for those of you familiar with the cash dash, my weekly series on the ins and outs of making money as a freelancer, you’ll be familiar with my philosophy:  the internet has great resources for freelancers, but is shockingly closed-mouthed on what a freelancer can expect to make.  my goal is to change that.

it is true that this is a wildly subjective paradigm, but to all those people out there considering a new career path (perhaps pursuing Nacie Carson’s idea of a Life Uncommon) that’s simply not good enough.  you need to know what you can expect to make, and how long it’s going to take for you to make more.  they are numbers that i was very frustrated i didn’t have to start with.

so here’s my year in review:

I started freelancing (emphasis on the FREE) in July 2008, but I didn’t start making money until August 2008:

August: $520.48
this was due exclusively to demand studios work and two ghostblogging assignments.  in fact, I guess there were just a lot of weeks in august, because I received six demand studios payments in august.

September: $354.57
this month i added in revenue from eHow, and two assignments for Cellphones.  I also, however, only had two weeks of earnings from Demand Studios; whether that was due to lack of available titles or laziness on my part (perhaps adjustment to scotland, that was when I moved over) it’s obviously reflected in the lack of cash that i had coming in for month 2 as a freelancer.

October:  $522.58
this month i had three payments from demand studios, one from ehow, one from cell phones, and two from ghostblogging (up one from last month).

November: $1518.98
Banner Month!  This influx was caused by several factors:

• i sold four stories to Chicken Soup at $200 a piece and received payment in November
• I charged a higher price for one of my cell phones article
• I had four demand studios pay outs, two of which were over a hundred dollars
• I did two ghost blogging assignments (now a consistent trend)

Urged on by this influx, I worked like a dog in December.

December:  $1130.19
Now, in relation to November, this doesn’t look so awesome, but consider that november had a non-sustainable Chicken Soup payout, and also compare it to October.  I kicked some serious butt.  I had two of my largest payouts from Demand, and I stopped working for Cell phones (for the foreseeable future) in favor of my new Adventures with Photos job.  I did two ghost blogging jobs and I also did 13 articles for Bright Hubs that still have not paid out–their earnings will transfer into January, sadly.  I also worked on the eHow Challenge, and that hasn’t had the results I’m looking for yet, either.

When working as a freelancer, remember these tips:

1. Always Look for Ways to Optimize Your Time. Like changing from Cell phones to AWP, freelancers should always analyze their time/payment ratio.  Because of the way the job is presented and the way I interact with both employers, with AWP, I can just do the work I’m expected to do and build on it with my own discretion.   It is a much more fulfilling and monetarily satisfying way for me to work.
2. Keep Good Records; Use Good Software. I use Excel spreadsheets to keep track of all of this, and a new, separate bank account that is dedicated only to my writing business so that I have a back up of information.  At the end of each month, balance your accounts and take a good look at your revenue streams to figure out which ones are the most valuable to you and your wallet.
3. Save for Taxes. Remember that, as an independent contractor, you are not having your taxes withheld.  This means you need to save a safety net of 30% of everything you make.  Chances are you will be called upon to pay far, far less than that to the government, but that is the maximum they can take from you.  Don’t be unprepared!  I recommend opening a high interest online savings account (Capital One or ING have excellent options) and socking your tax money away in there.
4. Never Rely on a Single Revenue Stream. In December, Demand Studios faced huge demand and shocking lack of titles, making for difficult writing and high competition.  I didn’t make the money I could have made.  I was ok because I had other revenue streams going, but remember that as a freelancer, you have no security unless you create it yourself. it’s a risky business, but with a good spreadsheet and a calm mind, you can ride it right to the bank.

Good Luck Freelancers!