Business Tips for Writers| Part of the Freelance Writing Jobs Network » Money Matters

Do You Have Perfect Pitch?

Bob Younce — Fri, 26 Feb 2010 23:00:34 +0000

While folks come into the freelance writing world through several different paths, the fact of the matter is that they often enter by either working for someone else, or through a relatively low-paying gig with a bigger firm. Yes, there are writing majors who jump into writing for print right out of college, but there are a lot more work-at-home moms who start with Demand Studios or someone similar.

Eventually, though, you get to the place where you want to earn more. To do that, you have to convince clients that your writing is worth more than what you’re currently getting paid. That means finding new clients and pitching.

The type of pitch will depend on the kind of writing you do. If you do web copy, your pitch is going to be very different from folks who want to do paid blogging. Still, there are some common characteristics of a good pitch:

Make it quick

You’ve probably heard about the “elevator pitch.” The concept is that you sell your service in the time it would take to ride the elevator. While chances are you need a little more time than that, you still want to keep your pitch short and right to the point.

Demonstrate, don’t hypothesize

If you believe your copywriting skills can improve a client’s business, say so. Use concrete examples. Show them how your writing has helped other clients. Use real numbers whenever possible.

Know your audience

Maybe you’ve been doing a lot of real estate writing lately, and you’ve set up appointments with a number of real estate agents in your area. When you get to those appointments, you don’t want to start talking about how you helped a client increase their ebook sales. You need to be relevant and interesting to your potential client.

Believe in the product

As anyone who’s ever done sales can tell you, believing in your product is usually a prerequisite to success. Your writing is a valuable commodity. Know that, if your pitch is successful, both you and your client win. You get a paycheck, and the client gets something to boost their business.

How to Spend Your Tax Refund

Bob Younce — Mon, 08 Feb 2010 11:28:32 +0000

Now, let me start out by saying this: if your freelance writing business is making enough money, there’s a good chance you may not be getting too much back in your tax refund this year. In fact, freelance writing businesses that are really shakin’ are going to instead have to pay in taxes – not just right now, but once a quarter. We’ll get into that at a later date.

The reality is, though, that many freelance writers, especially those with children, find themselves in a bit of a “sweet spot” when it comes to taxes. They can expect a decent tax refund for one of two reasons:

1. They made enough money to fall into the “Earned Income Tax Credit” range, and/or

2. They have a spouse who makes regular payroll tax payments.

I’m Goin’ to Disneyland

One of the natural instincts people have when they come into a chunk of money is to treat themselves. You might decide to set your tax money aside for a family vacation during the summer, or a spring break cruise.

When I was growing up, I could always tell it was tax time because my dad would start a new home improvement project. Kitchen remodeling, a new carpet or a new vanity in the bathroom were all tangible outcomes of the tax refund.

You’re a Small Business Owner Now

As a freelance writer, you need to get into a different mode, now, however. You don’t get a weekly paycheck, which means you don’t pay taxes every week. You can’t guarantee your income, at least not as well as someone who’s under an employment contract somewhere else.

What all that means is you have to approach certain things differently. For you, a tax refund needs to be turned into an investment. You need to put it back into your business.

How to Spend Your Tax Refund

That can mean several things, but in my experience the places most in need of a cash infusion in a small freelance writing business are marketing and cash flow.

Marketing, of course, is how you promote your freelance writing business. It could encompass anything from business cards to hiring a blog designer to putting your business name into the yellow pages. How you spend your marketing dollar is up to you, of course, but just about any marketing efforts you make will have a monetary payoff.

Cash flow is another area freelance writing businesses need help with. You need to be able to pay yourself every month, no matter whether you’re in a feast or famine cycle. I am most comfortable with a savings that is equivalent to about six months of my business’ income (although my reserves are often far less than that). A sizable tax refund is a great way to help build that reserve.

So, what about you? Will you get a tax refund this year? If so, where will you spend it?

What to Do if You Get Audited

Bob Younce — Thu, 21 Jan 2010 18:00:02 +0000

We’ve been talking about IRS tax audits and your freelance writing business for the past few posts. While there isn’t much you can do to prevent an audit, once an audit starts there are some things you can do to be sure it goes your way.

Here are some of the most effective tips to follow when your freelance writing business gets audited:

Get Organized

From the moment you’re notified that you’re being audited, you need to start pulling your stuff together. Create a filing system that you understand (if you don’t already have one) and get every piece of paper where it needs to be. You want to be able to provide any requested item at a moment’s notice.

Provide Required Documentation

The IRS auditor is going to ask you for documentation to support specific deductions. Make sure to give them the documents to support it, but only the relevant documents. Don’t give them any more or less than what they’re asking for.

