Understanding Collaborations, Partnerships, and Sub-contracting (Part 5)

In my previous posts, I provided general guidelines about the nature of collaborations and partnerships. Now I'd like to talk about sub-contracting.

Sub-contracting is a cost-effective way for companies to get tasks done while keeping the number of their employees trimmed down. The disadvantages of having a huge workforce is companies would need to continually spend for employees to get trained, as well as paying for social security and health benefits.

With freelancing gaining more and more grounds in the past decade, and with millions of competent freelancers out there who charge reasonable fees, companies have seen how sub-contracting jobs can cause them to significantly reduce their budget.

Freelancing is especially beneficial to small companies. For example, an advertising agency may have made it their niche to cater to the needs of entrepreneurs whose businesses operate on a small-scale level. And yet, even small businesses have their peak season. By the time October or November comes around, they may introduce a variety of promos like giving discounts to clients or customers.

Therefore, the advertising agency may be burdened with workload that serves as double or triple than with any other months during the year. And the best, and least expensive, way to cope with the high demand is to outsource jobs through sub-contracting.

When a company hires you as a sub-contractor, here are several non-negotiables:

• You can set your rates when you agree to work as a sub-contractor, and maybe even earn more than what you usually charge.
• Some sub-contracting jobs may only require you to work for several weeks or a couple of months at the most, while some require freelancers to work for an indefinite period of time. It could be tricky when you negotiate for the standard 40- to 50-percent down payment. The best way to deal with this is to charge an hourly rate.
• You must grant all forms of copyright to the company after the project has been completed. Protect yourself from unscrupulous clients by stating in a portion of your Contract that all forms of copyright will be granted only after all your fees have been settled.
• Should your client feel satisfied because you helped them meet their desired results, you can ask them to write a brief testimonial about you. This can be an added boost to your marketing strategy.
• Keep in mind that your client may require you to do the opposite, which is to keep the details of your transaction under discretion for valid reasons, and you should grant your client the Right to Confidentiality (have this clearly stated in a portion in your Contract). This only means that even if big-name companies may be outsourcing projects to you, you cannot ask them for a testimonial, and surely you can't include their logos in your marketing materials. 

Understanding Collaborations, Partnerships, and Sub-contracting (Part 4)

In my past articles, I have thoroughly discussed the conditions you may encounter when deciding to collaborate with a group of workers. Now, I'd like to introduce you to partnerships.

To get you started, be informed that a partnership can be any agreement or arrangement between you and another freelancing professional, or even two or more. When you agree to work and get paid on a commission basis, it only means that you won't be the one bringing home the largest piece of the cake (profit), but the people who have hired you. With partnerships, you and everyone involved must share equal benefits.

And of course, sharing equal benefits means dividing the amount of work equally. To illustrate, suppose you're a graphic artist or designer, and a request from a freelance blogger shows up in your inbox, asking if  you can render visuals that are relevant to his posts so he can get more "traffic" for his blog. This is a good example of tasks being equally divided.

Now, make sure you have the basics down pat when assessing an opportunity for a partnership. Here are some non-negotiables you will encounter when choosing to team up with one or more freelancing professionals:

• You may not be able to set your own rates on partnerships, but it's possible to earn more, depending on the scope or breadth of the project. With regards to blogging, remember that the most effective blogs get up to 1,000 unique views a month. If you can help increase a blog's traffic, you may be able to make more than your usual rates.
• Some clients may offer cash incentives, or those that come in kind. How will these "perks" be divided? Allot a portion in your Contract where this aspect is clarified.

Understanding Collaborations, Partnerships, and Sub-contracting (Part 3)

After providing you with more information about collaborating, you may have assessed its advantages and decided to give it a shot. But there's more to know about collaborations other than working and getting paid on a commission basis.

To illustrate further, be aware that aside from the fact that you can't call the shots when it comes to setting your rates, you accept the condition that you'll constantly be "on call," which means you have to go wherever the people who hired you may need you.  

And of course, being available means going mobile. But first, clarify the organizers' conditions regarding --

• Transportation, especially if you need to bring special equipment (e.g. cameras and other paraphernalia) to a shoot or event. The majority of organizers provide a vehicle that is roomy enough for an entire staff and any necessary equipment. If you would need to come to the events all by yourself, it would be reasonable for you to negotiate an allowance to pay for your fare.
• Meals, which should be inclusive of lunch and snacks, and even dinner if events will last until evening.
• Frequency, or regularity, of projects. For example, the number of local weddings are at their peak during the months of June and December. You may find yourself fully booked during the couple of months before the peak seasons. If you're getting paid on a commission basis, you may experience cash windfalls during those times. But what about "lean" times, when projects don't come trickling in?
• Accessibility. Freelancing professionals should own a mobile phone, but organizers must be willing to shoulder at least part of your phone bills if it's necessary for you to be reached every time a lucrative project comes up.
• Special equipment or materials. Mostly, I have talked about wedding photographers in my articles. But freelance illustrators and artists can be hired on a commission basis, too. Aspiring authors of children's books are perennially seeking out competent illustrators. But if aspiring authors are looking for a particular style or rendition of artwork, illustrators may need a set of quality drawing pencils in varying grades, and even water color pencils. Make sure that if you're working on a commission basis, expenses for these materials are at least partially covered.