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6 Reasons Why Every Freelancer Must Have an Alternate Payment Option

Florante Valdez — Fri, 11 Jun 2010 07:27:06 +0000

Being too reliant on only one payment option has proven to have serious consequences. And if you are working in oDesk, you know [tweetmeme]exactly what I mean. I’ve seen the forum filled with dismayed people, frustrated providers and helpless freelancers who couldn’t do anything about their payouts because they only use Paypal for payment transactions. Let’s face it, technology is not foolproof. Paypal, Moneybookers, Payoneer or whichever institution you are using, gives you no guarantee that they will be up all the time. But you can safeguard yourself from delays and bill payment rush when a sudden service interruption occurs.

I’m quite certain that many have actually hopped on getting a second or third option next to Paypal because of the Paypal-oDesk incidence. And honestly, I just came to an epiphany that there are deeper reasons why you or every online freelancer must have a backup payment option.

Exchange Rate

If you are from a country other than the US and receives the final payout in a different currency other than US dollar, getting an alternative financial institution can give you a favorable advantage to withdraw your funds with the higher exchange rates and lower fees. The current rate that Paypal charges ($1 per withdrawal)is considered minimal, but what I’ve noticed is an unusually big difference in the exchange rate that Paypal imposes compared to prevailing currency exchange. At some point, I was getting $1 to Php43 but it’s actually $1 to Php44.5 Well of course I know that Paypal wants to earn as well, but a peso per dollar would have been more reasonable. I’m not sure if how much I’ve earned since I first used Paypal or oDesk but I’m certain that if I have been more vigilant and got me more option to withdraw my funds, I could have saved a few hundred if not thousands of pesos.

Flexibility

Since I started accepting projects outside of Elance and oDesk, I’ve had a couple of clients who actually gave me the option to elect my preferred payment option. This is primarily beneficial for me since I can choose an institution like Xoom or Swiftcash so I can quickly receive payments at no extra cost or just a fraction of it if my client would require me to share in the overall transfer fee.

Availability

Maintenance, hacking, internet downtime, these are just some of the many other reasons that may cause an institution to be unavailable when you need their service. I understand that most of the financial institutions are committing to get their system a 100% uptime but it’s just too difficult to neglect the reality that what ever technology they have, however sophisticated they may be, it’s still not foolproof and invincible to even the simplest glitch that could cripple their operation. Thus, getting an alternate payment option can ensure that you get paid on time when your primary option is unavailable.

Speed

Let’s face it, not all of us have the patience to wait 3 days or even 2 days just to verify an account. And not many will be agreeable to getting their payouts late because many are depending on this source of income to pay bills and other obligations. If this fits you, then you should create a plan B to minimize if not eradicate delays and late fees.

In my experience, the quickest way to receive payment have been through Xoom money transfer. With Paypal, it takes 2-4 business days to withdraw to my bank account, and even longer if your client’s pay by echeck. And if you have a team where you subcontract your other projects, I’m sure they will be as frustrated as you are. Getting alternatives can help you keep up with emergencies and time sensitive financial obligations like mortgage payments, house rents, internet bill payments, etc.

Simplicity & Convenience

Instant money transfers provides a lot of convenience to both parties. The procedures are a lot simpler, easier and requires lesser effort to make. No need to have a credit or debit card, verify it, and unnecessary lost of funds is avoided (just like what happens when you set up for a moneybookers account)

Security

Whenever I encounter accounts that has a pin or password, it almost always tells me that I need to take extra care. Because those same passwords and pins or security words are actually what makes my accounts vulnerable. As compared to instant transfers, the moment it’s released, the funds can be easily withdrawn, and does not compromise your whole nest egg but just a single instance. One of the steps that I’ve taken is to ensure that I don’t leave substantial funds overnight on my Paypal account. I just feel that security is not too strong. I’ve read forums where people’s Paypal accounts where infiltrated and it simply made me a bit paranoid and ultra conscious that I withdraw funds to my bank as soon as it reaches my Paypal account. I guess the more unpredictable your next step is, the safer you are. So the more options you have to withdraw your funds, the bigger your chances of eluding your would be attacker.

Get a Job, Keep the Job!

Florante Valdez — Sat, 06 Mar 2010 05:42:10 +0000

If getting a job is a challenge, keeping a client is a feat. That’s what I’ve learned from the seemingly horrible experience of financial crisis. Many strive to get a job, but few has the wisdom to keep those clients. Many get hired for weeks or months but few last for years, nor get a repeat transaction.

If you are having this same problem you are not alone. You’ve probably thought life is so unfair and employers are opportunists, taking advantage of the employment drought. But that is not always the case.

I couldn’t forget my interview with John Jonas when he said “When you get a job, keep the job” I’m sure John has some great experience why it made such an impact to him. But the question is, how do we keep the job and turn from being a part timer to a full time, full pledge freelancer.

