The secret to being a successful freelancer

Too often, freelancers are told they have to choose between being creative or making money. Financial advisor Paco de Leon debunks this thinking -- and gives practical advice on how you can set yourself apart and get paid what you deserve.

I used to be really bad at earning money.

Early on, I was
a junior financial planner,

and my job was to help people
manage their wealth.

But my salary was so low
that I started riding my bike to work

to save money on gas,

and I started a garden
to save money on food.

Now I run a bookkeeping agency

that specifically serves
creative businesses.

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This might sound strange
coming from a former financial planner,

but I'm not a fan of capitalism.

Almost everyone I work with and know
and love is an artist, including me.

So I know, the way the system is set up,

freelancers and artists
are too often way underpaid.

They often feel like focusing on money
will corrupt their creativity,

or they think they're just not
that good at making money anyway.

But the truth is, we can be good at it,

and in fact, we have to be,

because our freedom is at stake:

our freedom to create, to influence

and to use the power of money

to change the very exploitation
that keeps artists broke to begin with.

I'm not struggling anymore,

and I've learned a lot
since being a financial planner,

and I just wanted to share that knowledge.

So here's what I've learned and done.

One: what you do.

When it comes to your offer,

you have to be able
to answer the following question:

Why would anyone hire you
over your competition?

If you can't answer that question,
neither can your potential clients,

which means you can't charge more for
the thing that makes your work special.

Price becomes a differentiator,
and bidding becomes a race to the bottom.

What sets you apart could be what you do,
why you do it or how you do it:

a string quartet that arranges
and plays hip-hop medleys

or a branding firm that has a unique way
of marketing technology to Baby Boomers

or a prop and set designer

who's known for crafting
beautiful papier-mâché miniatures.

Two: who you do it for.

After you determine what sets you apart,

position yourself for your ideal customer.

In order for this to be effective,
you must narrow your focus.

Without focus, you try to be
everything for everyone,

and you end up being nothing for nobody.

Then, use the kind of language
that appeals to your target customer.

Create the kind of marketing materials or
the kind of portfolio that attracts them.

Then be in the real-life
and virtual places they are.

For example, if you're a videographer

and you want to work
with mission-driven companies

that bring clean water
to places where it's scarce,

create a video trailer that shows exactly
how the power of film moves people to act.

Three: when it's time to talk money,
understand the real value that you create.

You're not just being compensated
for the time that you work on a project.

You're being compensated
for everything you've learned

and everything you've done over the years

that make you excellent at what you do.

Ask yourself questions like:

How does your service
impact a customer's bottom line?

How do you create efficiencies
that generate cost savings?

How much money can your customer make

from a product that
you helped them create?

For example, if you're a freelancer
that helps YouTube creators

develop merch like T-shirts and dad hats,

mention how much money
you've helped your clients generate.

Or, if you've created a diversity
and inclusion training program

for corporations,

talk about how much time and money
a company saves purchasing your product

instead of developing their own.

Four: make sure your price includes
your taxes, your overhead and your profit.

When you're a freelancer,
you are your own business,

so you're responsible for marketing,

accounting, taxes, legal, insurance,

overhead and profit.

If you price too low,

you've already negotiated
against yourself.

And if a potential customer
balks at your pricing,

don't apologize.

Just say that you're running a business

and you can't afford
to do the work for less.

Instead of corrupting your creativity,

focusing on making more money
could actually enhance it

by giving you the freedom of choice.

Because when you earn enough
working with clients that value your work,

you don't have to compromise
by working with clients who don't.