INDEPENDENT CONTRACTING

 

So, you want to live as your own boss, free to do as you please. If you want to go skiing in the middle of the week, youre going to do it, dammit!

Well, good for you. Much of web work is project based. In this section of our web design course, well discuss the ins and outs of independent contracting.

Contract work isnt for everybody, though. Theres more stress involved, because youre not always sure where your next job is going to come from. Youre going to have to feel comfortable with promoting yourself, with telling people that youre the one for them. If youre shy, or if you dont like networking a bit, then being a contractor might not be for you. Youll need a fair amount of drive and the ability to multi task. Then again, contract workers who work generally make a good deal more money than people who have "jobs"...

 

Portfolio

You need one. Get to work. Prospective clients will want to see examples of your work.

 

Business Cards

You need them. People wont think youre professional if you dont have business cards. Youre a designer. Make sure theyre impressive. You can design them yourself, or have someone else do them for you on a design program like Adobe Illustrator. I would advise a color business card. Its just more impressive.

Youll need to work with a professional printer.

Post Script Press http://www.psprint.com is a low cost alternative that will ship anywhere. If you dont really know much about print work, call them and ask for advice. Ask for one of the pre-press people and ask them what kind of file is best and what options should be set.

 

Licenses

Youll need to make sure that youre doing everything legally. Its a good idea to set up your own company. Youll look more professional and taxes will be easier to keep track of.

 

Local

If you want to run your own business youll most often need a business license. Check with your local city hall or its website to enquire about setting up a business.

In San Francisco, you must, among other things, file a fictitious business name statement and make sure youre zoned correctly.

 

Federal

If you will be employing others you may need to obtain a Employer Identification Number (EIN). This is kind of like a social security number for your business. You may obtain a Federal Employer Identification Number over the telephone by calling 1-209-452-4010. When you call, youll need a federal form number SS4, which you should be able to obtain from your local city hall.

 

Corporation Vs. Sole Proprietorship

Corporations protect you from nasty lawsuits, but they cost a fair amount of money to set up, and also have tax drawbacks. One nice option is the Limited Liability Corporation (LLC), which protects your personal assets from lawsuits, but is taxed more like a partnership. You should consult your accountant about the positives and negatives of incorporation.

 

 

Taxes

As an independent contractor, youll have to keep track of and pay your own taxes quarterly. Taxes can become very complicated, and you can end up sending much less money to Uncle Sam by using an accountant. You may be able to deduct, among other things, part of your rent, and all of your computer expenses, including this class. My advice is to see an accountant at least twice, once when you first set up your business and again when you first pay taxes. Youll make sure you arent missing out on important things you should be doing. Accountants can be expensive, though. Expect to pay about what you would for a lawyer, but a good accountant can save you more than they cost you. Your accountant fees are tax deductible, anyway.

 

Where Can I Get Work?

There are a number ways you can get work as an independent contractor. In the next segment well examine ways to get work and keep getting it.

 

Recruiters

Recruiters arent only for those seeking full time positions. Call recruiters and ask them if they place web developers on a project basis. List with temp firms, too. Keep inn touch with your recruiter. Comb offbeat stores and send your recruiter something nice every time they get you a job.

For more information about recruiters, see the "Full Time" section of this book.

 

Friends and Acquaintances

Often its not what you know, but who you know. Most people hire freelancers based on word of mouth. Call everyone you know. Tell them what youre doing now, and that youre really excited about it. Let them know about your previous experience (the sites that youve built for your portfolio) so they dont think youre inexperienced, and give them your website address. Send a follow-up e-mail to everyone you know telling them how nice it was to talk to them the other day, and ask them if they run across anyone who even might need web work to please give out your name.

Ask your closer friends and family to help you promote. They can e-mail everyone on their e-mail list and let those people know about you, too. Shoot, if your friends and family ask their friends to pass along the e-mail to everyone they know, youve got quite a little network running. Make sure they include your web address.

 

Other Designers

Designers often sub-contract or turn down work when they cant accommodate the job. You should be the sub-contractor. Call every design company you can find and ask for who ever is in charge of sales. Work a friendly "Ill use you if you use me", or promise a commission of around 5%. Ask the person youre talking to which theyd rather do. Youll get more work if theyre more interested.

