Which way to turn for better or more consistent income?
@SpikeTheLobster (6403)
August 23, 2011 6:38pm CST
This is a bit of a downer for me, as one of my regular (virtually perfect) clients for my freelance writing work has just turned to poop. Not literally.
Basically, the changes occurring with him mean a bit of a pay cut and a massive motivation cut. The good news is that he's still an excellent client; the bad news is that I'm on the lookout for a bit of extra "output space" - somewhere I can produce work that will earn, since I'll have time to spare and a bit of anger to turn into writing energy.
Now, the question is this: do I go for revenue share or do I go for one-off sales?
I know exactly where I'd publish on rev share (given that I have over 2 years of income stats from various sites, I know where I'll target). I know exactly where I'd publish for direct sales (given that I'm already selling there).
The question is which would you choose: a little bit every month (and working under the assumption that the rev share model will continue to operate over the coming years) or a one-off payment of 20 times the monthly amount (or more) for a direct sale on each article... but only once? Or would a mix be a smart move, in case rev share dies, the bottom falls out of the direct article market or Godzilla eats every computer on the planet?
I'm kinda torn, so I'd be interested to hear which way you'd turn if you were in this dilemma.
Please note: I don't need sites. I don't need "how to earn" info. I don't need to know about writing. I don't need to know about blogging. I don't need referrals. (I've been doing this since November 2008: I'm interested in opinions not info here!)
1 person likes this
12 responses
@bloggeroo (2167)
• Philippines
24 Aug 11
I think the issue here is more about getting new clients than simply increasing revenue. It is, of course, understandable to focus on your best clients during the good times, but as you have found out, being dependent on a few good ones is a risky proposition when some kind of "black swan" event happens (i.e., drastic changes in your business).
It is probably more prudent to have a "new clients acquisition" system/policy in place so you won't be overly dependent any one client. Earning 80% of your income from say 10-20% of your client base means you are vulnerable to whatever happens to your client.
4 people like this
@SpikeTheLobster (6403)
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24 Aug 11
Good points but much less applicable in my situation - I'm a part-timer. I have 3-4 main clients at any one time and they're all (except one) semi-regular. I could easily replace this client or add another but I'd rather use the time I've been using to work for him with something for me, that gives me income purely "for me, by me" and not from working for someone else.
1 person likes this
@PointlessQuestions (15397)
• United States
24 Aug 11
I agree with getting new clients, and then get some people to work for you to keep the content flowing.. you charge about 6 cents a word, pay your workers for or 5 cents a word and keep the other cent for the markup.. your profits off everyone who works for you. You could be sort of rich if you had about 100 writers you were keeping busy writing content.
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@SpikeTheLobster (6403)
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24 Aug 11
I've thought about that option VERY VERY frequently. Unfortunately, managing a team of writers (and sourcing work) is not something I can do in about 10-15 hours a week. At least, not effectively.
And I suck at management, since I've never wanted to be one.
@GardenGerty (161274)
• United States
24 Aug 11
A lot of us seem to lean the same way. I am at the starting block myself, and that is my plan, to earn now and also build residuals.
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@SpikeTheLobster (6403)
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24 Aug 11
As with so many things, it comes down to time. Putting my eggs in separate baskets means a lot of additional time or effectively splitting the earning potential between them. This is the hard choice: earn lump sums or go for background earning.
I must admit to leaning towards the lump sums, since I could always invest the money and earn interest on it, which is effectively residual income. If I didn't spend it all on chocolate...!!
Then again, some content is better (IMHO) as residual. Hmmm. Hard choices.
@GardenGerty (161274)
• United States
24 Aug 11
Spike, I am interested in where you would go for Revenue Share, as I am just trying to set up some in writing. I have a site where I get some direct orders, enough to get my feet wet anyway. My plan, since I already have some up on a revenue share site, is to continue there, unless I find something a lot better. In addition, I will continue with this direct order site as well. Being a belt and suspenders type of gal who wants to retire in about five years, I want to work on both. So that would be what I would tell you, as well.
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@GardenGerty (161274)
• United States
24 Aug 11
@spike, I am unemployed at this moment and not even getting any nibbles, so it is write or die, more or less. TextBroker is doing okay. Helium, we will have to see, as I have now thirteen articles there. I would like to connect to others everywhere. @Stine, thanks, I may have to see about reposting some of my Helium content there. You are correct, I have not taken that site seriously, mainly because I do not know how to get past the junk and do not know what earns a lot there other than working my fingers to the bone. I make more here for the same effort. TextBroker I cannot republish, but it is kind of nice, I know what I earn and when I will be paid. I have one HubPage and I wrote that ages ago. I have a long list of sites I have not written yet, that is for sure.
