Careers: Is Free-Lancing for You? (From The Wall Street Journal)

"If you feel like you've hit a dead end with you employer and aren't having any luck finding a telecommuting friendly new job, one of the quickest remedies is to strike out on your own as a free-lancer.

In their new book 'The Work from Home Handbook: Flex Your Time,' due out next month, attorneys Diana Fitzpatrick and Stephen Fishman cover the nuts and bolts of becoming a free-lance at-home worker.

First, the authors say, evaluate whether free-lancing is for you. While free-lancing can be a wonderful opportunity to earn a living from your home and enjoy the freedom that comes with choosing only projects that you find appealing or financially worthwhile, the lifestyle is not for everyone. It means losing many of the comforts of being someone else's employee, such as regular paychecks, paid vacations, and health insurance benefits. Even long-time, successful free-lancers can't say for sure how much they'll earn in any given month. You'll also give up the peace of mind and promotion potential that comes with a steady job at a stable employer.

Then, if you've already made that decision but are having trouble identifying the type of work that a company or a client would be interested in outsourcing to you, consider projects that are labor-intensive or that require specialized knowledge. Common types of free-lance assignments include architectural drafting, bookkeeping, preparing public relations materials, proofreading, writing and editing, illustrating, researching, even assisting with international agreements."

"But scoring quality assignments is only half the battle. You'll also need to set appropriate free-lance rates sothat you earn a fair profit after paying all of your business expenses. Negotiating a good hourly rate is the safest bet, because you won't bear the risk that the project will take longer than expected. By contrast, fixed-fee arrangements can prove lucrative if you're an unusually speedy worker as well as reassure the company that hires you that your services can be written into a predictable budget.

No matter how you charge, Fitzpatrick and Fishman caution, be careful not to undersell yourself. Remember, the hours you spend on a project don't represent your whole investment in it -- you still have to pay your business expenses, cover your own benefits and factor in the unpaid time spent on billing, marketing, and bookkeeping. (You should figure that 25% to 35% of your working hours will be spent on nonbillable tasks.)

Finally, whenever you take on a free-lance assignment, be sure to get the terms in writing. Discussing and drafting a written agreement will avoid misunderstandings and differing recollections regarding issues like project scope and pay. A basic letter agreement should include a detailed description of the project or services you'll perform, a deadline for completing your assignment, the schedule of hours you'll work each week (if applicable), the hourly rate or fixed fee you will charge, and how and when you will be paid."

Source: Loeb, Marshall. "Careers: Is Free-Lancing for You?" The Wall Street Journal 11 Mar. 2008, Online edition