20 Years Later: Freelancer or Entrepreneur?

In my “From the Editor” column from the January/February 2002 issue of Resume Writers’ Digest newsletter, I talked about the difference between being a freelancer and an entrepreneur.

Twenty years later, it’s still a great topic. 

As a resume writer, do you want to be a freelancer or an entrepreneur? (There is a difference.)

Here’s the original column:

Many self-employed professional resume writers consider themselves to be entrepreneurs when, in fact, they are more likely freelancers. Does it matter? Changing how you define yourself might create more opportunities, lower your stress level — or both.

Without resorting to the dictionary definitions of each term, let me try to explain the difference. Entrepreneurs are trying to build and sustain a growth-oriented enterprise. It is their goal to grow. These are the resume writers who hire subcontractors, affiliate with major career sites, and aim to make more than $150,000 from resume writing. 

Then there is a freelancer. The freelancer wants to derive a living from resume writing — but not necessarily be the biggest or the best. The truth is, most resume writers are freelancers. They contract directly with clients and/or write for others as a subcontractor. They can be home-based, office-based, or both.

The key difference is that they don’t take on more work than they can handle themselves. If they start to get busy, they raise their rates, or refer prospective clients to a colleague. They don’t start looking for subcontractors, or more office space.

Acting like an entrepreneur when you’re really a freelancer can cause you many sleepless nights. You read about some of the biggest names in the business and dream up strategies to conquer the town — or your chosen niche. But if you realized that goal and suddenly had dozens of new clients each day, would you be happy working with them? You wouldn’t necessarily have to become a resume mill, but if you enjoy total immersion with a select few clients each week, you’ll have to adapt your style to emphasize volume.

How you view yourself — freelancer, entrepreneur, or entrepreneur-in-training — will determine how you manage your time, market your services, and run your business.

Take a look in the mirror and answer this question: Which are you — freelancer or entrepreneur?

A note from 20 years later:
The results of the Resume Writers’ Digest Industry Survey suggest most resume writers are freelancers, working with 2-3 new projects per week. But the good news is, if you want to be an entrepreneur and expand your work with subcontract resume writers, it’s easier than ever. You can work with writers around the country — or around the world — from your home. No need to “look for more office space.”

Looking to work with subcontract resume writers? Contracting writers can get a free listing in the Directory of Subcontract Opportunities, one of the “Making Money as a Resume Subcontractor,” resources available to Bronze members of BeAResumeWriter.com. Submit your information here. 

How to Get Started as a Subcontract Resume Writer

 

Fifteen years. That’s how long ago I published the first edition of “Making Money as a Resume Subcontractor.” But that was probably five years after I actually started writing resumes for a contracting writer. I also wrote for CareerPerfect from to May 2004 to October 2008. But before that, I wrote for a solopreneur contracting writer. Along the way, I earned between $500 and $2500 a month from my subcontract writing.

Before, during, and after my subcontract writer phase, I also worked with my own clients. Many subcontract writers do the same. They write as a subcontractor to smooth out the peaks and valleys in their own client load and income as they build their business. Or they want to get exposure to writing for a variety of different types of clients while seeing how another writer or firm operates their business.

But with so many resume writers feeling burned out these days, there’s a third reason to subcontract: To focus on the writing instead of the marketing and business management. Sometimes, you just want to write resumes, not spend your time creating content to attract jobseekers and filling your days with talking with prospects. 

If you’re interested in learning about how to get started as a subcontract resume writer, I’ve got you covered. The 51-page “Making Money as a Resume Subcontractor” special report addresses it all.

Chapters in the special report include: 

• Who Are Subcontractors and What Draws Them In?
• Show Me The Money! (Compensation for Subcontractors)
• Client Interaction & The Information-Gathering Process
• Managing Your Business: Can You Market Yourself and Subcontract?
• Signing on to Subcontract
• Comparing Contractors: Big or Small?
• Once You’re In, How to Stay in the Contractor’s Good Graces
• Don’t Forget Legal Issues
• Other Subcontracting Opportunities
• Golden Nuggets: Benefits of Subcontracting
• Keys to Success as a Subcontractor: From a Contractor’s Perspective
• Words of Wisdom from Experienced Resume Writers
• Results of Survey of Subcontract Writers
• Red Flags When Selecting a Contracting Firm
• Making a Pitch to Subcontracting Firms (including a sample Resume/Cover Letter)
• Your Contract
• Seven Profiles of Subcontract Resume Writers

Even if you’ve never thought about subcontracting before, there might be a subcontracting opportunity that is the right fit for you right now. One way to know is to check out the 25+ listings in the Directory of Subcontract Opportunities.

Each listing includes the following information:

• Specialization (what kind of clients does the contracting writer/firm target, and what services are provided)
• Client fee (what the client pays, not what the subcontractor gets paid)
• Writer qualifications (desired/required)
• How to apply
• What spells rejection for a candidate
• Special requirements
• Turnaround time for projects
• Pay to subcontractor
• Demand weekly (# of projects)
• Client management (client contact vs. ghostwriting; also, if the contracting writer uses a CRM)
• Phone consultation? Paid extra?
• Do writers upsell?
• Revisions? (how are revisions handled; included in pay or compensated separately?)

