The Six-Figure Freelance Obsession

SEASON 4, EPISODE 4:

You asked and we're giving it to you: Today, we're finally digging into the obsession with being a six-figure freelancer. The bottom line for us is that the only people who truly care about our finances are the families we’re supporting... and our accountants! But when someone talks about 5-figure months or 6-figure years on Twitter, everything seems to light on fire. There are obsessors, doubters, and everything in between. Why the heavy emotions? And more importantly: What is the context behind those numbers? Making 6 figures can be incredible, but it's also only one version of success. In this episode, we talk about why it’s worth letting go of beliefs of how much you *should* be making (as Jenni likes to say, should is ‘could’ with shame attached to it) and defining your own metrics of success instead. And if you do decide that success for you looks like earning more, we’ve got some ideas within the episode to help you to achieve that, too.

Full Transcript Below:

Jenni- Hello, everyone, and welcome to The Writers' Co-op.

Wudan- We are your co-hosts. I'm Wudan.

J- And I am Jenni. So before we dig in today, our episode is sponsored by OutVoice, which has a mission that we are super stoked to get behind. All too often, as I'm sure you all know freelancers have to spend weeks, months, years, tracking down overdue, unpaid invoices and OutVoice was created to fix that. So it's the only freelance management system that is built for publishing by freelancers. OutVoice empowers freelancers and publishers by using automation and CMS integration to radically improve freelance management and invoicing. How that looks is that contributors can be paid instantly. Yes, I'm gonna repeat that—instantly—with a click of a button that publishes their work. So there's no need to even generate an invoice, and that means that everyone saves time and money. So publishers really love OutVoice probably as much as freelancers do. So right now, there are a bunch of publications that are already using OutVoice, including InStyle, Foreign Policy, FanByte, Clickhole, Adweek, all sorts of other places, they've moved their systems, and they're all transitioning to OutVoice soon if they haven't already. So next time you see someone struggling with a broken invoicing system, or maybe next time you are struggling with a broken invoicing system, and a client is paying you late, you should tell them to visit OutVoice.com and leave all of their headaches in the past. If you're interested in joining the OutVoice mission to fix these industry wide payment problems for good, you can also follow OutVoice on Twitter at outvoicepay

W- Instant payment? Sign me up.

J- I know. Paying net now is how we run The Writers' Co-op, and I really love hearing that someone is trying to fix the system rather than just griping about it. Total win. So Wudan, let's get into our episode. How are you doing?

W- I am not bad. Moseying along, finishing out work for the year. End of the year is so soon. I am excited. I have felt a lot more tired working this year in general. And I will be taking my month for winter break starting December 15. How about you, Jenni?

J- That's awesome. I am in the same boat. So I filled up my coaching roster through the end of the year. I am at the point where I can't take on any more work. So I just got to ride the wave into 2022. But I think it's good to feel like I have a full schedule of work. And I am also taking three weeks off in December. So yeah, I'm pretty busy up until then.

W- So many things going on.

J- Yes. So many I think this time of year, as a freelancer is always like very busy and then very quiet. It's a weird mix. Let's get into it today. It's a new week and a new episode.

W- Yeah, still can't believe we're doing a fourth season. But here we are and digging into the stuff that feels interesting to us.

J- Yes, we are still here. And it's worth asking y'all to take a moment to rate and review The Writers' Co-op, if you haven't already. It makes a big difference. It helps other freelancers find us on the interwebs

W- Yes, please. Alright, Jenni, what are we talking about this episode?

J- This week, we are talking about six figure freelancing.

W- Dun dun dun. Yeah, both of us have so many feelings about this.

J- Yeah, lots of feelings.

W- I feel like whenever this conversation pops up on the bird app, people just go bonkers. I'm just gonna call Twitter, the bird app. Everyone's gonna get used to it. Those tweets just get so much engagement.

