On average, HoneyBook found that women are making 32 percent less than men for the same exact job in the creative economy. That’s despite 80 percent having college and graduate degrees and performing similar work.

And while we’re probably all familiar with the wage gap in the traditional 9-to-5 salaried world, it’s disheartening to see this disparity playing out in the gig-economy where individuals are technically setting their own rates and fees. Especially since freelancing may be the future of employment as more and more young Americans (and people all across the globe) are working for themselves.

Why are female freelancers underpaid?

Figuring out why this pay gap exists is a complex issue, but there are some clear insights from the data. HoneyBook came to this conclusion at the end of their report:

Of respondents who are aware that there is pay gap, the majority pointed to negotiating power as the reason the gender pay gap persists, but according to the data, prices aren’t being negotiated. That means female creatives are already charging too little for their services. Simply stated: female creative entrepreneurs need to charge more to begin closing the gender pay gap.

A few things to take away from this. First being that this implies that many respondents were unaware of the pay gap that exists among freelancers. In fact, 63% surveyed believed that this pay gap didn’t exist.

So education, or putting a spotlight on the issue, is a key step the industry as a whole needs to take. Women need to realize they are undercharging, and men need to realize that they are being paid more than their female peers.

Furthermore, if women are unwilling to negotiate for higher rates, as HoneyBook states, then education in this specific area is needed; education on why and how to negotiate. If the freelancer culture makes it hard for women to be assertive, then that’s something that can be addressed head on.

Anecdotal evidence of why this happens.

We contacted two women who freelance and presented them with the fact of the gender pay gap. This is what they had to say about their own experiences:

Kym Miller

I’ve been a freelance editor and manuscript reviewer off and on for twenty years. I’ve always found it tricky coming up with my rates on my own. A couple things happened to me just a few years ago that made me rethink my prices. One, my daughter (in a bout of honesty before leaving the country with the Peace Corps!) flat out told me I wasn’t charging enough for what I did. Then, I was talking to a guy friend of mine who was also freelancing in my industry. I told him I was getting push back for charging my rate, and when I told him what my rate was, he was aghast; he was charging twice as much for the same work!

 

I think this idea of “not pushing back” comes on early for women. I have three daughters and my husband and I have had many babysitters over the years. When we ask them “what do you charge?” across the board, the female babysitters say “whatever you think is right,” while the male babysitters always had a number. Their rate wasn’t unreasonable or anything, but it was very noticeable that every guy had a rate in mind while every girl didn’t.

Lauren Butler

I was brought up in sort of a suppressive culture for women. I always felt uncomfortable asking for stuff I wanted or needed, and I didn’t get that much support for my abilities. I think that led to not understanding my value. It was different for men. They were more supported to go out there and it was ok for them to be angry and ask for what they wanted. It seemed guys would get jobs easier. For women, life seemed more about pleasing other people rather than putting yourself first.

 

I do freelance graphic design work and I do feel like I should be charging more. I’m confident in my abilities, but it’s such a psychological thing to actually charge more. You do need support from peers to actually do it and ask for it. So my rates haven’t changed much, because I put my relationship with my clients first, and that keeps putting me in this cycle of not charging enough.

Practical advice in closing the gender wage gap.

As discussed previously, the first step is knowing that there is a gap in the first place. It may be a no-brainer to some people, but the numbers above show that the majority of freelancers are simply unaware. So talk to each other about it, men and women. While the topic of money and freelancing rates are often difficult to discuss, the more the freelance industry can be open about this, the faster the gap will close. Need some more data to fire you up about it? Take this stat from HoneyBook’s analysis:

That’s just nuts.

Next, for female freelancers, know your value in two different, but equally important ways: 1) literally know your value in monetary terms. Find out what male peers are making by asking around and researching on online boards where freelancers list their rates; 2) metaphorically know your value in the sense that you absolutely do deserve to be compensated fairly for the work that you are doing, just as much as a male freelancer would command.

Kym had this to say on getting over the psychological hurdle:

I didn’t want to charge more, but I should have charged more. I wasn’t really afraid of losing clients, I was more afraid of the negative reaction they might have even if they agreed. Maybe it’s that whole female thing of taking care of people’s emotions and worrying about relationships. We’re not supposed to be pushy. See, women get labeled pushy while men are called assertive. My advice is to do more research on what others charge. And ask men! Don’t just ask women. Ask many different people, even in different cities.

Finally, doing the hard part of bringing yourself to the negotiating table is the crux of fixing this issue. Clients won’t give female freelancers (or male freelancers for that matter) higher rates unless you actually ask. Yes, some onus is on the employers (male or female) to be aware of any disparity when working with freelancers, but for most businesses they may only have one freelancer; meaning, the employer may not have context between male and female pay rates. The responsibility ultimately falls to the freelancer to ask.

Lauren gave this advice:

Be practical about it. Set emotions aside. Also, see if you can come to a point in your career where you don’t need to charge hourly anymore. Charging a flat rate can often get you to where you want to be, faster. Consider your expenses and work out what you need, and start there when you’re negotiating.

