All posts in Freelance Lifestyle

I’m writing my senator

Posted by on June 6, 2012

This self-employment tax has gotten out of hand. Here’s a letter I sent to my senator in Colorado, Mark Udall. If you are self-employed and find that the current tax code places an unfair burden on you, I urge you to do the same.

Here’s what I said:

Senator Udall,

I am a 29 year old self-employed freelance writer and computer programmer who lives in Breckenridge Colorado. I am writing you because I have a problem with the current tax code for the self-employed. I believe it places an unfair tax burden on people who work for themselves instead of joining a corporation. It also makes life incredibly difficult for people who have lost their corporate jobs and have taken to freelancing or some other means of support.

At best, the extra social security tax that we have to pay is a mere inconvenience, what I like to call the “freedom from corporate America tax.” At worst, it is an assault on what I believe to be core American values. Our country is a nation of immigrants and pioneers, people who fought for their independence. Now we are effectively telling our young entrepreneurs that they shouldn’t try to be independent because it means they’ll have to pay more taxes while barely squeaking by. How un-American.

We should encourage people to do more for themselves, to not be at the mercy of their employer. We should change the current rhetoric of victimization and job loss to one of personal empowerment and individual accomplishment. We should enact legislation that limits self employment tax for people who make less than $40,000 per year from self-employment. It’s the right thing to do for people who get no health benefits and relatively little pay.

Thank you for your consideration,
-Ted Bendixson

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Taxes for Elance and Odesk freelancers

Posted by on April 2, 2012

I’ve gotten a lot of my recent work off of Elance and Odesk this year. About $13,000 of my total income is from Elance alone with another $3,000 from Odesk (I also get paid from my apps, but that’s another story). When you have that many clients paying you for projects, tax time can become a rather horrifying ordeal. How do you account for all of those payments? How do you know your numbers are correct? What about the fees the sites take from each transaction? Well, you can breathe a sigh of relief because I’m going to show you a little accounting trick I learned using Numbers on my Mac.

Getting the Elance Data:

We’ll start off with Elance. To get last year’s transaction data, you’ll want to go to Manage –> Transactions.



At the top, Elance will ask you if you want to download your account data. Click on the “click here” link, and you’ll get taken to a page where they’ll ask for a range of months.

The range you want is from the beginning of the year to the end of the year. For 2011, that’s January 2011 to December 2011.



Click download and you’ll get your data in a “.csv” file.

What to do with the Elance .CSV file:

During my first two years of online freelancing, I had no idea what to do with these files. All of the transactions come bundled together, and there was no way I was going to sift through it all by hand. I actually hired an accountant last year, but I don’t want to bother with it this year because it’s pretty easy to do. So let’s open up that .CSV file from Elance!



Mine looks just like the above mess when I’m first starting out. Notice how all of the amounts are mixed in with one another. What’s up with that? At first glance, it seems very difficult to separate all of the payments and fees from one another, but it only takes a little bit of trickery.

Step 1: Click on your table, and then click on the “reorganize” button in the top menu. You’ll get another popup menu that looks like the one below.



Step 2: Choose Column D under “Sort.” Column D corresponds to the payment amount. By sorting this way, you’re separating the payments received from the payments sent.

Step 3: Remove all ACH Payment rows. These don’t correspond to any payments from your clients. They simply denote bank transfers.

Step 4: Remove the plusses from your payments received. This is the only part of the process that’s manual labor. It sucks, and I’m still looking for a way around it. You can’t sum up your payments until you remove these plus signs.

Oh, and you don’t have to remove the minus signs from the Elance fees. You can sum them up as they are. It’ll be a negative number, but you’ll still know how much.

Step 5: Sum up the payments received and Elance fees using the “SUM” function. Pick an empty cell and enter =SUM( . Keep the parentheses open, and Numbers will allow you to select the column to sum up. Make sure you’re summing the payments received and Elance fees separately.