The Making Money as a Resume Subcontractor Special Report — and the 25+ listings in the Directory of Subcontract Opportunities — are INCLUDED in Bronze membership on BeAResumeWriter.com. There are opportunities with no client contact — and some with. Some offering 1-2 projects a week … or 1-2 a month. Some that pay as little as $75 per project, but some that are $500+. Like I said, there’s something for everyone, even if you’ve never considered subcontracting before.

Join as a Bronze+ member for $27/month or as a Bronze Annual+ for $279 a year. 

You’ll get full access to the “Making Money as a Resume Subcontractor” resources, plus all the other benefits of Bronze membership:

• New done-for-you content each month (Pass-Along Materials)
• A Special Report to help you with some aspect of your bsiness or work with clients
• A Profession-Specific Career Worksheet (licensed from Evelyn Salvador), based on member votes
• Two new Content Checklists each month to help you create client-attracting content
• 30 Ready-to-Use Social Media Graphics (conversation starters, inspirational quotes, and month- and holiday-related themes)
• Discounts on Resume Writer’s University courses (including the signature “Pricing Right” course)

Learn more here.

Note: If you are a contracting writer looking to connect with subcontract writers, fill out this online form to be included in the Directory of Subcontract Opportunities.

Time Management Strategies for Subcontractors

Today, I hosted a webinar for members of my “Making Money as a Resume Subcontractor” membership site. The topic was “Time Management Strategies for Subcontractors.”

As a subcontract resume writer especially, time is money.

One of the biggest complaints of subcontractors is the pay. It’s true — subcontracting often pays less than you could charge your own clients directly. But it also offers you the opportunity to smooth out the peaks and valleys of your own business, get exposure to new systems and processes (learning how other resume writers run their businesses is interesting!), and potentially earn a pretty good per-hour rate.

It’s that per-hour rate that is important.

What you’re paid for a subcontracting project is usually a fixed amount.

The formula looks like this:

The only input you can change in the formula is to lower the amount of time you’re spending on a project in order to increase your profitability.

Therefore, you need to control the time you spend on the project and take charge of that variable.

The first tip is to track the amount of time you spend on each project. Only then can you know how profitable the project really is for you.

That means tracking both the administrative work (your interactions with the contracting writer and the client) and the time you spend writing.

Also track your assignments so you stay on top of project deadlines — this is #1 with contracting writers: You must meet your deadlines.

The second tip is to make your writing more efficient. Members of the “Making Money as a Resume Subcontractor” membership site can watch the “Writing Strategies for Subcontractors” webinar recording. You’ll also find tips in the “Write Great Resumes Faster” book (watch the webinar at the bottom of the page.)

Remember, time is money.

If you’re looking to get started in subcontract writing (or move up), check out Making Money as a Resume Subcontractor (MMRS). You’ll get access to the “Making Money as a Resume Subcontractor” special report, the Directory of Subcontract Opportunities, and access to the recordings of the previous MMRS webinars, including “Project Management for Subcontractors,” “Writing Strategies for Subcontractors,” several Q&As, and all the tips in the “Time Management Strategies for Subcontractors” webinar.

Q&A: I Think Subcontractors Aren't Getting Paid Enough

I sent out an email last week to promote a subcontracting opportunity for one of my listings in the "Making Money as a Resume Subcontractor" membership program and received the following response.

I think the 20% to the writer is the wrong way around. Especially for only a couple of assignments per month.

A fairer business model would see the writer getting 80%+ and the originator getting a 10% - 20% “finder’s fee”, based on the premise that the writer is doing the majority of the work. Also, I think the client gets a better result when the writer interacts with them directly, rather than adding links into the chain of communication.

Having said that I am definitely interested in subcontract work and will check out your site and the YouTube.

Just my two cents!

– G.S.

Compensation for subcontract writing projects generates a lot of controversy.

Ask a subcontract writer, and they will tell you the pay is too low. Compensation is generally ranges from 20-35% of the project fee. Factors affecting the percentage include: the amount of client contact (and whether writing from worksheets vs. conducting the phone intake session) and whether the subcontractor or the contracting writer handles revisions. In general, the more client contact and the more of the project the subcontractor handles, the higher the percentage the subcontract writer receives.

Ask a contracting writer about compensation, and they'd remind you how much more goes into the project than the actual writing of the resume. There is marketing and client acquisition time and costs, selling the client on the project and fee (including determining project scope), getting payment and onboarding the client, conducting the information-gathering process, and managing the project through completion, including project finalization. There's also the risk of chargebacks, which is almost always fully realized by the contracting writer, with the subcontact writer paid regardless.

The author of the question above raises several excellent points. Skilled writing should be compensated well. How much better? I would argue that 30 percent should be the mininum amount, and that should be writing from worksheets with no client contact and no revisions. A project with direct client contact (including conducting the intake session) should be compensated at a higher rate than a ghostwriting opportunity.

But it's never going to be an 85/15 or 80/20 split in favor of the writer. The industry standard for compensating referrals is 15%. That's the "finder's fee" model the original email referred to. But that's very different from subcontracting.

