Know Your Worth...and Stand Your Ground

What's your ideal freelance work mix? For me, it's to be working on a book for a ghostwriting client with a mix of shorter content (mostly health and fitness) for corporations and content agencies thrown in as well.

Of course we can't always have our ideal. At the moment, my work funnel is nearly empty. (That means the coming week's priorities are marketing, marketing, and marketing.) Part of the issue is that I've had several potential book projects die on the vine. So I was excited to learn about a possible gig. It's the type of ghostwriting I do; I like the potential client; this particular book has lots of potential; and my calendar is looking empty at the moment.

However.

What's being offered, and what I charge to ghostwrite a book proposal--at the moment at least--are way too far apart to go forward. And I'm frustrated. I'd love the project, and I know I'm a good fit for it. And did I mention that work funnelI?

As a new freelancer, I would probably just sucked it up and taken the gig. But that's not how I work today.

Here's a look at my thought process:

1. I know what I charge for a book proposal--typically between $5,000 and $8,000 (though I've charged as much as $15,000 for one that grew to 100+ pages and took more than six months to write).

2. I know what a well-written book proposal is worth. (At least to the clients I work for.) And that, not surprisingly, is between $5,000 and $8,000. See how that works out?

3. The potential client has tried, and can't write the proposal on his or her own. Which means the client has to hire a ghost to make the book go forward.

4. I know from reviewing the material that it will take some time and work (probably four to six weeks) to create a compelling, giant-advance-grabbing book proposal. And while I'm willing to make that happen, that stretch of time means I can't take on another proposal or any other big projects. That's opportunity cost, which is factored into deciding whether to take on a big project.

5. Finally, and just as important, what I do as a ghost (and what we all do as freelancers) has value. If a potential client doesn't value the work I do, that doesn't set the stage for mutual respect and a positive working relationship. And when you ghostwrite a book for a client, those elements are essential.

Sure, it's hard to turn down work, especially when there's backend potential. But as a freelancer, you have to know your value, and be willing to say "no" if you and your client can't agree on it.

So if you're a new freelancer, think about what you charge. Know your bottom line--and know why that's your bottom line. Be prepared to back it up. It will make you a better negotiator, and help you make more money in the meantime.

**New to the blog? Welcome! If you're serious about making your freelance writing business a money-maker, I suggest my freelance classic, Six-Figure Freelancing: The Writer's Guide to Making More Money, Second Edition. 

If you're more interested in getting into ghostwriting and content marketing, I suggest Goodbye Byline, Hello Big Bucks: Make Money Ghostwriting Books, Articles, Blogs and More, Second Edition. 

If you're brand-new to freelancing, Dollars and Deadlines: Make Money Writing Articles for Print and Online Markets walks you through the process of launching your freelance career. 

Finally, if you like your books full of shorter pieces, check out a different format--Writer for Hire: 101 Secrets to Freelance Success is divided into five broad sections to help you make more money regardless of what kind of nonfiction writing you do. 

Just Say No: Freelance Markets to Ignore

During the last few years, there’s been an explosion of content mills like eHow, Livestrong, and Demandstudios. The content for the site comes from writers who work “for cheap,” at least if you consider $15 or so for a 500- or 600-word article cheap. I sure do.

Freelancers deserve to be paid, and paid well, for their work. Sites like these which pay a ridiculously low amount are not going to help you build a successful career as a freelancer. The writing quality on the sites ranges from middling to poor, and your work there isn’t likely to be taken seriously by editors and clients. And think of your opportunity cost--the time you’re wasting working for tiny checks could be spent pursuing higher-paying clients.

When I see an ad on Craigslist with a general headline like “seeking writers,” often it's an ad for one of these mills. These companies are not looking for professional freelancers. They’re looking for would-be freelancers, writers who are desperate to get published and think it’s worthwhile to do it for $15 a pop. I hope that’s not you.

According to my recent survey, 14 percent of freelancers are writing for online publications, with another 8 percent blogging for pay. That doesn't mean writing for cheap, though.

There are thousands of paying markets for web writing, with new ones are cropping up all the time. The most recent edition (2011) of The Standard Periodical Directory, the largest directory of U.S. and Canadian magazines, lists more than 63,000 magazines, journals, newsletters, and newspapers. More than a third--27,927 magazines--have electronic versions as well and 6,554 publications are available in electronic format only. That’s a lot of potential markets that need freelancers.

The Web’s explosive growth means that companies, nonprofits, and millions of websites have been created, and many of those websites need writers. No, some don’t pay well. Some don’t pay at all. But others do, and companies launching or updating their sites often hire web-savvy writers to provide copy, and experienced bloggers to produce compelling posts.

If you want to make money writing for the web, forget the sites that pay pennies or offer you “exposure” for your articles. (Why would you want exposure? People die from exposure.)

Instead, look for well-funded websites that pay a reasonable amount for your work. Most of the Web writing I've done has paid $1/word, which is comparable to print markets. Rates have fallen in the last couple of years, but I think it’s fair to expect at least $0.25-50/word for your work. (Your mileage varies? Please comment below and let us know what you're being paid for online work.)

Bottom line? Say “no” to content mills--so you can say “yes” to higher-paying, more promising markets.

Opportunity Cost and How to Measure It

Last week I talked about the importance of having a daily nut, or daily goal. In addition to helping you make your annual income goal, your daily nut can help you decide whether to say "yes" to a potential assignment, and to bid on work as well.

But in addition to the money you'll make, the estimated time you'll spend on the assignment, and the value of the assignment to your business, don't forget to think about your "opportunity cost" when you take on work.

What is opportunity cost? Simply put, it’s any work will you be unable to do because you’ve taken on that particular assigment. And typically, the bigger or more complex the assignment, the greater the opportunity cost. (And the tighter the deadline, the higher the cost--because you'll be busting your butt to make that deadline during that time.)

For example, in the last two weeks, I've signed two new ghostwriting clients, both with aggressive deadlines. That's awesome news for my business and bank account, but it also means that I'll have to turn down any other big projects (even lucrative ones) in the meantime. I know how much work I can handle (and remember, I have two kiddos I'm responsible for wrangling as well), and I'm stretched enough already.

But even smaller assignments can carry a sizeable opportunity cost as well. When I started freelancing, I used to write articles for my local newspaper. The pieces paid between $35 and $125, and usually required a trip out of the office to attend an event or interview a source in person. It wasn't long before I realized that I needed to eliminate the paper as a client.

It wasn't a difficult decision. First, the pay wasn’t much, yet the stories usually tooks at least several hours' to write because of in-person interviews. The real problem, though, was that the time I spent researching and writing the stories prevented me from pitching more lucrative markets (like national magazines) which would result in better-paying work. That opportunity cost was hurting me in the short- and long-term.

The end of the year is a good time to consider the opportunity cost of your regular clients. Is the amount of money you make from them worth the hassles, time, or potential loss of other, more lucrative work? Only you can determine what the opportunity cost of a particular assignment or client is--and whether that assignment or client is worth it. Ideally it always is.