With all this talk about the economy these days and hearing about how companies are tightening up their budgets, I’m curious to see how this is effect the freelance business owners.
Making Money in a Slow Economy from Danny Outlaw on Vimeo.
Has the change in the economy had a major impact on your business? Is the change good or bad?
If the change is for the worst, what are you doing to makeup for the loss of income? Are you looking into ways to make passive income? Charging more for work? Or maybe going after more jobs for less money?
Please share your comments and suggestions with us so that maybe we can help each other out.
My Thoughts
Friends and family are constantly asking me if the recent events in the economy have had any effect on my businesses. Honestly, it hasn’t. If anything it has only gotten better. Maybe it is a coincidence, but as the economy has got worse, I have seen some of my highest paying clients in my career.
Why is that?
The only thing I can really think of is that more and more people are looking for ways to make a decent amount of money online. I’m not talking about just extra cash for Christmas presents, but rather an alternative income.
What do you think?
As for what I am doing to make up for lost income, I’m not really making up for lost income, but I am focusing on making some passive income. I have a couple of projects coming up that I am hoping will generate a steady flow of somewhat passive income. I feel that having multiple streams of passive income is a great thing for any freelancer. If you haven’t already explored ways of doing this, now might be a good time to start.
I can’t say the economy has really affected my revenue, which certainly isn’t a bad thing in times like these.
Some of my friends who are in the personal finance, “start your own business” niches for blogging are really making a killing right now. It seems as if a lot of people are interested in the idea of making a part-time income on the side of their day job.
Right now, my revenue is roughly 50/50 passive and active. If I were to make suggestions to newcomers trying to make profit online, I’d probably tell them it’s highly unlikely to be making profits over $100/mo for at least their first 6 months. It’s something worth getting into if you have some spare time, but getting the experience and exposure is a lengthy process.
@David I’m sure those sort of bloggers and business types are making killing. I don’t doubt that for a second.
You make a good point about how much money to expect when you first start though. So many people think that its easy to just start making money online. For some reason they have this mentality that “if I build it, they will come and I will make lots of money.”
business has been out of control busy. I don’t know if this is in anyway related to the economic situation. As a freelancer, I feel way more in control of my career/income than my friends and family with day jobs.
I share your experience in seeing more clients and better clients lately, I too think a lot of people see this dip in the economy as a chance to jump start NEW business idea or bump up marketing on thier existing ventures, which is smart to do, if you can!
@LIZ Thats great to hear! Im glad I’m not the only one who seems to be profiting during these times.
I wonder how long this wave of new client types will last?
As the economic situation’s got worse I’ve personally found myself in the best situation I’ve had in a long time. That was because of a move from a permanent position to acting as a freelance contractor.
Perhaps what I have been influence to do by the economic situation is make the decision to push a freelance/small business move properly, and to make a lot of choices about the future. If times were good I might be less worried about a reliance on a single client who looks to have a lot of work, for example.
My making money is all about trying to develop a client base as a new freelancer, and longer term looking for some passive income options as well.
@Robin Its good that you aren’t having in huge problems getting clients as a new freelancer. That can sometimes be a daunting task.
I think there will be a lot of people following in your footsteps as far as really buckling down on getting their freelance business going. From what you say, it sounds like the perfect time to get into freelancing and start building up a good 80/20 client base.
Interesting to see designers seem to be making more money through these tough times. That’s great news.
I’ve not been working freelance long enough to have anything to compare it to I guess, but I’ve certainly not struggled to find clients and I’m never not working. And there was a time when I was really worried, after reading the news every day and being surrounded by stories of so much trouble I wasn’t expecing to be as busy as I am.
Which makes me think, maybe the designers will feel it soon? I don’t know when, how or why. But I think it would be foolish to expect it to stay as good as it is, and surely while you’re doing well that is the best time to prepare?
While I don’t have any tips or advice on how to make money I’m certainly interested in seeing any ideas anyone has to offer.
@Liam I know what you mean. When I started hearing all teh news, I too was worried how that was going to effect me. I was really expecting to see some tough times, but they have yet to show up.
I wonder too if we will feel it soon. I am almost inclined to say that, short of a depression or major crisis, we wont. I think as the economy starts to get better, these people stating new business online that are making money will only want to start more. And thus we will continue to get more work.
Who knows though!
I’m like the other commentators, I’ve been crazy busy.
One thing I have noticed is that the crappy clients who want cheap websites arn’t calling anymore, they were probably closer to the edge and need to put off spending. The quality clients that are good to work with are still going strong.
@Brad C I too have noticed a lack of crappy customers as well. Wonder if they had to close up shop or if more designers are saying no to low paying work now because theya re getting so much high paying work.
How does one get started on a full time freelance career?
What’s the best way to network? How do you track down clients?
Is there a Job listing one can bid on jobs?
I’ve been in print design for a number of years, working for local print shops
and a local newspaper company.
Currently working with Lenticular prints for retail sale.
An amazing medium http://en.wikipedia.org/wiki/Lenticular
I’m currently employed as a full time salary employee.
With the economy the way it is i’d like to start freelancing
part time and eventually become a full time freelance artist.
Any advice would be greatly appreciated.
I apologize if this is off topic.
@PeeJay – While you’re currently working, save yourself some money and begin to plan what you’re going to do.
There are many job boards out there, but my advice would be to build a blog, engage with your visitors, work on marketing yourself (your services) and your blog. Then look for jobs while you are doing that. That way you’re working on building your blog traffic, your followers, and potential clients, and you are also building your portfolio.
hi,i’m come from china.your blog is very well.good luck!
—from baidu
I feel like with companies letting go of so many full time employees, they are looking more to pick up a freelancer for a couple weeks. Also, as a fairly uneducated observation, people put more into marketing in situations like these because they need to make more money. I work at an ad agency once in a while and we just got 9 new contracts, go figure…
Good post indeed….. times are no doubt , harsh but people like you who are full of optimism and vision will definatley continue to strive for excellence…
I too am stepping in into online business.. please guide me regarding the website theme, designs , sources of content/images and ways to generate both trafiic and income..
Wow, don’t know what world the previous designers come from but that is not what I am experiencing. I have been in the business for right at 40 years and have seen the grand times and the bad times and everything in between. In my world, this is a terrible situation in terms of pricing, reliable clients, budgets, and at times collecting after a lot of hard work has gone into a project.
I left Houston for Seattle in 2004 to join a start-up company for the reason of a slowing economy. The start-up company folded and I was unable to establish a position in Seattle. I have now returned after 4 years and have found the Houston climate to be busy in the energy sector but not as a designer. When times are slow, advertising budgets get cut. There is definitely a slowdown, to what percentage I am not certain. Pricing is a big factor. I have seen the price structure drop like a lead weight since the 80s. Not to point fingers, but I do believe the younger generation has affected the price structure in a negative way. I am being way underbid on projects constantly. A host of my photographer and designer friends are presently self unemployed these days.
The perception of what one thinks is making real money can be debated. I do not think doing a logo for $300 is making real money and that’s not a joke. Websites for $100 a page and a job offer by two local firms for $30,000 – $40,000 yearly as a senior designer? Not my cup of tea. Open to ideas.
Anyway, I do wish everyone success in the design and financial aspects of this business. It has been and is a great business which I have throughly enjoyed, love and have been rewarded by working with some great people and clients.
My new sideline efforts: http://www.zazzle.com/colliercollection
Hey Danny,
Great to see you on video, and get more a sense of who you are. Back in November last year there was a great discussion on my blog about designing through a recession. I’ve linked to it through my name, for anyone that’s interested.
Take it easy bud.