It can be tough to find a qualified (especially a certified) writer who will work on a project for less than $200 (their percentage). At current rates, that means the contracting writer would have to charge $600 (at 35%) to $1000 (at 20%). With the industry average for resumes currently at $500-$600, that doesn't leave a lot of wiggle room.

One more point: The author mentioned "especially for only a couple of assignments per month." Many subcontractors only take on a few assignments per week or month. (The industry average for most writers, according to the Resume Writers' Digest Annual Industry Survey  is 1-2 projects per week, or 4-8 projects a month.) Many resume writers pursue subcontract opportunities while they build their own client base, to smooth out the peaks and valleys. Most subcontractors are looking for extra income, experience, and the opportunity to learn how other writers run their businesses and interact with clients. Some subcontract full-time (or as their only work), but that's not the majority of subcontract writers.

Interested in subcontract resume writing? Check out the Making Money as a Resume Subcontractor membership site. Your annual membership includes the "Making Money as a Resume Subcontractor" special report (with information for subcontract writers about compensation, project management, and more -- and profiles of other subcontract writers), plus access to the Directory of Subcontract Opportunities, with more than 25 full listings for subcontract writing (with more being added and updated all the time).

What is a "Fair" Referral Fee for Resume Writers?

I got a couple of questions from a resume writing colleague today about referral fees, and I wanted to share my answers in today's blog post.

Securing Referrals Special Report

* Can you please advise what is the prescribed fee amount/percentage range that one should offer another career professional for a referral (career service) that would be fair? (Is there any minimum and maximum offered?)

Referral fees are negotiable. 15% is the most common referral fee, but I've seen anywhere from 10-25%. 

One thing to consider when you're deciding what percentage to pay as a referral commission for being sent prospects from a colleague is: What is the QUALITY of the referral? If someone sends a client to you who is pre-qualified and pre-sold (meaning they're a good fit for you and they're ready to buy from you based on what the referring person said), that's worth it.

There's a mathematical way to figure this out, for the most part. You can add up what you're spending (in money and time) each month, and divide it by the number of clients you secure yourself. For example, you might spend 1 hour/week on marketing and $100 on your marketing (website, paid ads, etc.). Let's say you value your time at $75/hour. So that's $75 x 4 = $300/month (time) + $100/month (hard costs) = $400. Let's say you secure 6 new clients/month. So divide $400/6 = $66 (cost to acquire one client).

Let's say that referral partner sends you a client that pays $500/project. Your 20% referral fee would be $100. But remember, unlike your own marketing costs, you only incur this "marketing expense" if you secure the client. With your other marketing costs, you spend $400/month and might get 0 clients out of it. (Or, things might go really well, and you get 10 clients out of it!). But the advantage with referral commissions is you only pay them when you're making money (the other 80%). 

* Are referral fees always required or mandatory? For instance, I offered a referral to a resume writer once for a client that I was not able to take due to other deadlines. However, I did not charge a referral fee upon the client retaining her service. 

No, referral fees are not always required or mandatory. As the referring person, you can always request a referral fee, but it's not mandatory. HOWEVER, thinking of that resume writer, wouldn't you be MORE likely to send clients their way if they HAD sent you a 15% referral commission (even if you hadn't asked for it?) Or even some kind of thank you?

* Are referral fees based on certain factors, or more on the negotiation or agreement between two career professionals what is suitable?

Just like with subcontractor fees, I believe that the more "work" one party does, the higher the compensation should be. For example, subcontract writers who have direct client contact (including conducting intake interviews) should make more than subcontract writers without client contact (and who work from questionnaires). However, because there is no standard in the industry, this isn't always equivalent.

In an "ideal" world, I think it would be:
10% referral fee -- pass along the name of a colleague

15% referral fee -- "normal" amount of selling -- give name/contact info and some information about the resume writer to convince the client they're a good fit

20% referral fee -- going above and beyond -- information about why this resume writer would be a good fit plus introduction of client directly to resume writer

The reason why I generally think referral fees should be 20% and under is that now you're getting into the "subcontract" rates territory. When you'd pay 20% to another writer to create the actual content for the client (again, subcontract fees are generally 20-35%), I think that's the top level. But I have seen some writers who offer 25% referral fees.

In the affiliate marketing world, referral commissions can be up to 75%, but usually these are for set programs (webinars, courses, group programs), not custom services.

If you're looking for more information about eliciting referrals from colleagues, check out this special report:

Securing Referrals: How to Get More Referrals From Other Resume Writers

If you're interested in learning more about subcontracting as a resume writer, check out:

Making Money as a Resume Subcontractor

Why Subcontract?

I've been a professional resume writer since 1996, but in the early 2000s, I decided to supplement my own business marketing with subcontract resume writing. I no longer work as a subcontract resume writer (my own business took off too much for me to continue writing for others), but this is a topic that continues to interest me.

In 2007, my colleague Diana LeGere collaborated with me to write a report on subcontracting, "Making Money as a Resume Subcontractor." We just published the fifth edition of the report, and I wanted to address the second biggest question I'm asked by folks considering subcontracting. (I'll do a blog post later about the BIGGEST question, which relates to subcontract writing compensation.)

The second-biggest question 

I get is 

“Why should I subcontract?”

