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).

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.