When Freelance Gigs Dry Up

With more and more companies reluctant to hire people as permanent staff, companies have been encouraging people to freelance and contracting out work.  At the same time, with large numbers of people looking for greater flexibility and pursuing personal goals, a number of people have struck out on their own and tried their hand at the freelancing tool.  With the recession, particularly a jobs recession, in full gear, it is not surprising that freelancers are beginning to feel the pinch.  I have several friends who are freelancing full time and they indicate that they began to feel the pinch last October, and things have not improved.  From the anecdotal survey it appears that not only are their regular customers tightening their belts, but the competition from recently laid off individuals has pushed hourly rates down. Three of us recently sat down together to commiserate, and here are the high points of our conversation:

–Do not isolate yourself-- although it would be tempting to hunker down for a while, it’s especially important to continue to contact your clients, network, and generally socialize during tough economic times.  The networking may lead to a valuable contact, or at least you’ll find a sympathetic ear.  Especially if you work from home, or don’t have a large work-related support network, it’s important not to feel isolated.

–Be realistic about the economic environment – although the stock market is off of its February low, very few people are expecting a near-term, sharp recovery.  For freelancers, whose income is irregular in good times, this presents unique challenges.  It’s important to be realistic about prospects, reduce cash outflow, and consider various alternatives, including combining free-lance and part-time work opportunities.

–Continue to call your regular clients and find out what their general needs are — as companies downsize and trim costs further, their may be assignments available that are not precisely what you’ve contracted with them for in the past.  Most companies would rather pursue someone they know than to undergo a protracted process to screen someone new. Do you mainly write about healthcare, but are willing to conduct interviews for your client? You won’t know what they need unless you ask.

–Look for opportunities that do not undercut your current business (or current rates) — do you mainly freelance for corporate clients? if so, consider offering services for non-profit organizations or universities or schools.  To keep yourself active and build a portfolio of work (and clients) consider offering services pro bono or low bono to a cause of your choosing.  With donations down for almost every non-profit, your skills are appreciated more than ever.

see other ideas at this week’s Festival of Frugality