Did you know about the gender pay gap among freelancers? We’d love to hear your stories or take on this matter. Sound off in the comments below.

The post Busting Female Freelancers Through the Glass Ceiling appeared first on Billy Accounting.

One of the biggest headaches that plague freelancers is trying to compete with much (much!) cheaper workers abroad. We live in a global marketplace, and when companies need design, coding, even administrative tasks done, it’s becoming common practice to hire a contractor from another continent. Or maybe even further.

 

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In fact, the freelance economy in India (which some reports state is the largest freelancer market in the world) is currently booming. Over 40% of freelancers there saw their business grow “very fast” in the last year, and they cover everything from photography to content writing to mobile app development. And because they can afford to (or have to) charge less per hour for their work, freelancers in America are finding it hard to compete.

So how can freelancers deal with being undercut by grossly underpriced workers overseas? Here are some tips of what you can do to stay competitive.

1. Provide excellent communication.

While many freelancers overseas are proficient at English, not being fluent and not understanding localized customs and expectations can be a pain for many companies. When good communication isn’t there, it makes the job tougher, longer, and especially more time-consuming on the client’s end. So, what you should bring to the table is clear, efficient, and one-and-done communication.

If the clients you’re pitching to don’t think good communication is important, they probably don’t know that it can cost them real money. A study by Creative Communications & Training showed that:

a company with 100 employees can expect to lose approximately $450,000 a year or more because of email blunders, inefficiencies, and misunderstandings.

Foreign workers without great communication skills are more prone to do the work wrong, take longer to deliver, or simply take up too much client time. By being an excellent communicator, you’ll have a leg-up on overseas competition. Of course, make sure you are actually better! Learn how to improve your communication skills, and know that it’s a hugely valuable differentiator for your services.

2. Deliver quality work.

You can’t compete on price when someone abroad is willing to work for $4/hour. But you can absolutely deliver a better product and customer experience than them. Keep in mind the old adage of what happens when a $5 barber sets up shop right next to an experienced, quality barbershop:

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Companies quickly come to understand “you get what you pay for” and after being burned by shoddy work from cheap freelancers, they’ll come looking for someone who comes recommended with a history of delivering quality work. These are the businesses who you want to work with, who will gladly pay your hourly rate. The companies that haven’t learned their lesson yet? Don’t bother chasing after them; they’ve got some growing up to do.

Once you do good work, it’s important to become your own marketer. You should have killer examples of your best work in your portfolio that speaks to your level of quality. So, always make sure you do the following after delivering your project to your client:

• Make sure they are happy with every aspect of the job (ie communication, time frame, etc).
• Ask for a written recommendation (to use on your website or in emails).
• Ask for referrals of other businesses who might need your services.
• Ask for a rating if you’re listed on sites like Google Business, Yelp, UpWork, Facebook, etc

Your freelancer brand should be that of being worth the price. Your customers should, at the end of the project, feel like they got a bargain at your hourly rate. If you can manage this, you’ll always have clients lined up to pay you what you’re worth.

3. Stay local.

Competing with cheaper freelancers on online job boards can get frustrating. The best course of action? Not having to use those job boards at all. Sure, that’s easier said than done. But we’re constantly surprised how little effort many freelancers put into finding local clients.

[et_pb_image_n10s admin_label=”img: couch with blanket” _builder_version=”3.0.98″ src=”http://billyapp.com/wp-content/uploads/2018/01/lazy-freelancer-billyapp-1-1.jpg” size=”full” n10s_type=”rochester” title2_overlay=”I’m sure the clients will come to me when they’re ready.” caption_orientation=”left” show_in_lightbox=”off” image_as_url=”off” url_new_window=”off” include_button=”off” button_url_new_window=”off” button_position=”top-left” mix_blend_mode=”normal” use_overlay_gradient=”off” overlay_orientation=”to right” overlay_orientation_hover=”to right” sticky=”off” align=”left” always_center_on_mobile=”on” custom_button=”off” button_icon_placement=”right” animation=”left” /]

Some lazy freelancers think sending out a few cold emails and hitting a job board for fifteen minutes is the maximum effort they can put in to finding new jobs. Meanwhile, the freelancers who always have work are on their feet, talking to local business owners about what their needs are and what services could be offered to help them.

Obviously, overseas workers can’t compete on this level at all. Since you actually live in the country, state, or city that these businesses operate in, it’s a big advantage. First, having in-person meetings is a huge plus. Companies always appreciate if you can make the trek into their offices to have a meet-and-greet or a kick-off meeting. Second, you can be proactive and seek these businesses out even before they start looking for a freelancer. Does that small-business down the street need design work? Stop by and and ask.

And third, as you build up referrals, word-of-mouth will probably net you a good base of local potential clients. These leads are freelancer gold, and they’re practically unmineable by overseas talent. Work these leads and you’ll never have to compete with international workers again.

As the global marketplace matures, and as international workers become more proficient at English and delivering quality for less, now is the time to hustle to get more freelance clients. You have the advantages listed above, so now is the time to act.

