Professional Freelance Web Developer
CodeIgniter Activist, Caffeine Junkie

Elliot Haughin

The Truth about Freelance Web Development

17th February 2009

Most web developers have thought about going freelance at some point in their career. And for me, that time is now. After moving from London back home to Cumbria, I’ve decided to start freelancing whilst my Royal Air Force application is processing (It’s a fairly long process).

But there are some important things you should know if you’re deciding to go down the freelance route yourself; or indeed if you’re deciding to hire a freelancer.

1. Web identity is important

As I’ve mentioned in the past, your web identity is crucial to how the world (and ultimately, your clients) see you. So build a strong web identity. If you have a strong web identity, you become more of a ‘personality’, and respected figure within the communities you’re a part of. This will very much help you secure work in the future.

If you’re looking to hire a freelance developer, have a look at their web identity. What does it say about the person? Are they very active in their field? Is there evidence of the work they’ve previously done? And does it all scream ‘passion’ about development? If the answer is yes to most of these things, you’re more likely to have a better professional experience with this person. And, you can be assured that they know what they’re doing. If you’re paying per day or per hour… think about how much work the person can get done in that time. If they’re an expert in the field, they may be able to do more in a day than others, so you could get better value for money.

2. Client’s aren’t all stupid. Don’t treat them like they are.

One thing I’ve noticed about many freelancers, is that they tend to treat all their clients as idiots. Most people hiring a freelancer will already know a bit about what work needs to be done, and the code involved. So don’t give out empty responses to emails or IM. If something is causing problems, explain what it is. If there’s a technical choice to make, ask the client, and explain the pros and cons of each option.
If the client isn’t very technical, then make it clear from the start that you’re going to make these decisions on their behalf.

Clients appreciate being informed and involved in the development process. After all, it is their application you’re building, so make sure you let them know about what you’re doing with it.

If you’re filling in timesheets, add some details to what you’ve done in that time. Don’t just assume the client will have no idea of what you’re talking about.

Bad:

Client: Hey, how’s the app coming along?
Freelancer: Yeah, not bad. Just hit a little problem. I’ll get around it

Good:

Client: Hey, how’s the app coming along?
Freelancer: Yeah, not bad. The email notifications are causing some problems. Might have to send them in batches instead of sending each one ‘as it happens’. It could just help with the speed.

3. You are not your own boss all the time

I’ve noticed that quite a few freelancers say things like:

I love being my own boss, it gives me so much freedom.

It’s always something I’ve had issues with. I know that as a freelancer you are in a way your own boss… You get to choose where you work, what music you have on, what system you use, and how much you charge. But there are times when you are not your own boss. If you agree a set of working hours with a client, then for those hours, the client is your boss. You’re working on their time, not yours, so respect it.

Just because you’re a freelancer, you aren’t exempt from deadlines, overtime, and stress. It’s all still there, you just get to choose which projects will give you them, and how much you get paid for it.

When you are working on a client’s time, make sure that what you’re doing is all billable. It’s unfair to charge a client for 8 hours of work, and spend 6 of them working, 1 on lunch, and 1 cleaning out the bathroom. If you’re honest with your time-sheets, you’re more likely to have repeat business.

4. Price isn’t always critical

There’s a whole bunch of articles out there discussing how to set a rate as a freelancer. I have a simple system. I ask myself: ‘How much would I pay for a day of my work?’ – and that figure is now my rate.

Don’t charge too much just to make yourself seem a more exclusive.

Fully Object Oriented slick PHP5…. this isn’t just web development. This is Elliot Haughin web development.

This is web development. Not Marks and Spencers food you’re selling (see below).

Price is not directly associated with quality in this industry. Just because you charge $500/day, that doesn’t mean you’re worth that amount. Think about the ‘amount’ of work involved in a project. If you’re getting a couple of months of work, you may want to consider lowering your rates as a bulk discount.

If you’re shopping around for a freelancer, look at their previous work and make sure you ask how long that took to do. Ask their rates and think about if that seems fair for the quality and quantity of work produced for that price. There are a great deal of freelancers out there, so don’t be sucked in by the M&S Style propaganda. Get the the facts and figures.

5. Avoid Recruitment Agencies

Since working in web development as an employee, I’ve had the responsibility of hiring new staff. After working on both sides of recruitment agencies, I’ve grown to loath them. When it comes to freelance work, you may have agencies approaching you with work. Be very aware that the rate you get paid is not the rate they charge the client. Agencies can often double your rate and make the same amount as you do just for the service of hooking you up with the work.

It’s money for old rope, and frankly, I always prefer to work directly for clients. It helps to have a more honest and open work relationship. And, your chances of getting recurring work from that client are much better if they’re not being ripped off by an agency in the middle.