Answer Honestly and Succinctly

Just like you don’t want to give the auditor documents she hasn’t asked for, the same goes for answering questions. Answer his question directly. If he needs more information, he’ll ask for it.

Maintain Control of your Documents

If you have only one copy of a document, don’t hand it to the auditor. Don’t leave original documents with the IRS. It isn’t that the agent is likely to purposefully lose or damage them, but it can and does happen.

Accordingly, you should ask for a copy of any document the auditor shows you or asks you to sign. You don’t need to feel obligated to sign anything immediately, either. You can always ask for more time to review it.

Don’t Make Small Talk

The IRS agent isn’t your friend, a client or a colleague. Her job is to figure out if you’re a liar. That doesn’t mean you should be unprofessional, by any means. It just means you should avoid saying anything that isn’t a direct response to a question. Even a small comment can give them ammunition.

Be Calm

This is probably the hardest thing to do when you’re audited. Keep your cool. Don’t argue, and don’t be belligerent. If you disagree with the auditor’s findings, you can deal with that later.

Consider an Attorney

While most freelance writing business audits are probably pretty straightforward, some aren’t. If your business structure tends to be complex or if you have large or obscure deductions, consider hiring a tax attorney.

When Your Freelance Writing Business Gets Audited – What to Expect

Bob Younce — Sun, 10 Jan 2010 03:41:43 +0000

Last time, we talked about some of the types of tax audits your freelance writing business could face. Today, I want to cover some of the things that you can

expect at your tax audit, so that you can become mentally prepared for when it happens. Next time, we’ll cover some specific tactics for handling your audit.

Here’s what you can count on at your audit:

There will be stress.

Audits are time consuming and they’re stressful. It feels like you vs. them, only they get to make the rules. You’re going to get asked about events that happened years ago, about things you probably don’t even remember. There will be scary document requests and there will be accusations, if not directly at least by implication.

The Auditor will do her job.

Your auditor’s job is to verify that the numbers you claim on your tax returns are accurate. She’s going to dig, and she’s going to dig deep. She’s going to ask for receipts and to look at your books. She is going to demand proof, and she’s going to want to know how you did each and every calculation. Her job isn’t to provide proof, by the way: her job is to make you do it.

You’re going to lose some records.

It’s nearly inevitable. Whether you’ve moved, had a major life change like a divorce or even just had a major computer failure there are some bits of data that probably don’t exist. The good news is that many of these records can be duplicated and proven by secondary means.

You might disagree with the auditor’s findings.

It’s not unheard of for an IRS agent to get it wrong, at least in the eyes of the taxpayer. The good news is that you have some recourse. After you’ve been through the entire audit process, recognize that it’s not over. You might have lost the first round, but you have outher ways of getting what you want. You just have to follow the right procedures – which we’ll cover in a later post.

When Your Freelance Writing Business Gets Audited

Bob Younce — Sat, 02 Jan 2010 20:18:14 +0000

Freelance writing businesses are as susceptible as any small business to an audit. The very thought of the IRS honing its sights in on you is enough to make even the toughest among us break out in a cold sweat. The IRS tends to see small business owners as guilty until proven innocent, and it can really cause untold amounts of stress.

Over the next few posts, I want to explore the idea of a tax audit for your freelance business. We’ll talk about the types of audits today, and we’ll go from there into looking at what you can expect when you do get audited and what you can do to prepare for an audit later on.

There are a few basic types of audits you might find yourself facing in your freelance writing business:

A Correspondence Audit

This kind of audit is one in which the IRS asks you to provide documentation for a specific item on your tax return by a specific date. This is relatively routine for certain types of items. With this one, you simply provide the documentation and go on about your business.

Office Audit

This is the next step up. The IRS will ask you to come to the closest IRS audit in order to provide documentation on one or more items. You might be able to send the documentation, but make sure they get it and that the IRS cancels the appointment before you just don’t show up.

Field Audit

This is the kind of audit we have nightmares about. The IRS will ask you for documents related to many different items on your tax return. Your records will be thoroughly reviewed.

Taxpayer Compliance Measurement Program Audit

This is an audit that requires you to document everything. These audits happen randomly, and don’t really have anything to do with how well you prepared your return. They’re used primarily for research and statistical purposes.

Criminal Investigation Audit

If the IRS thinks you’ve lied on your tax return, they’ll conduct a criminal investigation. If they think you’re guilty and can prove it, you can face fines or even jail. If you find yourself in this situation, get an attorney. Fast.

A Rate You Can Live With

Bob Younce — Sun, 27 Dec 2009 03:36:15 +0000

I’m going to go out on a limb here and guess that most of you don’t get paid a dollar a word. Now, I know there’s some long-form sales page writer that’s going to object and claim they get that kind of a rate, and I’m sure they do – on occasion.

