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Title Du Jour: Freelancer or Consultant?

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Networking Freelancers

Networking Freelancers (Photo credit: solobasssteve)

Heard on the street at the New South Digital Marketing Conference in Myrtle Beach, a few colleagues were engaged in conversation that made me realize being in business is a challenge for many.

 A woman shared she changed her title from consultant and owner of an army of one to “freelancer.” 

 She did that so businesses would think she cost less, that her hourly rate was more reasonable, and that they were getting something cheaper for less. 

 What she did was alter her professional identity to continue to earn a living by being someone she really wasn’t — just a freelancer.

 But, let’s define freelancer next to consultant, shall we?

Defining Consultant

When I think of consultant, I think of the Accentures and pwc. They lure in the big clients with boatloads of money and have massively global teams operating in all corners of the world with big budgets.

 A consultant in marketing is considered to be a senior professional with years under their belt who commands high hourly rates and takes on projects with higher budgets. 

 In general, my view of consultants is oriented to trained professionals who know their stuff, who are experts in their respective fields. They take on strategic assignments often with longer-term work bumping shoulders with drivers of companies.

 Does that fit with your definition?

 

Defining Freelancer

The freelancer is someone not inclined to open his or her own business, firm, agency, or other.  They will typically not incorporate a company under S-Corp or LLC status. They will work under their personal social security number and pay 16 percent self-employment tax.

 The freelancer is usually available at a lower hourly rate and is considered to be more tactically inclined. They seek project and take direction from other supervisors. Their interest is less in running a business and more in the freedom of choice to pick up interesting gigs that pay the bills with a level of mobility. 

 Do you agree with those definitions?

 At the end of the day, you deliver high-quality work that demands equal compensation. When clients and prospects refuse to honor your expertise, then do you attempt to downplay your competency to continue to make a living?

 It’s an interesting dilemma…what would you do?

 

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7 Reasons Why PR Should Not Share Hourly Rates

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Public Relations practitioners are a dime a dozen, or so I’ve heard. Who’s not a dime a dozen are really good practitioners who bridge business and marketing with public relations (ok, here’s a plug, close your eyes…like Jayme Soulati).

Of late, more small business owners are asking me for hourly rates, and the answer is not one I ever provide immediately. Here’s why:

1. Hourly rates vary per client, project, budget available, deadline, and other parameters.

2. Marketing and public relations practitioners do not bill like lawyers. If someone in our field is billing $300/hour, that is extraordinary, and the small business is likely looking too far up the ladder or in an agency for a business partner. (By the way, even lawyers are getting slammed for hourly rates; more clients are demanding alternative fee arrangements.)

3. Independent practitioners should recognize that if a business owner is asking for an hourly rate, there’s an opportunity to sell a project or a retainer that becomes a long-term partnership versus a one-off hourly gig.

3. Before sharing an hourly rate, schedule a call (call it a “free consult”) with the small business owner to ascertain what the needs are or what project is looming that requires some marketing help.

4. After listening, assess the project duration. If you’re still tied in with the traditional ways of accounting, then multiply the hours to complete the project by an hourly rate.

A typical press release, for example, should be billed at about $500 (this includes research/interview, writing, approvals, publishing). That happens to be a project fee and not an hourly rate x 5 hours — why? Because senior practitioners who know their stuff can write a press release faster than it takes to engage on social media every day. Why should that expert penalize her expertise with an hourly rate to accomplish something more efficiently?

5. When someone asks for an hourly rate, push back and say, “how about a phone call?” Assess what the needs are. If you don’t do this, you’re worse off than if you provide an hourly rate. People are fishing and comparing notes — well, Sally in Miami is $250/hour and John in Little Rock is half that, guess John gets the business!

6. If you provide an hourly rate, you get no chance to sell your expertise. This is the clincher, so let me repeat…if you think that informing people of your cheap hourly rate is going to earn you business, you’re sadly mistaken. Don’t denigrate your expertise just to win a project for a few hours; you’ll find yourself backtracking and expending too much time for too little money.

7. Those business owners seeking hourly rates are likely shopping amongst a cadre of practitioners (because there are hundreds seeking work today) to find the cheapest labor. Remind yourself “people get what they pay for.” When you as a practitioner refuse to play that way, you’re doing yourself and your profession a huge favor. Be mindful of that.

If your response below happens to be, “yes, but it pays the bills.” I’ll argue and say, “I beg to differ, respectfully.” When you realize your valuable time is being eaten with a gig that went south, you can do nothing about it but lose money and deliver on the plan to save your reputation.