J- I know. Even when I wrote that Medium post, I think it was like three years ago now, about making 120k during my first year freelancing, people clamored to it. It is still literally years later, one of my most read articles, and I say clamored in a very like positive and negative sense. People, when you talk about making six figures, are amazed and inspired. And then they are doubtful, and they're angry and they don't believe you. So I think all around talking about making six figures just brings up a lot of emotion for people.

W- Yeah, I agree. And I have a similar experience. Because last year, I wrote about how I doubled my income and made six figures. And so every month when Medium sends me, my money's I think that generates the bulk of my you know, $2

J- Those huge payments. People were obsessed with it too, right? So, I guess why do you think there's all this attention around the idea of being a six figure freelancer, Wudan?

W- To me it's tied into two things we've talked about before on here already. So: value and limiting beliefs. I think writing is still largely an industry that is underpaid. There are so many staff jobs that pay like $40,000 Actually, I saw a staff job listed for like 26K. 

J- No! 

W- Yeah, no is right. The idea that making six figures seems out of reach, let alone making a decent living.

J- Yeah, I think you're right that people see six figures and They think, oh, wow, that must feel so valuable right to be paid what I'm worth. And I think you're right, that there are a lot of limiting beliefs around if making this kind of money is even possible for a freelance writer. It's a challenging thing to believe that it's not possible and then see people do it. I think that's when you get the pushback. So it feels to me like this whole issue just brings up a lot of feelings, both positive or negative, depending on what you believe,

W- Totally. And I asked my followers on the bird app about this before, and somebody mentioned that making six figures represents hope, like you can make your own money without potentially, you know, being employed under an exploitative situation. It shows what's possible.

J- Yeah. And I think that symbolism can be really big and liberating, right? It's because like what we said, suddenly, the limiting belief of freelancers don't make money or writing is undervalued, gets tossed upside down. And then it's like, Oh, my God, so much more is maybe possible. 

W- Yeah, so on the surface, this episode may be about making six figures out of freelancer. But what I really want you to take away from this is that this episode is us talking about success.

J- Yeah, I'm really into this. We have thought about working on this episode for a while. And I think where we get stuck with six figures is that six figures is one version of success, right? Making that kind of money is one version of success. Some people—think about people like me who have student loans and need to pay for things like childcare and an expensive city—all of that would be a reason why six figures might be a mark that defines success and stability.

W- Yeah, and I just want to repeat that the reality is that it's only one version of success.

J- Yeah. So this episode will be about success, and how money plays into that or not, and why we have such big emotions around these big numbers.

W- If y'all remember, back in season two, we interviewed a range of people who believe that they ran successful freelance businesses, all of who made whatever amount of money they needed, and can live on and satisfy their own lives and families.

J- Yeah, and all of them made different amounts of money. So some of them made six figures, some didn't. But they all felt successful. And for us, that is what we believe is the most sustainable position here creating a business that works for you for your priorities for your needs, not just based on an arbitrary, quote, unquote, "should do" marker of success.

W- Totally. And because we know you'll ask, we will offer some tactical tips to increase your income, whether to the six figure level or not.

J- Yeah, or beyond. Because did you know there are small business owners who make 250k? Or more, right? Yeah, like there's always more.

W- Before we dive in all the way, Jenni, why don't we tell our own stories with this, since we now both make six figures? How did you make the decision to be a six figure freelancer?

