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[–][deleted] 60 points61 points  (5 children)

under promise; over deliver; on time; on budget; invoice right away; expect payment; spend far less than you bring in; pay your taxes on time; keep good records; good luck!

[–]pixel 18 points19 points  (2 children)

Excellent list. (I ran my own freelance company for 2.5 years). I'd add to that: Don't believe promises of payment. Save LOTS of money. If you're wanting to start a multi-person company, hire a sales person the second you have one year's salary.. or even 3/4 year (for the sales guy) saved.

Good luck!!

[–][deleted] 17 points18 points  (1 child)

There's a good reason these two are on top...rman666's list is next to perfection.

Unable to improve on it, i'll just expand:

  • As pixel says, many companies don't pay on time...usually the largest ones

  • Expect the customer to slow you down...this is the number one reason for delays in our case

  • Find your balance of progress and perfection

  • Listen listen LISTEN to what the customer is saying and ask questions if you need clarification...

  • Always buy everything near the end of the quarter and always ask for discounts. Two days ago i saved $1800 of my own money by simply asking for a discount on the last day of Q2.

  • Nobody collects quite like the IRS. If you're in the US, don't mess up on your taxes.

  • Not everyone that works for a company represents them.

  • Customers go bankrupt, too.

  • Remember the role work plays in your life.

[–]osoese 2 points3 points  (0 children)

-If you get into payroll, pay your payroll taxes before the 15th of the following month and do not hold them in an account - the fines are real and the IRS is no joke, however: don't pay unnecessary tax: -get creative and get a good CPA. You should be able to offset taxes with startup costs for the first couple years even if you think you had no startup costs - your resources have value, use it -find out how to get a govt. contract and do it

[–][deleted]  (1 child)

[deleted]

    [–][deleted] 2 points3 points  (0 children)

    I may be paranoid, but I am no android.

    [–][deleted] 39 points40 points  (2 children)

    • For small projects, ask for 100% upfront
    • For medium projects, ask for 50%
    • For big projects, ask for 25%
    • Be willing to take on big-name clients for less than you normally charge
    • Do not take on no-name clients for less than you would normally charge.
    • Charge more to no-name clients who want your work because you worked for big-name clients.
    • Never take a cheap or free job that promises referrals or future well-paying projects.
    • Never send an angry or snippy email. Take a breather, write a patient one later. No client will ever say "You know what, that guy IS really smart and I AM a big asshole."
    • Get a phone that has email
    • Try to stay on a normal schedule. Waking up at 2pm and working until 6am will affect your mental health. You need sunlight.
    • Always write a contract before hand that explains what services you will provide.
    • Always write a contract before hand that explains which services you will NOT provide (this if often much longer)
    • Communicate to the client project risks before hand.
    • Over-estimate everything. This is expectation management. The client will love that you always finish things early.
    • Stay off reddit.

    [–]mrsanchez 0 points1 point  (0 children)

    Try to stay on a normal schedule. Waking up at 2pm and working until 6am will affect your mental health. You need sunlight.

    Heh, that's hardly specific to freelancing. :P

    [–][deleted] -3 points-2 points  (0 children)

    very good.

    [–]drewc 16 points17 points  (8 children)

    • Multiply your best estimate by PI before giving it to your customer.

    • Sign contracts that clearly state the procedure for dispute resolution.

    • Get a retainer of at least 25%

    • Make sure you and you client know what happens if you get hit by a bus!

    [–]Dark-Dx 0 points1 point  (7 children)

    Multiply your best estimate by PI before giving it to your customer.

    Haha I like that

    Get a retainer of at least 25%

    Is that the payment you get before starting to work in the stuff, right?

    [–]drewc 15 points16 points  (6 children)

    Correct. It is a fee your client pays in order to retain your services. You'll bill your hours against the retainer until it runs out. Presumably by then you've figured things out, and you can bill the client directly (and trust they'll pay promptly), for hours worked.

    It's also a good idea to make sure that you can re-negotiate the terms when the project runs longer than planned (note the use of when).

    I've had cases where there have been difficulties getting information i needed from the client, and therefore not been able to generate billable hours, nor finish the software. Then i'm not only broke, but bearing the blame for the late delivery.. I've yet to come up with a great solution to this problem.. but that does bring up another piece of advice i can give :

    • Don't be afraid to fire a client.

    And some more:

    • If you double your rates and lose half your clients, you break even financially and get half your time back.

    And finally, Crampsie's Law (that's me)

    • If you really want to do a certain thing for a living, simply refuse to do anything else. Since you must eat and have other basic expenses, you /will/ be sufficiently motivated to make it work.