That’s it. This process doesn’t take that long. You can probably do it in less than ten minutes. It certainly beats trying to add up all those payments any other way.

Getting the Odesk data:

To get your yearly Odesk transaction data, you’ll want to go to Wallet –> Transaction History. The transaction history button is a tab located at the top of the page.

You will be presented with a screen that looks like this:


Enter the range from January 1, 2011 to December 31, 2011. Don’t worry if Odesk changes the range after you’ve typed it in. They’re just trying to line up the range to the weekly payout for time. Only transactions from the year 2011 will appear.

Odesk makes it a lot easier for you to do your taxes. That’s because they never take fees away from their contractors. The client is the one who gets charged all Odesk fees, so you never have to worry about them. To find your total payout for the year, simply scroll all the way to the bottom and use the “Total Credits” number.

The rest of your accounting will probably take a lot longer. At least this part won’t trip you up. If you have any questions for me, I’m happy to answer them in the comments below.

Happy taxes!

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Content Spree launches its freelance writing marketplace

Posted by on March 23, 2012

Around a few months ago, I got an email from Andrew Page of Content Spree, a new freelance writing marketplace that’s gearing itself towards high quality writers and content. Andrew and I spent some time discussing the merits and faults of his competitors: sites like Elance, Odesk, and Vworker. We came to the conclusion that there were too many low quality jobs for writers on those sites. It’s a system that encourages absurdly low prices, and we both agreed that it makes the bidding sites look unprofessional.

Fast forward and Content Spree has just launched a beta version of their site. Right now, they are working on getting out all of the kinks. I decided to ask Andrew a few more clarifying questions about the launch of Content Spree. Here’s what he had to say.

Ted: How long will the Content Spree beta last, and what are Content Spree’s plans for working out the kinks?

Andrew: We don’t have a set date but we certainly don’t want it to last long. At this point we’re fairly bug free and are focusing on making further enhancements to the UI.

Ted: During this process, can anyone sign up for an account? Can anyone post jobs or look for work?

Andrew: Yes, during beta anyone can sign up for an account. However, we are actively monitoring registrants and removing writers and employers that aren’t in compliance with the Content Spree code of conduct. We’re currently building a system that will vet writers. In order to have high paying jobs on the site, we need to ensure that the writers meet a certain standard. We also have a $50 minimum on all job posts, and we are exploring having different minimums for each job category. For example a corporate whitepaper should have a higher minimum than a blog post.



Ted: Who is Content Spree directly marketing itself toward? Can you give me the names of some businesses you’ve contacted directly to advertise your services.


Andrew: There are a couple of markets we’re attacking. We’re marketing directly to creative agencies as well as Content Marketing Managers that work at medium to small corporations.


Ted: Many people on sites like Elance and Odesk feel as though these sites have a bias toward the buyer. One example of this is the ability for buyers to post jobs for free. Many of us feel as though this system encourages abuse and a lack of seriousness on behalf of the buyer. What are some things Content Spree is doing to eliminate this bias or at least add in a different bias to counterbalance the system towards writers?

Andrew: It’s a tough balance, especially with a new site. While there is no financial risk for the buyer, there is the time and effort it takes to post a job. We monitor all jobs, so any jobs that come across as spammy are removed immediately. We also work with the buyer throughout the process to ensure that he or she is actively engaged with the writers and is serious about the project.

Ted: I would imagine it’s incredibly difficult to launch a business like Content Spree. Solvate, a site with a similar aim, recently decided to close its doors. Why does Content Spree have the winning edge to compete, or at least carve a niche for itself, in what appears to be an extremely challenging market? Why should businesses hire high quality freelancers when there are so many people out there willing to work for pennies?

Andrew: Our strategy is to focus on one segment and dominate it. For Content Spree, that segment is writing. We don’t believe that any of the existing marketplaces do a good job of catering to the needs of larger businesses. Corporations have a huge need for content and they’ll pay for quality. We believe that Content Spree is the site that will help facilitate transactions between quality writers and buyers seeking high end writing services.

