The freelance life is much easier when you have an anchor client. This person will engage you to do a certain amount of work on a regular or long-term schedule for a fixed amount of money. Anchor clients can make it easier for freelancers to pay their bills. However, they do come with their own set of pitfalls.
It’s not uncommon to be expected to do more work than originally planned, or to behave differently from a employee.
When a client reserves a large percentage of your time, it is reasonable to expect a certain level of consideration. It is good business to keep your best clients happy.
Note:
You shouldn’t let maintaining good relationships stop you from acquiring new clients and working on other projects.
If you let your client forget that you are not an employee you may find yourself working full-time for part-time pay, without any benefits, paid leave, or unemployment Insurance.
When a client treats you like an employee
When it comes to freelance work, you should always do your best to please your clients, and you should also do as you have promised. However, your loyalty is ultimately to you and your business. Knowing where to draw the lines is important.
Contractors vs. employees
The IRS has specific legal guidelines to define the difference between employees and contractors. The main differences are “control and independence.” For the IRS, you are considered an employee if you have the right or control over: 1
- Your work behavior, i.e. what you do and how you behave at work.
- Business aspects of your job, i.e. how you are paid, how expenses and tools are reimbursed and who supplies them.
- Type of relationship between employee and company. Contracts or benefits are included, as well as whether work continues and if it is an important aspect of business.
The Benefits of Being an Employee
Contractor relationships can sometimes turn into employee-employer relationships to the mutual benefit of both parties. A client may realize that the freelancer would be a good fit for the new position at their company. Or, the scope of the project could grow to the point that it becomes a permanent job. If both parties are looking for a long-term relationship, this is great news.
Note:
Hiring an employee is expensive, but it can save legal headaches if the contractor already performs employee-type tasks.
There are many benefits for freelancers, such as job stability (or the illusion thereof), the right to unemployed benefits if certain terminations of employment occur, and the ability to split the cost of Social Security contributions and Medicare with an employer.
Why you should stay freelance
Why would anyone choose to remain a freelancer when they have the choice of working full-time?
1. Free
It’s the word “freelancer” that is key. For some, working as a freelancer offers greater freedom. You have to pay your self-employment taxes, chase clients for payments, and sometimes deal with gigs disappearing, but you still have a high degree of control.
Freelancing can be a good option if you need to take time off for travel or to care of a family member.
2. Easier Transitions
It may be easier to switch to a different job if you are a contractor. It’s easier to find another job than to be hired full-time.
Over time, employers and your professional goals will change. You can say goodbye to your employer and run out the contract with less stress and more ease if you remain freelance.
3. Loyalty is to yourself, not your employer
It’s also important to note that freelancing makes it clear what’s true in the current economy for workers: You need to stand up for yourself, otherwise no one else will. In the 21st Century, there is no job security. Most employees aren’t aware of this.
Freelancing may not be for everyone. If it is for you, then you may find that you are better off relying on yourself rather than an employer.
How to prevent scope creep
If you decide to be a freelancer indefinitely, you should make sure you are not acting like an employee.
You might not be treated as an employee by your employer consciously. It can happen for a variety of reasons, such as when projects grow bigger than expected or if the team is dominated by full-timers. It’s hard to believe that if you are the only freelancer present, people will forget you may not be in your office at 9 am, their local time every weekday.
There are some ways to avoid scope creep.
1. Avoid Same-Day Work On A Continuous Basis
You’ll be able to find a lot of writing and editing jobs that need a same-day turnaround. For example, you may have to edit blog posts about breaking news. It’s better to steer clear of these clients, as they will bind you to me and take away the freedom that we talked about earlier.
Note:
We recommend that you don’t take on many projects in the same day unless your salary is high enough to allow for a great deal of flexibility throughout the rest of your week or if it’s a short-term project.
If you plan to spend more than 40 hours per week at your desk, at the same time each day, then it’s better to look for full-time Telecommuting work rather than freelance work. Or go back into the office.
2. Set boundaries and stick to them
Freelancers dislike to say no. It feels like we’re turning down money every time. Setting boundaries doesn’t mean you won’t be available ever again. You have the right to balance your client list and set your own schedule as long as you follow through with what you said you would do and accommodate good clients from time to time.
It is important to take control of your time and not allow it to control you.
3. Communication
Some freelancers find it awkward to tell a client what they owe to another client. This is a big mistake. If you are open with clients about other deadlines you will come across more as a professional who wants to keep their word, rather than someone who is not dedicated to a job.
It’s not necessary to disclose the details. Don’t hesitate to speak up if a client’s request conflicts with your other duties. You can make yourself feel better by saying “not now”, rather than saying “no”. Then, move the client up the list the next time there is a conflict.
