I’ve started watching this YouTube channel called London Eats. Not sure why. Maybe because I find it relaxing?
This guy zooming around the capital in the dark making food and parcel deliveries on his electric bikes and scooters. It got me thinking about the gig economy. How these workers don’t have a traditional employment contract, but are paid a fee per job.
After four hours of work this guy earned less than minimum wage and called it a good night. How? Less than minimum wage? Is the gig economy a way for employers to hire cheap labour? The apps these workers use must take a cut of the profits although they do offer meagre bonus payments if you work harder, faster, completing more deliveries within certain time periods.
The London Eats guy augments his meagre earnings by filming his shifts and turning them into quality viewing. He also confesses to having a day job so his shifts only need to be a few hours. He also sells swag from his channel and has sponsorship from various companies. So he’s making ‘his gig’ work. But I’m curious how others are faring from this industry, being paid per delivery.
I guess it’s nothing new. In my youth I worked for a company that paid me 1p for every flyer I delivered. If I could deliver one a minute that’s 60p an hour! Sounded great as a kid needing to augment his pocket money, but even with inflation an adult wouldn’t do it. Explains why so many of us were school age delivering those flyers. Child labour.
The gig economy is here to stay. It makes sense for the employers as it’s cheap labour. And as there appears to be no shortage of willing workers it must be profitable enough for some. Or maybe they just like working when they want to, being by themselves travelling around the city listening to their tunes going door to door, having no in-person boss.
Category: freelance
The work-life balance
Having a work-life balance is very important. You don’t live to work, you work to live. You work to pay the bills and have a comfortable life.
I’ve previously mentioned that it’s worth knowing how much it costs to fund your lifestyle. This is very important so you know how much you need to earn in order to keep a roof over your head and food on the table. If you can work smarter, not harder, all the better. It’s a great feeling to know that you only need to work three to six months a year to pay the bills for the whole year. You can then take time off or have long breaks between employments.
When I first started dating my wife (to-be), she was an employee with an annual holiday allowance of 25-days. We would look at the calendar for the upcoming year and note all the bank holidays and take those 25-days and use them to make weekends longer here and there and bank-holiday weekends even longer. We worked out that we could have short breaks every month. We would plan out where we were going next, somewhere in our home country or maybe abroad. Both the holiday itself and the anticipation of the upcoming holiday helped maintain a great work-life balance. We would often have 12 holidays a year. One year we had 14!
Another thing I like to do is to take “me days”. These are days when I know that no one is going to be home during the day. My wife will be out and the kids will be at school and I’ll have the place to myself. I’ll book it a month in advance so both my clients and family are ok with the date. Then I’ll start planning what food I’ll have. Maybe pizza or a takeaway. What snacks I’ll have and what beer I’ll be drinking. Not the large packs of beer but a carefully chosen selection of real ales from independent breweries. Then I’ll choose what video game I’ll be playing or movies I’ll watch. It may sound strange to you but this is heaven to me. I’ll get up, have my favourite breakfast and I’ll probably stay in my PJs all day long. I’ll play my video games and watch TV with no interruptions. After lunch I’ll open my first beer and continue gaming until the family comes home. Sometimes they’ll just leave me gaming till bedtime. Bliss!
Your “me day” may be different. Maybe you prefer a spa day or a day at the golf course or racetrack. Whatever your preference, the key is to just take a me day every once in a while to unwind, chill-out and enjoy yourself.
I had a colleague once to whom I explained the concept of ‘me days’ and who informed me that he couldn’t do it as he’ll be leaving money on the table. His thinking was that a day off meant a day’s money lost. Going from contract to contract working every day to earn as much money as you can is no way to live. Would you not rather enjoy what you do and be able to afford to take time off whenever you wanted?
Another rule of mine is that I don’t work my birthday. It’s the biggest ‘me day’ of the year so no way am I working that day. I’m far too busy celebrating me.