There are a couple of reasons that I give resume writers considering subcontracting.

• You want to supplement the income you're earning from your own resume writing business. Resume writing can be a "feast-and-famine" business. Subcontracting can help fill in the peaks and valleys, giving you the opportunity to stay busy -- and earn some extra money -- when your phone isn't ringing (or your email isn't pinging).
• You're getting started in the business and you want additional experience. Especially when you are new in the business, you need to write more to improve your skills -- and to learn which kinds of clients/projects you don't want to work on! (After 20 years in the business, I specialize in sales, marketing, PR and advertising clients primarily and I do not write technology resumes or military-to-civilian or federal resumes. Live and learn!)
• You are tired of client management hassles. An emerging area of subcontracting is individuals and firms that ONLY subcontract write. Don't like marketing? Just like writing? Subcontracting may be for you! (I can't promise you won't work with any PITA clients, but at least you'll have your contracting writer to help intervene.)
• You can learn how to manage your own resume writing business better. Individuals who employ subcontract writers have figured out many of the systems and processes involved with client management and business operations. You can get a peek into how they work and adopt these practices in your own business.

If you have questions about subcontracting, I'd like to help answer them! I'm offering a free webinar next week as part of the launch of the "Making Money as a Resume Subcontractor" membership site. You can register for the webinar here or check out the MMRS membership site here.

Is Subcontracting Right For You?

http://bearesumewriter.com/MMRS

One of the biggest issues for new resume writers is the "feast or famine" nature of the work. As you're working to get your own clients, you may consider working as a subcontract writer for another resume writer or a resume writing service (often referred to as the "contracting writer" or "contracting firm."

How do you know whether subcontracting is right for you? Here's some things to consider:

• Are you self-motivated? You need to be the type of person who can get work done when it needs to be done. If you've been assigned a project and a deadline, it's up to you to decide when, where, and how to get it done.
• How are you at managing your time? You'll need to estimate accurately how long any one resume will take you to write you -- and be able to do this with multiple clients. How will you handle things if you get your OWN resume client while you have three subcontract projects to write? Deadline management is critical as a subcontractor.
• Can you work with different personalities? Whether you're a subcontract resume writer or not, you're not working with just one individual at a time. However, it's important that you get along well with your contracting writer (or your contact at the contracting firm). 
• Do you have your own tools? I'm not talking about hammers and nails. You'll need a computer, Internet connection, and software (Microsoft Word). As a subcontract writer, you're responsible for supplying your own tools.
• Can you pay your own benefits? Speaking of providing your own stuff, unless you're subcontracting on the side while you're still employed, you'll have to furnish your own benefits -- including health insurance. Of course, if you're already a self-employed resume writer, you knew this. (And you've been setting aside money for your quarterly estimated taxes too, I hope!)
• Are you good with money? If you're not good at budgeting, being a subcontract writer might be difficult. For example, you may write 8 resumes this month for one contracting writer and receive a $1200 check. Should you spend all $1200 this month because you earned it this month? No. You should save some for taxes, savings, and for the slower months.
• There's still feast or famine moments. Payment doesn't always come on time, like it does with a job. Even your contract writer may have slow times, so that makes it harder to budetyour money. If you can budget through the hard times and ride the wave, you'll make it as a subcontract resume writer.

Hopefully, this has given you some things to think about when it comes to becoming a subcontract writer. There's lots of other things to consider too, of course, like how to find a contracting writer or contract firm to work with.

I've got a resource that will help you with that too. Check out the"Making Money as a Resume Subcontractor" special report and directory of contracting writers.

So You Want to Be A Subcontract Resume Writer?

Every day, I get questions from resume writers. On my blog, I'll post the answers to frequently-asked questions!

Here's today's Q&A!

Question:
For the past few years, I have been contemplating the idea of working as an independent sub-contractor. I have even purchased a copy of your book on this subject. What kind of rates should I expect? Where do I start? I would appreciate any advice you can give me.

My Answer:
Most new resume writers who start out as subcontractors earn $30-$100 per resume project. There are contracting firms that pay more, but they generally want certified resume writers who have 2-5 years of experience or more. And, of course, what you'd earn as a contracting writer is generally much lower than you could earn working with your own clients directly, since the contracting writer/firm keeps 50-75% of the fee (paying the subcontract writer 25-50% for the writing portion).

To get started, I recommend you have the following:

• Your own resume and cover letter (as outlined in the "Making Money as a Resume Subcontractor" special report; see the sample resume/cover letter)
• A completed, updated LinkedIn profile.
• A portfolio of sample resumes (these should be REAL resumes you've written for REAL clients, but "fictionalized" to remove any personally identifying information from the clients). You didn't have to get PAID for these (they can be volunteer/pro bono projects, but they should be for real people). I recommend a minimum of three samples, each for a different industry/field, UNLESS you are going to specialize in a specific niche as a subcontract writer.
• Next, identify 3-4 contracting firms to contact. If they have a particular template format they use, I would also format one of your existing "portfolio" resumes in their writing style with the company's name on the sample (so they know you didn't plagiarize their format, but are instead demonstrating you can work within their template style). 

