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I don’t want to grow my freelance design studio into an agency

neladunato.com

201–210 of 262 posts

Re: I don’t want to grow my freelance design studio into an agency

#201
post #99

Earlier quoted context omitted.

Billing by the day is not the best for everyone: billing by the hour can give you the flexibility to work incomplete days or switch between clients during the day.

I billed by the hour and I regretted it. The admin overhead of generating an invoice for 60m of work is not worth it. I bill by complete days now, so I don't take on work that is less than a day. If I work half a day for a client, the next day I will work half a day in the rest of that job. This still gives me the flexibility to not get bored in a single day.

> If I work half a day for a client, the next day I will work half a day in the rest of that job.

This sounds like a day here means "about 8 hours" as opposed to "the work performed during a given calendar day". Makes sense.

Re: I don’t want to grow my freelance design studio into an agency

#202
It's worth mentioning that the next growth step doesn't have to be an agency. It could also be a co-operative or (an informal) collective. This avoids the overhead of having to manage employees while still allowing the distribution of work loads across multiple people and the outsourcing of non-core tasks to dedicated specialists (e.g. accounting, legal and invoicing).

Re: I don’t want to grow my freelance design studio into an agency

#203
post #179
post #171

Earlier quoted context omitted.

> their job is to sell themselves and as many headcount and hours as they can squeeze into a contract Which is the complete inverse of what a client needs. It is what it is, but somehow it feels wrong. The agency should be providing value and to make the customer happy. It should charge what's appropriate without all this headcount business.

If a client doesn’t care, that means it also internally operates on principles different from just getting the job done. Sometimes it doesn’t even know what the job is. There’s a budget and a general direction, burn the money and hope the wheels are at the right angle. The fact that they spent millions on a simple result only helps upselling it further.

> If a client doesn’t care

More like what can they do about it?

It’s like if you go see a doctor and they tell you they will charge you a PM and BA for the surgery. What can you do about? No thanks?

Re: I don’t want to grow my freelance design studio into an agency

#204
post #77

Earlier quoted context omitted.

> However, what annoys me the most about Upwork are agencies larping as solo guys. Anytime I evaluate a guy who has a solo freelancer account and then mentions he has guys he works with that bill through him, I cut them lose. In the UK, you need to collect evidence that you are a contractor and not an employee of a company. One of the ways you can do this is by hiring people to do some or all of the contracted work o…

It’s the same in Denmark. It’s really annoying because companies will not commit to top tier salary, but are happy to pay for a freelancer. I guess it’s hard for middle managers to hire engineers that should paid a lot more than them. The result is that all the FTEs are mediocre, and freelancers are where the talent are.

Not in Denmark (or even UK), but if we hire perm HR get involved, while contractors are just procurement, and can be directly attached to a project which will be funded differently to BAU - when I hire a perm attached to a project I need to attest to what will happen to the employee when the project ends.

Re: I don’t want to grow my freelance design studio into an agency

#205
post #105

12 years into running a tiny digital consultancy with my wife. We've used an "associate" model for all that time - a posh way of saying "a network of trusted freelancers". We've deliberately chosen not to take on staff. We could have grown at many points along the way but haven't wanted to. Instead we've stayed small, focused and profitable. The benefits to growing would have been being able to take on bigger gigs, b…

Depending on how you actually do it and the part of the world you live in, this model could be illegal. For instance the case of freelancers almost exclusively working for one employer is in some countries interpreted as avoiding to pay all the taxes, healthcare and pension contributions for employees. The penalties might be severe, e.g. requiring to pay all of those things retroactively, which if you do it with enough people ends up being a lot of money.

Re: I don’t want to grow my freelance design studio into an agency

#206
post #105

12 years into running a tiny digital consultancy with my wife. We've used an "associate" model for all that time - a posh way of saying "a network of trusted freelancers". We've deliberately chosen not to take on staff. We could have grown at many points along the way but haven't wanted to. Instead we've stayed small, focused and profitable. The benefits to growing would have been being able to take on bigger gigs, b…

Depending on how you actually do it and the part of the world you live in, this model could be illegal. For instance the case of freelancers almost exclusively working for one employer is in some countries interpreted as avoiding to pay all the taxes, healthcare and pension contributions for employees. The penalties might be severe, e.g. requiring to pay all of those things retroactively, which if you do it with enou…

Where did he say that it included exclusively working for one employer?

Re: I don’t want to grow my freelance design studio into an agency

#207

Earlier quoted context omitted.

You make $500k/year from freelance contracts as a solo developer? What kind of companies and tech stack do you work with?

It's not clear if that's revenue or profit. Due to that intentional ambiguity I had to presume the latter.

Oops. I meant to say, former. The 500k is likely revenue, not what's left after expenses.