J- Yeah, I'm excited to talk about this. So when I started planning the launch of my business, I knew I wanted to match my old salary, which was in the 70k range. And I knew I was also going to have to pay extra taxes, cover my own benefits, all of that. So when I started, my goal was that I wanted to make $6,000 a month minimum. And then I put a roof on it after a few months, which I've talked about at 10k Max. So my financial goals, I should say, were big for reason, at that point. It wasn't about the numbers, so much like the numbers alone, but it was the fact that I was a primary breadwinner for my family at that point. So we needed me to make that much. Like we did the math and that was the number that came up, that 6k number. So student loans, expensive city, all that. And you know, now, it's also the case that I have a kid. I also want to say, I've been doing a lot of therapy around the idea of success and recognizing that making that much each month at first in my business was also a natural way for me to feel like I had hit an impressive benchmark. So what I mean is that, I think I picked that number, because it also made me feel good about myself, which is part of what we're talking about today is sort of, you know, pulling apart the idea of money and success, because I have always been very accomplishment oriented. And I get a lot of value from being a person who is financially successful. Financial security makes me feel like I'm in control. So I think hitting those numbers was necessary, but it also represented to me that I was a worthwhile person in the world. And by that, I guess, I mean, there were like practical benefits and mental benefits for me. And also, I was really used to working like crazy hectic pace in past jobs. So when I worked at that pace as a freelancer, I found that my income increased really fast. I will say I didn't plan on making 120k during my first year, but looking back, I can see that it made a lot of sense. Like there were a lot of mental benefits for me. And the pace I was used to working that, it made sense that I would hit that number. So I would say it wasn't fully intentional, I guess is the short answer to that. So what about you, Wudan? Tell me about your six figure journey.

W- So for me the longest time I didn't think I needed to make that much money. So years three to six of freelancing, for me, were thinking that making around 50,000 a year was enough for me to live on. So I guess I was creating my own limiting belief in a way. Like, this is what I need to live, why would I need more? And for added context, I was still in my 20s, with very little regard for planning for the future. So there's also that. And then things changed for me last year when I realized how much I would be capable of working. So COVID really put that to the test in a good and bad way. And I think what I mean by that is, even though I took on way too much work early on, I realized how efficiently I can work, how many hours a day I could work, what my day rate was, and it revealed just a lot of other stuff about my workflow. It showed me that I can manage to do quite a bit more work than my usual leisurely pace, basically twice as much. And that's one way, you know, I thought about doubling my income and hit six figures. So it wasn't that I needed the money. I'm still not sure that I do. It is really nice to have that cushion for myself, put it in savings. Now that I'm a lot more liberal about taking vacation and kind of don't need to think about it. It's nice to throw that money into my retirement or general investing funds, or just keep it in my checking account on months with slower cash flow.

J- Yeah, I think that safety net is really nice. And it's also, I've been talking to my clients a lot lately about this idea that do you need the money beyond a certain point? And like, do you feel guilty about it? What does that money represent? It's an interesting question. And I think what's been interesting to watch for you is how much that increased income has given you space and time to take time away. I also think it's interesting that you talked about working more to make twice as much because with anything related to freelancing, it's all a time money equation, right? Like you can work more, then you earn more. It's part of this conversation. 

W- And if you work too much, you burnout. That legitimately happened to me last year: 2020. So I made a few changes within the last few months: more vacation days, much higher rates, all the good stuff. So then the time that I'm working is just worth more.

J- Yeah, I think that feels right. And I would highlight that in that, there's a strategy involved in making six figures around elevating your rates. So we'll get into that in a moment if your priority is to bring in six figures. But can I say something else about success, Wudan? 

W- Yes, always. 

J- Okay. So in 2022, my goal is actually to really decouple my idea of success from financial gains. So this is a really interesting moment for me to be having this conversation, I think. For a long time, like I said, I measured my worth as a worker and person against my income spreadsheet. I would get to the end of the month. And I would look at the number I made. And if I hit my goals, if I made 10k, I felt worthwhile. And if I didn't, then I was pissed at myself. So it was sort of a shortcut to feeling successful. And I think the reason why I don't want that to be the case anymore for me is it leads to patterns that don't serve me, like burnout, overwork, not being able to say no to assignments that don't serve me, etc. So I guess like, what I'll say is I'm adding new metrics to my idea of success. So I'm not eliminating the idea of money as being part of my success. But also, there's questions like, am I taking care of myself mentally, emotionally, and physically? Did I go outside a lot? Am I present with my family and friends? There's a lot more for me now, I guess, when I look at success, and I think this comes back to the fact that there are different seasons in which you will need different things as well. So in 2018, it did serve me to make six figures. And now, for many reasons, I'd be happy with making 60 or 70k. But being happy spending time outside feeling more fulfilled. So I just think that metric has changed for me over time.