Note: You can find a directory of contracting opportunities in the Making Money as a Resume Subcontractor Special Report.

Make sure there are absolutely NO ERRORS in any of your communications -- your resume/cover letter/LinkedIn profile, your sample resumes, and your emails to the company. The #1 thing that will get you disqualified from consideration is errors! Attention to detail is a MUST as a subcontractor!

This is absolutely a job you can do from anywhere. However, you will need reliable Internet and phone access. (Some contracting firms require client contact for their writers. You must be able to call clients or receive calls from clients and talk to them without interruption or background noise).

The #1 thing that is important once you've been hired on as a contracting writer is MEETING DEADLINES. 

This is crucial. Miss one deadline and you'll likely be let go, so make sure you can meet the deadline when accepting a project. No excuses. 

The second most important thing is RECORDKEEPING. 

It's up to you to keep track of client documents, deadlines, revision requirements, and most important -- what you're owed! As I said: Attention to detail is key!

YOUR FEEDBACK:

Colleagues -- did I miss anything? Any other advice you have for this new resume writer?

Firm Asks "Where Are All The 'Good' Subcontract Resume Writers?"

Well, actually, Matt Craven, of UK-based firm "The CV and Interview Advisors" asked on LinkedIn "Where are all the great CV / resume writers."

He wrote:
My problem is finding great CV / resume writers. Nearly everyone I speak to seems to think they are great but then proceed to produce sub-standard work with spelling errors, grammatical inconsistencies, a lack of knowledge of hot skills (therefore a CV which is ill-aligned with industry-needs), weak or clunky language and dodgy formatting. Does anyone have any advice for finding truly world-class CV / Resume Writers interested in earning industry-leading rates of pay?

Because I have some insight into the topic from my work on the "Making Money as a Resume Subcontractor" special report -- as well as "Developing Strategic Alliances and Partnerships with Recruiters" (which talks about the pay-sharing component of contracting relationships), I gave this response yesterday:


As the editor of an ebook on resume writing subcontracting ("Making Money as a Resume Subcontractor") I may be able to offer some insight to you. In talking with other writers/firms looking for contracting writers, there are a couple common issues:

• Low rates for contracted writing. Because most contracting firms pay their writers between $100-$160 per project (which can be 15-35% of the fee charged), it's hard to find highly credentialed/talented writers who are willing to subcontract write. If you charge your clients 250 British pounds sterling = 400 US dollars, and you pay your writers 30% (a pretty standard subcontracting fee), that's $120. That might seem like a lot, but the Resume Writer's Digest Annual Industry Survey (2010) found that the  “average” resume sale was $509.36 for surveyed writers.

• Many folks who subcontract write fall into a couple of categories: They are looking to build their portfolio of work/get experience, they want to supplement their income while they grow their own resume writing business, they don't like the marketing/pricing side of the business (they just want to focus on the writing), or they want true flexibility in their schedules (with the freedom to accept/decline assignments as they wish).

• As a contracting firm, you want someone who can accept a reasonable volume of assignments, who turns in consistently good and timely work, who will put your clients first (and not flake out if this is a "moonlighting job" and they get busy with their "real job" -- or if they have their own clients) and who will work for a pay rate that still allows you to make money on the "client management" and marketing aspects of the sale. That can be a tough combination to find if you don't know where to look.

• Speaking of that, you might look at how you're getting the word out about your subcontracting opportunities -- some channels are more effective than others. As much as I love LinkedIn, putting a request for writers on here is akin to putting an ad in a newspaper ... and we all know how that goes! You need to "go where the people are" -- reaching out to folks who are already successful as subcontract writers for other firms ... and/or writers who have achieved a minimum proficiency (i.e., certification).

• Speaking of certification -- Lack of standardization of certification and training programs means it's hard to judge a contracting writer's work without wading through lots of samples from "unqualified" writers. While I don't think that all good writers are certified, most certified writers (especially certain types of certifications) are good. The most rigorous certification is the Academy Certified Resume Writer (offered by Wendy Enelow and Louise Kursmark's Resume Writing Academy) -- but it costs over $2000 .... so you're not going to find an ACRW who will write resumes for $100. Or even $200.

• In your case in particular, there are no "local" resume writing organizations -- so to "farm" for writers, you're looking at US-based associations. Most US-based writers aren't familiar with country-specific requirements for resumes and CVs, so there has to be a training component with most writers anyway. You're more likely to find competent writers from the U.S. (just because there are so many of us -- the US resume writing industry has been going strong for more than 15 years!)... but you'll have to teach them the cultural (and spelling) nuances.

What would you think about me creating a database of "vetted" subcontract writers? I've already got a pretty robust database of writers who are interested in the topic (by virtue of them having purchased the "Making Money as a Resume Subcontractor" special report.

Tips for Starting Your Home-Based Resume Service

I've been writing this blog for a long time -- and I need to review "the basics" every once in a while, because not all of the folks who are tuning into this blog are resume writers...yet! So here's a blog post about getting started ... and, in particular, how to start a home-based resume writing business.

