Has the Economy Affected Freelancers?
September 7, 2009 by Allison Boyer
Filed under Jobs
One of the things I hear a lot these days is that I’m lucky to not have to worry about losing my job. When the economy started to spiral downward, many of my friends began to worry that their position would be next on the chopping block. People have also noted that they can’t rely on bonuses like they used to, and office perks are being a thing of the past. I’m lucky that I don’t have to deal with these things.
Or do I?
As a freelancer, I might not have to wonder whether or not my boss will talk to me about a lay off the next day, but I’ve definitely seen the trickle down effect of the poor economy. The first costs people cut when their business need to save money are the costs associated with their online presence. They can do without the social networking. They can write some articles themselves, even if it means late nights and not as good content. They really can’t afford a freelancer right now. So yes, I have to worry about being laid off.
Image: sxc.hu
And those bonuses people in 9-to-5 jobs are worried about not getting this holiday season? I never got a bonus during the holidays, but comparable is the lack of high-paying jobs. My “bonus” was that I could find some clients who were willing to pay more than I’d normally charge. With those jobs drying up, my income has dropped. So yes, I fret about not making as much money.
Office perks? That’s all out of my pocket, and since my wallet is firmly closed these days, I make cheap coffee at home instead of going out for a latte, travel to wireless hotspots less to save on gas, and otherwise make work-related cuts to save money. So yes, I’m missing the perks my “boss” once gave me.
Overall, freelancers are more flexible, so it is often easier to ride the economic wave, be it up or down. However, as more people are out of work, I’m seeing an over-saturation of new freelancers – and most of them aren’t actually qualified to write professionally. They just have no where else to go and are grasping to the hope that they can at least make a few bucks online. Now, I consider myself lucky, because I have a solid client base already established. I’d hate to be a new freelancer write now, trying to set myself apart from the people pretending to know what they are doing.
New and old freelancers alike: Has the economy affected your work? How?
We found some interesting results when we did a survey on this very subject earlier on this year.
Check it out here: http://www.freeagentcentral.com/freelancer-report-2009
Some interesting results there, especially about which industries feel worst affected…
Ed
Ed Molyneux
Founder and CEO
FreeAgent Central Ltd
I’m lucky in that the flood of new freelancers actually helps me, as I teach new freelancers about the career via my website (page views) and classes. BUT I have not seen an effect lately, anyway. Clients are still coming to me…. Same clients, same rates. So far so good!
Thanks so much for the link, Ed!
Allena, I think career coaches, resume writers, and so forth always see a little bit of a boost when the job market is rough (or, at least, they don’t suffer as other industries do). I’ve heard that bars also see a jump in activity. :-P
English is not my first language, but I noticed a mistake at the end of your article:
“I’d hate to be a new freelancer write now” (should be “right”).
To answer your question, I write technical articles and have not seen any difference in the demand for online content in my area, probably because IT providers were trying hard to caught the attention of potential customers with quality content during the economy downturn…
You’d be amazed at how often I make that mistake, Chris! In the interest of being a better writer, since English is not your first language, it is “catch,” not “caught.”
You bring up a good point, though – some writers are definitely going to be more affected than others. I’ve seen an increase in work relating to career training (which goes along with what Allena was saying). I’ve seen a decrease in “less necessary” topics, though – relationships, entertainment, etc. There are fewer start-up companies as well, which makes harder for first-year freelance writers, since established companies often have fewer openings for new writers and instead stick with the writers they’ve used in the past. Of course, there are exceptions to every rule.
I think also that excellent writers with reasonable prices are thriving right (I almost typed “write” again, darn it!) now for the reason you gave – people need to attract customers in times like these. The real victim here is the “excellent but new” writer, since they might not have enough experience to attract clients.
In any case, even if a writer’s workload has stayed the same, the rising costs of gas, groceries, and services can stretch the budget thin…just like it does for everyone else!