It certainly looks promising for Content Spree. Having spoken with Andrew several times, I feel that his head is in the right place. He’s equally concerned about the writers and the buyers, something that’s rare in online marketplaces and bidding sites. I’m really happy that he feels so strongly about minimums. It is, in my opinion, the only thing that keeps all of this sane. Allow the buyers to post as many projects as they want, but make sure they at least adhere to the minimums. I feel like that’s a pretty good way to keep the spam out of the system.

Thanks again to Andrew for taking the time to do this interview. If you are interested in hiring a freelance writer, check out Content Spree’s professional writing services. You can even hire me too.

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What Can Rick Astley Teach You About Being A Successful Freelancer?

Posted by on February 11, 2012

Listen, we’re no strangers to this business. You all know the rules, and so do I. A full commitment is what today’s clients are thinking of. You need to ask yourself: could they get this from any other guy?

Look. I just want to tell you how I’m feeling. I’ve gotta make you understand this one thing. Rick Astley knows a hell of a lot about more about being successful than you or I could ever imagine. He knows the game, and he’s gonna play it. Here’s what you can learn from him.

Never give up on your clients.
Even when the going gets tough, it usually doesn’t make sense to completely forfeit the business relationship. Try to end things peacefully if you can, and always be a resource for your clients in the future. I know it’s easier said than done. Even if a client hasn’t paid or is somewhat angry with you for whatever reason, don’t consider the book entirely closed. People cool down. Things get better. You never know what’s around the corner.

Never let them down.
Give every project your best shot. Don’t be late in delivering anything unless it is a complete and total emergency you can’t control. The day I get a project, I start on it right away because I know I’ll have a bunch of questions. This is the mindset you need to cultivate. Only deliver your best work, and always follow through on your word. Commit.

Never run around.
How focused are you? Do you answer all of your emails right away, or do you let things go for a few days before you finally get to them? People don’t like long lags in response time. While you’re running around doing other things, your clients are thinking about getting someone else. Be like Rick. Stick around, ask questions, and get the work done.

Never desert your clients.
O.K. I admit that this is pretty much the same advice as the first point. But I’ve done this before, and the consequences are never good. No matter how stressed you get, no matter how angry you are at someone, don’t just up and leave a project in the middle of the heat. It’s all too easy, and it solves nothing. Not to mention, word gets around when this sort of thing happens. You don’t want to be “that guy” or “that girl.”

Never make them cry.
Tears of joy are okay.

Never say goodbye.
“Final” is never final. You really don’t know who you will run into the future, nor in what capacity. People change. Businesses morph into something else. The person you politely told to screw off could come back to bite you later on in life. It’s awesome to move on to bigger and better things (as Rick Astley did when he gave up his music career). You’ve just gotta do it the right way. Always keep a door open.

Never tell a lie.
It’s all too convenient to say you can’t deliver on time for whatever made up reason. Nobody will believe you, and you’ll just get branded as a liar. Another common one is lying about your experience. It impresses nobody, and it makes you look like a fool. Be straight up. Tell ‘em how you’re feeling. Make ‘em understand that you’re the best candidate for the job (even though your heart is aching, and you are too shy to say it).

Never hurt them.
That is, unless you want the police breaking down your door at 4 A.M. with a warrant for your arrest.

Sage advice from the one and only Rick. You have to admit there’s a power you just can’t deny. Follow Mr. Astley’s advice, and you and your clients will be together forever.

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Don’t Be So Afraid To Offend.

Posted by on December 10, 2011

How many times have you had a client or potential client say something that just strikes you as flat out wrong? How many times have they wasted your time? Have you ever wanted to call them out for it? I certainly know I have, and that’s why I do it all the time. Here’s why.