Purchase the book using this link:
http://bit.ly/rwd-rosebook

Honestly, when I started my resume business 15 years ago, I didn't give a thought to operating my resume writing business from my home. Of course, I was in my early 20s at the time, so I thought a business office gave me more credibility. It did. But after 7-8 years in a business office, my now-husband and I decided to get married -- and, as part of the process, we moved our business into our new home.

If I were starting a resume writing business today, I wouldn't hesitate to start -- and operate -- it from home. Technology has evolved to where you don't need to meet with clients in person. 

The current trend is towards more home-based businesses. They require lower overhead and startup money, making them easier for entrepreneurs with limited funds. If you are thinking about starting a home-based resume writing business, here are a few tips for getting started on the right foot.

Benefits of a home-based resume writing business
There are several benefits to running a home-based resume writing business. First of all, you can run the business from your home. Since you already pay a mortgage, utilities and car payments, the only thing you need spend money on now is the equipment for your business. To start a resume writing business, you basically need a computer with word processing software -- although you could use Google Docs (although I don't recommend it).

Secondly, a home-based resume writing business requires low overhead and startup costs. We alluded to the startup costs above and the low overhead means no employees but you. The key to keeping the overhead low is taking on only as many projects as you can safely and efficiently handle by yourself.

In fact, you could be a subcontract resume writer and never see clients. You could work entirely with a contracting writer and do that from home, working in your pajamas. (Check out the "Making Money as a Resume Subcontractor" Special Report for a step-by-step guide to working as a subcontract writer.)

Getting started tips

There are considerations before beginning any type of business even a home-based one.

1. Check out the local laws for registering and zoning a home business. Most home businesses require no zoning issues unless you will be meeting clients in your home and posting signs in the yard. (As we talked about with today's technology, you can have a home-based resume writing business without ever meeting with clients in person.)

2. Small business tax laws. Now that you are a business, you are subject to different tax exemptions, deductions and payments. Sites like www.irs.gov can give you the information you need.

3. Set up a separate work space at home. This could be as simple as using a spare bedroom or den with a door to keep your work separate. If you rely on the telephone, a separate phone line can be added. (Although you can use VOIP services or your cell phone, to reduce your expenses.)

4. Use on and offline marketing methods to find clients. This includes: viral marketing, newspaper and Yellow Pages ads, flyers and direct mailings, email marketing, article marketing, setting up a website, etc. (I recommend my "Online Business Manifesto" Special Report for details on marketing your home-based resume writing business.)

5. Create a schedule to divide time between work and family. Balancing both is hard. Scheduling time and sticking to it means more gets done and no one is slighted. (People always ask me about working from home -- they say, "Oh, I'd have a hard time working from home. I'd be too distracted by the laundry, or TV." I actually find the opposite is the case -- I'm often still working at midnight ... sometimes while I've got a load of laundry in the dryer and I'm catching up on Tivo!)

A home-based resume writing business is an alternative for people who want to work for themselves without spending a lot in upfront costs. If you have the ability to interview clients, write succinctly, and understand personal branding, consider a home-based resume writing business.

Resume Writers Digest 2008 Subcontractor Survey

I have just updated the "Making Money as a Resume Subcontractor" Special Report with the results of the more recent 2009 Resume Writers' Digest Subcontractor Survey. (I will be conducting the 2010/2011 survey in the next few weeks.)

Because the information was replaced in the report, I've decided to "archive" the 2008 results writeup in this blog post.

As you might expect, for many resume writers, subcontracting is a way to smooth out the peaks and valleys of self-employment, at least according to the responses in the Resume Writers’ Digest 2008 Subcontracting Survey.

Sixty-six resume writers completed the survey. Of those, 56 percent are currently subcontract writers, either for an individual or a firm. The rest used to write resumes as a contractor, but are not currently doing so.

More than half of those responding have been subcontracting for at least three years, and fully half of those responding only write for one individual or firm. Most writers produce 1-2 projects per week as a subcontractor.

Compensation

The opportunity to earn extra income is often the driving force behind the decision to subcontract. Interestingly, the average pay for nearly half of all writers was between $51-$150 per project. Nearly three- quarters of writers are paid a flat fee for each project they accept, receiving 21-35% of the client’s charge, in most cases.

Typical projects include a resume and cover letter together (55 percent), followed by a resume only (18 percent). Other services include bios, thank you/follow-up notes, interview preparation training, KSAs, and ASCII text conversions.

Project Management

Most subcontracting projects are assigned via e-mail (61 percent), although a substantial number are also assigned over the phone (17 percent) or through a web portal (12 percent).

The average turnaround time is 3-5 days (33 percent), although shorter timeframes (24-48 hours — 23 percent; 48-72 hours — 28 percent) are not uncommon.

Because standardization is one key to working with a large volume of clients, it’s not surprising that 35 percent of resume writers work with clients via e-mail contact only, transforming old résumés and client worksheets into new documents.

What the writer produces is also fairly uniform — 56 percent of writers work with the client from the draft production through project finalization, working directly with the client to make changes. Seventeen percent produce a draft version only, and 20 percent create the draft but then work with the contracting individual or firm to finalize the project.

Some contracting firms supply templates (24 percent), while most prefer the writer produce the document entirely from scratch (46 percent).

Most subcontract writers are generalists; however, for those that specialize, they most often identify themselves as experts in writing executive resumes.