W- Yeah, that's so interesting. And I think that's the key to what we, again, really want to say in this episode. Six figures is cool, but what does it get you? So we don't really want to talk people into or out of it, because it's really about figuring out what you want first, and then asking if earning six figures will get you there. Sometimes it does, and sometimes it does not.

J- Yeah, and I would add, I think it's important to figure out why money feels like success to you if it does or why you're envious of it, or why you think people who make six figures are corrupt, right? Like all of those beliefs probably come back to your money story, probably from your childhood or your parents. In coaching I've just learned money is never really about money. It always represents other things. So maybe before we get practical, Wudan, what does money represent for you?

W- I would say at this point, it represents freedom. So remember, my parents immigrated to the US. I was put through public school all the way up to college. And I watched my parents build wealth from extremely little. So that money, that wealth, gave them the ability to buy property, grow their wealth even more and just live their life. So that's where my perception of money comes from. And of course, there's the phase of growing wealth where you're just getting by, right? So the way I run my business now offers me a lot of time off. It offers me the freedom to go explore where my business can go with the help of a coach. It offers me the emotional freedom that comes with being able to hire my burnout coach, aka therapist. It offers freedom in the sense that I'm saying no a lot to a lot of potential opportunities. So that's for me. What about you, Jenni?

J- Yeah, like I said before, money is usually representative of control. For me, if I'm bringing in regular solid revenue, I feel very much in control of my business and my life and knowing where my money is coming from and going, gives me a sense of control. But lately, I've also been seeing that money kind of represents approval for me too. Like, people will think I am cool or impressive or great if I make a lot. It's a way to measure my self worth. So again, I'm trying to shift to money as more of an enabler of living my life instead of self worth or control, however that looks. So maybe there's still little control in there, too. But it's like the money is the scaffolding and the support, not the actual main goal of why I show up to my life every day.

W- Yeah, that approval makes a lot of sense and resonates for me too, because I think since I started making six figures, my parents have stopped questioning if I have a real job or not. So anyway, we are releasing this episode around the end of the year, where people are probably making plans for their business, the coming year.

J- Yes. And with all this conversation about what six figures gets you, we do think it's important that everybody does a little bit of self reflection before setting your 2022 goals.

W- Totally. So I think one exercise, which may be fun for people to do is make a business plan that involves making six figures as a little experiment, shall we say? So determine how many hours you're willing to work to make that happen. What happens to your hourly rate? And how do those rates square with the clients that you currently have? And does it sound like it would be a positive for you to make these changes? Or do you realize that it might actually burn you out?

J- Yeah, I think you can't know how it looks unless you try, right? So if you haven't written a business plan, if that sounds scary, we have a course that walks you through it or a bunch of worksheets in our resource store. We'll link to those in the show notes. It walks you through all the steps. But yeah, I think that is a fun exercise. And at a base level, it also just shows you what is possible financially, if you want it, and what you would have to change to get to that kind of reality.

W- Exactly. The exercise is imagining yourself making a six figure business.

J- Yeah. And asking, What does that get you? Right? How would it change your life too? So we also want to offer some ideas in this episode about how to boost your income because you know, we like to get practical. So we want to talk about this is possible, if you decide it's something that you want. How do you do it? So Wudan, why don't you start us off? Do you crank if you decide that you want to make more?

W- So if I decide I want to make more money, it helps for me to define what my boundaries are. Because looking at my business plan in my rates, I know that to make 100k a month—sorry, 100k a year! 100k A month would be amazing. I don't know when that will happen. If somebody just wants to shower money on me that's cool, too. But 100k a year would be around $9,000 a month. And if I'm working 30 hour work weeks, doing the math gets me to about $75 an hour. So I like round numbers, love rounding up. Love padding things. So probably boost that 75 to 100. And so 100 is probably the rate that I'm going to be aiming for, if not double that, depending on the client. So suddenly, I'm looking to see, you know, my client base, if my projects can pay me at least $100 an hour, if not more, so I know where I'm aiming. That is my first step: figuring out what parameters I need to make money that I want and sticking with it.

