your life know that you are a freelance writer/editor.

I know this strategy works because it’s how I’ve obtained many of my clients. Contact with these people produced writing/editing contracts for me:

  • a woman I took a class with
  • the co-worker of a woman who took a class I taught
  • a man I volunteered with
  • my husband’s boss
  • a couple I met at a party
  • a colleague of an existing client

Share your word of mouth success story by adding a comment to this post.

My last post on diversifying your income streams appeared in the Carnival of Business #5 this week. Here are my three favorites for freelance writers from that edition.

Title: Being Bold
Posted at: Career Intensity Blog - David V. Lorenzo

About being confident in yourself — a must for all self-employed people, especially those who work in fields where your work can be viewed very subjectively, like freelance writing.

Title: Entrepreneurship is Not for the Faint of Heart It is a Vocation & a Lifestyle
Posted at: Emmanuel Oluwatosin: Inspiring Excellence Realizing Ambitions

A bit of downer on the harsh realities, but if this post scares the sh** out of you, then self-employment isn’t for you. If it makes you take a deep breath and think, then you are OK.

Title: Simple Steps to Start Business
Posted at: Journey To Financial Freedom

Three basic steps to take before fully embracing self-employment.

Financial safety nets are even more important for self-employed professionals like freelance writers than for others. Having a few months worth of income in a savings account or other liquid asset, as well as disability insurance, is a good goal. But I think diversifying your income streams is even more critical. A few years ago, I realized that fully 70% of my income was coming from a single client. While it was nice to have a big contract with a client I really enjoyed working with, that percentage left me very vulnerable.

Since then, I have worked to diversify my income streams so that no single source is more than 50% of my income. Here are all of the places that I am currently earning income:

  • Steady Clients — I have two clients that I work for nearly every month.
  • Intermittent Clients — I have several clients who give me a few projects per year.
  • Magazine Articles – I write articles for trade magazines.
  • Online Courses – I teach several online courses through my websites (www.writing911.com, www.nonprofitannualreports.net) that produce registration fees.
  • Tip Sheets — I sell tip sheets on various writing topics through my websites (www.writing911.com, www.nonprofitannualreports.net, www.nonprofitnewsletters.net)
  • Workshops – I teach workshops through the Duke University Certificate Program in Nonprofit Management.
  • Advertising Revenue — I run Google AdSense ads on most of my websites.
  • Affiliate/Reseller Revenue — I run ads for affiliate program products on most of my websites.

This is the money I live off of. This list does not include investments that also produce retirement and “rainy day” savings.

Think about ways that you can diversify your income stream to make sure your safety net is securely in place. It’s the best way to ensure that you can fully enjoy the self-employment lifestyle without worrying about paying your bills.

Forbes.com publishes a list of the top 200 largest nonprofits. Visiting the websites of the groups on the list is a good way to learn more about nonprofits and their editorial needs. Keep in mind that these are the really big fish — you should also research much smaller organizations.

To save you the hassle of navigating the Forbes site, I have created a Furl list of 195 of the 200 organizations (the other 5 either don’t have websites or the sites were down when I tried to find them).

You can also download the bookmarks in formats for Internet Explorer or Mozilla browsers.

The Nonprofit Times also publishes a list of the Top 100 Nonprofits.

Two questions are most common from beginning freelance writers: “How do I find work and how do I set my rates?”

Most people starting out set their rates too low. They don’t take into consideration all of the costs associated with being self-employed. You usually can’t get the same kind of money working for nonprofits as you can for corporations, but you can still get paid a fair and reasonable fee.
Debra Jason has a good, but long, article on setting rates. She reviews all of the major considerations and also provides some real numbers. All new freelancers should go through this exercise, and experienced pros should also run the numbers every few years to make sure they are still on track.

My quick and easy method for knowing if you are in the ballpark? Find out what an independent plumber charges in the same city where your client is. Of course, the jobs are different. But freelance writers and plumbers are both independent contractors providing specialized services that most people could probably do themselves, but not all that well.

While I strongly prefer project fees over hourly rates (more on that in another post), if you establish an hourly rate, and can accurately estimate how long a job will take, you can come up with a project fee that works.