I’ve never come close to that kind of a rate. My best-paying gig was a rush job on some product descriptions for a catalog. I hit about 60 cents a word on that one. I did something like a hundred product descriptions in an afternoon, and that gig carried me through an otherwise unimpressive month, in terms of revenue.

I’ve also worked for much less. I’ve done work for less than the going rate over at Demand Studios. It’s been a long time since I’ve worked for a rate like that, but I’ve done it.

Why am I telling you this? Well, with so much talk about freelance writing rates, I think this needs to be said:

The best rate you can get is one you can live with.

My good friend who writes video game reviews for store credit has a full-time job that pays the bills. He just likes getting free games, so he’ll spend four or five hours writing a review that gives him $20 in store credit. If he was trying to earn his keep that way, it’d be an “epic fail” (to use his parlance). But he can live with it.

Another good friend who’s just starting out with freelance writing earns his $15 for 500 words over at Demand Studios. He’s putting out about one article an hour, which is still more than he would make in our rural area where there just aren’t any good jobs – even after taxes and expenses.

I realize I’m sidestepping the whole “low rates pull down the market” argument. I’ll save that for another time.

I just wanted to remind folks working for low rates that it’s all right, and that you don’t have to feel ashamed, and that if it pays the bills it’s worth it. I also wanted to remind the experienced, jaded freelancers, like myself, that people have to earn a living, and to be thankful for the rates we’re now able to command.

Give yourself, and others, a break.

Year-End Tax Tips for Freelance Writing Businesses

Bob Younce — Sun, 20 Dec 2009 02:03:07 +0000

Like other small businesses, the end of the calendar year is an important milestone for a freelance writing business. A part of your overall business strategy should be to maximize your bookkeeping efforts during these final days of December. Making just a few small changes or adjustments can save you hundreds of dollars next April.

Here are a handful of ways to maximize your freelance business bookkeeping before the new year:

1. Bring your books current.

You need to know where your business stands. If you’ve been a good little businessperson, you’ve kept at least monthly books. If not, you’ve got some serious paperwork to do in the next few days. Also, if you use an accountant, try to get in to see him for a little while before year’s end.

2. Defer your income.

If you can receive payments during the first week of January instead of the last week in December, you can hold of paying taxes on them until next year. Of course, your deferral strategy depends greatly both on your profit or loss for the year, as well as the legal structure of your freelance writing business.

3. Make purchases, if possible.

Anything your business is going to need in the immediate future shoudl be bought now, if possible. Whether it’s a new computer or even just stationary, get it now. Consider pre-purchasing several months of your web hosting now, if you can do it. The same holds true for any bills that are due in the new year. If you can pay your cell phone for January now, do it.

4. Identify write-offs.

This depends on your accounting methods, but you may be able to write off items or equipment that have become obsolete. For most freelance writing businesses, this would include things like computers or office equipment.

5. Make contributions to your retirement plan.

If you have a Roth IRA (and you should) or a 401(k) of some sort, consider making a contribution. Realize that October is the deadline for traditional IRAs, so you’re too late if that’s the type of account you have.

Not all of these tips apply to every freelance writing business, but they should cover a large majority of folks.

Where Do You Spend Your Marketing Dollar?

Bob Younce — Tue, 20 Oct 2009 11:00:14 +0000

What you’ve heard is true: you have to spend money to make money. Yes, you can get your freelance writing business started without really putting up much cash. You can do like I did, and start writing for a friend, or you can hire on to one of the larger content creation shops like Demand Studios. Both are viable, free ways to get into the freelance writing business.

However, if you want to grow your business and move into new and different types of opportunities, you need to spend some cash. Specifically, you need to spend some money on marketing. But, where do you spend it so as to get the most bang for your buck?

Here area few places you can drop some coin that will, ultimately, increase your freelance writing business income:

1. Get some business cards. I won’t go into all the merits here (click the link if you need convincing) but I will say that a business card with a quality design can bring you both attention and new business.

2. Put up a website. A website gives you a way to display your writing portfolio online, and you can direct folks to it via social media, your email tagline or even your business card. You can get web hosting for a few bucks a month. You can put up a blog on your site if you want to try to create attention or if you’re trying to break into the blog writing market, too.

3. Hire a professional designer for your website. You might have a good eye for design, but your website will look amateurish unless you hire a real professional. If you can’t afford a designer yet, do the best you can, but this should be a priority.

4. Join a freelance marketplace. Elance and Guru both come to mind. Both offer very limited “free” memberships, but putting a little bit of money into an actual membership can really pay off.

