Freelance Designer 101

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Intro

Are you thinking of taking the plunge and leaving that stable full time job to go freelance? Suddenly laid off in a ‘restructuring’ and looking to freelance as a bridge to the next job? Wondering about the major changes you’ll undergo? 

Read on as I recount some of the learnings from my own career (where I’ve had periods of freelance several times) and an AIGA panel discussion as part of the Design//Work series (http://aigasf.org/events/2016/04/06/design_work_the_ins_and_outs_of_freelancing) organized by myself on going freelance. On the panel were 3 freelancers, Arianna Orland, Peter Nowell, Tina Hardison and Lisa Gibello of The Creative Group (a staffing/recruiting agency). 

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In the movies heroes never look before they leap

Making the leap from salaried employment

You may be escaping a bad boss, bad work, a bad commute or were laid off. You may just want to switch industry or specialization. Either way making the switch from the security of a steady job to freelancing is like heroes in movies jumping though windows – you hope you’ll land on something soft…

Suddenly you will find that you have the freedom of not being watched 9-5 at a desk, in an office. You may end up with a much bigger variety of work too. However you will also feel trapped as doing spec work and account management could have you working 6-7 days a week. It becomes hard to enjoy time off and the year may have stressful fallow periods of no work followed by overlapping deadlines where you have to turn down work.

During this transition you will become acutely aware of the cost of everything and the need to save for the quiet periods. If you are the primary breadwinner, with a mortgage and dependents to support be prepared for some sleepless nights.

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Peter Nowell from his promotional video for Sprightly Books

How to market yourself

So you quit your job or got laid off – now what? Well, it’s not all doom and gloom. Going freelance is also a genuinely exciting phase of your career. If it wasn’t nobody would do it.

So what do you do now? 

Devise a branding system for yourself and your portfolio. This can be both a stressful and fun undertaking. Ideally you had this prepared in advance. Always make sure your portfolio is ready to be viewed with only the kind of work in it that you want to get as a freelancer. One of the best portfolios I’ve seen is Peter Nowell’s videos explaining his key projects which took 4 months to create: http://pnowell.com/

Tell your friends, especially any small (or large) business owners, about your big leap as you need to get the word out. Come to design events such as Meet-ups and AIGA events to avoid the loneliness of being at home or doing a lot of short stints in different offices. Remember people and their names as networking is not just accumulating contact details, it’s about making sincere connections. Write articles/blog posts like this one or teach classes to get the word out about your abilities.

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Tina Hardison at her desk

Independent or staffing agency?

A big question that lies ahead of you is whether you want to go fully independent and deal with everything yourself or rely on work from staffing/recruiting agencies. Most freelancers prefer the higher hourly rate of going fully independent but also rely on staffing/recruiting agencies when they don’t have work. Neither route can be relied on for steady work but if you already have contacts with a lot of companies/agencies then going fully independent may be your best bet.

One thing you probably didn’t have to do when you were salaried is constantly look for work. Sign up with several staffing/recruiting agencies as they are constantly being asked to provide designers at short notice. As a result they have to constantly keep a stable of good and equally important, available, designers.

As well as looking for work for you these recruiting agencies will take care of ensuring you get paid (whether they get paid or not) and any taxes you have through the work they send your way (see Billing and taxes below). Understandably, for doing this admin the staffing/recruiting agency takes a cut of what the client company has allocated for the job. 

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Arianna Orland and one of her pieces from Paper Jam Press

Finding and keeping your own clients

Part of finding and keeping your freelance clients is that you have to work at it every day and at every industry event. You have to be interested in everyone and everything as you don’t know who may become a client or is friends of a potential client. I got one freelance gig (which turned into a full time job) from coaching soccer to the son of the COO of a major gaming company. 

Since most freelance work comes from word of mouth the key is to do good work and be a great person to work with from the start. In all your rounds of back-and-forth you will be representing and defending your own work so keep it professional. How you are during this constant back-and-forth is key as the relationship may be more important to the client than the actual design work itself.

