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.

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.

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.

Once you’ve decided to establish rates for writing that compensate you fairly for your time and effort, you need to start standing up for yourself and putting your foot down.

That’s not easy. Many freelancers hold themselves back from setting better rates because they’re afraid of what people will say. But remember, fear holds us back from getting us what we want in life.

Some temporary discomfort can often bring us great benefits.

To better prepare you to command the rates you want, here are some tips on dealing with some negative circumstances you may have to face.

Let Them Know It’s Coming

You’ll need to advise current customers of the upcoming rate increase. That’s right, upcoming. People need time to adjust or time to turn around and find alternative solutions. Your respect and understanding of your clients’ needs is crucial.

All you need to do is prepare a positive-sounding notice of the upcoming rate increase. Tell clients why you value them, why this decision is good for them, and when it goes into effect.

Be straightforward, don’t justify the need and don’t focus on your gain – it’s all about the customer and how he’ll benefit from these increased rates.

Hope for the Better; Brace for the Worst

The hard part in sending out a notice of rate increase comes with dealing with uncomfortable situations that arise after your letter leaves your desk. With every forward step we take to create beneficial change, we need to be prepared to deal with difficulties that might try to knock us down.

That’s okay – these difficulties are temporary. Fleeting, even. They may not occur at all. But if they do, you need to be ready.

Even though you may never hear any, prepare for complaints, negative feedback or harsh opinions. Most people understand rate increases and your desire for better pay, but some won’t, don’t care or even get angry about it.

Being mentally ready for negative feedback helps you deal in a calm, confident and positive manner. You’ll be able to hold your ground knowing you’re making the right choice for you.

What to Expect

You might receive feedback that you don’t like, criticism of your decision, complaints about previously-perfect work or even whiny pleas for flexibility. It’s normal.

When (or if) you receive this sort of feedback, do answer it. Respond to clients who are frustrated and let them know their voice has been heard. Sometimes that’s all they need. It’s key to stay positive, not to fall into apologies and maintain your firm footing.

Don’t waffle on your decision to increase your rates. Hang on. Storms always pass.

Other customers may try to negotiate. They’ve been paying a lower rate, you want a higher one, so they immediately see the middle point and seek compromise. Haggling is perfectly fine; it’s not an insult. After all, if you never ask, you never receive, so these clients are just trying their luck.

You could prepare for this possibility by knowing whether you want to be flexible, with whom and how much. Some clients are worth losing because you’ll gain peace of mind or lower stress. Some clients are worth keeping, even though you may not receive the rate you desired.

Know ahead of time as you send each notice out who you want to be flexible with. Have your counter proposal in place. Be careful, though; flexibility sometimes gives an unspoken message that you’re always open to haggling, so if that’s not the case, say so.

It’s Not About You

People aren’t personally attacking you. They’re simply frustrated, need a place to vent, and the cause of the upset is usually the easiest target. That target could be you, but always keep in mind that it’s nothing personal.

You’re doing the right thing. You’re making a change for yourself, and the rough moments will pass. Be understanding that many people get frustrated, don’t express themselves well and can’t control their reactions. It’s no excuse, but knowing that fact helps weather the storm.

In short, even if people are upset, you don’t have to get upset too. In fact, you’ll feel a lot better if you don’t.

Many writers struggle with the decision of pay rate. What is a good pay rate for a writer? What amount is my work worth? What can I get paid for my writing? What are others getting paid? How do I compare? What rates for writing should I set?

Oy. That’s a bunch of questions and they can be stressful ones to answer, creating a situation of doubt, worry and a dip in confidence.

I say, forget that. Instead of deciding your own pay rate, let your clients decide for you. How? Using baby steps and the ‘no’ point.

Baby Steps to Grown-Up Pay

Many writers feel they have to go from zero to 100 in the blink of an eye. That’s a big step. It’s scary and intimidating. It brings up worries, doubts and fears about the biggest question of all: Will anyone pay that rate?

Who wants to worry every day?

There’s no need to go from low to high overnight. No rule says that you have to leap from a crappy rate to a substantially higher one in a moment’s decision.

It’s often far more comfortable for a writer to raise rates slowly, working upwards and taking little steps to reach the goal of a pay rate they like.

That’s right – rates aren’t written in stone. Writers don’t have to set a fix rate and stick to it stubbornly. Rates can be flexible and slide around a scale at your choice, and that can be advantageous to finding that perfect rate.

A new client doesn’t need know your rates or what the last client paid, so start raising your rates 5% or even 10% for each new client. That isn’t a big amount at all, and it isn’t a scary high leap.

Plus, it’s a low-risk strategy. You didn’t have the client before, so worst-case scenario if the client says no to your rates, you’ve lost nothing. If the client tries to negotiate, then you have a little bit of room to maneuver back to your current rates.

And if the client says yes… well, that’s great, isn’t it?

It’s going to take some time to raise your rates using this method, so be ready to be patient and stick with it for a few months. The experience can be quite fulfilling.

The ‘No’ Point

The beautiful thing about raising your rates with each new client is that you can find the ‘no’ point, the point where more clients say no to working with you than clients who say yes.