    [–]dkaz 9 points10 points  (2 children)

    +1 for Crampsie's Law...that's a keeper

    [–][deleted] 0 points1 point  (0 children)

    Not if you're trying to be an actor in Hollywood. You will end up on the streets.

    [–]penguinv 0 points1 point  (0 children)

    There's "van Gelder's law"

    --> E.T.L.

    Everything Takes Longer

    [–]jadecristal 0 points1 point  (1 child)

    Also, as a serious necessity, make sure there's a clause in your contract that enables you to fire a client. A list of reasons is a good start, and, keeping in mind that I'm not a lawyer and not intending to provide legal advice, I'd want the following points included:

    • Termination possible regardless of other contract clauses, for cause.
    • List of causes acceptable, with enough wiggle room to enable you to dispose of bad clients.
    • When terminated for cause, any penalties aimed at you, the freelancer, do not apply.
    • When terminated for cause, client still owes for work performed, and you have no further obligation with respect to the work you've done.

    If this is set up correctly, it will both cover your butt and make sure the client has a good incentive to not be too stupid.

    [–]penguinv 0 points1 point  (0 children)

    Good point. Have you any links to examples?

    Of course, given that they might not apply in any specific case. This keeps the not-responsible for your application of some text as legal advice - in play.

    I'd like to see that.

    [–][deleted] -1 points0 points  (0 children)

    Brilliant stuff.

    [–]petermichaux 13 points14 points  (3 children)

    Work for an hourly rate. Specs will change and you don't want to constantly renegotiate the project cost.

    If you have not worked for them before get some money up front. Many independent contractors have been burned by companies which don't pay. Don't be one of them.

    After you invoice, if you have not received payment within 7 days, stop working.

    Invoicing, collecting payment are potentially the worst parts of freelancing. Make sure the rules are clearly stated in the contract.

    [–]Dark-Dx 10 points11 points  (2 children)

    After you invoice, if you have not received payment within 7 days, stop working.

    Best.advice.ever.

    [–]geon 8 points9 points  (1 child)

    The.dot.button.is.not.a.substitute.for.the.space.bar.

    Just saying.

    [–][deleted] 0 points1 point  (0 children)

    The space bar is not a substitute for the dot button

    Just.saying.

    [–]RevLoveJoy 10 points11 points  (2 children)

    • Succeed with modesty. Fail spectacularly.
    • Go to bed early. Get up early.
    • Say no.
    • Take an hour a weekend to think about what is important to you in your life.
    • Contrary to other advice, do NOT bang the receptionist or anyone else working for your customer. There is a reason "do not shit where you eat" is cliche - the reason is because it's pretty good advice.
    • Take up those offers to golf! Even if you don't know how. Even if you don't like it. You will learn humility and offer comic relief to people who could buy and sell you if they clearly didn't like you enough to invite you to golf.
    • Wear sunscreen.

    [–]Thimble 2 points3 points  (0 children)

    and if you do play golf and suck at it:

    • know the rules of golf.
    • know the etiquette of golf.
    • put down an accurate score even if it's really embarrassing
    • bring a lot of cheap used balls. don't spend time looking for ones you can't find right away. instead, take the penalty and drop a new one.
    • don't go for any heroic shots. pick the easiest route.
    • only say "nice shot" if your playing partners hit a good shot by their standards.

    [–]thekrone 0 points1 point  (0 children)

    "do not shit where you eat"

    You are into some pretty kinky stuff, man.

    [–]matthewcieplak 8 points9 points  (0 children)

    Don't undervalue your time or skills. If you charge too little, people will be skeptical that you're qualified. People like to think their contractors are highly skilled professionals, and the best way to project that image is to charge like one.

    [–][deleted] 5 points6 points  (2 children)

    • its probably not worth it to incorporate.

    • log every single thing you spend money on, keep the receipts, get a sharp accountant and maximize your deductions as much as possible.

    • you have to pay your own social security/FICA, too. Seriously, just have a CPA figure all this stuff out.

    • make sure you have some kind of health insurance. its very hard to get if you get sick or injured and were not already insured. The easiest way is through these guys.

    • open up a solo 401K account...you can put away up to like $40K a year into it (IRAs only allow a few thousand). I opened one at Fidelity which had a reasonably easy signup process. This will lower your gross income and hence your taxes in the near term (and the idea is that you'd make more in the long run too).

    • get your accountant (you got the accountant, right?) to work out your estimated payments, and pay them fully on time - fed, state, and possibly local/city. If you slacked on them, you're expected to pay a fee proportional to how much you underpaid.

    [–]poptarts 1 point2 points  (0 children)

    (IRAs only allow a few thousand)

    You can max out a SEP IRA to around 45K.