Set boundaries and a value on your work (probably hourly) and bear in mind that client management is a huge part of job. However if the client becomes too difficult then you can be the one who ends the relationship. For advice on this read Peter Nowell’s article on breaking up with clients (https://medium.com/@pnowelldesign/breaking-up-with-clients-35fc48875b7b#.v1n4ewd99)

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Mike Montiero’s books at A Book Apart

What do I charge clients?

This is the 64 million dollar question. 

Try to find out what others charge but since designers don’t tend to talk about money they may not reveal their hourly rate. So what should you do?

Generally the industry charges by the hour so start working out how many chargeable hours* you are prepared to do in a year. Next, decide the total amount you need to make in a year after tax. Then give yourself a profit of 10%, 15% or 20%.

E.g 40 hrs a weeks by 50 weeks = 2,000 hours.*
Target income = $100,000
$100,000 ÷ 2000 hrs = $50 per hour
Profit of 20% = $10
Rate per hour = $60

*remember this is billable hours and you’ll need to use the down hours for your marketing and billing.

However the panel recommended that you actually double the overall figure you think you need then minus 30-40% for tax you need to set aside (see next section). PLUS overheads

When having ‘the talk’ with the client about your rate explain your process as they will have to explain it to their boss too in order to get the budget approved. Show workings/process from previous projects to the client in order to add value to what you do. You may have an awkward moment asking yourself “Did I ask for too much or too little?” Don’t worry – because everything is a unique case there is no magic number. Sometimes you’ll blow it and sometimes you’ll luck out. It’s all comes with the territory.

For more on this process read Mike Montieri‘s books ‘Design is a Job’ and ‘You’re my Favorite Client’ and his talk ‘Fuck You, Pay Me‘ 

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Lisa Gibello talking about the benefits of The Creative Group

Billing and taxes

During the Design//Work panel discussion Lisa Gibello had a good pitch for The Creative Group. She pointed out that TCG will provide you with one W2 tax form (https://www.irs.gov/uac/about-form-w2) for all the work you did in that year and direct deposit the money to you whether they get paid or not. This avoids you having to continually chase down payment from clients and having many tax forms to deal with.

There’s also the tax benefits for write offs such as the percentage of office space used in your home, any phone and internet expenses as well as the depreciation on computers. You’ve got to keep receipts for everything but it all adds up to lower tax bills. Speaking of which…

How much should you put aside for tax? 30-40% of your earnings plus the fee for not paying quarterly taxes just in case you can’t paid on time. That might sound like a lot but in the US you are liable to pay estimated taxes when you work for self: these are 3 payments made to the IRS against your projected earnings not money you have already earned.

For those working in the US try to get everything on a 1099 (https://www.irs.gov/pub/irs-pdf/f1099msc.pdf) if you can. This gives you a nice check from the client for you to then manage the ebb and flow of your finances throughout the year. For contracts be careful when you ask for payments terms. ‘Net 15’ means your client is liable to pay you 15 days after the invoice is received. However, Net 30 and Net 60 are more common in the industry.

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Managing your healthcare

Coming from working in Europe the issue of healthcare never crossed my mind when I moved jobs. However being cut from an employer provided healthcare in the US can be a very terrifying prospect especially if you have a pre-existing medical condition. 

I remember in 2007 I left a job in the San Francisco Bay Area and the cost of COBRA insurance would have been just over $600 a month for myself that would not have included my wife and 2 my children. Luckily with the advent of Obamacare/Affordable Healthcare there is a safety net in place that is financially feasible for a freelancer. In the Design//Work talk Arianna Orland mentioned that Affordable Healthcare cost her $119 per month. She mentioned that the Freelancer’s Union also provides very good healthcare.

Most staffing agencies also provide some healthcare if you work with them on a continuous or semi continuous basis. Check which policy they follow but since there’s no guarantee of future work it makes it hard if you have any kind of ongoing medical problem.

