5 Golden Rules of Freelancing

John Hubler   •  Mar 21, 2024

Table of Contents:

Starting out as a freelancer can feel a bit like navigating a maze filled with hidden traps. No matter how skilled you are, the journey is filled with challenges that can catch you off guard.

As someone who has walked this path, I've made my fair share of costly mistakes. This article is a compilation of some of those lessons, aimed at saving you from the headaches and pitfalls I encountered early in my freelancing career.

Let's jump right in.


Never do any work without first getting a deposit.

When you are having discussions with potential clients, especially early on, it can be easy to get excited at the possibilities.

There have been a number of times where I was discussing a project, and my mind was racing with ideas that I wanted to commit to paper (or screen) right away.

There have also been times when I knew there would be a lot more research needed before I could effectively present a solution to the client.

The mistake I frequently made was doing a lot of the work before the client was fully on board.

Here's the thing. It's easy for clients to get excited about ideas. Unfortunately, it's a lot harder for them to back those ideas up with money.

After so many times of doing work, only to have the clients back out of the project, I began to learn that what people say is not always congruent with what they do.

Life happens. Things come up. Plans change. And while the ideas originally discussed might have been exciting – sometimes those ideas are just conversations and nothing more. As such, you should not take them as a request to get started.

One of the most important lessons you will learn as a freelancer is that time is your most precious resource. It is the only form of currency that you can't get back.

"Business" is the act of trading your time for money. If money isn't being exchanged, then you shouldn't be wasting your time on it.

Spend that time focusing on your own business or passions.

Never do work without a contract.

A contract is a freelancer's best friend.

It's not just a legal safeguard; it's a mutual agreement that protects both you and your client.

Many people view contracts as daunting legal documents that will inevitably lead to lawsuits. In reality, they simply define what both parties are agreeing to.

A well-crafted contract written in clear and simple language, specifies the tasks, timelines, and payment terms of a project.

It also outlines the consequences if either party fails to meet their obligations.

This document serves as a roadmap, keeping both parties accountable and ensuring that the project progresses smoothly.

Moreover, a contract provides a reference point in case of disputes.

If a client requests something outside the scope of the agreement, you can refer back to the contract.

Similarly, if a client tries to change the payment terms, the contract serves as a basis for negotiation.

For freelancers, especially those who are self-employed, a contract is indispensable. It clarifies your responsibilities and helps you stay organized.

In the event of any confusion or disagreement, you can rely on the contract to resolve the issue and protect your interests.

Never release work before you are paid in full.

Story time. Early in my freelancing journey, I accepted a logo project. It wasn't a super lucrative project, so I agreed to a payment arrangement as 50% upfront, and 50% upon completion.

I got the initial 50% payment and got to work.

Upon completion, I delivered the files to the client who were thrilled with the results. They eagerly started switching out everything to their new branding.

The problem was... they still owed me another 50% deposit.

Unfortunately... at that point, I lost my leverage in the transaction. The client got what they needed – so there was no urgency on their end to pay the balance of their bill.

At that point, my only options were to either wait, or pursue legal action.

They did eventually pay – but, my failure to collect the final payment put strain on the relationship.

I had to continually pester them. This had a way of making me look desperate, and it questioned their integrity. This was an unfortunate scenario that put a bad taste in both of our mouths.

This experience, unfortunate as it was, taught me a very valuable lesson: Never release work before receiving full payment.

Otherwise, it is too easy for clients to delay or avoid payments, which will inevitably put strain on the relationship.

Never make proposals, before discussing price.

When you have a client who wants to hire you for a project, the common next step is to prepare a proposal for them to review.

The problem is, proposals take a considerable amount of time and effort. Like... a lot!

Between researching the problem, figuring out the best solution, creating timelines, etc. – it is not uncommon to sink several hours into a proposal.

That's all fine and dandy if the client agrees, and submits payment right away. Unfortunately, that doesn't always happen.

I have made more than my fair share of proposals end up getting rejected – usually due to price.

As I mentioned earlier – time is your most precious resource. Wasting it writing proposals for clients who can't afford your services is an exercise in frustration.

Difficult as it may be – you need to get comfortable talking about price. And you need to have that conversation as early as possible.

My go-to script for this conversation usually sounds something like this:

"This sounds like a really great project, that I am confident in my ability to help you achieve the outcomes you're looking for. Before we get started, our typical project is between $x and $y. Is that something you would be comfortable with moving forward?"

There are three possible outcomes here.

The first possibility is that they agree to the price range. In that case, go ahead and invest the time in making the proposal.

The second possibility is they say "no". Don't see this as a bad thing.

It's okay to feel disappointment. But, it is far better to learn you are out of your price range early.

This saves you from wasting hours on a proposal only to find out that they can't afford you. This creates an awkward situation for both them, and you.

The third possible outcome is that they are hesitant. It's not that they can't afford it – but, they were hoping it would be a little bit lower. In that case, you can discuss what is essential for the project, and propose a solution more inline with their budget.

Either way, it is better to establish that before you start on a proposal, rather than after.

Which leads me to the fifth and final rule:

Never lower your price without lowering the value.

When you get into a situation where the client is asking for a lower price, you should never, ever, ever just agree to doing the same amount of work for less money.

Not only does this devalue what you do – it also creates a sense of mistrust for the client.

When you agree to work for less, the client may begin to wonder whether you're being completely honest with them.

Were you trying to gouge them on price?

If you don't feel that your services are worth what you originally asked, why should they?

Don't put yourself in this situation. Set your prices, and stand by them. It's okay if some clients can't afford your services.

This also doesn't have to be the end of negotiations.

If the client doesn't have the budget to pay what you originally asked... the best response is to ask them what features they would be okay doing without.

This allows the client to save face, while also allowing you to stand your ground and remain profitable with a smaller project.


Conclusion

Freelancing is many things... but "easy" is never one of them.

While most of us approach it with the intention of helping people, forming good relationships with clients, and getting paid to do what we love – the reality is, people are flawed.

We set out with good intentions – but sometimes life gets in the way.

By putting policies such as the ones listed in this article into place, it helps you to ensure that you do not get taken advantage of.

It also helps to ensure that you are not wasting your precious time working on things that do not directly contribute to your success.

When I implemented the rules mentioned in this article, I have noticed that my clients actually have more respect for me, and to take me more seriously.

If your business hasn't been doing any of these things... now is the time to start!

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