Freelancers vs. Salaried Employees

I've been getting a lot of inquiries lately from people who seem to expect the same thing from a freelance writer as they would from a salaried writer. While there are some similarities between me and the copywriter in the next cubicle over, there are also some key differences. Those differences show up in our contracts, the way we work, the sort of contact we have with our clients, and our fee structures. Here's an overview of why freelancers are different than salaried employees.

Freelancers have higher overhead--so you have to pay them more per hour. I've seen several ads for jobs lately at New York City marketing and ad agencies for temporary on-site freelance help--for as long as a few days to a few weeks. These are clearly freelance positions, but they're offering an hourly rate that's probably about the same as what they'd pay their salaried employees.

Here's why that doesn't work. As a freelancer, I'm paying all my own health insurance. I'm paying twice the Social Security taxes, plus other business taxes and fees. I'm paying for my own ongoing education, my own marketing, legal fees, collection fees, Internet fees, and so on. Our business has a lot more overhead than a salaried employee has. So, basically, I HAVE to charge about twice as much as you'd pay a salaried employee in hourly wages.

Freelancers can't be available 24/7. I've had requests before from clients who expect 24/7 availability and fast turnaround on projects. While I accommodate client needs as much as I can, I can't always be available--nor can I always offer near-immediate turnarounds. The reason is mainly because I'm running a business that has other clients as well, some of which were in line before you, and I have to treat everyone fairly. In addition, I sometimes have daytime classes to attend and client meetings to go to--so I'm not always in the office, and I prefer to have phone time scheduled so I'll know I'll be home.

Freelancers set their own prices and terms. I've seen a lot of clients offering work for $x per hour (and usually the "x" is lower than I'd prefer to charge). I've also sometimes used client contracts instead of my own. But in general, I set my prices and my terms--this is because I know how much I need to make every month to keep things going around here, and I know the kind of pitfalls my industry is prone to with clients--so I know how to protect myself. I accept client-picked prices when they jibe with my own, and I accept client contracts sometimes--but I make sure the terms that are non-negotiable to me are included.

Freelancers are cheaper in the long run. True, we have to charge more from an hourly perspective than a salaried employee. But you're also not paying our health insurance, sick days or vacation days, maternity leave, office space, and so on. When you can hire freelancers for as-needed help, you're saving your company a lot of money in the long run.

Freelancers are not necessarily desperate for work. Just because a freelancer isn't on a regular payroll doesn't mean we're hurting for work--and it doesn't mean we'll necessarily take any price you offer. I've definitely had encounters with people who don't understand how contract workers can live on the less certain prospect of freelance instead of salaried work--and try to enter into negotiations with the idea that we'll take anything.

Freelancers and salaried employees have different challenges, requirements and processes--and you'll work with them differently. Of course, there are pros and cons to working with each. But they're not the same type of worker--and clients do need to expect different business arrangements with each.