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@SpikeTheLobster (6403)
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24 Aug 11
@Gerty: my main client's actually looking for a couple more writers but I think he's aiming at the cheapo end of the market (when I asked, he quoted 2-6 bucks an hour, which sucks horribly if you're in the US). Partly, that's my fault because he knows I can edit crap and make it good, so he doesn't pay much for the original writing. Most of his staff is based in India and accepts 300-400 bucks a month for full-time basic work (like an internet researcher he's after at the moment). Personally, I wish he'd pay someone like you more, cos then I wouldn't have to shovel crud all the time...!!
As for HubPages, I've just had better luck there. It's still rubbish income (with only 19 hubs, to be expected) but it earns double AC/Helium income for half the content (so that's, uh... 2x2... uh... 4 times the income per hub) for me. OK, so 4 times half a cent is still stupid small amounts, but you get the idea!
@Stine: Keepin' secrets, girl? Pffft. What's all this "nudge nudge, wink wink" stuff, eh?
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@SpikeTheLobster (6403)
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24 Aug 11
Sounds like you're going for the whole-hog full-on business! Woohoo!
I'm just a part-timer, though. Limited time, limited resources, no plans to retire (since I'm also a full-time carer where there IS no retirement). As I mentioned in a response above, I'd just like to do some "me" work. Everything I do at the moment is for other people and it'd be nice to build some stuff that's "by me, for me".
Rev share: for the kind of thing I do, it sucked on AC and it sucked on Helium (NOTE: they do not suck - they just don't work for me!). I'd go to HubPages, where I've had an average $2 a month without writing anything new for 2 years.
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@scheng1 (24649)
• Singapore
24 Aug 11
Hi Spike, best to strike in the middle.
That means you take enough paying assignments to pay off the bills every month, and then use the rest of the time to write for long term passive income.
Granted that we cannot write at the same rate every month, due to sickness or holidays, the passive income will help to tide over until you can work on the one-off sales again.
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@purplealabaster (22091)
• United States
25 Aug 11
Well, if you use simple mathematics here, then this seems like a "no brainer". If a one-off payment would be twenty times what you could make in a month doing the rev share, then you could not sell another one for almost two years and still have earned the same amount as working at the rev share. On the other hand, if you have free time when you are not getting any business in the direct sales, then having something coming in would help. Therefore, I think that a combination of the two would be your best option with your main focus being the direct sales but devoting whatever free time you have to the rev share.
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@SpikeTheLobster (6403)
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25 Aug 11
The maths isn't quite so simple: yes, it's obvious if a single article goes for, say $15 in one hit, that's probably 2 years of earning from a rev share article (that's a random figure). But - and here's the rub - the rev share one keeps going and I only had to do it once. The direct sale hits and is gone; I have to keep working to keep selling. That's why residual income is much better than a direct exchange of money for time.
Then again (oh, the complexity!) the rev share relies on the site's existence and continued pay, whereas the direct sale doesn't. Less uncertainty.
It's a really tough choice, which is why I think the common opinion of splitting the time - which again you've stated so clearly - is the way to go. Thanks, Purple: you're always a help!
@petersum (4522)
• United States
24 Aug 11
Take what you can now! Can't say what will be the value of money in the future. Even here, I don't know what I will receive when those Dollars are converted to Euros. But whatever comes, I'm buying my coffee now because next month it could be out of my range.
2 people like this
@SpikeTheLobster (6403)
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25 Aug 11
That's the funny thing: looking back at the last couple of years, it actually works the other way round. Now, admittedly I haven't put effort into either, since I've been doing direct-to-client work, but all my rev share stuff (taking the best site and ignoring a few dollars from the lesser incomes) has brought in about $50 from 19 articles. Direct sales has brought in twice that from only 7. Makes the choice really hard!
I'm definitely leaning toward the so-obviously-smart first sentence of yours: "If you can do an extra on the side, why not?" Blindingly obvious, now you put it like that!
@SydneyHazelton (4586)
• Singapore
24 Aug 11
I read this concept recently. I suggest that you focus 30% of your time and resources on making fast buck (direct sale). Afterall you need to survive in the short run. Spend 70% of your time building your business. In your case, it would be to establish long term consistent income.
