As freelance writers prepare for year-end (taxes, checking numbers for the year, and etc.), you may tend to get curious about how this year will compare to last year. Did your income go up or down? Did you have more or less freelance writing clients? If you keep solid freelance writing records, you can answer these questions.
One thing I like to do at the end of the year is publish example records from a freelance writing business for the benefit of other freelance writers. This example generally includes income, expenses, hours, types of clients and etc. I neglected to do this for 2010 (but here is an example freelance writer's records from 2009) for some reason. So, I'm providing them today.
Although this is a realistic sample garnered from a freelance writing business that I have intimate knowledge of, and although I can guarantee you that these numbers are completely reliable and realistic, I also need to remind you (for tax purposes) that these numbers are not meant to reflect the true state of taxable income for anyone's business, including my own.
Some background on this sample freelance writer: "he" has taken my advice to add services to his offerings, and so, in addition to the usual writing and editing, this freelance writer also offers translation services and teaches classes on writing. He has been freelancing full time for about 6 years, and focuses on a couple of niche subject areas.
Freelance Writer Records - Hours Spent
For the year 2010, this example freelance writer spent a total of 1,022 working hours. These are butt-in-chair hours writing, editing, translating and doing administrative work, along with travel hours and meeting hours. For comparison, a full time job is 2,080 hours per year. So, this freelancer worked almost exactly half time last year. Following is a breakdown of where those hours went.
- Administrative Tasks: Job search, marketing, invoicing, filing, managing contractors, 185 hours, 18% of work time
- Main Client #1: Major publisher, translation and editorial work 152 hours, 15% of work time
- Main Client #2: Website writing and maintenance: 95 hours, 9% of work time
- Main Client #3: Quarterly magazine editorial manager: 85 hours, 9% of work time
- Magazine articles: 94 hours, 9% of work time
- Teaching: 82 hours, 8% of work time
- Book reviewing: 14 hours, 1% of work time
- Miscellaneous: The remaining 30% of the time is given to "one-off" or limited term projects, not including magazine articles, which are lumped in above.
Thoughts on the above: Is 30% too much time to spend on one-off projects that don't have much return beyond initial pay? How many of these one-off projects lead to more of the same, or at least valuable networking opportunities? Is 20% about right for administrative tasks?
Freelance Writer Records - Income of a Freelance Writer
This sample business generated a gross total income of $148,021. However, this business does hire subcontractors for high volume work. After expenses and paying those contractors, this writer netted $58,584.
- Administrative Tasks: $0, 0% of income, 15% of work time
- Main Client #1: $125,801 85% of income, 15% of work time
- Main Client #2: $8205, 5% of income, 9% of work time
- Main Client #3: $4100, 3% of income, 9% of work time
- Magazine articles: $3753, 3% of income, 9% of work time
- Teaching: $1146, less than 1% of income, 8% of work time
- Book reviewing: $547, less than 1% income, 1% of work time
- Miscellaneous: $4469, 3% of income, 30% of work time
Thoughts on the above: We're really beginning to see here how the largest client really skews these numbers. Given the percentage between time spent and income generated, it looks like most of this freelance writer's clients are eating his time without an equal return. But I believe that's only due to the largest client's skewed numbers.
Freelance Writer Records - Expenses
Here's an interesting break down for new freelancers who are wondering what a start-up cost to this career might look like. Again, because of the large volume client, it appears as though there is a great cost, but simply remove the "contractors" bullet, and you'll have a much more accurate accounting of where the money goes in this business. Total expenses were $89,893. However, take away the contractors, and you'll see a much more approachable expense amount of $6,088 for the year.
- Contractors $83,805 (mostly translators, but also proofreaders, editors, transcriptionists, an administrative assistant and a tax accountant)
- Fees $1,364 (bank fee, paypal fees,Western Union fees for paying foreign contractors, business filing fees)
- Travel $1,330
- Office supplies $1,316 (includes mailing and shipping costs)
- Tech $1190 (one new laptop, pro services)
- Marketing $545 (mostly web services, but also some print materials such as business cards)
- Books $223
- Food meetings $120 (coffee!)
Freelance Writer Records - Miscellaneous
This freelance writer also kept track of a few other stats. He applied for exactly 100 jobs in 2010, and got exactly 10 of those (a 10% success rate- not bad and comparable to my own. He also pitched 33 magazine articles, and was assigned 11 of those.
Want to comment on these numbers or share your own? Be sure to visit this blog post.