J- Yeah, absolutely. Boundaries are everything. I think when you're working towards a goal like this. And along with that, you'll have to say no, a lot, right? So if people bump up against your boundaries, if those rates aren't what they need to be, you have to say no in order to get to the income that you want. That's how you carve out the path towards six figures, I think is really by prioritizing work that moves you towards your financial goal, if that is your goal. So you'll say no to clients who take up too much time. You'll say no to clients who are what we call PITA clients: pain in the ass clients. You'll say no to clients who drain your emotional energy, you'll say no to clients who don't pay your hourly rate or whose work doesn't matter your long game topic wise or in terms of value. So I think that is a big change with a six figure business as there's definitely, and maybe counterintuitively, a lot more saying no.

W- I agree. What else, Jenni?

J- Yeah, to me another step is once you know about your new financial goals, you want to intentionally look for those clients who have larger budgets. So that's probably, you know, tied to what you said, and in our last episode actually about leveling up we talked about this too, but there's no like formula or secret pot at the end of the rainbow with clients who have hearty budgets. But it does make sense to look for them.

W- Yeah, I would say think commercial clients, not necessarily newspapers or magazines. Think a bit out of the box get creative. Matt Vilano, one of our guests from season two, says that about half of his clients are commercial clients. And Jenni, I think you remember saying your split with commercial versus journalism when you were doing more journalism. I think mine is around 70% journalism and 20% commercial. I know, that doesn't add up to 100 because there's also the podcast and other stuff, too.

J- Yes. Yeah. I think I was like a 60/30 split of commercial and journalism if you count product reviews as journalism. So again, like, I don't know why this still feels taboo. But like, so many of us are doing journalism and other work. And that's how we get to the six figure mark. I have a question, though, Wudan, related to that. I feel like when you talk about making six figures, and when we see that the bulk of your income is from journalism, people are like, isn't that supposed to be impossible?

W- Yeah, I guess, I guess, question mark. It's supposed to be impossible. And yet, here I am.

J- Yeah, you're evidence to the contrary, I guess. You are the evidence against the limiting belief. So how did you get to this place where your journalism is so highly paid

W- Surprise! Back to boundaries. I don't do assignments for less than $1 a word anymore. I'm more consistently seeking out clients who pay $1.50 or $2, a word. And of course, I hate per word rates. So I try to get more stability in my income by asking for project rates based on a specific scope of work, which also specifies the word count. So you know, I could be fast on the story, if it pays like 500 bucks, and the edits aren't that bad, and I don't need to report. But that's no longer my preferred way of working anymore. And even for fact-checking, I'm pushing for project rates, because hourly rates are truly a losing battle for me.

J- Yeah, I love this. How often do you think that you're saying no, at this point in your career?

W- God, so much. I said no to a $2 word assignment the other week. And I didn't actually feel like an idiot. But it felt crazy to say no to an opportunity that paid that much. But I just genuinely couldn't fit that commission into my schedule. And I get a lot of fact-checking assignments that don't pay what I need, or that I just don't have the time to take on. So I'm saying no, and I'm referring others to this work many, many, many, many, many times a week.

J- Yeah, you're like a referral agency now. 

W- Oh, my God. 

J- So I guess along with this, I also want to say that you can hit six figures if you're hustling to the extreme, too. This is obviously an option. So writing 30 stories a month, working 60 hours a week, not taking time off, that is a route to six figures. But I will say from our coaching practices and our lives, Wudan and I have both seen that there is just definitely a cost to this method, which is why we're so pressing No. Like, I would look at it as success with side effects. So I think the thing I want to say about making more money and having it be sustainable, so you can continue to make money long term, so you don't burn out is just strong boundaries. Boundaries, like you just said, Wudan, around who you work with, and how much they pay, but also boundaries around when you are working. So clients aren't bleeding into your evenings and weekends. Really defining what else you want to happen in your life around your work.

