03.05.10  |  Blog

Well here is my first blog post.As a “newbie” freelance web designer I searched some time information/tips on how to start my freelance journey.Contracts,invoices,taxes … this always kept me away from taking this step. Today I found this very interesting and resourceful article on deviantART to help with all this “less interesting” parts of freelancing. [...]

Well here is my first blog post.As a “newbie” freelance web designer I searched some time information/tips on how to start my freelance journey.Contracts,invoices,taxes … this always kept me away from taking this step.
Today I found this very interesting and resourceful article on deviantART to help with all this “less interesting” parts of freelancing.

Written by April Sadowski

The absolute first thing you need to know is that starting out as a freelance web designer you are bound to make mistakes. You are learning and it’s a process. You will get burnt. It’s inevitable. I want to help you out so you can save yourself much trouble.

1. Taxes

There is a common misconception that in the Unites States you need a business license for design. For graphic and web design you are essentially selling something that isn’t tangible (you might want to check in your state to be absolutely sure – getting a vendor license isn’t hard but there is no need if it’s not required). You don’t need to charge sales tax and you don’t need a business license. What I do recommend you get is a business checking account (to keep personal and business expenses separate) and an EIN (Employer Identification Number). The EIN will literally take about five minutes to get if you do it online ( [link] during hours listed). They will give you a document that has the EIN listed. You want to use the EIN when you set up your checking account and when you do business with clients since that is what you should be putting on your W-9. You can have one W-9 that you give to clients. Having the EIN on it saves you from listing your Social Security number. Make a spreadsheet for Advertising, Supplies, Utilities, Legal costs, etc. Most major items you buy for business are depreciable (computer, camera, even software). If you have a home office, you can write off the utilities and rent/mortgage or the percentage of that space in relation to your house. So if you plan on buying a house, keep in mind that having a small office isn’t always beneficial. Make the most of what you have while you get it. Your space doesn’t even need to be dedicated for business. You could put a computer in the family room but you can only write off that portion of the room used for business. Don’t, however, think that clothes are a write-off. You can only write off uniforms that you really wouldn’t wear in public, outside of the job.

2. A Contract

Don’t leave “home” without one. If you think you have a potential client and you are going to meet them, you could have a temporary NDA (Non-Disclosure Agreement) that they could sign. I have one that has saved me from a couple of clients I spent hours in meetings with, did a couple comps for, and then they never followed through with the project. My NDA says I get paid a certain hourly rate just for seeing if the project is worth the client investing in any further. Everything discussed is confidential and if they don’t want to go forward they have to pay me for my time and they get nothing.

A larger contract for a project when they get to the point you know you’ll be working one is a necessity. Make sure you list the rights (what kind of usage license, do they get copyright, etc), an approximate deadline, what’s included in the cost, what happens if they don’t pay, what happens if they kill the project, what the client should provide you with, covering your tush in case your computer gets torched (otherwise called a Force Majeure). Also consider having a limit on concepts and revisions and charge more when the client exceeds them. AIGA ( [link] ) and GAG provide very good guidelines and even working contracts for when you need to be on a retainer. Make sure you include where the jurisdiction is in case of a breach of contract or if the client defaults on payment.

Even if the client wants you to do a little mockup, have a contract or an NDA. Even if it’s a client that you’ve been working with for years. Spec is bad. It WILL get you burnt so don’t try it.

Make sure you get a deposit and the contract BEFORE you start on anything.

3. Your brand

Before you start trying to get clients, you really need to have at least something put together so people can get an idea of who you are and what you do. You should come up with an identity for yourself. Get a logo put together (and yes, it is so much harder branding yourself than clients), get a business card, and get a website. You need something to be able to hand out because you never know when you’ll come across someone that needs a designer. I had a bank teller cash my check and ask me if I knew Joomla as she saw the note on the check saying it was payment for a website. You always want a card on-hand to give out in these circumstances. You also need a website. A website is a silent salesman that works around the clock. If you aren’t that good in web design or coding, you can hire someone to do if for you or many hosting sites have a click-and-load application option so you can get WordPress or Joomla or another CMS loaded and then you can buy a template (or find a free one out there) to load up. If you don’t have any work to show, make some projects up. It’s better to have something that isn’t for a real client than nothing at all. In general, people are more interested in what your work looks like, not who you do it for.