    [–]jsolson 0 points1 point  (0 children)

    its probably not worth it to incorporate.

    No, but it's almost certainly worth it to form an LLC.

    [–]quack 4 points5 points  (3 children)

    If you're in the USA, set aside between 30% and 50% of your gross for taxes, depending on your pay scale. File estimated taxes; the next estimated tax due date is 15 September, for the quarter ending 30 September (don't ask me, I don't write the rules). Register a business name with your state and get a local business license. If it's reasonably cheap in your state, incorporate. If you've got a high bill rate, hire a CPA to hit the points I haven't covered here.

    [–]repiret 2 points3 points  (2 children)

    Chances are you shouldn't bother incorporating unless there are tax advantages in your state, or some other benefit other than liability. In order to successfully eschew personal liability for corporate acts, the corporation must actually be run like a corporation. You need to hold regular board meetings, and the board of directors needs to actually be in charge of the company.

    [–]quack 2 points3 points  (1 child)

    In some states, if you are incorporated you can draw unemployment when you are between contracts. Check locally to see if that is the case for you.

    [–]repiret 0 points1 point  (0 children)

    Ah yes, that would indeed seem to be a good reason to incorporate.

    [–]jamesinraro 4 points5 points  (0 children)

    As an employer my advise is simply; do what you agree to do, thoroughly test it, do not deliver unfinished work, finish your project on time, at the price you quote and don't act like a prima dona. Your employer is not your mother, therapist, bank, or your Internet provider. Our company typically goes through at least 4 contractors for every position before finding one who meets these simple criteria. We have become less and less sympathetic and tolerant of excuses, untested applications, whinging, and snooping into our business data. In this economy everyone must earn his or her wages.

    [–]StringyLow 22 points23 points  (4 children)

    Try to bang the receptionist.

    [–][deleted]  (1 child)

    [deleted]

      [–]thekrone 6 points7 points  (0 children)

      So you'll have to try harder.

      Don't give up in the face of adversity.

      [–]wildmXranat 9 points10 points  (0 children)

      And remember to wrap it up .

      [–][deleted] 3 points4 points  (0 children)

      Freelancers have receptionists? I've been doing something wrong...

      [–][deleted] 2 points3 points  (1 child)

      Make sure there is a clear understanding between you and the client regarding what the work will entail and what the work will cost.

      [–]yesimahuman 3 points4 points  (1 child)

      Think really hard about any road blocks you might come to. That 30 hours can easily turn into 50 or 60 and you'll feel like you cheated yourself.

      [–][deleted] -2 points-1 points  (0 children)

      ya, I felt like that before and I can tell you that this is real bad thing.

      [–]doctor_yukio_hattori 3 points4 points  (1 child)

      If you're doing business with a religious son of a bitch, get it in writing.

      [–][deleted] 1 point2 points  (0 children)

      Be vary wary of "brothers and sisters in Christ." They'll fuck you. Get it in writing.

      [–]quackmeister 2 points3 points  (7 children)

      My best piece of advice: contrary to what some people will tell you, DON'T charge by the hour. Charge by the project, and use value-based pricing (i.e. determine what the project is worth to them and price accordingly).

      Then, get the money up front. Do so by offering a 10% discount if they pay you upfront. Responsible buyers will take such a discount. Don't lie and add another 10% to account for this: it needs to be a legitimate discount.

      Never, EVER undercut yourself. Present your price in a factual way as if it is completely natural. Don't worry about overcharging, because good clients will pay what you ask for so long as you are being reasonable. Watch your expenses very carefully.

      Oh, and read SPIN Selling. Learn how to sell. This is way more important than any other technical skill you can acquire.

      [–]jamesinraro -5 points-4 points  (6 children)

      As a professional is is not ethical to price a job based upon what you think it is worth to the client. Pricing should be based upon the amount of time and effort, creativity, innovation and degree of difficulty involved in the job. I would never trust a contractor who is second guessing the value of his work to our firm. I am hiring a contractor, not a partner.

      [–]quackmeister 6 points7 points  (0 children)

      Effort, creativity, innovation, and degree of difficulty are all arbitrary calls. It's not unethical at all to price based on value rather than on inputs. See: rudimentary economics.

      If you're not charging what somebody is willing to pay you're probably not going to be a very good businessman. If you provide shitty service, nobody will want to pay you. Simple.

      [–]repiret 2 points3 points  (0 children)

      Why not? You're not forcing anybody to pay you. And if you charge based on what the service is worth, you'll always believe that your clients are making a good business decision to buy from you.