There are also plenty of print designers who know nothing about the web. These people have clients built up and are often bombarded by requests to build websites. Sadly, they turn these requests away. You can team up with designers. Theyll do the interface design, and you make it work. Youll have to educate the designer about whatll work on the web and what wont, but itll be well worth your time. After all, putting the pages together is the easy part! Usually you can ask for anywhere between 33% and 50% of the total job cost. Itll be worth your time to network at print publishing functions and to advertise in print designer magazines: "Why keep turning down profitable web design jobs? Our firm will turn your designs into working web sites!"

 

Business You Visit

If you visit a store, ask them if they have a website. If they say "yes", ask if theyre happy with it. If the person youre talking to says that the store doesnt have a website or that their current one sucks, ask for the manager or the owner. Tell them about your conversation with the clerk, and give them your card. Tell them that youre a web designer, and that youd like to talk set up a meeting to talk with them about building a website that can help their business and that they can be proud of. Dont get into detail then. Theyre probably busy, and youll need time to prepare for the meeting. Make sure that youre talking to the person who makes the decisions. Youre usually wasting your time with the assistant manager.

 

Crappy Websites

Lots of websites were built by somebodys cousin three years ago. It looked bad then. It looks really bad now. Often an independent web designer will spend lots of time rebuilding old sites. Try not to e-mail, as e-mail often goes to the webmaster (who sometimes built the site). Call the owner of the site and let them know that you just saw their site. Complement them on their business, and let them know that youre a web designer, and that you really think that their site could use your help to look professional. Give them a few ideas about what their site could do to help their business that its not doing now. Make sure you tell them how a website can help them make more money, or theyll never spend any.

 

"Under Construction" Sites

Many sites with an "under construction" home page are owned by people with a business idea, but no idea as to how to design a website, or find a good web designer. You can find out who owns a website by searching for their domain at www.names4ever.com After confirming that the name is taken, Names4ever will ask you if youd like to know who owns it!

 

Corporate Overflow

Corporations also have a lot of web work that they cant handle. I know one man that makes his living building rollovers for Sony. Sony employees designers, they just have too much work to handle building all of their needed buttons! Work that angle, baby. Ill bet you that you know a few people who work for a big corporation. If you ask nice, that person could find out whos in charge of the web division, and could make an introduction for you. People are much more willing to listen to their co-workers, even if they dont know them personally. Your friend could find out if their company ever farms out web work. If they do, your friend says "Oh great, because I have a friend whos a really great web developer. His/her name is _______ is it okay if I have them give you a ring?" Tell your friend to let you handle the sale. Your friend will be much more willing to help if they dont have to really do anything. Dont underestimate this technique!

 

Referrals

This ones easy, but overlooked by sooooooo many designers. Ask for referrals! When you finish a job, ask your client if they know anyone who might be in need of your services. Its a good idea to have them fill out a "Customer Satisfaction Questionnaire". At the bottom of the questionnaire include a section for "other companies or individuals that may be interested in web services". Make sure you label one line for the referrals phone number. Youd be surprised what a promise of 5% commission can get you.

Ask unsuccessful cold calls the same question. "Okay, well, we offer a 5% referral commission do you know any other companies or individuals that may be interested in web site building services?"

When you call the referrals, make sure you let them know who referred you. "Hi. My name is _____. I just finished build a great website for _________. They mentioned that you might be in the market for web design services. I hope Im not bothering you, by calling". Now youve got an introduction, youre not just making a cold call. Because youre immediately on a friendlier level, its a good idea to make sure youre paying attention to their feelings: "I hope Im not bothering you, by calling"

 

Networking

Schmooze, baby, schmooze. You dont have to be annoying to network. Ask people you meet what they do for a living. They, in turn will ask you. Tell them youre a freelance web designer. Youd be surprised, if you tell ten people youre a web designer one of them will say "Oh, really? Because I need" or, "I know someone who needs," or something like that.

If you meet someone in your industry, ask him or her what its like working where they work. Then ask them if ever hire free lancers.