One other thing I’d like to point out about a good work-life balance is that the power people have over you is an illusion. Think about that for a second. When you are interviewing and are negotiating terms, at no point in the conversation does your new client say “..and I will have the right to berate you, to talk down at you, to shout at you when I feel like it, and generally treat you badly”, yet this happens. I’ve had clients shout at me as if they own me. They don’t. If you let them treat you this way then you are giving them the illusion of power and they will continue and this can lead to stress, anxiety and other mental health issues developing. The trick is to nip this in the bud quickly. Do it calmly and professionally but make sure that they understand that this is not acceptable and that if they cannot continue to be professional then you are prepared to walk away from the contract.
So remember that your health and well-being comes first. You are working so that you and your family can have a good life. You are not working just to work or just to earn money. You want a great life and you need money to do that, but not at the expense of your well-being.
Family and health come first!
Job security is a myth
In the past, many people would leave education and commit to a single company for their entire career, retiring after decades of service. Those days are behind us. Today, both freelancers and employees can expect to work for more than five companies over their careers.
Gaining experience across different companies provides valuable insights into what works and what doesn’t. Each role offers lessons, whether positive or negative. You’ll observe various approaches to solving common problems and may even bring your past experiences to the table, helping to address challenges in new ways.
Diversity in your career can be both enriching and enjoyable. Working across different sectors can broaden your skill set and expose you to unique experiences. For instance, I once found myself back in an office where I had previously worked, but with a different client, project manager, and team—only I was the constant. In another instance, I jokingly noted in a meeting that, if awarded the contract, I would have worked on every floor of the building, having already tackled projects on four out of five floors for various clients. I got the contract and completed the set!
Embrace new opportunities and don’t shy away from stepping outside your comfort zone—but always manage the associated risks.
Whenever I join a new company, I often encounter employees who express admiration for freelancing but deem it too risky. Even after discussing risk mitigation strategies, they often cling to the notion of job security. I once had a conversation with two managers in the company canteen. When I asked them what they meant by “job security,” they replied, “We are both managers here, so the company must give us three months’ notice.”
I then pointed out, “So you’re saying you have three months of job security?” To which they said yes. I responded, “I’ve just signed a one-year contract with your employer that neither side can terminate. By your definition, I actually have more job security than you do.” That made them reconsider their perspective.
To me, the concept of job security is a myth—largely a construct employers use to retain key talent. In my experience, companies prioritise their shareholders and profit margins. If you lack a vested interest, you may find yourself expendable. Look around: businesses are sold, and loyal employees are let go to boost profits. Ultimately, your primary loyalty should be to yourself and your family’s financial well-being.
ROI
Pricing yourself can be difficult at the start. You need a baseline to start from. You could ask people working similar roles with a similar level of experience, or look at job sites and see what the going rate tends to be in your area. In time you’ll get a feel for the market and what fees you can charge.
Some may worry that they are charging too much and can’t fathom why a particular client would pay a certain amount for them. This is due to a lack of understanding about ROI. As an example, early on in my career I worked a contract where the client assembled a team of six to work for six months to build a software system that they could sell to their clients. The budget was around £1M. This seemed crazy and the rates we were being paid were amazing at the time. When the work was completed to the required level of quality within the set timeframe the client sold the service for ten times the budget. To them this was a good ROI. They were happy to pay above the going rate in order to ensure that they got the right people for the job that could complete it on time allowing them to sell it at a large profit.
So knowing what you are worth is all about understanding what your clients are getting out of the deal. See things from their perspective. By paying a higher fee for you they are getting more experience, a wider skill-set. and all the extras that you offer.
A good tip is to never discuss your rate with anyone. No one knows your current rate except you and the client paying your invoices. Clients are not allowed to share that information with each other. If you want to increase your fees with the next client it’s best to start with a figure higher than what you are asking so that you can be negotiated down to what you want and so both sides feel like they are getting a deal.
When using agents you most likely won’t know what the end client is paying for your services as the agent will take a cut so your negotiations will be with the agent. In my experience agents can take anywhere from ten to thirty percent. It takes time and practice but you can usually work out what the agent’s cut is. The skill is in being able to squeeze that down as low as possible.
