Biz Basics for Writers

I just found some notes from a presentation I did a while ago for a group of aspiring writers. I shared the stage with my accountant, Jonathan Becker, CPA. The notes, taken in my particular brand of shorthand, are filled with great advice for owners of “creative” small businesses. That definitely includes freelance writers. The suggestions are still relevant, so I’m going to pass them along without embellishment.

• Bill by the hour. Bill for every single hour you put into your business.
• If a client isn’t willing to pay you for what you do, you probably don’t want that client anyway.
• When you raise your rates, don’t grandfather your old clients. If you do, you will begin the resent them.
• There’s a rule in accounting that every three years you should dump the bottom 20 percent of your client list.
• When you figure your hourly rate make it three times your expected or hoped-for income. Add to that 40 percent for what it costs to run the business. Divide that figure by 2,080 hours (working hours in a year), and that is what your hourly rate should be.
• Set up your books. Get help from your accountant if you need it.
• Creative people need to know how to reconcile a checkbook.
• Creative people should have a feel for what’s going on inside your business.
• If you’ve been business for two or three years and are going nowhere, it may be time to look for a job.

How to set up your business entity:

• Sole proprietor (on your own and doing business)
• LLC (Limited Liability Corporation limits your personal and family exposure) Set up your LLC with an attorney, and register with the Missouri Dept. of Revenue.
• Add umbrella protection to your homeowner’s policy.

Income tax:

• Fifty percent of incomes goes to taxes.
  
• Deduct anything that pertains to your business: Internet access, website, magazine subscriptions, supplies, equipment, consultants, accountants, attorneys, and so on.
• Any items deducted reduce taxes by 50 percent.
  
• Work with your accountant on what to deduct.
  
• The IRS does very little auditing at the small business level.

Marketing:

• Get on TV or radio to talk about what you know.
• Follow up on every lead.
• Return phone calls that day.
• Respond to e-mails.
• Identify your market. Network. Join groups.

Basic? Yes? Important to your financial success? Also yes.

Web Marketing 101: Online Newsletters

There are almost as many ways to stay connected to the cyber-world as there are people in it. OK, I’m exaggerating. But, in addition to those I’ve tried, there are certainly an equal number or more I have never even thought about. Or, if I have thought about them, I don’t know how to create them. Podcasts and PowerPoint presentations that actually show up on my website are two perfect examples. One thing I do know: if I want to market my website, I need a newsletter.

Everybody has an online newsletter, I’ve been told many, many times by many, many people. Not knowing how to create one is no excuse. Most of them are plain vanilla, no bells and whistles, text only. Of course, some of the simplest in form are also the most complex in content. And that’s what worried me. Where was I going to get all those facts and references and really great tips that seem to be the heart and soul of online newsletters? I could worry about how it should look after I figured out what it should say.

I went in search of examples of good online newsletters.

Scribe & Quill, a newsletter for writers, has changed a lot in recent years. It used to come monthly in two sections, with each section long and crammed full of material. For nine years, it has been primarily written, edited, and published by one person — a dynamo named Bev Walton Porter.

WebsiteMarketingPlan's newsletter, put out by my personal web guru, Bobette Kyle, is for people who are really serious about marketing their sites. It is full of tips, links, offers, plans, and articles. In short, it is a graduate course in website promotion.

The BuzzFactor is really for musicians, but it demonstrates how multifaceted Bob Baker is. He has a great website, blogs, numerous books and e-books, ezines, and a terrific presence on Amazon. At his Self-Publishing Book newsletter, Bob shares his abundant knowledge of the creative process and marketing with writers.

Hello, my name is e-zine is published by a one-man whirlwind — Scott Ginsberg — who has more energy than a room full of two year olds and more marketing ideas than a Madison Avenue ad agency. Scott writes in list form: 72 Ways to do this … 6 Ways to do that … 13 Types of … 10 Strategies to … and on and on. Personally, I think he’s a genius.

The BuildBookBuzz newsletter is fresh, informative, and practical. I stumbled on it when I read an article on one of the online sites, followed the link to Sandra Beckwith, e-mailed her and received a lovely reply, became an instant fan, and subscribed to her newsletter. Sometimes, you just meet someone smart and special when you let your fingers do the walking.

Author Marketing Experts, as it name suggests, is aimed at intrepid writers of books. Penny Sansevieri is one, as well as a speaker, blogger, article writer, and tweeter. Her newsletter is long, filled with information and advice, including details on how to target particular publications, and unadorned with graphics (at least, the version I receive). Text and nothing but text, but that text is always worth reading.

I read all these newsletters and others; I studied them; I admired them (or they wouldn’t be mentioned); and I came up with something completely different. It has a plain text version, but, really, it’s intended to mirror my website. Sometimes, it actually does that. I must admit that getting News & Views from Bobbi Linkemer to look the way I envisioned it was harder than learning how to podcast, or so it seemed.

Then, of course, there was the matter of what to write about. There, too, I took an offbeat approach. If News & Views looks intriguing and informative, and you think you might like to receive it once a month, hit this link and subscribe. In the meantime, I’ll start working on the next one.