Go to local networking events. Most of them are free and provide free drinks and food. I know one guy who goes just for the free drinks and food.

If you want to get all clandestine about it, crash corporate parties. You can usually find a list of corporate parties going on by mining the web a little bit. Often you can just dress up and show up. Meet people and say hello.

 

Cold Calls

Many of the above tactics involve calling people youve never talked to before and asking for work. There are ways to make sure your cold calls are effective. One basic technique is to make sure that you smile before you ever pick-up the phone. You might want to place a mirror near the phone and look at yourself smiling. If the smile looks fake, itll sound even more fake.

As much as you can, keep your communications personal. If you can, meet face to face, if you cant meet, use the phone. If you absolutely have to, send an e-mail, but dont expect too much response from it. Even regular mail is better than e-mail. People pay more attention to people, especially the ones they like.

 

To Cold Call on the Phone:

1.      Make a list of all the people you want to contact. List their names, and phone numbers.
If you dont know who makes the decisions, call and say "Oh, hi! I just need the name of the owner or manager, please." Then hang up. Theyll be more likely to talk to you if you call back later and ask for them by name. Be ready to start talking if the owner or manager picks up the phone.

2.      Make sure you know exactly what youre going to say. Practice ahead of time on your friends and family over the phone. Now is not the time to be shy. Ask for criticism. Some people like to have a word for word script. Some people like to have an outline reminding them of the key points to cover. Make sure you introduce yourself and dont forget to ask for a meeting.

3.      Before you call, relax and smile. Dont forget to breath. Drink some water. You dont want dry mouth half-way through a call. Youll never get it unless you do it!

4.      At first, make around ten cold calls a day. You dont want to burn out. One call a day isnt going to get you anywhere, though

 

Cold Call Follow-Up

If a cold call isnt successful, dont despair. That contact isnt dead, yet. They just didnt need you at the time. When the time pops up, or when their a friend starts talking about hiring a web designer, or when a co-worker wants to farm work out, you want to be the one fresh in their head.

Studies have shown that it can take people up to seven times of seeing your name before they will remember you later, so youll have to contact them more than once. Usually you can get away with calling to "check back with them" only once. You can ask them if theyve developed a need for a web designer since the last time you spoke? Always remind them that youve spoken to them before.

After your first call back, youll need to contact them repeatedly. Keep yourself from getting annoying by, always having a new reason for contacting them! Maybe you have a special, or youve have grown your business to Flash development. The holidays (any of them) are a good excuse. After that, you need to get creative and change your strategies. One month send a postcard, another time send a handwritten note. Dont send unsolicited e-mail, it bugs people.

Heres a great tip: Send prospective clients something interesting and web related, like a list of ten fun or useful websites that most people dont know about! If you personally wouldnt be like getting what youre sending, dont send it! Nobody really wants a pen with your name on it.

 

Successful Meetings

When you meet prospective clients, dress nicely and great them warmly. Take the following steps to gain a better chance at leaving the meeting with a closed deal.

 

Show Them What You Can Do For Them

Its important to be able to use the Internet while youre selling the Internet. Ask the prospective client if the Internet will be available where youre meeting. If not, download websites with the Offline Explorer or Web Devil and display them on a laptop. If you dont have a laptop, borrow one or rent it.

�.       Show clients your site.

�.       Show them sites similar to their prospective site, done in totally different styles.
Make sure theyre all nice, though.
The prospective client will almost always voice their opinion about which one they like.

�.       Let them know what the web can do for them and their business.

�.       Let them know that Internet commerce can be cheaper than they thinkwithout a database, or with a web based database service. In the Internet Commerce section, well go over cost free ways to add Internet commerce to your site.
Remember that CGI scripts can be configured to submit secure forms containing credit card #s.
The store receives the credit card number, charges and ships the item and sends the client confirmation e-mail.

 

Teach Your Clients

Your roll is now the teacher. Youll need to educate your clients on what can happen and what you can do for them. If you feel up to it, tell them a little about the World Wide Web and how it works. Let them know about how searching works, and why you can set up a page that is easily found by searchers. Let them know about who you are.