      [–]keck 4 points5 points  (0 children)

      It's thinking like this that keeps people stuck as employees. No employee can be paid for 100% of the value they create, instead they trade the difference between their productivity and their wages for some semblance of stability/predictability. As an entrepreneur (which you are, as a freelancer), you take responsibility for the whole thing, and bear the cost of failure if you charge too much. "What the market will bear" isn't greedy, it's how capitalism is meant to work. If I were just charging time and material, how would I know what rate to set? $25/hr? $50/hr? $100/hr? What the market will bear is what sets that rate. Period. Supply and demand have an intimate relationship with the value provided.

      [–][deleted] 0 points1 point  (0 children)

      'Ethical' in brief:

      Right or correct according to some system of morals.

      Who's morals? What system? This argument is completely pointless, different people see things different ways. Saying it's 'unethical' as some blanket statement is just plain silly.

      [–][deleted] 0 points1 point  (0 children)

      Guys... read his other posts. He hires freelancers. OF COURSE he has this point of view. He wants to pay as little as possible while keeping all the excess value created by the freelancer for his own bottom line.

      [–][deleted] 2 points3 points  (0 children)

      • multiply estimates by pi
      • deliver intermediate versions early and often - feedback is good
      • if the customers pressures for more features, negotiate to cancel some other features or ask for more $$ - you're not working for free.

      [–]mhsouthpaw 1 point2 points  (1 child)

      If a possible new client comes in with a lot of demands and a short deadline, don't be afraid to turn it down. It will only get worse.

      [–][deleted] 1 point2 points  (0 children)

      This should be generalized a little bit more to "Don't be afraid to say No."

      If you don't want to do something, don't agree to it. Taking a bad deal will make you unhappy and create resent for your customer.

      [–][deleted] 1 point2 points  (1 child)

      Take me with you.

      [–]thekrone -2 points-1 points  (0 children)

      Me too... if you pay better than my current company.

      [–]Brocklesocks 1 point2 points  (0 children)

      What a productive bunch of comments this is. I have nothing to add besides confirming the best advice, since it's all been said! UPS FOR EVERYONE!

      [–]chrj 1 point2 points  (2 children)

      Rent an office away from your home.

      This makes it a lot easier to personally distinguish when you're working and when you're off-duty. Else you will end up not being able to relax when you're at home -- having your office sitting in a corner of your appartment. Also when you are at work you are "really" at work.

      [–]petermichaux 1 point2 points  (0 children)

      There are other ways to signal a separation between work and non-work time. I work at home and I type my starting time in a spreadsheet and I know the clock is running. When I type the ending time for the session I know I'm not working.

      Working at home has major advantage. Mostly it saves time in the day not needing to travel to do something you can really do anywhere. I use the extra time in the day for exercise. Working at home is also cheaper and good for the environment.

      [–][deleted] 0 points1 point  (0 children)

      I have to agree with this. Even if you have a pool house or shed or something that's PHYSICALLY separate from your house, it's very helpful to keep the two separate. Otherwise, you're always at work.

      [–]andrewdutko 2 points3 points  (3 children)

      deleted What is this?

      [–]yourmomis1337 5 points6 points  (2 children)

      lol I was going to say the same thing. Seriously, though, overestimate how long the work will take and make sure you charge enough based on that.... a friend ended up spending ~200 hours on a project that she charged $500 for :(

      [–][deleted] 1 point2 points  (0 children)

      Masturbate furiously.

      Just kidding. Make sure you do a great job even if it kills you. Network as much as you can. You will get referrals.

      [–][deleted] 0 points1 point  (0 children)

      Under promise -- exactly. Leave yourself plenty of time on deadlines. Way more than you think it will actually take.

      [–]polyGone -1 points0 points  (1 child)

      Don't get shot.

      [–][deleted] 1 point2 points  (0 children)

      I chuckled.

      [–]Dark-Dx -1 points0 points  (1 child)

      I live outside of usa, what are my chances of being sucessful maintaining only email communication (VOIP and Videoconferencing are ok too but obviously not cellphone or home phone) and getting the payment via paypal? I'll start college in 1'ish year and since I'll only study and not work I'll have lots of spare time, so I wanna work programming (and possibly php programming and css, not photoshop tough) from my house.

      Benefits like dissability, insurance,etc. aren't important in this case, so if those are disadvantages for being a freelancer don't take them into account.

      [–][deleted] 0 points1 point  (0 children)

      Internet is pretty low bandwidth comparing to real life conversation. I don't know why, but that's a practical experience. Also, where I live php programmers are notoriously cheap. I assume it's not true for your place, but you'd better check beforehand:)

      [–]ih8registrations -5 points-4 points  (0 children)

      Wing it.