1. Speak Your Mind

– It’s been taught many times and preached repeatedly how important communication is. So speak your mind. Getting your idea across is essential to ensure that you and your client are working on the same page. It’s actually a common mistake to us, that we keep things to ourselves when we have doubts or hesitations instead of saying right there and then. And the longer it gets stuck in your mind, the more destructive impact it will make if those hesitations and doubts turn to be an essential element for you to deliver the needed results. Don’t be overcome by pride that will tend to make you feign that you know things. Accept that you need an answer to all those questions at the back of your mind. Don’t guess. You’re job is not to be a clairvoyant or a psychic.

2. Learn to Negotiate

– before you can keep the job, you must learn how leverage your negotiation skills to be able to get the job. Negotiation simply means becoming more flexible in many terms or aspects like schedule, pay rates, scope of service and other issues. It means agreeing on certain terms that is tolerable to both parties and would bring out mutually beneficial working relationship. Negotiating means sacrificing a part of your comfort zone but not necessarily a lost but a reduction only.

3. Underpromise but Over Deliver

– alright, I know sometimes we tend to become so engrossed in writing those cover letters and proposals but be very careful, you might just end up ruining your career by giving too much assurance to your client. One basic rule, be REALISTIC! Don’t promise the whole universe. They might believe you. Stick on what you can deliver, and when i say deliver, I mean delivering with excellency. It means giving a wow factor to your client’s experience.

4. Don’t Get Stuck

– Don’t let yourself stagnate on what you know, strive to learn new things that you can offer to your client’ and his future needs. Exercise those brain cells! Or else, you’ll get eaten up by the younger, more energetic, affordable newbies. Keep up with the trend in your field and you’ll never regret you did.

5. Ask for Feedback

– if you’ve worked with someone for years already, don’t get too relaxed and so secure. Times change, moods sway, and most of all, this world is full of surprises. And the worst surprise you’ll ever get is a final handshake from a client whom you “thought” was satisfied. Asking for feedback or evaluation on your performance is a good way of thwarting this kind of situation. It will make you aware of where you stand and what step you should make to resolve any issues that may be critical in keeping the business.
Image source: www.businessandleadership.com

How To Succeed As a Freelancer

Florante Valdez — Thu, 25 Feb 2010 19:10:20 +0000

I’m not a guru when it comes to freelancing. I have only been in this field for about 2 years. But, I have learned a handful of lessons that’s been helping me realize my dream of a successful freelance career. I must say that working at home as a freelancer is like a balancing act between success and failure. It’s like walking on a thin wire that a bad move can mean disaster. But it doesn’t mean that it’s not possible to succeed.

Is there any secret mantra to success?I don’t think so. The road to success have long been carved. It’s in the books, in our parents words of wisdom, it’s everywhere on the internet. But it’s only found by those who seek it. It’s only realized by those who wills and purposes to achieve it. People may gauge success differently. Some look at your fat bank account as a the ultimate measure. That can be one. Now here’s some more…

Thrive in Competition.

Competition is very big factor why many newbies, and even long time freelancers lose faith that they can survive in an ever growing dog eat dog environment. The feeling of insufficiency, insecurity and inferiority takes them down even before they start. To succeed, recognize your lack, build on your strength and enhance them. And most important, strive to diligently move forward. William Feather once said “Success seems to be largely a matter of hanging on after others have let go.” You can never change your competitors but you can change yourself by changing your attitude towards competition.

Understand what real service is.

Working and finishing an assignment with flair is not at always a guarantee that you can get a repeat customer. But if you’ll include a good customer experience, that is, good communication and interpersonal skills, an extra mile to deliver exceptional results, honest and cheerful disposition, you’re not only earning from your current work but you are investing for future assignments too. Bottom-line, real service is about building relationship.

Know when to say no

Not all the glitter is gold. With freelancing, not all opportunities are worth taking. In order to succeed you should learn to say no even to the most promising, financially rewarding offer under certain conditions. First of all, practice saying no if you’re health will be compromised for working too long. This will not only affect your productivity but will ruin your reputation. Don’t take on too much on your plate that you no longer have time for your family. And should certainly say no if you are being offered something that’s too good to be true. That’s most probably a scam.

Build and bank on reputation

Those who want to thrive in their freelancing career should know that a reputable name is worth more than the earnings. So start building your reputation. Every project is an opportunity to build your name and earn the respect of your employer. Every feedback you’ll receive is a gauge of your effort to succeed.

Set Your goals

Goals and purposes provide direction. If you want to succeed, start visualizing it. Write them down and place it on a visible location where you can always be reminded. Benjamin Disraeli said, “The secret of success is constancy of purpose.” Take every occasion as a means to actualize your goals and purposes.