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A fun identity from my last period of freelance. Read more about it here

Conclusion

Going freelance is a huge leap of faith – a faith that you place in yourself and your abilities. If you don’t have that you will find the whole process very difficult. This faith will get you through the freelance world where you are only as good as your last project whether you take the independent or staffing/recruiting agency route.

As for me personally I prefer a full time job for the stability and because you have greater ability to influence things. Ironically most of my full time jobs evolved out of a freelancing stint with the same company. In one role I came to freelance for 3 weeks, stayed on after that as a freelancer and 18 months later went full time. I then stayed full time for another 5 years. So you just never know…

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Best SF recruiting agencies:

24 Seven
Kate Gilman: kgilman@24seveninc.com

Aquent
Jessica Cizek: jcizek@aquent.com

Artisan
Katty Douraghy: kattyd@artisancreative.com

Creative Circle
Amanda Marshall: amarshall@creativecircle.com

The Creative Group
Lisa Gibello: lisa.gibello@creativegroup.com

Filter
Hilary Bullock: hilary@filterdigital.com

Giant
Mickey Pucko: mickey@giantrecruiting.com

JBC Direct
Christina Welcome-Lopez: christinaw@jbcconnect.com

Lab Creatix
Pei Evans: pei@labcreatrix.com

Onward Search
Shannon McGrath: smcgrath@onwardsearch.com

Von Church

Wunderland
Cassie Walker: cwalker@wunderlandgroup.com

Working with Recruiters (Headhunters)

Headhunters

INTRODUCTION

Throughout most people’s career there are going to be times when you will need to the services of a recruiting agency (also called a ‘staffing agency’ or ‘headhunters’). Recruiters spend their time building up a pool of ‘candidates’ to fill the vacant positions and build relationships with employers (agencies, firms, publishers etc.) who pay them a commission for doing so.

Some people regard them as a necessary evil, to be nice to only when you want to leave a job or have been suddenly laid off. The reality is that you are more likely to get the job you want by establishing a long lasting relationship with recruiters. When I worked in London it was always the same recruiter that came through for me year after year with great jobs.

THE SCREENING INTERVIEW

The initial meeting with the recruiter is crucial, rather like a first date. You’ll have to sell yourself to the recruiter as they form an opinion of and hence a (potentially) life long relationship with, you. Linda Holmberg (linh@artisancreative.com) of Artisan Creative has these key points to make about this initial interview:

• Limit the number of recruiters you choose to work with based on a meeting with them, which you may have to ask for in this market. Do you get a sense that it is just a routine, “hi, this is our paperwork, we will keep you in mind meeting?” or did you leave with a commitment from this recruiter to put a proactive approach into you specifically and finding jobs to suit your wishes.

• Ask the recruiter to please be honest with you about the reality of how likely you are to hear from them, based on your skills and your marketability for what you have expressed as being your desire for work, whether it is for freelance work, or for a full time position, or both.

• Everyone is pleasant in this business world, but you need to know realistically how you might make yourself more easily placeable? If your recruiter doesn’t seem to give you any guidance or ask for samples to promote you for a specific skill set, then you probably are going to get entered into a huge database, and may not hear from them ever. You need to probe.

• Ask your recruiter how they would like you to follow up with them, and where you can see their open jobs posted? Does the company post all openings on their website? Does he/she prefer you call them? or email them? how often? If they say, we’ll contact you, I would not feel to hopeful. I think if your recruiter asks you to email them every week to check in and stay in their inbox, that is a very good sign they want to keep you fresh in their mind.

• It’s very important to have something arranged with the recruiter with regard to a procedure for the recruiter to follow if they see a job come in and think you might be interested in and right for that position. Do they just go ahead and send your resume? Do you want them to call you first and get your permission? Of course you do! What if the company gets back to the recruiter and says “Oh, we already have that person in our database as having sent us their resume directly” so we don’t need your agency. But thanks for bringing her to our attention, we appreciate all your hard work, now go away.” This would be an example of poor communication and doesn’t really make your recruiter or you look to good.