Do your own work-hunting, and reap the rewards from it.

6. Freelancers are not tax-exempt!

It can be very easy to do freelancing work ‘under-the-table’, without declaring it for tax/national insurance.
This is illegal. If you’re freelancing in the UK, you should register self employed, and pay the tax you owe.

On this note… here’s a very practical bit of advice.

If you’re charging for freelance work, make sure you keep around 30% of your income seperate. Place it in a high-interest savings account (like an ISA). At the end of the tax year, you’ll have to do a tax return (or self-assesment).

With this self-assesment, you’ll have to pay the tax on the money you’ve already had in. So, if you’ve spent it all, you’ll be screwed when you get your tax bill. The 30% you’ve set aside will probably cover your tax bill (based on working in the UK and earning less than 40k GBP/year). But make sure you consult an accountant first.

If you ever find yourself unemployed, disabled, or over 65, you’ll be using the state to support you, so do the right thing, and pay your taxes.

“Now tell us what you think about this: Is it right to pay taxes to Caesar or not?”
But Jesus knew their evil motives. “You hypocrites!” he said. “Why are you trying to trap me? Here, show me the coin used for the tax.” When they handed him a Roman coin, he asked, “Whose picture and title are stamped on it?”
“Caesar’s,” they replied.
“Well, then,” he said, “give to Caesar what belongs to Caesar, and give to God what belongs to God.”

Matthew 22:17-21 (NLT)

No apologies for the bible quote… they’re wise words.

7. Keep a copy of your work.

I can’t count the number of times I’ve done work, added it to my ‘portfolio’, then it is redeveloped, redesigned, or it disappears completely. Produce a private website with all your portfolio work, hosted on your own space. This way, you’ll always have accurate, working copies of work you’ve done in the past.

Respect the privacy of your clients, and don’t hand out your portfolio URL to anybody and everybody. This should be for potential clients only, with the agreement that this is a ‘your eyes only’ private area.

8. You don’t have to work at home

Some people love the idea of working from home. It’s comfortable, familiar, and it’s pretty much free.
But, there are some real downsides to working from home. It’s easy to get distracted, you can find yourself not leaving the house for a week, your house starts to stink… just to name a few.

So, why not have a look at some alternative places to work? Freelancer magazine has some great suggestions on alternative freelance work environments. From co-working, working holidays, libraries, parks, and cafe’s, there’s plenty of places to choose from. My favourite is probably the pub. But, you could get a bad reputation if you spend 9-5 most days at the pub!

Physically leaving the house to ‘go to work’ is a good psychological motivator, and helps you to switch off from the personal life, and start focusing on work.
It’s also a good way to build a bit of routine into your working life. Many freelancers find it difficult to get a good routine. But, if you go to a place outside of the house to work, which only opens certain hours, you can build that routine around the opening hours.

9. Learn where to get your work

There’s plenty of good places to find freelance work. To save you some time, here’s some sites you might want to try.

Although there are plenty of listings around, I would encourage you to find work through personal connections. There is always an issue with trust when taking on freelance work from both sides. If you already have an existing relationship with your client, it’s much easier to work together.

10. Enjoy it

If you manage to get a great freelance contract where you’re working some good hours, earning some good money, and enjoying the project, then remember this feeling. Freelancing won’t always be like this, so make the most of the good times.

Your thoughts

Are you a freelancer? Have you hired a freelancer? What advice would you give? What have been your experiences? Leave a comment, let’s have a discussion!

Please note… If you do wish to contact me regarding freelance work, you can email me: elliot at haughin.com

No related posts.

  • Hiro
    Thanks, this was really helpful. No wonder it was the top search result during my research into the world of freelance web development!
  • There's a lot of things to consider when beginning to freelance, and this article covers a good portion of what's required to be successful, thanks!
  • Hi Elliot,

    Good post! There's a lot of points in there I can relate with, particularly making the switch from home to office. I've recently been lucky enough to get enough work to support 1 or 2 employees now, so I had no choice but to move the company to the office. But Ive found that my productivity has gone up ten-fold too.

    ...I may still fire up a quick game of AOE3 in my lunch breaks, but that's harmless, right? :-)

    Just a few points I think are worth noting:

    1. Invest in some good project management and billing software. Something like Billings on OSX is a lifesaver, and helps keep everything organised and importantly, looking professional.

    2. Invest in a book keeper. Seriously, for around £25 p/hour and needing no more than 2-5 hours a week, our book keeper (Denise, lovely lady) does all our tax, pay-roll, and VAT. She also takes care of any generally 'too long and I can't be bothered to fill them in' forms that come our way.

