Best practices for freelancers
In 2018 I successfully pivoted from working in tech to landing my own clients as a freelance product marketing consultant. In my first year of freelancing, I earned $192,000 with more freedom and flexibility than ever.
I’ve since formed an agency and I get asked often about my journey. Sharing my knowledge one-on-one over coffee doesn’t scale, so I’m sharing all the tools and tactics that helped me here.
I update this resource periodically (most recently on June 4, 2022) so if you have a question, ask it below in the comments and I’ll do my best to update this post.
In this freelancer guide:
Interviews
Build a savings to increase negotiating power and peace of mind
Know your worth and stick to it
Position yourself and your skills to attract the right clients
Convert prospects into clients
Be smart about proposals and contracts
Learn to say “no” and say it often
Ask for help but give more than you take
Use modern tools to improve your productivity
Manage your time & energy wisely
Get good gear & dress the part
Read helpful books
Connect with your people
Find your purpose
File an LLC
Don’t overcommit — 30 billable hours is likely your max
Interviews
6 Figure Freelancer Interview with Raechel Lambert
Hear from Raechel Lambert (that’s me!), who in her first 12 months of freelancing as a product marketer billed $192,000 while working 30 hours/week!
Highlights from the interview:
Why if you aren’t getting a ‘NO’ you’re leaving money on the table
Scripts to help you have a backbone when a client asks to change or add to scope
Hack for LinkedIn to flip job offers and recruiting conversations into freelance work
How my success allows me to do things like get amazing tickets to world-renowned concerts for $10 and treat my family to an unforgettable jazz experience
Learn from a dozen more 6 Figure Freelancer video interviews: Access the series
Podcast Episode: How to make 6-figures as a freelance product marketer
The economy's in the toilet. Layoffs are happening left and right. It's probably a smart idea for Product Marketers to diversify their income. So in this episode, Raechel Lambert joined us to explore all things freelancing. After personally figuring out what works and what doesn't as a PMM freelancer, she built a business helping other folks explore and take advantage of the opportunity. It's called Olivine Marketing, and it's a full-service agency for Product Marketing, Branding & Websites, and Sales Enablement. We talk about the opportunities and risks of freelancing for companies in different stages of growth, market rates for PMM freelancers, how to get your first clients, and a lot more.
Hosted by Andy McCotter-Bicknell who runs the Healthy Competition Community
Podcast Episode: On running a product marketing agency — Product Marketing Life
As the co-founder of Olivine, I was a guest on Product Marketing Life Podcast, hosted by Mark Assini where we discuss how product marketing changes across company stages and industries, as well as what it's like running a product marketing-focused agency, and how that differs from running product marketing in-house.
🎧 Listen on: Apple | Google | Spotify
Episode Highlights:
02:30 Raechel Lambert’s career started in finance and later transitioned into product marketing
11:44 When Raechel realized product marketing was going to be a hot area of marketing
23:21 How product marketing changes across company stages and industries
01 Build a savings to increase your negotiating power and peace of mind
Having money saved will go a long way towards being a successful freelancer. Having 6 months of expense runway in your bank will give you negotiating power and peace of mind. My personal blog, Small Space, Big Taste (I’m slowly migrating the content to this website), covers tips on smart spending/saving as well as simple recipes and small space living tips. Here are some of the most popular personal finance posts:
Look ahead: What are your goals and how to start now
A goal without a plan is just a dream. This post will help you articulate what your financial goals are and devise a plan (downloadable spreadsheet included!) to achieve them.
Stick to your budget with the electronic envelope method
Everyone knows we should be spending below our means, but in a world of digital payments, simple spending too often becomes overspending.
02 Know your worth and stick to it
This rate sheet is crowdsourced by Freelancing Females.
Check real salaries on the H1B website.
Pretty much only managers and finance people know about this: People working in the US on H1B visas have their company, job title, and office location published on the H1B website. It’s an incredibly accurate way to gage market rates for similar companies and roles.
$100,000 annual = $100/billable hour as a freelancer
A good guideline for determining your hourly consulting rate is to start with what your annual salary would be, then simply remove three digits to make it an hourly rate. This generally accounts for taxes and benefits that are not included in freelance work along with the risk you are incurring for having short term work that is easier to fire than a W2.