And on this note, keep in mind what types of freelancing jobs can be easily outsourced. Light coding? Probably. Content writing? Probably not. Is your freelancing service potentially on the chopping block to be sacrificed to cheaper workers abroad? If so, as tough as it may be, you may want to expand your skillset into areas not so easily replicated.

The post How to Compete with Underpriced Overseas Freelancers appeared first on Billy Accounting.

The post How to Use LinkedIn to Land 5 – 8 Leads / Day WithOUT Advertising appeared first on Billy Accounting.

We’re here to help! Let’s break down what makes a great resume in 11 easy steps.

Click here to access the Invoice Template

1. Your logo – This is the first place on the page (Western) readers’ eyes will naturally go, so it’s where you should put your logo. Not only does it immediately convey who this invoice is from, but it’s also your opportunity to put your personal brand in their mind. Keep it simple, keep it memorable. Don’t have a logo? Not to worry. You can just put your name there as well.

2. Your company information – A handy place to put all your contact information, and especially important if your clients are paying you by check. We’ve also seen this information in the footer of invoices, but this is the classic position and easy for your clients to see at a glance.

3. Invoice details – We can’t stress enough the importance of writing the word “INVOICE” in big, bold letters. This tells the client exactly what the document is, and why they’re looking at it. Don’t put any barriers to getting paid on time! Include the invoice number (001, 002, etc) and the date (month of, week of, specific time period) for your and their reference. This is an important detail so you can keep track of what’s incoming.

4. Client information – So you and your client can be sure you didn’t send the wrong invoice, write down at least the company name (address is optional). If you’re working for an individual, use his/her name. Also, make a mental note to check this region before you email it out. The last thing you want to do is send the wrong invoice to the wrong client.

5. Payment notice – “Payment Due Upon Receipt” lets the client know not to dilly-dally with your dough. If you want to get more descriptive, you can write “Payment Due within X Days Upon Receipt”. It’s where you can use natural language to describe your payment terms (as opposed to section 10 below) if you’d like.

6. Item descriptions – Spelling out what your projects were helps your client understand exactly what you’re invoicing for. Keep the item name itself short, maybe 2-3 words (eg. “Marketing Consulting” or “Video Editing”) and use the description line to expand on each item as necessary.

7. Numbers – Don’t give your client extra work to do. Itemize the cost of each job or your hourly rate under Unit Cost (eg. “$100/project” or “$30/hour”), and the quantity (number of projects, or hours), so you can do the math for yourself. Writing everything out ensures that there are no mistakes. Note: The sections under Subtotal (Tax and Discounts) are optional. If your rates are hourly and pretty basic, you can remove these sections from your invoice.

8. Remarks – Does anything need extra explanation? Was this a shortened time period? Is there a late fee incurred? Anything that is out of the ordinary with your invoice should go into this textbox. Bullet points are best for legibility and for brevity. Anything that needs more explaining than what fits in this small box is probably a conversation to have on the phone with your client.

9. Payment methods – While your accepted payment terms should have been previously set in either your conversations with your client before the project began, or via a freelancer’s agreement/contract, it never hurts to remind them here. After all, your client’s accounts receivable may not have been privy to what you discussed.

10. Terms & Conditions – The technical explanation of #5 above. Here you spell out when your money is due (eg. Net30, Net60, etc) and if there will be late fees incurred if their payment doesn’t arrive on time.

11. Footer – It never hurts to be polite!

There you go: a crash-course into what an invoice should look like and contain. Like this template? You’re in luck! We’ve saved it as an editable Google Doc for you to use, completely free. Click here to access the Invoice Template

For Billy users, you can do this too. Click here for instructions to make your Billy invoices look just like this. 

The post The Anatomy of a Great Invoice appeared first on Billy Accounting.

Billy (www.billyapp.com), isn’t just a handsome cartoon fellow that we decided to write about, but a Refersion customer who is in the business of helping small businesses with their financials. We spoke with Joshua Waldman, Director of Operations at Billy, about the service Billy provides to SMBs and how they’ve grown their business with affiliate marketing.

So why the need for Billy? What pain points does the BillyApp solve?

JW: When it comes to accounting software, the options for entrepreneurs are somewhat limited. Quickbooks, Xero, these are great programs but they have a lot of features that small businesses don’t need. And you pay for them anyway. These programs are built for accountants, not for small companies where a couple people do everything.

For example, if you’re a freelance writer, and you just need to keep track of receipts, invoices, and expenses, all you need is a simple tool to help you organize everything. That’s what Billy is. It’s accounting but not for accountants. It’s all about time-saving.

Our tool automatically generates your next month’s invoice. It can send reminders to your clients, attach a late fee, and it’s very easy to see within the app who owes you money and help you manage your invoices. It can send quotes, which can be signed digitally, and turn that quote into an invoice. And through Billy, clients can pay you via credit card, and on average this means you get paid 10 days sooner than via a check.

If you want to read more about the feature of the Billy app, click here.

The post Interview with Joshua Waldman of Billy Accounting appeared first on Billy Accounting.