My Side Project

I mentioned in my last post that I was working on a side project. It is now live so I thought I would tell you what it and my plans are.

I have been working as a freelancer for quite a while and most of my work has come through Upwork. However, Upwork recently changed their fee structure. They now charge 20% on your first $500 with a client, 10% between $500.01 and $10,000 and 5% on anything over $10,000. This means that long term clients become better value but any short term clients are way less worthwhile.

Upwork's new fees were one of the reasons I wanted to try something new. Another reason is that I want to be more motivated and earn more consistent income; see my last post for more detail. Finally, I feel that I have established myself as a freelancer; I know what I offer and what I can charge. It's time to spread my wings!

All of this lead to me thinking of a way to find my own clients. The result? aut0m8.com.

What is aut0m8? The result of my plans to become an Infusionsoft Certified Partner; aut0m8 will offer Infusionsoft marketing automation for small businesses:

USING AUTOMATION WE STOP LEADS FALLING THROUGH THE CRACKS, GENERATE MORE REFERRALS AND ELIMINATE REDUNDANT PROCESSES

I want to work with small businesses to understand their marketing needs and develop a strategy together. I will then build automated systems that deliver that strategy . The aim is to make my clients more money with a minimum of hands on effort from them. As it says on the website:

SAVE TIME, MAKE MORE MONEY, GROW YOUR BUSINESS

I have already started advertising on Google to find new clients. My goal is to transition away from using anyone else's platforms to find clients and develop a sustainable business of my own.

I will keep you up to date with the progress of this and we will learn together where this takes me. Get in touch if you would like to know more.

A Little Housekeeping pt 2

I wrote a post in January analysing my earnings progress through 2015. I said I would come back and update my progress. We're halfway through 2016 now so how am I getting on?

In January I totalled up all of the money I earned and all of the hours I worked to produce this wonderful chart:

This chart shows clear progress throughout the year but I seem to have plateaued at the back end.

I wrote a post a little while ago about my plans to invest in myself and my career as a freelancer, you can read it here. The main point was that I planned to become an Infusionsoft Certified Partner.

I completed my certification in January this year. It wasn't cheap and it wasn't a walk in the park but I passed. I can now call myself an ICP, which is shorter than Infusionsoft Certified Partner but unfortunately looks to some people like an abbreviation for Insane Clown Posse. If you've heard of the ICP (clowns, not software) then you'll know why that is a problem. If not, treat yourself to some idiocy here.

During 2015 I became more and more involved in Infusionsoft. I saw the potential for higher earnings if I became qualified so I bit the bullet and took the course. How did that work out for me? Did it help me break through that plateau at the end of 2015? Take a look at the chart below:

Yeah baby! The chart is heading in the right direction. You can see a summary of the key details in this table:

	2015	2016
Average hourly rate	$23	$36
Highest hourly rate	$32	$46

My average rate for the year to date is $36/hr so I'm consistently beating my best rate from last year. It's great to see that my investment in the Infusionsoft certification has lead to me securing higher paying contracts. To be honest, I am very pleased with my continued progress. However, I want to share another chart with you.

I have been tracking my total monthly earnings as well as my hourly rate and this tells an interesting story. I have spoken before about the variability that comes with being a freelancer and you can see the facts of the matter clearly in this chart:

Although my hourly rate has been slowly climbing, my total monthly earnings have been up and down like a yo-yo. Thankfully for me the amount has never dropped to a level that I can't live on. Essentially, a bad month is OK and a good month is awesome!

What all this means is that I actually work less hours to earn the same amount. Now, that's a nice situation to be in but what if I could manage a consistent number of hours each month? Then my total earnings would be increasing in line with my hourly rate. How cool would that be?

Not all of this is within my control. I have regular clients that provide a lot of work one month and not so much the next. However, I cannot wash my hands of all responsibility. If I was out there hustling every day for new clients then I would probably have that consistent level of work.

The fact that I am earning enough to live the lifestyle I want makes me kind of lazy about getting out there and hunting for clients. On the other hand, it does allow me time to focus on other side projects, one of which is nearly complete.

I think the lesson to take away is that my goal for the next 6 months should be to get a consistent amount of work. My side project is part of my plans to address that. I'll do another review at the end of the year to see if it was successful.

Do you have any thoughts on this? I'd love to hear them, drop me a line.

A Little Housekeeping

In case you hadn't noticed, 2016 is now in full swing so this seems an appropriate time for a little 2015 housekeeping. I recently attended a small business owner's workshop with one of my clients and read this article. Both of these got me thinking about "knowing your numbers". As a small business owner or freelancer you are often so involved in doing what you do that you don't look back and understand how you performed. If you don't know how you did, how can you know if you're improving?