A good tip when negotiating a new contract is to not play clients off against each other. It is considered bad practice and leaves a bad taste in a client’s mouth. They have long memories and they’ll remember how you played them the next time you come looking for work.
When thinking about your fees it’s worth remembering the effort it took to acquire those skills and experience. The education, qualifications, training and on-the-job experience.
A good example I like to use to help explain ROI is the story of the guy with the piece of chalk:
A factory owner experiences a fault on a production line halting all production. He’s losing money each hour of downtime. He calls in an expert who walks around the factory floor and places a chalk X mark against the side of a machine saying replace the main circuit board in here and your problem will be fixed. The circuit board is replaced and production resumes. A week later the business owner receives an invoice for £10,000. He immediately phones the expert demanding a breakdown of his invoice as he was only there ten minutes! He receives the following:
Piece of chalk: 50p
Knowing where to place chalk mark: £9,999.50
Having confidence in yourself
Having confidence in oneself may seem simple, yet many struggle with it. This is why the self-help industry thrives on selling books and resources aimed at boosting self-esteem.
True confidence stems from being skilled at something and recognizing both your strengths and limitations. Honesty about your capabilities is key.
As a QA professional with over two decades of experience, I’ve tested software, systems, hardware, and security. I’ve often found myself outside my comfort zone, presenting to upper management, but my extensive background means that most client requests are well within my expertise. This familiarity breeds confidence, which is evident in meetings.
However, I also recognize my limits. Occasionally, a client may request something unfamiliar, and while I could potentially handle it, I’ve seen many professionals falsely claim, “I can do that,” while privately worrying about how to manage the task. This disingenuous confidence can lead to anxiety and stress, overshadowing their performance.
I advocate for transparency with clients. I am confident in the services I provide and understand my capabilities. If a client asks for something outside my usual scope, I address it openly, highlighting any risks involved and suggesting ways to mitigate them. I ensure that any potential risks are clearly documented and agreed upon by all parties.
For instance, one client sought my help to test a new system and develop database update scripts based on my findings. I agreed but insisted on a written agreement stating that upgrade script development fell outside my typical offerings. We outlined that the client would assume responsibility for the scripts and provide staff for acceptance testing. This way, they received what they needed without adding undue risk on my part.
In another instance, a client unexpectedly designated me as the project DBA in a team meeting, which took me by surprise since that wasn’t part of our agreement. When I calmly explained that I wasn’t a DBA and refused to take on the extra responsibility, the client became agitated. I maintained my composure and suggested that it might be best for us to part ways amicably. After a brief discussion with their second-in-command, they decided to retain me for the original role, realising their budget constraints.
From these experiences, I’ve learned crucial lessons:
1. Have confidence in yourself.
2. Only accept work you’re confident you can handle.
3. Acknowledge your skills and experience.
4. Understand your limitations.
5. Be honest with clients about your capabilities, especially regarding tasks outside your expertise. If you choose to take on such work, ensure all risks are documented and agreed upon.
Building genuine confidence is about recognizing your value while being truthful about your limits. This approach not only fosters trust with clients but also maintains your peace of mind.
Never say no to clients
Clients often react poorly to the word “no”, so I make it a point to avoid using it. This doesn’t mean I always agree; rather, I frame my responses differently. If a client proposes an idea that seems unreasonable, I might say, “Sure, but here’s what it will cost in terms of time, resources, and money.” Often, they haven’t fully considered the implications themselves and are looking to you for guidance. By steering them toward a more viable solution, you not only help them think critically but also build a reputation as someone who offers constructive feedback rather than just shutting them down.
Being a source of positivity can pay off significantly. Admittedly, it can be challenging, especially when projects go awry or when working with difficult individuals in a toxic environment. In such moments, maintaining your composure and staying positive can make a world of difference.
