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The scary side of freelancing: the inadvertent freelancer

By | February 17, 2010, 8:37am PST

Summary: Not every freelancer is one by choice. The economy has thrust millions into the freelance economy. Technology can help some of them but what about the inadvertent freelancer? Who’s helping them?

Freelancing because you have to

I was at a meeting the other day when two former executives from a major consultancy started chatting with me. It seems they were in the freelancing space these days. As our conversation continued, I heard some things that were pretty upsetting.

Both of these fellows are doing some freelance work, looking for full-time gigs and are trying to stay connected with executives at established service firms hoping some crumbs (or a permanent gig) fall their way. These guys are freelancers who really don’t want to be freelancers. Instead, these are employees who are without an employer and are doing freelancing as a means to provide an income. Worse, since both are over 50, they expect to be freelancers until they retire as they aren’t finding prospective employers too interested in people of their age.

I’m also concerned for these individuals and millions of others who have found themselves in similar straits in this economy.

My concern is that many freelancers are quite competent individuals in executing work but may not have the skills, discipline or appetite for selling it. To be a successful freelancer, one must have knowledge of opportunities, the timing to know when to ask for the work, the ability to close the deal and the ability to execute the work once sold. That is an exceptionally tall order as it is rare to find individuals who can market, sell and deliver work.

I’m also concerned that many freelancers are stuck doing commodity work with commodity skill sets and may lack the time or resources to enhance their current skill set. Seriously, can you make a living, learn new skills, be selling the next piece of work, build your brand, honor the delivery commitments on the sold work, have a life, etc. all at the same time? Is that realistic or desirable? This lifestyle creates additional problems as the freelancer often becomes less and less differentiated and more of a commodity to be bargained with on a low-cost gets the work basis.

The best freelancers, in my opinion, are the ones who develop a brand for themselves, create their own unique intellectual property and have a reputation for creating value for their customers. What these freelancers succeed in doing is moving themselves into a higher order of freelancer: the 1099 worker who does not negotiate on price. People want them because they’ve heard about the results they deliver. People hire them based on good word-of-mouth recommendations. People hire them without beating them down on price.

While much has been written about the freelance nation, little has been written about those who are involuntarily thrust into it. Not everyone was cut out to be a freelancer. Each of us can bring a different set of skills and capabilities to our employers and/or assignments. But not all of us can source, market, sell and deliver work. I am concerned about the inadvertent freelance nation that is forming as I am not sure that all of these newfound freelancers can or will succeed.

Many technologies exist on the Internet to help freelancers. There are sites that will match freelancers to short-term opportunities. There are sites that allow many freelancers to collaborate on a specific assignment. But there don’t seem to be sites designed for the inadvertent freelancer and I suspect they have very different needs wants and requirements.

So, for those of you at Elance, oDesk, Fieldglass and other vendors let me know what you’re developing for the inadvertent freelance nation because I’d like to write something very positive about this phenomenon today.

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Topics

Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

Disclosure

Brian Sommer

I am co-owner of TechVentive, Inc. The company has been engaged on numerous consulting engagements, often for technology firms, service firms and litigators. As a general rule, I do not write about current clients of TechVentive. Should that occur, I will note this in blogs. Readers should assume that I have had client relationships with many ERP and other technology providers. Some of these relationships may be quite small and short-lived while others more significant. One of TechVentive's business units publishes research reports about technology providers. As a result, this business receives small amounts of revenues from a wide variety of software firms, software buyers and others when they purchase copies of reports. Some firms do secure reprint rights to these reports. None of these purchases, individually, represents a significant amount of total revenue for me and the nature of it is hard to predict where it will come from. I also provide some marketing strategy and/or market segmentation work for software firms as I have developed a unique database that segments the largest 4000+ technology buyers in the world. Many technology firms periodically engage me for unique views into this database for future marketing campaigns. I do not blog about these efforts and do not blog about client firms while they are active clients unless some pressing news story erupts. If that event occurs, I will indicate any perceived or real conflict of interest. Occasionally, I will develop unique intellectual property pieces for technology or service providers. If I should blog about a vendor with whom I have recently developed a special information product, I will note this in a blog to avoid any appearance, real or unintended, of bias. For the most part, I have no investments in technology firms. While I've been offered friends and family stock and other inducements in the past, I have steadfastly refused these. I used to be a partner with Andersen Consulting and had no ownership stake in the firm for many years. I frequently refer to this in my blogs and do not hide my prior association with the company. I did purchase a few shares of Accenture and Cognizant stock in late - 2008. I have sold some of those positions in late 2009. Readers should assume that most software conferences that I write about involved some measure of fees waived and/or travel reimbursement. I do not charge vendors to attend these events nor will I accept payment for same. I do get reimbursed for many speaking engagements. I generally note at the end of blogs whether the vendor reimbursed me for travel expenses. Generally, this includes airfare and hotel. I do not request, receive nor accept travel perks such as first class airfare.

Biography

Brian Sommer

Brian is in a unique position to diagnosis the winners and the losers in technology and services. He was the longest running (10 years) and most senior director of Andersen Consulting's (now Accenture's) global Software Intelligence unit - a position that required him to pick the best possible software solutions for hundreds of clients globally. He advised the firm on ERP software market forecasts and helped establish manpower planning estimates by vendor for deployment globally.

Brian continues to remain close to technology buyers and sellers. When he left Andersen Consulting, he co-created a dot-com with blogger and former arch-enemy at Price Waterhouse, Vinnie Mirchandani. That firm helped broker efficient services contracts between software buyers and systems integrators. Since then, he's created TechVentive, Inc. - a company that helps technology firms better understand their markets - and Vital Analysis - the research and publishing arm of TechVentive.

Brian still travels the world and publishes an impressive number of articles, research reports and blog posts annually to help software and services buyers make better business decisions. He can be reached at: brian @ vitalanalysis.com

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RE: The scary side of freelancing: the inadvertent freelancer
naomibloom@... 22nd Feb 2010
Brian, you know that I've been a very deliberate solo for nearly 23 years. It's been challenging, at times beyond reason, but oh so very satisfying. Your point about intellectual property creation is on the money. By investing in my IP, I bring something unique to my consulting work beyond my personal KSAOCs, and that allows me to do more and more complex engagements in a very productive way. Naomi
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Now with companies cutting back, i have even more work to do in my daily job and have had to push the outside work off to other freelancers.

Maybe this is not your definition of a freelancer, truthfully, i call them consultants, but it is mine.

As with any freelancer, i hate turning away an extra dime, but as you put it, you have to take time to learn new technologies and i would also add, time to become profecient with them.
Brian, you know that I've been a very deliberate solo for nearly 23 years. It's been challenging, at times beyond reason, but oh so very satisfying. Your point about intellectual property creation is on the money. By investing in my IP, I bring something unique to my consulting work beyond my personal KSAOCs, and that allows me to do more and more complex engagements in a very productive way. Naomi

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