�.       Tell them your philosophy.

�.       Tell them what you like and what you dont like. (Simple navigation, bright colors, friendly graphics, whatever)

�.       Teach them about psychological aspects of web design found in the design elements. They need to know why its worth their while to hire a professional.

 

Ask the Client About What They Would Want from a Website, If They Were to Have a Website

The first, and most important step in any design project is effectively determining what the client wants. If you can get them thinking about what they would want, you can be the person to give it to them. By using the term "would" the client is safe to talk about what they want without pressure

 

How to Deal with Price Questions

If people ask you about price, you should honestly respond that every job is different and the price depends on what they need done. Now is the time to ask them if they have a budget. "If you let me know what sort of budget are we working with here, Ill have a better idea of what we can do." This is the beginning of bargaining. Let them know it might be a little more than what they had in mind and see what they say. Usually people will try to lowball you, and theyre not surprised when you tell them itll be more expensive. Youll probably want to hold off on a firm quote until after the meeting so youll have time to figure out exactly how much you should charge.

Ask for the Job

Ask! You have to ask!

"Would you like me to bring a contract by for you to look at?" is asking. If you bring a contract for clients to look at, go over it with them, then ask them to sign. "If you go ahead and sign, I can start work today."

Dont be afraid to ask for the job when dealing with clients or with contracting work. Youll kick yourself later!

 

Pricing Your Work

What you can charge revolves heavily around how good you are. If your designs are awesome, you can charge more. If you are still learning, dont try to get top dollar.

 

By the Hour, or By the Job?

Generally, you want to price by the job. If you price by the hour, youll often over or under estimate, and somebodyll get mad, maybe you. You want motivation to work quickly.

Usually youll price your job by figuring out how many hours you expect to spend, and multiplying by an hourly rate. Dont disclose your hourly rate to clients.

Remember that the hours you spend on one job include more than just building the site. Youll have to figure in time for:

�.       customer service

�.       sales

�.       meeting with clients

�.       time spent developing and maintaining your own site

�.       training and research to offer the best solutions to your client

�.       office management, billing, and administration duties

 

Your fees will also have to cover your expenses, some of which are:

�.       hardware (new and upgrades)

�.       software (new and upgrades)

�.       electricity

�.       office supplies (printer ink, paper, paperclips, etc.)

�.       office furnishings (desk, chairs, filing cabinets, etc.)

�.       office equipment (fax, phone, etc.)

�.       advertising expenses

�.       Internet fees (ISP, hosting)

�.       training and seminars

�.       payroll

�.       taxes

�.       local license fees

�.       insurance (health, life, disability, omissions and errors)

�.       travel expenses (local and out-of-town)

To Figure a Cost:

1.      Sit down and figure out what kind of money you need to make. You can charge what looks like a lot and still not be able to pay all of your bills.

2.      Figure out how many hours youll spend on the job. Overestimate.

3.      Add in sub-contractor costs + at least 10%

4.      Add 25% for error and costs.

Hourly Rates

The below rates are suggested hourly rates for things that sometimes fall under an independent web designers job. Base your rate on how good you are, and what you think you can get.

Writing (Technical)	$35 to $80 per hour
Writing (Non-Tech)	$.30 to $1 per word
Producing	$50 to $125 per hour
Interface Designing	$50 to $100 per hour
Flash Designing	$50 to $150 per hour
HTML Designing	$25 to $100 per hour
Editing	$35 to $50 per hour
Copyediting	$25 to $40 per hour
Straight HTML Coding	$15 to $40 per hour

 

***HINT: Before you give a quote, ask if they have a budget. Sometimes the budget will far exceed your would be quote!

 

Deposits and Payment

Oh, my god, get a deposit before you start work! You dont know how many designers were left out to dry with lots of work and no money.

Usually the payment happens like this:

1/3 on contract signing, 1/3 on successful delivery of comps, 1/3 on delivery of the final site.

 

Sign the Contract

As an independent contractor, youll need to have a contract! A contract protects your rights and allows everyone to understand what is required. Clients will not be offended when you ask them for a contract.

 

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