Hope for “No”
When it comes to your rate, if you aren’t getting a “no”, you’re leaving money on the table. Don’t fear no, instead see it as a normal part of the negotiation process.
03 Position yourself to attract the right clients
Arielle Shnaidman, personal brand, and messaging coach says it best:
There are over 60 million freelancers in the US alone, and that number is growing every year. Differentiating yourself is more important than ever. Not only does it allow you to charge higher rates for your expertise, but it helps you get found and booked out.
To do that, you need to focus on building your brand, clarifying your message, and carving out your niche. A good first step is having a strong positioning statement:
What you do (what you specialize in)
Who you do it for (i.e. startups, non-profits, travel publications, etc.)
The value you provide (the "so what" - what they walk away with)
Be as specific as possible and don't be afraid of "pigeonholing" yourself. Pick a niche and own it. That way, when the right potential clients come across you, they'll feel like you are exactly what they need and will happily pay your rates.
If you want brand-building expertise in your inbox, sign up for Arielle’s emails.
04 Convert prospects into clients
A clean, clear website showcasing what you do and who you do it for.
Consistently collect testimonials and use them on your website and social media.
Inbound LinkedIn messages:
I’ve had great success in responding to inbound messages from people asking me to consider a full-time role. I usually respond: “While I’m not actively looking for full-time work right now, I’m always open to learning about new opportunities, especially from X.”
Once you get on a call, sell them on your philosophy and ask if they’d be open to contract work. I find many people are more willing to do a creative arrangement once they’ve met you.
A simple plain text email to your network letting them know you’re open for business.
Be clear about what you do and who you do it for. Ask for two introductions and be very specific in your ask. People want to help you, but you need to tell them how and make it seamless.
05 Be smart about proposals & contracts
Never do this
Never start working without a signed contract. Just don’t.
If they are “under a deadline” and have to start right away without a contract—still don’t. Managing timelines and dependencies is the business’s responsibility, not yours.
Always do this
Make sure payment terms are in your contract and follow up with the accountant right away if you don’t receive payment on time.
Net 15: payment in 15 days from invoice receipt.
Net 30: payment in 30 days from invoice receipt.
Send the invoice on the first of the month the first month you start working to move up your cash flow timetable.
Unless there’s a breach of contract, 30-60 days notice of ending the contract early is reasonable.
Try to do this
Short (3 months) contracts are great when you first start out because you can update your rate on new contracts as you discover your market rate.
Retainers based on estimated hours are usually better than hourly:
Retainers are more predictable for you and your client.
You spend less time on tracking and reporting hours.
But you have to thoroughly define the scope upfront in the contract.
Inexperienced freelancers get tripped up on retainers because they don’t define scope upfront and then stick to it.
06 Learn to say “no” and say it often
If your client is asking for too much or work that was not agreed upfront, you just need to respond with:
“Unfortunately, that’s not in scope, would you like to revisit our agreement?”
“We’re coming up against my estimated hours, which task should be prioritized?”
07 Ask for help but give more than you take
We all need help and most people genuinely enjoy helping others. But lately, I’ve been feeling taken advantage of rather than feeling awesome about helping out a fellow human.
About five times a week someone reaches out to me looking for advice or help. When I was younger and less experienced, I was flattered. Now I’m busy. I want to help, I really do, but nowadays when I say “yes” to someone, that means I’m saying “no” to someone or something else. Asking for help is inherently one-sided, but there are some things that people do that inspire me to do more or less for them. Here are common courtesy things you can do to get the help you need without being a burden:
Don’t ask to “pick their brain”
When someone asks to pick my brain, it feels very invasive. It also feels like a chore where I just make my years of experience and knowledge available to someone with no parameters on what it might be about. Instead, do your research about the person you’re seeking advice from. Read everything they’ve already written on the matter (such as this freelancer guide). Then let them know upfront what specifically you’d like to learn more about and make sure it’s not something that you could find on your own. I’ve been to many coffee meetings that were basically “let me Google that for you”.
Make it convenient for them
If you want someone’s help, suggest a few times that they can choose from and pick a location near them. Offering times is also a way for someone to say no to your request without being hurtful. If you say “I’d like your advice on x, would you be willing and available to meet at [time]? If they say they are busy then without offering alternatives, they likely aren’t willing to help and you should let it go.