Substantial growth in subcontracting opportunities exists for resume writers who specialize in federal resumes, as only three percent of survey respondents reported they specialize in this area, and demand from firms seeking subcontractors who have expertise in writing federal resumes continues to grow.

Resume Turnaround Times: Subcontracting Survey

I'm going to have to add a question to the 2011 Resume Writers' Digest Industry Survey about average turnaround times for resumes -- but I do have some data on it from the 2009 Resume Writers' Digest Subcontracting Survey:

Excerpted from the "Making Money as a Resume Subcontractor" Special Report:

While rush fees may be available for extremely short turnaround deadlines, in many cases, contracting writers must produce projects in shorter timeframes than they would when working with their own clients. 

Reported turnaround times include:

Less than 24 hours -- 10%

24-48 hours (1-2 days) -- 10%

48-72 hours (2-3 days) -- 24%

3-5 days -- 52%

More than 5 days --  4%

Results of Subcontracting Survey: Show Me the Money!

One of the most frequently asked questions I get from resume writers who are considering subcontracting for other firms is: How much does it pay?

The second Subcontracting Survey was completed by 33 respondents. Ninety percent of those currently work as subcontract writers, either for an individual or a firm.

Results are pretty evenly split between writers who only work for one individual/firm and those who write for multiple individuals and firms.

The average pay for a subcontract project is below rates that individual resume writers could earn on a project they marketed and managed themselves, but that’s part of the trade-off. In exchange for having someone else handle more of the client management tasks, contract writers can focus on content development.

Average pay per project:

$50 or less -- 0%

$51-$100 -- 27%

$101-$150 -- 18%

$151-$200 --  33%

$201-$250 -- 6.5%

$251-$300 -- 9%

$301-$400 -- 6.5%

$401-$500+ -- 0%

Most resume writers are paid a flat fee per completed project (82 percent of those responding), versus a percentage of the client fee. None of the writers who responded are paid by the hour, although these arrangements do exist. For those who are paid a percentage of the project, the usual portion for the resume writer is 21-35% of the project fee.

You can read the full survey results in the "Making Money as a Resume Subcontractor" Special Report, published by Resume Writers' Digest. The cost is just $20 for the 40+ page report. (It also includes qualifications required for contractors and listings for a couple dozen firms seeking subcontractors, including type of work performed/specialties, turnaround times, and -- in many cases, what they pay.)










You can also read the complete results of the 2008 Resume Writers' Digest Subcontracting Survey in our three-post series from September 2009.

So You Want to Be a Subcontract Resume Writer

Although Diana LeGere and I first published the "Making Money as a Resume Subcontractor" report in October of last year, I've been working constantly to update it with new listings (it now features more than 25 separate individuals or firms that hire subcontract resume writers).

Earlier this week, I added a new listing from a resume writer who had an immediate need for writers, so I told her I'd help spread the word. I sent out an e-mail to the previous buyers of the MMRS report plus culled a list of about 200 CPRWs from my database of more than 3800 resume writers and career coaches. I also sent the information in my e-mail yesterday with a reminder about the availability of the July/August issue of Resume Writers' Digest.

Although I mentioned in my e-mail to non-purchasers that this was for a colleague, I was amazed that some of the responses I received were directed towards me as the "hiring manager." Another contacted the resume writer, asking for general information, although I had included all of this information in the e-mail I sent to [him/her].

Such little things can make the difference for individuals looking to hire subcontractors -- as they can for our clients, who don't pay attention to the details. If the job posting says "No phone calls" and the client calls anyway ... they're not seen as "persistent" -- they're seen as "non-compliant." And they're out of the running.

In the "Making Money as a Resume Subcontractor" report, I've gone to great lengths to outline exactly what the hiring resume writers or firms are looking for from prospective contractors. Follow their instructions exactly -- although you should feel free to also include your own resume and cover letter/letter of introduction (samples of which are provided in the MMRS report).

On the other hand, I did see some excellent "statement of qualifications" e-mails from the individuals who approached me (thinking I was the one looking for subcontractors). I hope they take the time to follow-up with the colleague who actually is looking to hire.

Business Interruptions: Natural Disasters

When you live in an area that is prone to natural disasters -- think Florida, Louisiana, Texas for hurricanes, or California for wildfires and earthquakes -- it's important to diversify your business, just in case disaster strikes.

I've written before about disaster planning ... but a key component of that is being able to get back to doing business -- either while you're evacuated, or after the power comes back on.

Hurricane Ike -- and the devastation it has brought to the Texas coast -- is a perfect example of this. If you're a resume writer in this area, it would be wise to consider partnering with another resume writer who doesn't live in an affected area, or shifting at least part of your business to subcontract writing for other firms. That way, when disaster strikes, your total income is not dependent on local clients, who may also be suffering from the tragedy.

Look at New Orleans after Hurricane Katrina. A huge proportion of the state's population simply left the state after the storm, in September 2005. If you were reliant on local clients, they simply disappeared. Many of them never came back. If you're a resume writer in Galveston today, your clients (hopefully) left in anticipation of Hurricane Ike. Who knows when they'll come back. My database of resume writers shows 20 professionals in Houston alone. What are they doing today? Many of them don't have power. Some of them have damage to their home and/or office. Business interruption insurance is nice ... but it will take time to get back up to speed.

