How to get paid as a freelance contractor?
9 tips from 6prog about getting paid - Be paid for your time - by following these tips
How to get paid as a freelance contractor
How you can get paid as a freelance contractor
Freelance contractors are in high demand right now. Whether it's because of the skills they posses or the expertise, freelancers are getting recruited left and right. But how do you get paid?
Freelancers are paid in the form of contracts. So, if you're hired for a project, you'll be sent a contract with the details of what tasks are needed, an outline of the time period that the contract is for, and a payment.
Types of contracts
You might be a Contractor or Freelancer who needs a little guidance, or a small business owner looking for the right Contractor to hire. Either way, you'll need to know how to sign a Contract. As a Contractor, you may have signed a hundred different Contracts over the course of your career. In the world of Contractors, there are different types of contracts that have different uses, numbers of pages, and legalese.
This article covers the different types of contracts offered through 6prog.
-Freelance Contract: A freelancer contract specifies the rate of pay, the expected total hours the freelancer will work, and the duration of the contract.
-Fixed Price Contract: A contract contract specifies the milestones the freelancer will deliver, and the duration of the contract. It is less important how many hours are delivered as long as the milestones are finished by the due date.
-Ongoing Services Contract: An ongoing contract specifies the rate of pay, the total hours and frequency or ‘on call’ nature of the relationship or support needed by your client
Who should you work with?
Are you a freelancer looking for projects? Or a client looking for freelance suppliers? Can't seem to find the projects you want to do? Don't worry, it happens to the best of us. You can find someone to work with right here on 6prog. How do you find the right people? Below are some features to look for when screening potential partnerships.
Do they have a good portfolio?
Do they have a good project outline?
Do they provide a realistic timeline and budget?
Do they have a clear idea of what they want?
Do they have a clear idea of capability and track record?
How do you set up a contract?
Contracts are a key part of business, whether it's a contract for a freelance contractor or a supplier. In order to ensure that both parties are fully aware of their obligations and responsibilities and that there is a clear and legal document to refer to, the contract needs to be set up.
In 6prog, the contracts are generated right from your project notes so in many ways, you don’t need to worry. The contract has been reviewed by industry leading freelance authorities and you can annotate the SoW to reflect the detail of your project.
Recommendation: You can run multiple short concurrent short projects. If you don’t have the scope detailed enough for both parties then run that part of the project later once you have scoped it to everyone’s satisfaction. Further advice from IPSE and Use '6prog' as code to receive exclusive 67GBP discount.
What should you include in a contract?
A contract is a legally-binding agreement between two or more people. It can be used to form a business partnership, to outline the terms of sale of goods, to take on a project, for example, to find a contractor.
Contracts are not always complicated documents, but it is important to put in place clear agreements so misunderstandings don't happen.
What should you include in a contract?
A contract is usually composed of the following components:
The parties to the contract
The topic or purpose of the project
The scope of the engagement
The duration of the contract or time period
The obligations of the agreement
The types of compensation
The obligations of the parties
What about taxes?
Small business owners, freelancers, and contractors are used to all of the legalities of running a business, but many people don't realise that tax laws are different for contractors.
The differences might seem painfully obvious, but tax returns are complicated. They can take a long time for a contractor who knows what to do. If you're not careful, you might end up paying back taxes due to IR35 or missing out on benefits because you didn't know you were eligible to receive them. 6prog partners with Crunch, FreeAgent, CountingUp, inniAccounts and more where you can get detailed tax support from qualified accountants.
Check the links on this page https://www.6prog.com/Account/Partners
Cool stuff we like - 6prog
What should I do if I am a freelancer and I don't have a contract?
Contractors are sometimes uncertain about the best course of action when they are working on a project that is not well defined or does not have a contract. There are many reasons that a contractor may not have a contract, but the best thing to do is to fix this asap. How?
Contractors should take the following steps in this situation:
Log into 6prog.com and invite the client to view your proposed work schedule. They can accept it to create a formal signed contract.
Your client should appreciate this clarity.
Freelance work is rising in all industries and there is a rising problem with contracts.
Putting together a formal obligations to the company and to have set expectations and obligations is important for freelancers and companies. Furthermore it helps with the main point of running a freelance business… “show me the money”
What about getting paid?
Pricing - 6prog The fastest and most cost effective contract engagement process
Freelancer dot com, Fiverr and Upwork all charge a hefty fee to both the client and the contractor. This may be ok with you but at 6prog we didn’t like it. As ex consultants we were familiar with charging models for work undertaken by the big 4, other platforms and the agencies in between.
At 6prog we don't believe in hidden charges, cash-back schemes or multi-layered charging policies. We don't believe in subscriptions, tie-ins or upfront fees.
Since starting my freelance career I'm often asked by contractors to review their rates and tell them what I think they should charge.
Recently, I was asked, "How do I set my day rate?"
Setting your day rate is tricky. When you set your day rate, you're setting your "going rate" for the type of work you do. Charging too little or too much can make it difficult for you to make your desired income.
To set your day rate check out 6prog’s POSTS and talk to an expert who can help in our social meeting rooms.