It’s also wise to distance yourself from negative people. They tend to view everything through a pessimistic lens, and their attitude can be contagious. If possible, avoid these individuals; you’ll be glad you did.
Occasionally, you may encounter opportunities that lie outside your comfort zone but sound intriguing. In these cases, I advocate for saying yes while also mitigating any risks. Be transparent about your skills and experience, and clearly outline any potential challenges. Once everything is documented, agreed upon, and approved, these projects can become both rewarding and profitable. Don’t hesitate to embrace new experiences, but always manage the associated risks.
Cultivating a consistently positive attitude takes practice, but the rewards are worth it. If you find yourself in a situation or workplace that you don’t enjoy, prioritize your mental well-being. Seek a way to exit the contract gracefully, ensuring you leave on good terms.
Everything is negotiable
Remember that everything is negotiable. I’ve never signed a standard contract without reviewing it first. Clients often present their “boilerplate” agreements, expecting you to sign without question. I never have. They might claim that their legal team has meticulously vetted it, and that everyone else signs, but I approach it differently.
I read every contract thoroughly to ensure it aligns with what we’ve agreed upon. Does it clearly outline the services I’m providing? Am I protected against unforeseen circumstances? You’d be surprised how many clauses demand that you return to fix issues without specifying the criteria or timeline. Clarity is crucial; everything should be explicitly stated and limited to the contract’s duration, as you likely won’t be available for follow-ups after moving on to another client.
During negotiations, it’s vital to clearly define the services you offer. Ensure that what you provide, along with the fees and timelines, is documented in the contract’s schedule of services. This clarity helps prevent scope creep. If a client attempts to impose additional work not agreed upon upfront, you can reference the signed contract to negotiate any extras.
When dealing with sensitive information, I typically require a Non-Disclosure Agreement (NDA) to protect both parties.
However, despite thorough negotiations and careful wording, some clients still breach contracts. I’ve encountered situations where clients terminate without notice because their client has stopped paying, expecting me to absorb the loss. In such cases, I usually walk away, knowing I can find work elsewhere to mitigate potential losses. If a client insists I perform tasks outside our agreement, I politely refuse and suggest renegotiating for any additional work.
The key is to remain professional and courteous, even if the client does not.
It pays to be flexible
In the world of freelance work, everything is negotiable. It’s surprising to see fellow freelancers who limit themselves to seeking only 9-to-5 roles for fixed durations of 3, 6, 9 months, or even a year. They often dismiss opportunities for short-term consulting, part-time engagements, or simultaneous projects with multiple clients. This rigidity can lead to missed opportunities.
One client once mentioned he couldn’t afford me because he didn’t have enough work to keep me occupied full-time for three months. I asked why he felt that was necessary. He explained that all the contractors he had previously worked with insisted on full-time commitments of that length.
I prefer to remain flexible, and this approach has opened many doors for me, leading to diverse and interesting opportunities. By flexibility, I mean:
Availability: I’m open to a variety of engagement lengths—whether it’s a few hours of consulting, a day here or there, a week, a month, or longer contracts of 3, 6, 9, or even 12 months. I’m also willing to be available on short notice, including weekends and evenings when needed.
Payment Model: I’m comfortable with different payment structures, whether it’s hourly, daily, or on a project basis, often with milestone payments leading to a final payment upon completion.
Services Offered: I provide a broad range of services, adjusting my fees based on what the client needs, deadlines, and the length of the contract.
It’s crucial not to take offence or get upset when negotiating. Some clients might try to negotiate hard, suggesting they don’t pay much for your level of service. In those situations, it’s best to thank them for their time and move on. If they can’t afford your rate, there are plenty of other clients out there that can.
Another important tip is to prepare for the unexpected. As the saying goes, plans often become obsolete the moment they’re created. Priorities shift, budgets fluctuate, and clients change their minds. Contracts might end sooner than expected, or you may find yourself taking on additional work.
Staying adaptable is key to thriving in freelance work. Embrace flexibility, and you’ll find many rewarding opportunities.