Love/Hate Relationships

Being a freelance writer is all about relationships — relationships with editors, agents, clients, designers, photographers, printers, computer experts, interview sources, and other writers. It’s an understatement to say that such a career requires well-honed people skills and that developing and sustaining relationships are essential to success.

“Love/Hate Relationships” not only covers both scenarios, it captures the ambiguous nature of our feelings towards those who pay our “salaries.” I hope you have encountered at least one or two clients or editors who fall into the too-good-to-be-true category. When you do, you probably pinch yourself, simply because they are such a rare breed. These are the people who return phone calls, respond to query or marketing letters, respect your work, pay you what you’re worth time), and try not to make unreasonable demands. They are all candidates for sainthood, in my opinion.

At the other extreme are those who are rude, arrogant, disrespectful, demanding, unrealistic, over-controlling, and penny pinching. Working for them is stress squared because they leave you feeling diminished and drained. On the bright side (yes, there is a bright side), as a freelancer, you do not have to do business with people like that. You can turn down the job at the outset; address the problems when they surface; and, if you choose to, resign from the project. My feeling is that, no matter how much you think you need the money, nobody needs it that much.

When I was a full-time employee, I can’t even count the number of times I bit my tongue, compromised a principle, or tolerated unacceptable behavior from a boss; because, I told myself, I didn’t want to risk my livelihood. Jobs like mine were not that easy to come by ... I had two children to support ... I would never live down the humiliation ... and on and on and on. Getting fired was the worst possible thing I could imagine; and then, one day, the worst possible thing happened.

Amazingly, I did not die; my children did not starve or become homeless; I did get over it; and I felt free for the first time in my career. The worst possible thing turned out to be the best possible thing. One of the reasons was knowing that I would never again remain in an abusive situation. I knew there would always be another assignment, another client, or another job, just around the corner. In the last 20 years, I have had to test that assumption on more than one occasion. I have walked out of a meeting; I have confronted a client who was way out of line. I have even stated, unequivocally, that I found the person’s behavior unacceptable and, if it didn’t stop, I would leave immediately. It stopped.

These, of course, are worse-case scenarios, but they illustrate the underside of freelancing. Not everyone you encounter will be professional or even civil. Some people are very difficult, if not impossible, to work with (See Solving People Problems (Amacom) for an entire book on this subject). But nowhere is it written that you have to grin and bear it. You don’t.

In between these two extremes are the people you are more likely to work with or for. They are neither saints nor villains; they are just regular folks. They run the gamut of quirks and personalities, good days and bad, consistency and professionalism. For the most part, you won’t love them or hate them. You may develop relationships with them, or you may never get past being seen as a “vendor.” You may admire some things about them and dislike others. And you may even put up with less-than-optimum working conditions from time to time. But that is the reality of the world of work and certainly of freelance work.

Years ago, when I was working for a large corporation and having a particularly bad day, I was crying the blues to my printing salesman. Finally, he shrugged and said, “Well Bobbi, that’s why they call it work and not sandbox.” I've often thought of having that put on a banner and hanging it over my desk.

The Fifth Edition: Five Times Tougher Than the First

The good news is that my little book, How to Write a Nonfiction Book: From Concept to Completion in 6 Months, is selling on Amazon and my website. The other day I counted my remaining copies and realized it is time to start thinking about the next edition. That’s about all it took; I haven’t thought about anything else since then. The seed was planted.

So, I packed up my new MacBook and went off to my latest dog-sitting gig, full of ideas for what I might add to the content. It seems the longer I teach, the more I realize how much I have to learn. The article sites I contribute to are goldmines of information, new perspectives, and advice on how to get from your first book-thought to your first book-signing. I read other people’s wisdom and find myself newly inspired. There is so much to share with aspiring authors who buy my book or sit in my classes.

Every time I revise what was once a pretty thin eight-and-a-half-by-eleven-inch workbook that focused primarily on how to write a book proposal, I add more to the other key aspects of writing, publishing, and promoting a nonfiction book. There are so many good books and so many experts, it’s a bit intimidating to publish what I want to say. Yes, it’s true; even veteran writers feel that way!

The first questions I ask myself are what do authors want to know? What are my students, clients, and book buyers asking me, and have I answered their questions in this book? I look for gaps in the text, and I find them. Why do I have to write a proposal? Do I need an agent? How do I find one? What should I send to a publisher? What is involved in writing a memoir? What’s the difference between POD publishing and self-publishing? And on and on.

Yesterday, I received an e-mail from a member of my writers’ group with her query letter to a publisher attached. “What do you think?” she wanted to know. “Let me get my thoughts together,” I wrote back and immediately set off on a research and writing journey that culminated in an article, as well as a new section for my book. This was undoubtedly much more than she ever wanted to know; but, when I tried to answer her question, I realized I didn’t really know enough about book query letters to do so.

The first edition of my little book was easy as pie to write; the second a little more difficult; and so on. It has taken me five editions to realize that the best way to learn about your subject is to write about it. I am dedicating this book — if I ever finish it — to my writers group, students, clients, and book buyers. Thank you all for continuing to ask questions I can’t answer without some serious thought.