5. Educate yourself. I’ve been talking a lot about Seth Godin and Zig Ziglar lately, I know. Don’t worry, I go through phases with these sorts of things. The point is, learn what you can from marketing and sales experts, as well as from other freelance experts.

Getting Paid for your Freelance Writing

Bob Younce — Tue, 22 Sep 2009 07:00:44 +0000

I think we can all agree that we’re not in the freelance writing business for purely noble purposes. The fact of the matter is you want to make money with your writing. In fact, you should make money with your writing. It’s what puts food on the table, clothes on your back and a roof over your head.

One of the essential parts to being successful in a freelance writing business (or any small business) is getting paid. With most of your clients, that’s not a problem. The vast majority of clients I’ve worked with pay, and they pay fast.

Still, it happens. Sometimes, you don’t get paid. A client goes under, or just disappears. You’re stuck, sometimes with days or weeks worth of work completed, with no dough to show for it.

So, how do you get your clients to fork over the cash? Here are a few tips that should increase your successful collection rates:

Understand that not all clients are created equal. You need to focus on high-risk clients in your payment and collection processes.
Use a contract. If you don’t have a standard freelance writing contract, you should. The contract will set your terms for payment, and is your best legal recourse if the client should refuse to pay.
Recognize that small businesses sometimes just fail. Less than half of all small businesses make it to five years. Less than a third make it to ten years.
If you’re doing a sizable project, consider getting a business credit report. The Dunn & Bradstreet report is pretty standard, and will run you around $60 for the basic report. If the client doesn’t have a business credit report (pretty common for small businesses) ask for upfront payment.
Consider offering a discount for upfront payment.
Use an escrow service for high-risk clients who aren’t willing to pay up front.
Watch out for signs of trouble. If you can’t get ahold of a client during a project, flags should go up. Radio silence often indicates business trouble. (On the other hand, it could just mean your client has gone camping for the weekend without her cell phone. Don’t make too many assumptions here.)
Create a watch list for clients that pay slow. Take quicker action with them. Call them within a couple days of invoicing.
Follow the law. The Fair Debt Collection Practices Act sets limits on what you can do in the process of trying to collect money owed to you. Find out what those rules are and follow them.
Consider a collection agency. If you’re frequently hitting the no-pay wall, hire someone to handle these accounts for you.

Are You Scared of Spending Money?

James Chartrand — Thu, 02 Apr 2009 15:50:50 +0000

Do you hang onto your money? That can be good – and bad, especially for your freelance writing success.

The saying goes that you have to spend a dollar to make a dollar. That’s doubly true when it comes to business, and your business is freelance writing. Basically, if you want to do better than you are now, you need to let go a little of what you have.

You don’t have to spend a fortune to reach success. But you shouldn’t limit your potential success and returns because you don’t want to part with your dollars. It’s a beginner’s mistake, and one you can correct immediately.

Spending money to make more is an oft-ignored strategy to reach better success. Some people don’t see the value. Some freelance writers aren’t making much money as it is. Some are struggling to stay afloat. Parting with even $25 might hurt.

These people put their heads down. They keep a close eye on their money. They forget to look up at the future – their future.

What if spending just $25 now brought back $100 in a month? What if it brought $100 the next month and the month after that? Wouldn’t that be a worthwhile expense? Wouldn’t that be good enough reason to let go a little?

A small, one-time investment can make a big difference in your success. A good expense can help you earn more money. Work less. Increase your client base. Boost sales. Improve Traffic. Investing in you can help you be more successful – even if you’re doing okay as is.

That’s another common mistake freelancers make. They’re doing just fine, supporting their families, so they don’t feel the need to invest at all. Why bother spending if the work and the money is coming in?

You should bother because you could bring in more money, often for the same amount of work, time or effort – and sometimes even for less.

Think about how you’d feel if you could earn twice the money you’re making now. Wouldn’t that be nice?

Don’t be stupid about spending, though. The brand-new whatever that just launched may be tempting. Everyone’s excited to buy. You might be too, but don’t hop on the bandwagon. Think carefully first.

Analyze what you’ll get from spending. Think about the potential returns for what you want to accomplish. Determine your goals, and weigh the options that will help you get there. Look at the cost and potential return.

For example, learning about Adwords may help your direct sales, but advertising may help you earn more clients. An ebook might seem low-cost, but if it isn’t going to pay for itself, it’s a poor investment. Likewise, a $397 course might seem expensive, but if it helps you earn $500 a month for a full year, then it’s a great investment.

$500 a month for a year. I’ll take that. Would you?

Don’t lose out on a better life. Learn how to make more money doing what you love (even while working less) so you can get more from your career. Check out The Unlimited Freelancer today.