Typically, as you raise rates slowly, most clients will say yes. Then the scales will start to balance, and you’ll have an even number of ayes and nays. Creep upwards more, and the scales start to tip to the side of no.

That’s okay. Don’t stop. Getting turned down more often than not is perfectly fine – after all, you’re being paid more for your work anyways, and you’re banking up repeat clients. You’ll have less new clients but a better customer base.

When you realize that the scales have definitely gone past the point of 75% of new clients saying no, then you’ve reached the ‘no’ point, that point where you may not be able to charge higher for your work and still attract new clients.

Slide back a bit to a ‘yes’ point that brought in enough new work at a good rate. Now look back. See the difference in what you used to be paid and what you’re paid now?

Sometimes, that difference is substantial. Good luck!

Have you raised your rates slowly in this way? How much were you able to gain, just by taking baby steps? Share your stories!

by James Chartrand

This is the third post in a series on increasing your rates and getting more money writing for a living. We’ve already discussed when you shouldn’t ask for a raise and how to find the confidence to ask for a raise. Today’s post covers figuring out what you should be paid for your work in the first place.

Feel free to ask your questions in the comment section, and we may cover the answer in an upcoming post.

The pay rate of writers is a hot topic. With the wide range of pay rates for various types of writing, no one can really figure out what they should be charging or what they should be paid for their words.

Sure, we can all cry for industry standards and level out the playing field so that both clients and writers know what the going rate should be. It’s not going to happen anytime soon, unfortunately.

There are way too many factors involve in different types of writing for people to set a standard rate. Both print and web content pay rates vary according to readership, subscription numbers, types of articles, the amount of research… the list goes on.

Toss in local economic factors and the jumble gets even messier. Live in California? Pay needs to be pretty good just to get by. Live in Siberia? Well, things are a little different over there.

We can look at going rates around the net to try and figure the problem out, but that’s not much help either. An article that pays $500 here might only bring $5 over there. Which is the right price? Both, really.

The only way to figure out what you should get paid for your work is to sit down and start thinking.

• What’s the typical minimum wage where you live? If it’s $8 an hour, then you certainly don’t want to be writing for less than that amount. Know your “no go” pay point and start from there.
• How fast can you work? If you can produce two pieces per hour, that helps you determine what kind of money you might make in a day.
• How many distractions do you have? You may be a fast writer, but if you can only work a couple of hours in a whole day, then you need higher pay to make ends meet.
• What are your personal expenses? Knowing what you have to pay each month for bills, rent, mortgages, utilities and credit cards helps you know what you need to bring in.
• What are other people paid? Visit sites like Payscale.com, writing associations or other credible sources to see what they suggest as going rates.
• What are other people really paid? Sites that suggest pay rates are great, but they’re often posting what people should be paid and not what they actually receive.
• What are your overhead costs? The answer, “Nothing,” is false. Writers have to pay for internet connections, PayPal fees, bank fees, daycare costs, insurance, and all sorts of things.
• What do you pay in taxes? So many people think about what goes in their pocket but forget what they’ll have to pay out in taxes. Factor tax payment projections into your rates and stay covered.
• What will you be left with? Decide what you’d like to be paid per hour (not per piece). Subtract all overhead costs and taxes. If you’re left with a dollar or two, your rates are too low.

Why did I mention that you shouldn’t base your rates per piece? People get a little stupid when money is involved. They believe $50 for 500 words sounds great, but then they forget that the level of quality may take them longer to write. It could be more advantageous to take a gig for two articles at $15 instead.

So let’s say you’ve figured out that you need at least $400 a week to make ends meet. You’ve decided that you can only work 20 hours peacefully each week. So you need a minimum of $20 an hour to reach your $400 goal.

You’ve also figured out that you can write 350 words in a half hour. Now you can tell your client that you want $30 per piece.

Do the math. You’ve not only met your monthly monetary goal in the number of hours you’ve chosen to work, but you’ve also made a $10 profit on each hour you work. That’s an extra $200 you can set aside every week.

Lean weeks? No work? Getting desperate? That’s okay. You know that you can drop down to $10 per piece and still meet your goals.

Now that’s smart business.

Do you have suggestions to add? Any tips to share with new writers? Share how you figured out the rate you wanted to be paid when you began writing in our comment section.

by James Chartrand
This is the second post in a series on increasing your rates and getting more money writing for a living. Feel free to ask your questions in the comment section, and we may cover the answer in an upcoming post.

Last week we discussed circumstances
when you shouldn’t ask for a raise, but there are definitely times when you should seek out that pay hike to better compensate yourself for a job well done.

The problem is that many people feel very uncomfortable discussing the subject of pay increases and money with their clients. Most writers don’t enjoy the game of negotiations, and they end up never asking for anything at all. They get stuck in a rut and stay there for a long, long time.

Why, though? What makes people stop themselves for asking for more money, especially when the situation proves a pay hike is deserved?

Fear: The Ultimate Killer

From childhood on up until the day we pass on, fears rule our lives. We learn to avoid unpleasant situations. Events shape how we perceive the world. We develop all sorts of inner whisperings that control how we behave and act.