If you have a relationship with a subcontracting firm, you can adjust your workload while you evacuate ... and then quickly start accepting new projects once you're settled somewhere (if you evacuated), or once the power comes back on. With firms like CareerPerfect, you can write from anywhere you can get access to a computer and Internet connection. Everything is stored on their digital servers, so even if you had to leave without your paper files, it's all on there.

If you're interested in learning more about subcontracting, be sure to order my special report, "Making Money as a Resume Subcontractor" (it includes more than 30 individuals or firms looking for subcontractors; available for immediate download as a PDF.)

The report also includes a sample cover letter you can use when approaching subcontracting firms, plus "red flags" you should watch for when selecting a firm for a contracting relationship.

Note: If you are looking for IMMEDIATE subcontracting opportunities, I received an e-mail from a resume writer who is actively seeking out 2-3 new subcontractors to assist her with projects. Pay ranges from $100 to $175 per project, and no client contact is required. She's looking for creative, dependable CPRWs with at least five years' of experience. Purchase the MMRS report and look for the "NEW!" designation in the listing of Subcontracting Firms for her contact information.

Subcontracting Opportunity: WebFolios

Many resume writers supplement their own resume writing clients with subcontract opportunities. I recently was contacted by a firm that is seeking subcontract writers for their WebFolio product.

The company is looking for individuals with experience writing for senior-level professionals. The ability to read rough client notes and develop those into power statements is critical. No client contact is required, and writers must be able to meet reasonable deadlines.

Interested? Send an e-mail to jknight@stewartcoopercoon.com (cc: msettle@stewartcoopercoon.com), subject line: WebFolio Writer. Include two examples of resumes you've written for executive (senior level) clients.

If you're interested in subcontracting, be sure to order my special report, "Making Money as a Resume Subcontractor" (just $20 for the 40-page report, which includes more than 25 individuals or firms looking for subcontractors; available for immediate download as a PDF.)

The report also includes a sample cover letter you can use when approaching subcontracting firms, plus "red flags" you should watch for when selecting a firm for a contracting relationship.

Resume Writing is Recession-Proof

In times of economic turmoil, many businesses suffer. But there's an old adage in the resume writing industry: There's no bad time to be a resume writer. When times are good, people want a resume to get a better job. When times are tough, they need a great resume to compete for jobs.

In fact, my phone has been ringing off the hook the past few weeks. I've heard from a couple of clients that I haven't heard from in years (one dating back to 2003!!) and there has been a steady stream of new clients as well. Another Nebraska colleague reports similar results. How's business for you?

If you're not as busy as you'd like, there are a couple of options. Ramp up your marketing and public relations efforts and bring in more business yourself ... or consider subcontracting for other writers. If you're interested in subcontracting, be sure to order my special report, "Making Money as a Resume Subcontractor" (just $20 for the 39-page report, which includes more than 25 individuals or firms looking for subcontractors; available for immediate download as a PDF.)

Looking for Subcontract Writers?

I am working on updating the compiled list of subcontract opportunities in the "Making Money as a Resume Subcontractor" special report. If you are an individual or firm that hires subcontract writers and want your listing included in the report, please e-mail me (rwdigest@aol.com).

Also -- a reminder that my Subcontractor Survey is still open. If you are a resume writer who subcontract writes, please take the survey! (Because this blog is accessible to the public, you need to e-mail me to get the link to the survey -- I won't be posting it directly on here.)

Subcontracting Survey

To follow up on the article in the January/February 2008 issue on "Making a Pitch To Subcontracting Firms," I am conducting a subcontracting survey.

I sent an e-mail to all active subscribers today with the link to the survey. If you have NOT yet signed up to receive your free subscription to Resume Writers' Digest, use the form in the upper right hand corner of the blog.

If you are a resume writer who currently subcontract writes resumes -- or you have subcontracted in the past -- please e-mail me at RWDigest@aol.com (subject: Subcontract Survey) and I will send you the link to the survey. (The survey takes about 5 minutes to complete.)

The survey will remain open until March 31.

I hope to make the Thursday survey a regular feature, and will report the results on the blog. I will also publish the survey results in the Making Money as a Resume Subcontractor Special Report.

Off-the-Wall Subcontracting Ideas

Response has been great to Diana LeGere's "Making Money as a Resume Subcontractor" Special Report, and I continue to come up with ideas for other subcontracting opportunities.

Have you considered these ideas?

• Handling updates and resume retargets for busy resume writers. Updates and retargets generally aren't as profitable -- team up with a resume writer and offer to handle these projects for a fee (30% to 50%) and the mentoring that comes along with project oversight and document approval.

• Provide coaching services for career professionals who only write resumes. There are plenty of resume writers out there who don't do coaching of any kind. Partner with them to offer the service under their brand, and share the revenues!

• Provide resume services for the clients of mental health professionals who offer career assessment and coaching services. Look in the phone book for therapists who offer career testing/career assessment services (they might be listed under "Counseling" in your local directory). Create a referral relationship or a direct contract for services under their brand.