In life, the angry and the dissatisfied are the ones who ultimately run the show. They’re the leaders. Just look at someone like Steve Jobs. He was a complete and total asshole, and yet everyone respected him. Better yet, they downright feared him. His power over that organization, his unwillingness to settle for whatever was put in front of him, led Apple to create some of the best devices this world has ever seen.

I’m not so sure I agree with all this “professionalism” crap you keep hearing career experts spouting all the time. Maybe professionalism works for professionals, but I want to be more than that. I want to be a leader, and leaders are almost always total assholes when they need to be. They could give a rip about “professionalism.” Why? Because they’re the leaders. They get to do what they want.

Just look at a show like Shark Tank with Kevin ‘O Leary. I love that guy because he says exactly what’s on his mind, and he never apologizes for it. One time, a contestant appeared on the show, Kevin verbally ripped her business plan to shreds in mere seconds, and then she thanked him for his time. Kevin’s response was, “what are you thanking me for?”

When people waste your time, don’t thank them for it. Show them your anger. They just wasted your time. What are you going to do about it?

Oh, I can just see all the career experts circling up above. Here’s my advice to them. You’re career experts because you didn’t have the chutzpah to actually lead. So now you dole out advice on how to stay stuck in the same rat race everyone else is in. Those who can’t do teach. If you don’t do something to stand out of the crowd right now, you’ll be forgotten.

The world remembers people like Steve Jobs because he had the courage to offend.

And guess what, some of those people you insulted come right back to you with job offers. Why? Because they can see your passion. When you really know how to argue a point, to show them why you’re right, you are demonstrating the skills of a true leader. Sure, some of them will get really angry and walk away. They might even cry to their mommy and try to bring in Big Brother shut you down. But do you really need people like that in your life?

Get mad. Say what you feel. The world needs more of it. That’s the first step to being a real leader.

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The Neverending Wave Of Tim Ferriss Wannabees

Posted by on December 9, 2011

Allow me to preface this with a true statement. I am very much like Tim Ferriss. There are many things he says that I agree with (whether or not he’s actually the first person to have said them). In many ways, I live my life like he does. I have total control over my time, and I use it to pursue things I’m passionate about outside of my “work.”

No, my issue is not with Tim Ferriss per se. It’s with the culture of raving idiots he has left in his wake. Hordes and hordes of spam creating minions have now become a daily reality for freelancers like myself.

The Dawn Of The Tim Ferriss Spawn…

How did all of this get started? It was a suggestion Tim Ferriss made in his bestseller, the Four Hour Work Week. He said it was a good idea to use Elance to find freelancers on a level of competence slightly higher than, say, monkeys with typewriters. Basically, if you want to promote your online health supplement business (nothing sketchy in the slightest by the way), your best bet is to hire an SEO article writer off of Elance for $10-15 per hour, $30 per hour if you’re really going for a good one.

And so the masses have responded in droves. They became “entrepreneurs,” inventing “products” and hiring SEO article writers to market those “products” through the search engines. There were those who so brazenly declared in their job postings that they were searching for a writer with a style like Tim Ferriss. From a distance, you could smell the suck-upery. Sometimes, when the air was right, I could detect a faint hint of douchebagery as well.

Here’s the crazy thing. Tim Ferriss did not achieve his success through merely delegating all of his tasks. He’s a pretty smart guy. When it comes to writing, it seems as though he prefers to do it himself. He wrote the Four Hour Work Week in his own time, all with his own words. Why did he do it when he could have been sipping martinis on a beach? Maybe he didn’t call it “work.” Much in the same way I don’t call snowboarding “work,” even though I’m doing double flips and corked things with grabs. Stuff kids are throwing in competitions.

All the same, there are now a bunch of chickens running around with their heads cut off. They’ve taken Tim’s message and interpreted it as a reason to hire out everything you do. It’s this crazy notion that you should delegate any and all possible tasks because any task is just anathema to you and your ability to live your life. A lot of people, especially the ones who troll the bidding sites, have taken this awful message to heart.

The More Than Four Hour Aftermath.

