Ways to Ensure Payment for Independent Contractors

You have a prospective client or a project on the line and now all you have to do is close the deal.  How do you bid the project out?  What is the best way to quote a rate?  There might not be a 100% surefire method, but I have a few techniques I have found helpful.

A lot of my bidding and rate quoting is based on personal knowledge and proximity to my prospective employer.  When I am able to meet people face-to-face, I am usually able to gauge their interest in working with me and their general budgetary concerns.  When I work with long-distance clients or with clients via internet, I usually have to spell my rates out more clearly and my closing rate isn’t nearly as great as my in-person clients.

Working as an independent contractor, I always ask for a certain percentage upfront on all jobs over $500.  I generally ask for one-third upfront.  That just ensures that my client is serious, fully engaged in the process, and it makes it next to impossible for client not to pay.

Once I have completed the first phase of proofs, I usually collect the second third of the project.  I have found this makes setting appointments with clients to review their project much easier.  It also makes it difficult for clients to take my design work and develop it themselves.

After the project is completed to the client’s satisfaction, I give them the final bill with any and all necessary corrections.  It is not uncommon for clients to initially want to put in some “sweat” equity on their project.  Very often when it comes time for clients to deliver their end of the bargain, they do not.  That is why I have to correct their final bill.  I always promise to keep their final bill within ten percent of the original estimate unless I have received their written consent.

As an independent contractor, I use these steps if I am billing out on an hourly rate or for a fixed rate.  I find it useful to estimate the number of hours it will take me to complete an entire job.  This is helpful for the client so they know what to expect and it helps me to budget my time.

Nailing down your client’s budgetary concerns and needs as soon as possible can be extremely helpful.  If your client is asking for something that cannot be achieved within their intended budget, you need to either decide to take a hit on the project or let them know.  Being open and honest is always the best policy.  Part of being open is being willing to find new, creative ways to complete a project within your client’s budget.

Technology Fields for Independent Contractors

When I decided to throw myself out there as an independent IT contractor, I had big dreams of tons of clients.  Originally, I started out as a web designer.  About two days in, I decided to add “Web Developer” to my title.  As time has progressed, I have become aware of different opportunities that weren’t available to me as a mere web designer.

Depending on what degrees or certificates that you hold, your opportunities as an IT contractor will be greatly influenced.  The same can be said about what opportunities your work experience and portfolio will bring you.  Having a well-prepared portfolio is more important than having every possible degree or certificate.  Degrees and certificates show your level of schooling.  Your portfolio shows your actual abilities.  Remember to keep your portfolio current and make sure to stock it with your best work.  Also, make sure that every job you take on looks as good, if not better, than your best portfolio piece.

In today’s world of outsourcing and downsizing, corporations are turning to contractors and consultants whenever they can.  This is where your vital experience and abilities come in.  Why would you limit yourself to a specific category like I did?  Maybe because you see a large income possibility, maybe that is the only place where your talents lie, or more likely, that is the only talent you have thought about capitalizing on so far.

IT contractors are always needed in the vast world of the Internet.  Web design cannot be accurately described without breaking into multiple categories.  You can design e-commerce sites, simple single-page sites, complex content management sites, and the list could go on forever.  The best way to go in the web design/development field is to find a niche, develop a portfolio and earn a good reputation.  Having an extensive clientele gives prospective clients peace of mind and it also pulls in lots of referrals.

Graphic design is another great field to find contract work in.  Companies always need graphics for business cards, letter head or their annual newsletter and employing a full-time graphic artist doesn’t always make financial sense.  That is where you, the contractor, come into play.  You cost less than yearly in-house graphic artists and you always deliver on time.  Not to mention the fact that graphic work is great to bill out to customers.  You can make graphics as detailed as possible or you can make simple, less detailed, less expensive graphics to fit a tight budget.

Programming and coding are great way for contract work.  When companies or individuals find themselves needing a specific application, be it for web or non-web use, hiring a contractor will most likely save them money.  Unless you run a software development company, having coders on staff just doesn’t make sense.

Where IT Contractors Go for Freelance Jobs

As independent contractors, we all need jobs, leads and resources; here are a few sites that I’ve found extremely helpful.  I can’t say that any of these sites are revolutionary or that any of these sites are assured gold-mines.  All I can say that I’ve found great gigs off all of these sites.

First and foremost for me is Craig’s List.  Craig’s List is certainly not the prettiest, sexiest, easiest or most reputable site or resource for independent contractors on the web.  I am sure almost anyone who has ever used Craig’s List will have a horror story or two to tell.  But just as assuredly, all of those people will also have great stories of success.  Despite its shortcomings, Craig’s List delivers tons of postings.  You will rarely see a day without at least five ads for your desired field.

Another possible approach is to post a profile of the services you provide on a networking site.  Freelance Contractors allows you to post a detailed profile about yourself or your independent contracting business, free of charge.  Freelance Contractors has been around for almost ten years and is a great place to start building passive income.  Just post your profile and wait for possible suitors to contact you.

One of my favorite sites, and one that I use on a regular basis for more consistent jobs, is ODesk.  ODesk works very simply.  You create a profile as an independent contractor.  Prospective clients post their jobs complete with a brief description, rate of pay, and any other pertinent information about the job.  The turnaround time from job posting to finally filling the position is generally less than a week with ODesk.  Neither Craig’s List nor Freelance Contractors can claim that kind of turnaround time!

Getting jobs through Craig’s List can be very time consuming.  Freelance Contractors is a passive site and while, it’s good to have a few sites like this in your arsenal, you can’t always count on these types of sites for regular work.  With ODesk, you also control your own individual profile, which makes it much easier to sell yourself to prospective clients.

Craig’s List is a digital classified section.  You can view prospective clients’ posts and post short ads about yourself.  Freelance Contractors allows you to put your profile out on the web.  It also affords you an opportunity to link back to your own site or profile.  ODesk is more of a one-stop shop for freelance contractors.  It has job postings, a great profile tool, tons of extra content and it even has tips for freelance contractors.  Remember, nothing beats a solid client list and a good reputation.