New Writers: Stand Firm Against Lowball Offers—Here's Why
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Understanding the Freelance Market
Recently, I explored the freelance writing landscape to find opportunities that fit my schedule. One thing has become clear: there’s a significant demand for writers, yet many companies undervalue our work.
For instance, I came across a contract (company name undisclosed) that offered $40,000 for a year. On the surface, this might appear reasonable, especially for those just starting out. However, the expectation was to produce up to 4,000 words daily.
Calculating the pay per word reveals the shocking truth: 4,000 words times 259 working days (excluding weekends) equals over a million words annually. When you divide $40,000 by the total word count—1,036,000—the payout is a mere 0.04 cents per word.
The Complexity of Writing
Writing involves much more than simply putting words on a page. In no scenario should writers be compensated less than a fraction of a penny per word, particularly when companies expect us to act as SEO specialists, social media managers, and content uploaders, complete with specific formatting and imagery.
As freelance B2B tech writer John Iwuozor noted on LinkedIn: "It's essential to recognize that freelance writing isn't just a hobby; it's a profession! Writers are responsible for capturing a brand's voice, conducting research, fact-checking, and engaging in multiple rounds of editing. Accepting meager rates is not the solution."
With over 15 years of professional writing experience, including a stint as a newspaper reporter, I can attest that producing 4,000 meaningful words each day is no small feat.
The Pitfalls of Ghostwriting
Many companies offering low pay will tout benefits like "this is a fantastic opportunity to enhance your portfolio!" While that may be true, remember that a lot of this content is ghostwritten, meaning you won’t receive credit for your work, which could hinder future job prospects.
Although ghostwriting can be financially rewarding—experienced ghostwriters can charge upwards of $20,000 for a single project—consider the time spent interviewing clients and the extensive writing and editing that follows.
Royalties Aren't Guaranteed
Another downside to ghostwriting is the likelihood of relinquishing ownership of the content you create. This means you won't be able to publish your work independently without the company's consent, and you may miss out on any potential royalties. (If a company only offers a share of "earnings," be wary—you could end up with no payment at all.)
If you're looking to create writing samples while still earning royalties, consider platforms like Medium. Their partner program pays monthly based on readership, so if your article gains traction, you benefit financially. Moreover, you retain rights to your work (with some restrictions), allowing you to showcase your name prominently, which is invaluable when applying for future positions.
Be Aware of Tax Obligations
In the past, I've accepted flat-rate payments from companies that don’t account for HST (Harmonized Sales Tax), which is mandatory in Ontario if you meet a certain income threshold as a freelancer. Even if you're under the threshold for charging HST, you must still pay income tax, which should be factored into your rates.
It's wise to request that companies at least cover the 13% HST if applicable. If they resist, simply adjust your base rate to accommodate this. I've worked with American firms that are zero-rated (no sales tax), but some clients in Ontario may not pay HST, resulting in a 13% deduction from your invoice.
Strengthening the Writing Community
I understand the excitement of being a relatively new writer and seeing your name in print, but that thrill fades quickly, especially when bills start piling up. Companies may entice you with low offers, claiming it’s a great way to gain "exposure." I have even been approached to write for free under similar pretenses (many artists are familiar with this scenario).
The most effective way to gain exposure is to produce quality content under your name for fair compensation. How low should your rates go? That varies based on your writing speed and the depth of research required. Always consider the additional tasks necessary to complete an article, as the writing is often the simplest part, particularly when interviews and transcriptions are involved.
Delivering Quality for Fair Compensation
The bottom line for companies seeking written content is this: if you offer low rates, you will receive low-quality output. If a writer is producing decent work for a low rate, they will eventually seek better opportunities.
Don’t let these companies continue to exploit talented writers—this only perpetuates the cycle of low compensation in the industry. As writers, both new and seasoned, it’s crucial to charge what you’re worth.