If they do agree to help, once a time and place are decided, make a calendar event with the location and your phone number. If the event is a few weeks out, send a confirmation two days before.
Be early
If someone is carving out precious time, energy, and knowledge for you, don’t be late.
Be in plain site
If you’re meeting someone for the first time, be in position near the door so they don’t have to wander or wonder where you are. Look up their photo ahead of time so you can spot them right away. I recently met someone on their request for advice. They had gotten there early, bought their own coffee, went upstairs to the unseen seating area, and sent me an email of their location. I was downstairs waiting and don’t check my email every five seconds. Needless to say, I bought my own coffee and then dispensed valuable advice for 45 minutes. Totally fine with that but I’m unlikely to offer further assistance.
Buy the coffee
If you want someone’s help, presumably because they are more experienced than you, buy the coffee. Obviously, they can buy their own, but it’s a small gesture that shows respect for their time.
Ask how you can help them
It may seem like you have nothing to offer in return, and most people aren’t looking for something in return. But if you’ve done your research about them, offering something small but relevant is a huge sign of good faith. I’ve had people offer to proofread a blog post, give lightweight design feedback on my website, share a template in their area of expertise. It’s amazing how much more time and energy I have for people who at least offer to give something in return. I also believe it makes the connection more fulfilling for both people and increases the chances of it turning into a lasting relationship.
Don’t assume they are willing to offer future help
If they’ve hopped on a video call or met you for coffee to give you free advice, that’s all you should expect. After a meeting, especially after you’ve failed to do the above, don’t ask for more.
08 Use modern tools to improve productivity
Make sure you understand how to use modern business tools. Not understanding them is signaling to clients that you don’t know how to do your job. Some of my favorite tools:
Calendly • allow people to select a time slot on your calendar
Expensify for tracking expenses
Freshbooks • simple invoicing software
Mint for managing your life’s budget and spending
Squarespace • beautiful websites without code (I prefer it over WordPress for it’s clean design)
Moo • business cards
(use my referral link to get 25% off your first order: https://refer.moo.com/s/raechellambert9)
Slack • free modern messaging
Zoom • video conferencing
Lu.ma • hosting virtual workshops
Miro • digital whiteboard for brainstorming
Sketch • digital design
Lightroom • simple photo editing
09 Manage your time & energy wisely
Time
Google Calendar
I live by my google calendar—check out this list of tips you might not know about.
I use the Bullet Journal to plan my weeks and months as well as have a place to handwrite my thoughts, ideas, and well-being.
Energy
Over the years I’ve figured out that just because there is room on my calendar, doesn’t mean there is gas in my tank (i.e. a 1-hour performance review is not the same as 1 hour of answering emails). To manage my bandwidth and avoid burnout, I devised a weekly point system inspired by story points from Agile, a software development methodology and it works like this:
The Point System
Each task, event, appointment, commitment, etc. gets assigned points based on the amount of energy required to complete it. This is different for everyone so you must determine your own amounts. Since I’m an introvert, things like meetups and conferences are more points than solo work.
As my calendar fills up, my points get tallied. I’ve found that a sustainable week for me is 65 points. If I reach the point limit, something has to be moved to the following week. If that is not possible then I’m running a deficit and the following week must be a lower point week.
1 POINT
30-60 minute small group meeting
A small individual task (copy review of a new landing page)
meet a friend or colleague for coffee
5 POINTS
Big meeting I’m leading that requires prep, perhaps a kickoff to a new project
Contract proposal/negotiations or long, emotionally involved conversations
Attending a meetup or speaking on a panel
10 POINTS
Long-distance travel on a plane or a train
Day-long conference or giving a talk
Client onsite if it’s a half-day or more
10 Get good gear & dress the part
Day Pack for Digital Nomads
After some trial and error, I'm working lean so I thought I'd share the gear that lets me get everything done without weighing me down.
Everlane
Men’s and Women’s styles. 90% of my wardrobe is from Everlane—I love the modern styles, quality, and transparent manufacturing.
M.M. LAFLEUR
Women’s styles only. I shop at M.M. LAFLEUR when I’m looking for something dressy, but still durable. I like to filter clothing by “Machine-washable”.