The good freelancers, the ones who want to make a decent living doing it, are left to wade through all the waste left behind by Tim’s little army. They create posts saying “article writer needed. 500 articles on weight loss.” or “200 SEO articles to market my internet marketing ebook product.” (Remember, one of the easiest commodities to sell, as Tim Ferriss suggests, is information. You just need to make up a bunch of facts and then spam every freelance site on the web to do it.)

If you’re using content marketing to sell a product, your blog should be more than some halfbaked attempt to score high for keywords. Don’t get me wrong. Keywords are important too. It’s certainly something I do and have done to get traffic and leads (my post entitled Elance Scam is among my most read). But here’s the difference between Tim and myself. I actually enjoy writing this stuff. I don’t need to delegate it out because I really like hearing the sound of my own voice. I think you should be this self-absorbed too. It’s highly rewarding.

Why should you hire a writer? I would hire a writer for the same reason I would hire a plumber. I don’t know what the hell I’m doing when it comes to pipes and water and turds. If you have the slightest inclination towards marketing and writing, by all means do it yourself. And if you can’t do it yourself, find someone who has a unique voice that’s ideal for your brand -not someone who can simply churn out dozens of articles for next to nothing.

Tim Ferriss, I respect that you’ve managed to free yourself from cubicle life. I do not, however, respect how you got there. Now that everyone wants to be just like you, they’re acting more like caricatures than the real thing. The real Tim Ferriss writes his own stuff. You know that.

Your stupid little army is pissing me off.

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My Life: The Ultimate Freelance Definition

Posted by on October 22, 2011

How nice is it to wake up in the morning and know that the entire day is yours? Coming from someone who’s done it for the last two years, I’ll tell you what it is. Pretty awesome. My life is the ultimate freelance definition. I work when I want, get to pick my own clients, and if I want to step out and go snowboarding for a few hours, I can. I’m in total control, and you can do it too if you work at it.

The definition of a freelancer.

It seems that a lot of my readers want to know the difference between a freelancer and well… someone else. What exactly is a freelancer? What’s a good freelance definition? Here’s my best stab at it.

A freelancer is a person who offers some kind of service to several different clients without committing himself/herself to any one particular client.

It’s basically polygamy for the business world. Were I to commit to just one client, I would expect to sign some kind of employment agreement and get tax or health benefits. You aren’t really a freelancer if you only have one client. Then you’re more like an employee. Whether your say you’re self-employed on your taxes has no real bearing on it. You have to be free to pursue many clients in order to be a freelancer.

What’s not in the freelance definition.

There are many things a freelancer is not. People sometimes confuse our approach with other business models. The following do not fit into any freelance definition.

  • People who sell products to customers. That makes you a business owner.
  • People who do not have a marketable skill. I don’t think you can be a freelance burger flipper.
  • People who use their skills to build a new business. You’re more like an entrepreneur. Even better.

It’s good to know this just in case you have to explain what you do to someone else. I get asked about it all the time.

What they forgot to include in the freelance definition.

Nobody mentions how awesome it is to call the shots when it comes to working with clients. I’m not going to lie. A huge reason I started freelancing was to free up my schedule and go snowboarding in the afternoons. I have a rule that still holds to this day. If any client wants to meet me and/or supervise my work in the middle of the day, I don’t work with that person no matter what the cost is to my business.

Whether I actually go snowboarding or not makes no difference. What I want is the option to go if the weather is nice. I spend a lot of days inside working nonstop, and I also spend a lot of days outside killing it on the slopes. I love both equally, but I’d go totally crazy if I had to spend every Monday through Friday 9 to 5 stuck inside when it’s sunny out. You should always enjoy nice weather. There’s plenty of cloudy days for doing work.

I can’t tell you what your freelance definition is, but this is mine. It is free, it is awesome, and it’s totally worth pursuing if you want to be in control of your life.

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I'm Ted, a snowboarder by day and copywriter by night.

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