The article in particular is valuable for freelancers; it helps you to work out what 1 hour of your time is really worth. Obviously this is worth knowing when bidding on client jobs but another benefit that I hadn't thought about before is using this information to make other decisions in your life. To take an example from the article:

Should you buy the nonstop flight and save two hours or get the flight with a stopover and save $90?

Being the cheap ass that I am I would usually save the $90 and spend 2 hours reading. This article made me think about things differently; if 2 hours of your time is worth more then $90 then this is not a cost effective strategy:

If you know your time is worth $80 per hour, then you should always buy the direct flight that saves you two hours even if it costs $150 more than the flight with a stopover.

There is a counter argument that you might not always have work to do, don't mind reading for 2 hours and would like to keep the $150. That is all true but it still got me thinking about how much my time is worth and how I performed in 2015.

Agi and I started freelancing in 2014 so 2015 was our first full year as freelancers. We learned a lot during the year, lost clients, found new ones and kept trying to earn higher rates.

I spent a couple of hours pulling together all of the data I had on my earnings and hours worked last year. I put all of the info into a spreadsheet (I love a good spreadsheet). The result? My average hourly rate for 2015 was $23/hour.

That was a bit lower than I expected but as I discussed in my post about How We Started Freelancing I had to start at a low rate to get my foot in the door. With that in mind I decided to look at how my hourly rate had changed throughout the year:

That's better! So, at the end of the year 1 hour of my time is worth around $32. That's good and I'm happy with that but even more important to me is that I want to keep getting better so check out the trendline:

I'm even more pleased with this trend but how am I going to continue it into 2016? I wrote a post recently about my thoughts on how to keep that improvement going through investment in yourself. I will keep this chart updated throughout the year and let you know how the trend progresses.

Have you done any self assessment like this? What did you find? Get in touch and let me know, I'd love to hear your thoughts.

My General Resolutions

I have been doing a lot of thinking recently about what it takes to be a successful freelancer. This sort of coincides with the new year but that is more coincidental than intentional. The following are some ideas about how to achieve more as a freelancer which may, from a distance, bear a resemblance to new year’s resolutions.

Continue Your Professional Development

I worked for 3 major international business prior to becoming a freelancer. All 3 of those companies invested a large amount of money in ongoing professional development. I had courses covering a wide range of topics from effective communication to project management to being a good leader. Some of these courses were great, some were good and some felt like a waste of time. However, most courses taught me something that I could use in my life.

Since becoming a freelancer I have not done a single minute of training. All of my time has been focussed on earning money, finding new clients or having fun. Those are all very important but it has been clear to me recently that I need to continue developing my skills. Clients’ needs change and I need to be able to meet them if I want to continue earning money, finding new clients and having fun.

Professional development doesn’t have to be expensive or arduous. The internet is literally overflowing with free courses to learn web development, graphic design, ancient Sumerian agricultural practices... you name it. I have invested time recently in studying HTML & CSS, something that my clients need. I did this using the Odin Project, a free resource to learn all aspects of web development. I am also going to become an Infusionsoft Certified Partner. Infusionsoft is something I have been getting more involved in over the past year and want to do more of. The certification is not cheap but it is something I enjoy and should enable me to get more business at higher rates of pay in 2016.

Invest in Yourself

Long before becoming a freelancer I have been a frugal man. I hate spending money frivolously. I even hate spending money non-frivolously. Show me something that I want to have, is a good investment and useful for work and I will hem and haw about spending the money for months. If there is a cheaper option then I will almost always choose that.

Another thought I have had recently is that my frugal nature has been counterproductive to my work. I needed a new computer last year and I set myself a low budget. I found a laptop that was good, not great and bought it. Since then it has consistently disappointed me; boot time is painful, there are frequent lags and it just isn’t really what I need.

Part of being a freelancer is knowing what you need to do a good job. If you worked in an office that consistently bought sub standard computers and equipment you would complain that the company was hampering your ability to do a good job. Being a freelancer is no different except that you are the one in control of the budget! If you scrimp on your equipment then you are harming no-one but yourself.

I recently bit the bullet and bought myself a new MacBook Pro. It has been like a breath of fresh air. It boots up in under 30 seconds, it never hangs on a screen and I can have as many applications open as I want. I often comment that one of the best things about being a freelancer is that I can work anywhere I have my laptop and an internet connection. Therefore the most important piece of equipment for me is my laptop and I should invest in a good one. I’m not advising you to spend money you don’t have but make sure you give yourself the best chance to do the work you want to do.

A few thoughts for the new year. As I mentioned, these aren’t new year’s resolutions exactly but more like lifetime resolutions. What lifetime resolutions have you made? Let me know here.