W- Yeah, we know that burnout comes from being always on, always needed. And the more burned out I am, the less money I make. I keep saying that I was so burnt out last winter that I lost $9,000 in January of 2021 because I couldn't work. And I'm not trying to escape, or I am trying to escape all the time when I'm burnt out. You know, if I'm burnt out, I'm not as efficient as I could be. And I think we've both discovered that, counterintuitively, the more time that we are away from work, the more we make when we're back at our desks because we have more focus and energy.

J- Yeah, it's wild, right? Like, I am working probably a max of about 25 hours a week right now. And this is my highest grossing month of my business ever. So I took three weeks off in September. And I think that's partially why, when you've taken lots of time off, Wudan—we both do this—it just means that we're taking care of ourselves. So then we show up with that focus, with that intention to get a lot done in the short amount of time. I would not have expected this when I started my business, but holding to my boundaries and actually taking care of myself has been one of the biggest parts and having the energy required to hustle a little bit and make the money I need to hit six figures. Even though this is kind of like an ambiguous issue. It just feels like holding your personal boundaries is a really important part of this, too.

W- Yes. And of course, you know, the more a client bleeds into your non-work hours, your hourly rate suddenly goes down even if it's past your work hours and you're not time tracking anymore. So holding your boundaries is about mindset, like you said, Jenni. Coming to work with a clear head, feeling empowered. And then there's also the practical awareness of your schedule and figuring out which clients treat you with respect. So one thing I do is I have a note in my email signature about my working hours, I set an out of office message on probably at least once a week, blocking my calendar off, figuring out what you need to protect yourself and your time.

J- I thought about this a lot in my first year of freelancing. I took Friday's off and I was traveling a lot. I didn't want clients who couldn't respect that. So I know people are often afraid like, if I set these boundaries, what's going to happen? Is the client going to be angry? Well, I think what I learned is that if someone had an issue with me setting boundaries and taking care of myself, I didn't want to work with them. Because it wouldn't be a sustainable long term relationship for me, I probably wouldn't get the work done fast. And then ultimately, I wouldn't be being paid very much. So even this past week, I actually had an experience with a client who was emailing me asking for edits on a day which I had clearly communicated, I was away. I clearly had an out of office message responder. Still, they kept emailing. And I gotta be honest, like, I'm not going to work with them again, or at least not on that kind of story. So I really keep my work hours clear. I communicate them often. And it's a set boundary for me, because it's a really clear need. 

W- Boundaries, boundaries, boundaries. 

J- Yeah, we could shout about boundaries forever, I guess. And I think that is sort of the takeaway here to this episode is that you need to figure out what you want, and you need to set boundaries around it. So with six figure freelancing, the question we want you to ask to start is, does six figures serve you? Like, why do you care about making six figures, and if you do decide that it does serve you and you want to make that much, then we have some ideas about how to boost your income and your freelance business, whether or not you are aiming for six figures. I will say, those tactics that we've mentioned about setting boundaries and raising your rates, and being picky about your clients will help you make more whether or not you hit six figures.

W- I'm just gonna say this again, because I can't say it enough. Six figures is a really arbitrary marker of success. It's just one version of success. Frankly, the only person who really cares about how much money they are making from freelancing is, tada, you. And the only person who benefits from those extra monies and who feels the pain of an aggressive hustle is also you.

J- Yeah, create a business that works for you, because you can and that is a more sustainable choice. It's literally why Wudan and I run our own businesses. It's about control and empowerment and the ability to build lives that we love around businesses that support those lifestyle choices that we need.

W- I love it. And don't forget today's episode was sponsored by OutVoice, which helps publishers pay you instantly. It's a win win for everyone. Check them out at outvoice.com. Jenni, I will talk to you soon. And one last note: Again if you enjoy the podcast, please rate review and subscribe on iTunes. It helps others find this easier and we are so grateful for your support. Until next time. 

J- Bye, Wudan. 

W- Season four of The Writers' Co-op is made possible by you, our listeners. The Writers' Co-op is co-hosted and written by me, Wudan Yan and Jenni Gritters. Our producer is Jen Monnier, and our editor is Susan Valot.