11 Read helpful books
BUSINESS & STARTUPS
Four Hour Work Week
Tactical guide covering topics from mini-retirements to outsourcing your life. Whether you're a wage slave or a Fortune 500 CEO, this book will change your life.
Almanac of Naval Ravikant
Free compilation of interviews, blog posts, and tweets from the founder of AngelList and one of the most successful AND happy people in tech.
Range: Why Generalists Triumph in a Specialized World
David Epstein examined the world’s most successful people and he discovered that in most fields—especially those that are complex and unpredictable—generalists, not specialists, are primed to excel.
Rework
Playbook for anyone who’s ever dreamed of doing it on their own. For hardcore entrepreneurs, small-business owners, and people stuck in day jobs who want to get out.
Intercom on Starting Up
Understanding the pains and opportunities of working at a startup.
Crossing The Chasm
Marketing and selling disruptive products to mainstream customers by Geoffrey A. Moore
MARKETING
This is Marketing
Seth Godin
Intercom on Marketing
(I’m an author of a chapter)
How Brands Grow: What Marketers Don’t Know
WRITING GUIDES
On Writing Well
The Classic Guide to Writing Nonfiction by William Zinsser.
The Associated Press Stylebook
The industry’s best-selling reference for more than 30 years, essential for journalists, students, editors, and writers in all professions.
The Chicago Manual of Style
The essential guide for writers, editors, and publishers.
The Business Style Handbook
An A-to-Z Guide for Writing on the Job with Tips from Communication Experts by Helen Cunningham and Brenda Greene.
CREATIVITY AND INSPIRATION
Getting There, A Book of Mentors
Hear from uber-successful people on how they started and how they got to where they are now. By Gilian Zoe Segal.
In The Company of Women
Inspiration and Advice from over 100 Makers, Artists, and Entrepreneurs by Grace Bonney
The Artist’s Way
By Julia Cameron
Creative Quest
By Questlove
12 Connect with your people
Freelancing Females
A growing global community of over 20,000 freelancers diverse in jobs who gather to share knowledge and discover new ways to freelance.
Ladies Get Paid
A private online network of 40,000+ women worldwide that provides the tools, resources, and community to help women negotiate for equal pay, and power in the workplace.
Product Marketing Alliance
A collective of passionate product marketing managers committed to driving demand, adoption, and the overall success of their products.
Superpath
Content marketing Slack community.
13 Find your purpose
Ikagai, a Japanese concept meaning “reason for being”
Ikigai is an interesting self-development concept from Japan, a prism for potentially seeing how to bring satisfaction, happiness & meaning to life. The direct translation is the “happiness of being busy.”
I’ve been thinking a lot about where on this graph I am now and what needs to happen for me to achieve Ikigai.
14 File an LLC
I’m not a lawyer so you shouldn’t listen to me but here’s what I did: Once I knew I was serious about being a full-time freelancer, I filed an LLC. The two main reasons:
So I don’t have to give out my social security number on W9s
So I can shield yourself from the new California freelance law limiting freelance projects to 32 items per year.
It’s different in every state (I filed mine in New York) and then got a federal employer tax id number here. In NY, they make it seem like you need to publish a publication to announce your business but you really don’t. If you’re LLC gets sued for any reason, the court will let you make the publication at that time.
15 Don’t overcommit — 30 billable hours per week is likely your max
Many new freelancers go through many cycles of the rollercoaster of “oh my god, I’m never going to eat again, then straight into “oh my god I’m never going to sleep again”.
The most common mistake I see of new freelancers is assuming that since they worked 40hours in-house they can work 40 billable hours as a freelancer. But they almost always realize that it’s too many hours and then burn out.
Freelancing means you’re running a business of one and it’s on you to do a ton of stuff that is both time consuming and not billable to clients:
Managing your portfolio/website
Creating content (blog or on social) to grow your brand
Sales calls
Writing proposals
Following up with prospects
Negotiating contracts
Sending invoices
Following up when people don’t pay on time
Keeping accounting books
Filing estimated taxes
Setting up admin stuff, documenting processes
Tracking receipts for expenses
Tracking time if you bill hourly
Managing files and staying generally organized
Trust me — start with a max of 30 billable hours and see how it feels before committing to more. If people want more than 30 hours of your time per week, it’s time to raise your rates!
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