I have been focusing on the long-term only and suffer in the short run.
@SpikeTheLobster (6403)
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24 Aug 11
Sounds like the advice to spend 30% of your time on marketing and 70% on work. Solid advice, but...
I'm a part-timer. I'm not trying to build an international mega-corp. I'd rather spend that 30 or 70 per cent of my time actually earning - especially since I know I can get the work or earn in other ways.
@sanjay91422 (2725)
• India
24 Aug 11
If you were doing a good job then you can do the job for some one else too. Make your market by working for other client.
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@SpikeTheLobster (6403)
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24 Aug 11
I don't want to. Maybe that wasn't clear: I don't want to replace the client or add a new one. The choice is between revenue share or individual sale of my articles. Perhaps you meant go for direct sales? That'd make sense.
Sound choice but there's a part of me that nags: there's no residual. Everything is a direct exchange of time for money, which is the worst way to work, really. That's why I'm torn between the two directions.
@Dominique25 (9464)
• United States
24 Aug 11
I feel I would go with the direct sales. That way I could get the money right away. I would be hesitant about trying to wait a time and see where it goes. If I know that I have the chance to get the money now then I would do that. And perhaps then later I could work on rev shares. But you are a very smart person and so I think what you choose will be the best decision for what you want.
@SpikeTheLobster (6403)
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25 Aug 11
It IS tempting to go for the quick(er) money, though there'd still be a delay and uncertainty as I'd be putting stuff on sale rather than writing to order (though part of it would be that, too). Oh, the uncertainty! Every time I think about it, I come up with a different solution.
@PointlessQuestions (15397)
• United States
24 Aug 11
I do belong to a site that buys my stuff and does give me revenue sharing too... and when I work hard I can probably make a couple of hundred a month with that... but that is not my main source of income. I work for an individual who pays me 0.03 a word, so that adds up to a goodly sum... and then when we flat spin an article the words can double and we get 0.03 for them too.
I don't have any real opinion for you... I'd suspect you know what you have in mind to do. I'm getting out of the content farming business.. though I still have income coming from that end and always will, since I have over 1200 articles on the site I use.
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@SpikeTheLobster (6403)
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24 Aug 11
$15 for a 500-word article... nice. That's about the level I'd like to maintain but it's not always easy (especially when clients do things like this!). If I didn't have other responsibilities, it'd be easier: I could just grab bigger clients. Unfortunately the need for schedule flexibility outweighs the financial.
Your setup sounds very nice indeed. Hope it lasts a long, long time.
@francesca5 (1344)
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24 Aug 11
thats an interesting question. though making a calculation on something like this depends on personal circumstances. as paying the bills has to be a primary consideration. in which case i would go for the direct sales up to a level whereby i could ensure comfortable payment of bills.
however beyond that the question still is dependent on circumstances. as you have found that being too dependent on one person to provide work has created a problem when that source of work dried up, therefore you want to avoid becoming too dependent on another. however, if direct sales generate a significantly higher income than revenue shares it would seem sensible to concentrate more resources on them, subject to certain conditions, such as the reliablity of the person buying, and the dependency factor.
though the caluclation on revenue sales is also complex, and it also depends on whether it is the case the if more time is spent in that area earnings would increase proportionaely, as perhaps, you gained a reputation within a site, that increased your earnings.
another factor to consider, however, is that direct sales would dry up if for whatever reason you were unable to work, whereas revenue sales would be a continous income source, even at times when you were unable to do direct sales.
i would probably do a 60/40 split in favour of direct sales, if that proportion covered my bills, and then as the revenue income increased i would move more in favour of revenue sales.
though relying on one source for revenue sales could also bring with it the same problem you have experienced with direct sales. so i would take the not putting all your eggs in one basket advice very seriously.
a warning here though, this may not necessarily be good advice, i just like playing with the idea.
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@SpikeTheLobster (6403)
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24 Aug 11
Playing with the idea is exactly what I was after. Vunderbar, thank you.
I'm definitely leaning in this direction for almost exactly the same reasons. It's really nice to have a surge of immediate income (massive motivation boost, I can tell you) but there's always that nagging "you're exchanging your time for money... where's your nest egg?" thought.
Thanks for such a well-expressed train of thought. It sounded a lot like me talking to myself, so I think it's probably the way to go. 3 days direct, 2 days rev share - it even splits nicely in a working week.