    3. If freelancing will become full time, invest in some regular income. For developers, the obvious choice is to setup some websites or web services. For any business that uses a project model, keeping a regular income can be a headache. We've found maintenance and support contracts have been the lifesaver for Goodings Media.

    Cheers,
    Liam Gooding
  • Ian
    Great post Elliot,
    I was expecting a huge post full of negatives, it was nice to see good tips.

    I have a few suggestions from my years of freelance..

    1. Avoid jobs for friends and family, but if you do them treat is strictly as business. This includes charging them. I remember a thread on a graphic design community a while back arguing that doing free work for family is an injustice to their field, I agree. Don't do favors, do business and it will never get messy.

    2. Stay in touch with past clients, drop them updates every now and then to make sure they are satisfied and doing ok. Maintaining a good thread of communication with clients means networking, more work and referrals..
  • Stu
    Good stuff Elliott. I've been doing freelancing work (not web dev) in addition to my full time work and so I know all too well of that 'hidden' burden of the self assessment - it's surprising how many people assume they don't have to do it, however if people keep their 'books' in order, i.e. ins and outs, business costs, etc and keep it well organised they'll find doing things like self-assessment online is ridiculously easy and often does not require an accountant, unless you're Ltd or such. As I'm not Ltd but a "sole trader" I also pay voluntary NI contributions monthly. If I was to do this full time I'd personally look to allocate 40-50% towards tax and 'business funds' for unexpected items, etc.. anyway, you'll be reet, nice and inspirational place to work from is the Cumbrian fells. ;)
  • In the U.S., you must pay self-employment taxes quarterly (they're called Estimated Taxes) throughout the year. If you wait until taxes are due the next year, the IRS will hit you with a substantial fine.

    http://www.irs.gov/businesses/small/article/0,,...
    https://www.eftps.gov/eftps/
  • Thanks for your post, Elliot. I'm currently working on my first freelance project, so your post is really helpful for me.
  • kvic
    awesome!!! thanks a lots
  • Awesome stuff Elliot! I think this pretty much covers what a freelancer needs to start off! But what makes this article excellent is the part that also details how a freelancer might get jobs!

    Great stuff!
  • Excellent post Elliot - freelancing can be a wonderful career that pays off (not only monetarily, but in your quality of life). I would also like to add, "Establish work hours - and stick to them." It makes getting your work done a lot easier - rather than trying to find time between going to the store and going for a jog, you know that from Noon to Midnight you are at the computer, working except for a break for dinner or to take the kids to soccer practice or something.

    Also, make sure your work area is secluded from the "living area" of the house. Distractions can seriously eat away your time if you don't get a hold on them.

    Finally, the 30% rule for taxes is a wise decision here in the States as well (although I would recommend filing quarterly, to keep the sticker shock at the end of the year down near a reasonable amount).
  • Colin
    I would add to Aim for long term projects. It's a good way to keep the stress levels down and the workflow more consistent
  • Hey Paul. Even if you have a full-time PAYE (Pay as you earn) based income, you still have to register as self-employed and declare any non-PAYE earnings (Freelance). Not sure where you came up with the 30k figure.

    Here's an example.

    You earn 20k in a normal job.
    You earn 25k freelancing.

    In this situation, you will have to declare the 25k under a self-employed status.
    Your total taxable earnings for that year will be 45k.

    If you only paid standard PAYE tax on your normal job, you would pay a total of £2,793.00 in tax over the year (on the 20k).

    If you declare the extra 25k your total earnings will be 45k, £38,965 of this is taxable. You will pay a total of £8,626.00 in tax, bringing your after-tax earnings to £32,434.80 (There's also about 4k in National Insurance too).

    But, as I said earlier, consult an accountant. I know my way round the tax system in the UK pretty well, but you don't want to get stung later with a big tax bill you hadn't accounted for.

    If you don't declare it, and can't prove the exact amounts you've earned, the HMRC is entitled to tax you at the full 'super-tax' rate... and that can get nasty.

    If you live outside of the UK, contact your local authorities to determine how you should lawfully earn in a freelance capacity, and what your tax responsibilities are.
  • Interesting article Elliot :) very well written as well. You've also cleared something up for me with posting this as well. I always thought that you didn't have to declare freelance work if it was under £30,000. I personally have been wanting to get into freelance myself but another thing you're right about is that the house seems to familiar should see the state of my bedroom haha.

    I also like the reference to the M&S Advert there. I believe that no matter whom the customer is you should never give them any false hope or work under false pretences, always stay loyal, give commitment to the client and don't go being a Pinocchio.

    Anyway, very good tips I think this is going to get bookmarked for future ref. :) Cheers.

    - PC
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