4.Working the Network

Starting out you won’t have a client base. It’s not always easy to get one. Luckily, most areas have a local ad club (AIGA or AAF) that you can join, and if you are young or are a student, they have discounted rates. Also check out LinkedIn for local networking groups outside your industry. That’s where you are going to more easily pick up clients. Attend the meetings, get involved, and carry around those business cards I told you to get. Clients that refer other clients are good business. There is already a trust built up from the recommendation since they already know at least one of your references. Soon you’ll be working for clients of clients. If you are at an ad club meeting or event, you can find business owners of those firms or people who work there in high positions (like Art Directors) and talk with them. Ask them for a portfolio review or if they are looking for freelancers. Having some work through a design firm will help build your portfolio (may sure you ask for permission – there might be some confidential content and ownership issues) and provide some nice steady income for a while (especially if you occasionally work on-site for them – just keep in mind they work around your availability, don’t let them take advantage of you).

5. Pricing

Don’t be afraid to charge appropriately for your time and efforts. Don’t be afraid to charge for consulting, meetings, phone calls, research and brainstorming either. That’s time that you can’t be working for another client or enjoying free time. Make sure you charge enough to have a good profit margin and be able to pay your bills. FreelanceSwitch has a very good calculator ( [link] ) that will help you determine your hourly rate. If you want to flat-rate a project then you can take your (hourly rate) x (estimated time) x 20%+. You want to make sure you add fluff for unforeseen expenses or when a client proves difficult. The more experienced you are, the higher the rate you can charge. When changing your rate, give clients at least a month or two notice. You might want to even offer your long-standing clients a discount for the first month of the change.

6. Billing

There are several billing options available. You can make your own invoice and send them a PDF and give them a Paypal address or let them pay by check. You can send invoices with Paypal/Google Checkout. You can use QuickBooks and other money management programs. I use Curdbee ( [link] ) because I can send a web-based invoice that allows them to pay directly through Paypal or Google plus I can use my own domain and see if they have viewed it. I can also export most of the information with my pro account (they do have a free account that still has a lot of features) so when tax time comes around I just add up the incoming amount in Excel for my taxes. Just keep in mind that you CAN write-off the processing charges that Paypal/Google have (or any other processor) so at end-of-year or if you pay quarterly, remember to go through and add them up. Make sure you define your billing schedules in your contract (net 15 days, 50% upfront for instance).

7. Getting Paid

As a reinforcement: make sure you get the deposit BEFORE you start work. If you offer an online method of payment in addition to traditional methods, usually the client will pay online because you can start on the work faster. Another incentive is offering a discount for paying within a certain amount of time. You can include a warning of interest for late payments. If the client hasn’t paid you in a timely manner then first write an email explaining the situation and don’t be harsh. They might have forgotten about it, accounting may have not gotten the paperwork, etc. If they don’t give you a response, send a letter through the mail. If that isn’t replied to, send a letter through certified mail (and keep a copy of it and the receipt) stating you will seek legal action in X amount of time (at least 7 days). Suing is a last resort. You don’t want to burn a bridge. Sometimes a suit is necessary. If it’s in the small claim amount (see the local municipal court for that) then you don’t need a lawyer. You HAVE to have send the certified letter first to sue. You would need to show that to the court. They will issue a court date and send a letter to the client. Then you meet in court. You show the judge that you haven’t been paid and the work has been done and you provide the contract. The judge will allow the client to defend. Since you had sent so many notices, you shouldn’t have a problem getting victory. If the client doesn’t have funds you can put a lien on their business assets. If they are an individual you can get a lien on their personal assets or garnish their wages if they also have a full time job separate from the business. It’s not something that is always easy to do but sometimes it needs to be done.

8. Keeping in Touch

You might consider sending out monthly emails to clients, offering discounts at times, letting them know about a new service, etc. This will not only keep them up to speed on you, but if they haven’t done business with you in a while, it might make them consider getting in touch with you about an idea they have.

Source So you want to be a freelancer…

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