Fears take on many forms: fear of embarrassment, fear of change, fear of condescension, fear that we just don’t deserve something. We talk ourselves out of all kinds of good things because we’re damned scared of what someone else might say, think or do.

Fears hold us back from what we want. Fears keep us from having a better life.

The Steps to Finding Confidence

If you never ask for anything, you’ll never receive anything. Writers need to learn how to ask for what they want, and it all comes down to having the confidence to pose the right questions.

Finding the confidence to ask for what we want when we’re scared isn’t so hard. All that needs to be done is examine the potential consequences and sifting reality from our negative perceptions.

Consider the outcomes of asking for a raise. What are all the possibilities? What would a client potentially answer to the request? Try to figure out all the results ahead of time. List them out.

Include as well what you think your possible reaction might be to each outcome. If you write that a client might say yes, how would you feel? If you wrote he might say no, what would you feel – and what would you do in that case?

Determine all the possible scenarios and be honest about your potential reactions.

Also examine whether these scenarios are realistic – would a client truly laugh or fire off a long letter criticizing you? Probably not. Would a client really fire you for asking for a raise? It’s unlikely.

Think about why you fear these negative outcomes. How do you feel you might handle them? Why do these fears show up? Are they realistic fears? Are they holding you back? Are there other ways that you might handle the situation?

Here’s an example:

Let’s say that you fear you’ll lose your job because you asked for a pay increase. You fear this because you’re worried about getting other clients. You’re mostly worried about financial security. You fear not having enough income because when you were younger, your family was poor.

Are you poor now? Would you truly fall back into poverty because a client fired you? Would the client realistically fire you? Could you potentially get other clients? If so, how would you go about finding new work? Would losing this client actually be beneficial?

With a clear game plan in mind that covers all potential outcomes, your possible reactions and solutions or an action plan, you’re much better prepared to face your fear, realize it isn’t worth worrying over and dealing with the situation.

You’ll be ready to ask for that raise, know what might happen and what to do if it does. Suddenly those fears you had don’t seem so scary after all, right? You can handle this. Your game plan is right there in front of you.

And if you get a yes from your client and your pay rate does increase? You’ll be able to realize that good things do come from asking after all, and gain a little more confidence to ask for other things in life.

Soon enough, you’ll be going after what you want – and getting it.

Do you have other tricks for finding confidence? Have you ever faced a fear and had surprising results that helped change your mindset? Share them with us – you might help someone else through a tough decision.

by James Chartrand

This is the first post in a series on increasing your rates and how to get more money writing for a living. Feel free to ask your questions in the comment section, and we may cover the answer in an upcoming post.

We all want more in life. More freedom, more fun, more money… It’s perfectly fine to want these advancements and a better life, and it’s perfectly acceptable to ask for these “mores” from others.

We could ask a partner for help to lessen our workload. We could find a friend and ask if that person wants to join some activity. We could ask clients for a wage increase on the work we do. Nothing ventured, nothing gained, after all.

But I believe there are times when you shouldn’t ask for more – especially when it comes to money.

Accepting a pay rate for any gig creates a standard of expectation for value delivered. If you provide a particular level of quality and a certain set of services for a determined dollar amount, then that’s it. That’s what you do, and that’s what you deliver, and that’s what you get paid for it. You agreed to it, after all.

Let’s say that in a year’s time, you’re still doing the exact same thing for the exact same pay rate. Should you ask for a raise? I don’t think so.

Remember the movie Flatliners from 1990? I do. The green line on the medical monitor’s screen was completely flat, the hum a dull monotone. The group of med students stood there watching nothing happen.

That’s the case with pay raises: They flatline. Unless something happens to change the situation, unless someone grabs initiative and puts life into the issue, the green line drones on without a blip.

A pay raise has to be justified. When there are no changes in the gig, the working conditions or the outside factors, no valid reason justifies asking for more money for your work. Even reliable loyalty and on-time delivery don’t provide enough justification – being reliable and delivering on time was part of the original contract that you agreed to.

So when can you request a pay raise? Here are some situations when increased wages are completely justified:

• Your tasks and duties related to the job have increased while your pay rate has remained stable
• You have increased your skills or improved your service and these changes have affected the results you deliver
• You have begun providing extra value on a consistent basis and the client would like you to continue doing so
• The market value of the product or service you provide has increased and your rates aren’t in keeping with that standard
• Demand for your services has increased and you need to cut back on the number of clients you currently have
• Economical factors outside your control (such as cost of living) require that you adjust your rates to be able to make ends meet
• Your writing has increased the customer base or sales of your client and you have measurable results to back up that claim

Simply showing up for the job, being a loyal worker and doing the writing you’re supposed to do doesn’t qualify you for a rate increase. If you’re going to ask for more money, make sure you have good reason to ask for it and proof that you deserve it.

And if you do deserve that pay increase? Stay tuned. Over the next few weeks, we’ll cover how to ask for a raise, the best way to announce a rate increase and what to do when your client won’t give you more money for your work.