Re: I don’t want to grow my freelance design studio into an agency

#208
post #126

Earlier quoted context omitted.

Whatever the choice, it has to be deliberate. So many are people pleasers in disguise. They grow not because they actively choose, but because they can't say no. It causes that desperately stressed life when you're not active about these choices and boundaries. They're always in survival mode, chasing more more more, without ever being deliberate and reflective about their actions. It winds up being the end of a lot…

Man, you've basically laid out in a paragraph what took me 3 years to work out. Only started properly setting boundaries in the last year or so, no regrets.

No disrespect to the previous comment, which is well put, but just to say you shouldn't be hard on yourself there at all - everyone and every company has different boundaries to figure out, and it's great you've found yours.

Re: I don’t want to grow my freelance design studio into an agency

#209
post #206

Earlier quoted context omitted.

Depending on how you actually do it and the part of the world you live in, this model could be illegal. For instance the case of freelancers almost exclusively working for one employer is in some countries interpreted as avoiding to pay all the taxes, healthcare and pension contributions for employees. The penalties might be severe, e.g. requiring to pay all of those things retroactively, which if you do it with enou…

Where did he say that it included exclusively working for one employer?

Where did I say he did? The first word of my post is "depending" and the first part of the first sentence is "Depending on how you actually do it", so it was pretty hard to miss that it depends.

Re: I don’t want to grow my freelance design studio into an agency

#210
post #158
post #20

Earlier quoted context omitted.

> Can someone explain what the appeal of solo freelancing is in the age of bountiful remote work? Income multipliers, flexibility and being treated like an adult are a few reasons that come to mind. For example, with salaried work your income is mostly fixed (minus a pre-defined'ish bonus or options, etc.). With contract work you might land a $30,000 contract that takes 2 weeks to do because the focus is on providing…

I’m still not sold. How often are you getting $30k contracts that can be done in two weeks? Remote workers can still travel the world and work remotely if they can tolerate the timezone differences. I just got done with a rental in Costa Rica where I lived by the beach for 40 days this summer while working remote. I don’t particularly care if I have to ask permission to get stuff done in a company. This is actually o…

> How often are you getting $30k contracts that can be done in two weeks?

Often enough, but it's not always exactly 30k for 2 weeks. It's opportunities that lend itself well to making a client really happy while being able to maximize my skills in a way that makes sense for both parties. For example if I spend 20 years honing in on a surrounding skill set and can deliver something quickly then everyone wins. The client gets a high quality product delivered quickly and I get to work less "butt in chair" hours since I've built up the tools and skills to perform the work in less time.

The above is also guilt free because the deliverable is the outcome, not a working agreement that you'll be working 40-45 hours a week.

> Remote workers can still travel the world and work remotely if they can tolerate the timezone differences.

Oftentimes it's not up to you. Your role may require you to be in a specific timezone or overlap with X timezone for N hours. More importantly a business may disallow you from operating out of different countries for an extended period of time because they're not set up to file taxes in those countries. You may also end up getting a big pay cut from wanting to move a few states over. Even if you could move to a different country, if your company subscribes to adjusting your pay for cost of living you may end up getting 20-30% of your salary if you occupied a low cost country.

> I don’t particularly care if I have to ask permission to get stuff done in a company. This is actually one of the reasons I spend a lot of time doing nothing: I’m blocked by other people and am waiting for them to resolve something or get their specs straightened out

Fair enough. I'm the complete opposite in the sense that I really value having full autonomy or at least enough to make decisions without needing to ask for every detail. Being blocked for me is bad, especially if you're blocked on 6 different things and you're forced to break up your time as if you were a CPU getting sliced for execution time.

Everyone says multi-tasking produces poor results but so many businesses create environments where the only option is to multi-task because otherwise nothing would ever get done.

I want to work because the work itself is what motivates me. I really like learning new things, tinkering, seeing it all come together, shipping it to production and watching it positively impact the teams and customers I work with. Being paid to able to do that is a true gift of the world.

Not being able to do that efficiently because of non-changeable unreasonable policies made by someone who isn't doing the work is pretty much the only thing that causes me burnout.

> Everything I’ve heard about freelancing has told me it’s not going to be this easy. It’s going to be a pain in the ass talking with clients all the time and stressing about keeping money coming in.

It's all about trade offs. I don't find talking to clients a pain in the ass, it's one of my favorite parts of the job. Money is a stressor for full time positions too. You can be laid-off at any moment or fired and that's that. It's fully out of your control and your eggs are all in 1 basket. You may also be placed into a non-favorable position if your working agreement or environment changes but you can't do anything about it since if you quit then you have nothing. In my opinion that's not going to create a good working environment.

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