The screening interview


WHEN A RECRUITER SENDS YOU TO AN INTERVIEW

Since recruiters are acting as a funnel for the Creative Director/Hiring Manager/HR Manager it is important to get their backing. When you get an interview through a recruiter then they are putting their reputation on the line for you with their long standing clients – the key here is act professionally. Kate Gilman (kgilman@24seveninc.com) of 24/Seven has a lot tips on how a candidate should prepare for an interview which is best summarized as follows:

• Always confirm date, time and place a day ahead of time.
• Confirm who you are meeting and their title.
• Do some research on LinkedIn or through your network of contacts about the people you are meeting.
• Bring a few printed résumés (even if you have already emailed them a PDF)*.
• Bring a laptop to show your work (just in case).
• Dress professionally, even if for a creative position.
• Show up on time – get there early but not too early.
• Eat and hydrate beforehand.
• Turn your cell phone off.
• Do not smoke before or chew gum during the interview.
• Don’t bring extraneous things e.g. coffees, dogs, boyfriends/girlsfriends.
• Shake their hands firmly and make direct eye contact.
• Take off any jackets, sunglasses, purses etc.
• Show interest by asking them questions about the company, their role, what their expectations are for the position. Do not interrupt them.
• Be positive and upbeat – who wants to work with someone who is negative.
• Always send a follow-up thank you, referencing some of things mentioned in the interview.
• If you do get the job thank the recruiter who got you the interview.

(*Check with your recruiter to see if they want a version without your direct contact details.)

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DOING IT RIGHT

Once you are actually on a freelance gig placement it all boils down to a few simple things:
• Know the software programs – they are not paying you to learn on the job.
• Be nice to everyone – you never know who will affect the decision to keep you on. It’s also good kharma.
• Take notes in meetings and listen closely when given creative direction.
• Ask questions – lots of them, rather than waste paid hours doing the wrong thing.
• Learn the file naming/file storing conventions and use them.
• Hit all deadlines – give lots of warning if you think you can’t.
• Don’t try to take credit for other peoples work (be aware that once you are gone other people may take credit for your work.)
• Although it is good to build rapport with your coworkers don’t spend a long time visibly doing so unless it’s lunchtime or a deliberate social setting in work.
• Remember you are being paid by the hour and people judge you accordingly.
• You are likely to be thrown in the deep end so be prepared to rise to the challenge.
• Recruiters generally prefer that you do not discuss the financial side of things with their clients.

If the company/agency/publisher tries to come to some kind of hiring arrangement with you behind the recruiter’s back be aware that not only is it illegal but very bad form. Recruiters might not take legal action for fear of losing a paying client company but more importantly you are burning bridges with the recruiting community which may hurt you more in the long run than any legal action.

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THE BOTTOM LINE: DOING IT RIGHT = MORE WORK

The bottom line is that you know you are doing it right when you get asked back again (and again, and again…) without having to continually look for more work. If you got the placement through a recruiter then it’s like having the taxi meter running all the time – something that greatly pleases recruiters, wins great favor with them and gets you even more of the right kind of work in the long run.


LIST OF RECRUITERS IN SAN FRANCISCO

This is where I live and work so naturally I’ve accumulated a list over time. If anyone has a list or even a few names for other cities I can add them here:

http://www.24seveninc.com
http://www.akraya.com

http://www.aquent.com

http://www.artisancreative.com

http://www.artisantalent.com

http://www.artlinks-staffing.com

http://www.cm-recruiting.com

http://www.creativecircle.com
http://www.creativegroup.com
http://www.emergingblue.com
http://www.filtertalent.com
http://www.graphicsoncall.com
http://www.macpeople.com
http://www.subtractionco.com
http://www.syndicatebleu.com
http://www.visuals.com
http://www.vonchurch.com